Rental Items and what you need to know

Posted: May 11, 2012 in Buyers, General Information, Sellers
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Many sellers include rented water heater, alarm systems, water softeners in the sale of their home but there seems to be an escalating issue which has become prevalent with the use of rent to own such as furnaces being installed especially in new construction properties.

These items are often listed on an agreement of sale and it should be notice that these are actually conditional sales contracts. These contracts should not be assumed in the sale of the home. Just because you are paying month to month does not mean it is a rental item. If the payment is to a “financial credit” company or such the chances are that it is a rent to own which in many cases are non-assumable, or are assumable but with conditions. These contracts can result in the Seller having to pay them out on closing or remove the chattel.  The Buyer on rent-to-owns and conditional sales contracts are not obligated to assume these contracts even when they are assumable. The buyouts on any of these items are all the payments to the end of the term, which is very onerous. Sellers obviously would become very unhappy in this situation and tend to blame their agent for this. Be sure to get the contracts out and read the fine prints, before assuming that it is transferrable.




















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