rent with option to buy

does anyone know how a rental with option to buy generally works?

for example, how an option to buy is set up, what percentage is applied towards the down payment, how it affects the monthly rental amount, how the purchase price is agreed upon, etc.

any advice is greatly appreciated - i think DH and i are closer to getting a home!!

Re: rent with option to buy

My MIL did it in the 70's and she had a contract set up with the price. It was good that she had an ironclad contract, b/c the housing market was not good when the contract was written, but when she ended up purchasing the house, the price was way up - so it was a great deal for her.

I don't knwo any of the logistics. I would imagine a RE attorney would draft up the contracts ($800-1000) and they would have the right answers.

Re: rent with option to buy

bump