Is there even a Plan C?
There is a Plan C, says de Waal.
Some 10 years ago we started and fine-tuned the concept of rent to own, he says.
The concept of Rent2buy was then developed.
The upside of the Rent2buy concept is that it is a simple process to conclude the Rent2buy agreement.
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We usually use the same deed of sale/offer to purchase that the seller and buyer signed, which collapsed when the home loan was declined, and add a Rent2buy option on top of it, plus a lease agreement and an exercise of the option.
The exercise of the option is only signed at the end of the Rent2buy term, say 12 or 24 months later, when the buyer secures finances usually in the form of a home loan.
Author: Meyer De Waal
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