Beware of the “Right to Buy” Offer
There are non-realtors out there who are trying to put real estate deals together, using an agreement called a “Right to Buy” or “Option to Purchase.” They then try to sell their right to a third party, taking a fee fo their efforts. A CBC story made national headlines about a BC couple who moved to Calgary after agreeing to an option to purchase agreement with a company called Kelowna Home Deals. This company then tried to sell the option to a tenant under a rent to own agreement.
The result was that the tenant paid money to Kelowna Home Deals, and then paid nothing else. The owners received nothing and the tenant feels that they were ripped off as well.
The idea of a rent to own agreement between an informed landlord and tenant, with professional representation, can be a win-win arrangement for both sides. This involves a lease with a separate option to purchase agreement, with appropriate protections for both the landlord and the tenant. But when there are no professionals involved, you can expect trouble, as was the case here.
See the attached link to the article that appeared in Canadian Real Estate Magazine, where I was quoted on what happened. If you need any assistance in setting up a rent to own agreement, please contact me.