Rent to buy option
Do you need to wait for a mortgage decision
Rent-to-Buy: Your Path to Homeownership in Spain
Are you dreaming of owning a villa in the sunny paradise of Spain but struggling to secure a mortgage right away? Our rent-to-buy option might be the perfect solution for you! This innovative approach allows you to rent your dream home with the option to purchase it later, making homeownership more accessible than ever.
Why Choose Rent-to-Buy?
Rent-to-buy agreements offer numerous benefits for potential homeowners, especially if you face challenges in securing a mortgage immediately. Here’s how it works:
Immediate Move-In Start enjoying your new home right away while you work towards ownership.
Build Equity A portion of your monthly rent payments goes towards the purchase price, helping you build equity over time.
Fixed Purchase Price Lock in the purchase price at the start, protecting you from future market increases.
Time to Secure Financing, Gain up to three years to improve your credit score or save for a larger down payment.
Our Offer: Villa on a Rent-to-Buy Basis
We are offering our beautiful villa on a rent-to-buy basis with the following terms:
Asking Price €525,000
Initial Deposit 10% (€52,500)
Monthly Rent €2,500
Duration 3 years (36 months)
Total Rent Paid Over 3 Years €90,000
Amount Contributed to Purchase Price €142,500
Final Purchase Price After 3 Years €382,500
Payment Plan
Sample Rent-to-Buy Agreement
Rent-to-Buy Agreement (Contrato de Alquiler con Opción a Compra)
This Agreement ("Agreement") is made on [date] between the following parties:
Owner: [Owner’s Full Name], with national identification number [DNI or NIE], residing at [Owner’s Address].
Tenant: [Tenant’s Full Name], with national identification number [DNI or NIE], residing at [Tenant’s Address].
The parties agree to the following terms:
1. Term of Agreement
This Agreement will last for 36 months, starting from [start date] to [end date]. During this period, the Tenant has the option to purchase the property located at [Property Address] under the conditions laid out in this Agreement.
2. Purchase Price and Rent Payment
The agreed purchase price for the property is €525,000.
The Tenant agrees to pay a monthly rent of €2,500.00 on the 1st of each month.
Of the total rent amount, €142,500 will be applied towards the purchase price as follows:
€2,500.00 x 36 months = €153,000.
Of this amount, €142,500 will contribute toward the purchase price, reducing the total mortgage required to €382,500.
At the end of the 36-month term, the remaining balance of €382,500.00 will need to be financed by the Tenant via a mortgage, or through other means, to complete the purchase.
3. Financial Pre-Approval and Mortgage Requirement**
The Tenant is required to:
Secure mortgage pre-approval within the first 12 months of this Agreement, with confirmation provided to the Owner.
If the Tenant fails to secure a mortgage by 3 months before the end of the Agreement (by [mortgage deadline date]), the Owner reserves the right to cancel the option to purchase.
Failure to arrange financing within the specified time frame will be considered a breach of this Agreement, and the Owner can retain all amounts paid, including the rent and contributions toward the purchase.
4. Tenant Responsibilities
The Tenant will bear all costs for utilities and taxes related to the Property, including:
Water
Electricity
Gas
SUMA (municipal property tax)
Proof of payment for these charges must be provided upon request.
The Tenant is also responsible for maintaining home insurance during the rental period, covering both damages and liability. Proof of the insurance must be provided to the Owner upon request.
5. Maintenance and Upkeep
The Tenant is required to keep the Property in as new condition, similar to its state when the Agreement began.
General Maintenance:
The Tenant agrees to handle all general maintenance of the Property at their expense, including minor repairs, cleaning, and any necessary upkeep.
Decorating the Property:
The Tenant may decorate or make alterations only with the Owner's prior written consent. Any changes should be easily reversible unless otherwise agreed upon.
Inspections:
The Owner reserves the right to inspect the Property every six months to ensure the Tenant is fulfilling their obligations of upkeep and maintenance. A minimum of 7 days' notice will be provided for each inspection. If the Tenant fails to maintain the Property to a high standard, the Owner reserves the right to hire external contractors, at the Tenant's expense, to bring the Property up to standard.
Should the Tenant decide not to proceed with the purchase at the end of the Agreement, the Property must be returned to the Owner in as new condition. Any deterioration beyond normal wear and tear will be the Tenant’s responsibility to repair, or the Owner may deduct repair costs from the amounts already paid.
6. Deposit
The Tenant shall pay a non-refundable deposit of €52,500.00 upon signing this Agreement. The deposit will be applied to the final purchase price if the Tenant completes the purchase.
In case of default or failure to complete the purchase, the deposit will be forfeited and will not be refunded.
7. Proof of Income and Guarantor
Before signing this Agreement, the Tenant must provide:
Proof of income: This includes tax returns or bank statements from the past three years.
Guarantor: The Tenant will also provide a guarantor who will be financially responsible if the Tenant fails to meet any obligations. The guarantor must sign this Agreement and submit financial documentation proving their ability to cover the Tenant's liabilities.
8. Purchase Process
At the end of the 36-month term, the Tenant may exercise their option to purchase the Property by paying the remaining balance of €382,500.00 either through a mortgage or other financial means.
Taxes and Fees:
The Tenant will be responsible for:
- Notary fees.
- Mortgage arrangement fees.
- Local property purchase taxes, such as Stamp duty (Impuesto sobre Actos Jurídicos Documentados) and transfer tax (Impuesto sobre Transmisiones Patrimoniales*).
9. Default and Termination
In the event of non-payment or failure to meet any other obligations under this Agreement, the Owner may terminate the Agreement by providing 30 days' notice. If the default is not remedied within this time, the Owner has the right to reclaim the Property, and all sums paid by the Tenant will be forfeited.
10. Governing Law
This Agreement will be governed by Spanish law, and any disputes will be resolved in the Courts Juzgado de Primera Instancia in Rojales
11. Notarization and Registration
This Agreement will be notarize and registered with the Property Registry (Registro de la Propiedad).
Signatures
Owner’s Signature: _______________________ Date: _______________
Tenant’s Signature: _______________________ Date: _______________
Guarantor’s Signature: ____________________ Date: _______________
Witness Signature
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Our rent-to-buy option is designed to make homeownership accessible and straightforward, especially for those who might face difficulties securing a mortgage immediately. With a fixed purchase price, the ability to build equity over time, and the flexibility to improve your financial situation, this is an ideal path to owning your dream home in Spain. If you’re interested or have any questions, please contact us at [Your Contact Information]. Start your journey to homeownership today!