Tip: Not sure yet if this is the right deal for you? Here is a New York Times article on some of the benefits and risks of a rent-to-own deal. Here`s a tip: Whether it`s a landlord or a tenant, make sure you have a valid rental agreement in writing! Home ” Immobiliengesetze ” RA 9653 – Rent Control Act 2009 ” The Rent Control Act exempts asset-to-account agreements in the Philippines. If LESSEE/BUYER is three (3) months behind. In this case, LESSOR/SELLER has the right to prohibit access to the LESSEE/BUYER, visitors, hosts and staff in the premises and the right to block rented premises until the debt is satisfied; Without a rent-to-own contract, tenants/buyers and landlords/sellers would have fewer opportunities. The owner cannot honour his oral commitment to sell the property at a specified purchase price at the end of the rental period. Or the tenant denies the promise to pay for all maintenance and repair work of the property. Under the new Rent Control Act, rent must be paid in advance within the first five days of each month or at the beginning of the lease, unless the lease provides for a later payment date. It also allows the owner to claim a maximum prepayment of one month and a deposit of two months. Deposits expire for the benefit of the unit owner to cover arrears and/or damage repair costs, only in cases where the tenant does not pay the rental or electricity bills such as water and electricity or damage the property. A special tenancy agreement is used when a tenant wishes to rent a property for a specified period of time, usually several years, and has the option of acquiring the property at the end or before the end of the period. Often, the tenant cannot buy the house immediately for a number of reasons – because they don`t have the money for a down payment, they don`t have enough credit points, they don`t have credit or they`re not ready to commit.
And in a slow market, a lease option contract gives a seller more options as he or she earns a stable income. While the market for a rental home tends to be smaller, it may be a good option for the right seller and buyer. Below is a list of the pros and cons of this agreement: the standard contract for rent is available here: www.foreclosurephilippines.com/2009/04/19-free-legal-forms-and-contracts-from.html b. When LESSEE/BUYER terminates the lease with or without reason; As promised, I share a rent-to-Own type contract specifically for use here in the Philippines. A Rent-to-Own contract is more correct than the lease with option to Purchase or CLOP. This is comparable to lease options contracts used in other countries, such as the United States. However, I think that leases would not have been affected by the new legislation, even if they were covered, since most lease options often have a fixed monthly rent rate for the duration of the lease. However, the exemption from leases under the new law generally provides more flexibility for homeowners and real estate investors. However, for rents, the new law helps, in my opinion, to establish a very clear basis on when rents should be paid, on the amount of advanced rent and the deposit that a landlord can demand from his tenants, which is the reason for the eviction from the courts, etc.