How to Avoid Scams in Rent to Own Agreements
Stay safe with simple checks that confirm ownership, secure your money, and keep the terms crystal clear—before you hand over a dollar.
Summary
Most rent-to-own problems come from paying fees to the wrong person or relying on unwritten promises. Prevent both by verifying the owner in county records, documenting every term, and using neutral money handling (escrow or attorney trust).
If you spot pressure tactics, wire-only payments, “no inspection” rules, or someone who can’t prove ownership, walk away. Good paperwork and professional reviews are cheaper than recovering from a bad deal.
Key Points
- Verify ownership: match the deed (county records) to a government ID; confirm contact info.
- Use neutral handling: option fees and rent credits through escrow/attorney trust with receipts.
- Put it in writing: price or formula, option fee, rent, credits, repairs, deadlines, and default remedies.
- Refuse pressure tactics: wire/crypto only, “no inspection,” or “pay today” = walk away.
- Check title & liens: taxes/HOA, mortgages, and any due-on-sale risks if a lender is involved.
Next Steps
Pull the deed, schedule an inspection, and have a local real-estate attorney review the agreement before paying any fee. Keep copies of every document, receipt, and message.
Related Reading
- Lease Option vs Lease Purchase Real Estate Explained
- Common Mistakes to Avoid in Rent to Own Homes
- Rent Credits in Lease Purchase Agreements Explained
Note: General education only. Laws and lending rules vary by state. Consult a real estate attorney and a qualified lender before signing anything.
For agents & webmasters: a ready-to-publish pack covering these topics is available.
Published by Real Estate Marketing Talk — Lanard Perry. 700+ pages of practical real-estate content.
