Rent to Own Homes in Texas: 3 Costly Mistakes to Avoid

Hello World!  Welcome Friends!  Are you planning on making the move to the Great State of Texas?

If so, you might worry about how to afford a property if you have poor credit. Luckily, The Lone Star State offers rent to own homes listings. This will let you rent a home that you can eventually own.

But before you open your wallet, you want to ensure you avoid the rent-to-own mistakes that many new Texans will undoubtedly make!

Here’s what you must know about rent to own homes in Texas:

1. Not Getting a Clear Title

When you eventually get around to buying a home, you’ll want to ensure you have a clear title that proves ownership. One of the differences between rent-to-own vs. mortgage is that you don’t receive the title immediately with the former option.

If you’ve agreed to buy the house after renting you have to ensure that the landlord has paid off all debts. If not, you might not qualify to receive the title after they sell it to you.

After getting the title, you also must make sure you register with your local council or government. You must inform them that you have ownership of the new property. This is also crucial to do before you pay your property tax.

2. Not Conducting a Background Check

You must conduct a background check on the seller before opting for a rent to own agreement. You’ll find that many sellers aren’t financially stable and will often back out of such an agreement.

Make sure you research the seller’s financial records. It’s also best to work with a seller who has worked with rent to own agreements before. If they haven’t they should have other experience with real estate projects.

You can speak to the city or town’s housing management office to research the seller. They’ll be able to provide you with a background check and present their credentials to you.

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3. Not Using Escrow Services

As a final step, make sure that you always use an escrow service when making transactions with the seller.

You shouldn’t ever hand money or a check to your seller without a third-party witness. If you want to make an electronic payment then you should use an online escrow service.

These services can cancel a transaction if the seller doesn’t keep up their end of the bargain. This is a lot better than using a traditional bank transfer or payment application.

If your seller doesn’t wish to use escrow services then you should avoid working with them altogether.

That’s How to Rent to Own Homes In Texas

Now you know the rules of how to rent to own homes in Texas and what mistakes you should avoid.

The first mistake to avoid is not getting a clear title. You want to ensure you have the accurate documentation to prove you’re the rightful owner.

Make sure you always conduct a background check on the seller. You also want to use escrow services when sending payments to the seller.

You can find more tips on how to find homes in Texas on our blog.

Click the links below for any posts you have missed:

Benefits of Home Renovation

7 Best Roofing Trends to Improve the Value of Your Home

Get Your Backyard Ready For Summer Fun

Debunking the Myths Around Second-Hand Electronics

What Are the Most Commonly Used Residential Roofing Materials?

How to Hire a Local Mole Remover

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Thanks for stopping by!  Have a wonderful day/night depending on where you are in the world!  Go with God and remember to be kind to one another!

Toodles,