This might seem like a gimmick, but I assure you it's actually happening. The depressed state of the Spanish housing market means that many developers and some private home owners are now offering rent to buy schemes to entice buyers to enter contracts now, instead of holding out till the market recovers.
Here's how it works. The buyer and seller agree a time period for the contract, anywhere from a year to five years. The is a contract for sale, and is binding on both parties to complete the contract within the specified time period.
The buyer pays a deposit, typically 5-10% of the sale price, and this goes directly to the seller. It isn't held in trust, though legally it is a deposit so being a deposit should be refundable in the event the contract fails.
Then, for the duration of the contract the buyer pays a monthly rent that both parties agree to. This could be a fair market rent, or some other value, perhaps a nominal fee, or a higher than normal fee. The rent is not dead money, every payment is deducted from the sales price, so could be considered similar ...Read the full article
