- You may not legally own the property.
- There are hidden fees and charges.
- You may pay significantly more than the value of the property.
- If you do not complete the arrangement you may not get your money back.
- You may never legally own the property, depending on the 'rent to buy' arrangement.
- You may not be entitled to sell the property, as you may be considered as just a tenant under the law.
- The vendor may continue to own the property for many years, until the 'rent to buy'
arrangement is completed. - The vendor is often different to the 'rent to buy' business. This makes it hard to resolve disputes.
- You have less legal protections under a 'rent to buy' than a standard bank home loan.
- 'Rent to buy' arrangements often charge a higher interest rate than a standard bank home loan.
- If you end the 'rent to buy' agreement, prior to completing, you may not get the money you have put into the property back.
- Your weekly repayments may be more than normal market rent for the property. Sometimes your repayments may be more than a standard bank home loan.
- You are responsible for paying the rates, insurance and repairs, even though you do not own the property.
Where can I get more help?
| Organisation | Information | Contact Details |
|---|---|---|
| LawAccess NSW | Provides free telephone legal information and referrals to other services, including to your nearest Legal Aid NSW office, Community Legal Centres, private lawyers and other organisations that can help. | Chat to our team by clicking on 'Chat with us' on the right or by calling 1300 888 529 Mon to Fri 9am - 5pm. |