Imagine a situation where you want to buy a new property and you have actually found it already but for example, the sale of your house in your home country did not go through or you are expecting the sales of some shares or something else to get the money to buy the property but it has not happened yet and you are in a situation where you studied the market and want to go for a property, but the money is not there yet.
We have done many deals, which are called an option to purchase with a rental contract, not all owners agree to this because it is an extension of payment instead of having the money immediately. But on the other hand, you secure a deal and it is better to have something today than waiting for something that might not happen. Here the work of the real estate agent comes in to play a lot. Because there are no rules of what quantity to pay now or later, how much to fix the rent for or if the rent is part of the purchase price, and many more details that need a lot of control. So, it’s the job of a professional real estate agent to accompany both the buyer and the vendor to a mutual agreement that is satisfactory and that is fair for both sides to get the deal closed.
On a general note, if the vendor agrees the approximate terms of such a deal would be a payment of 10 to 20% now with a simultaneous signing of a rental contract. Part of the rent might go into the future purchase price or not, depends. The period to complete such a deal and pay the rest of the amount is normally established in one to two years.
You would be getting the keys immediately because you would be renting them as well. So, you are already in the house and you can live in it. But you still have to make the rest of the payment which could be staged payments every 3-months to 6-months or even once a year if it is a two-year contract, maybe even have another 20% payment in 6 or 8 months and then the rest in the notary when you decide to buy the property in a 2-year period. Or you can always make the payment prior to the finalising of the date established in the contract.
Most importantly the only way to close a negotiation of such a deal is that the payments that the buyer makes to the vendor have to be with a clause that if the buyer does not fulfill his obligations and does not eventually buy the property, he will lose all the amounts paid and will have to vacate the property. So, the owner from the first second is secured that he will be eventually selling the house with a very high probability. Also, all the payments that he is receiving he can make use of and he will not have to give them back if the buyer doesn’t complete the deal.
For the vendor, it is just an extension of payment and for the buyer, you must make sure that your financial situation is very clear and organized and you know that you can make all these payments that you are committing to, but the beauty of this strategy is that you are not making the full payment in the beginning. You are only making 10 to 20% but you are moving into the house, and you can enjoy this beautiful life in Marbella from the first day! And then you must make all the rest of the staged payments. Very important not to miss them!