Dumaguete Info Search


Rent to Own?

Discussion in 'Expat Section' started by horizon155, Aug 12, 2017.

  1. horizon155

    horizon155 DI Forum Adept Showcase Reviewer Blood Donor

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    I've been approached and also have seen some advertisements for a type of "rent to own" - Approach to renting Houses/Condos.. Essentially you are renting it (typically from the owner) but you have the option to rent continuously until the selling price is met and during the rental period, the renter/buyer is protected so that the landlord can't evict you for no reason just collect a payment, and all your rent paid for X amount of years is like payment for a mortgage. - It goes towards the price the seller wants on the house and is payed as a Monthly "Rent" Once the agreed upon price to own is met, the property than becomes yours.

    therefore, It gives you (the renter/buyer) the flexibility to move out if you need to, and the owner the ability to keep the amount you have paid for X amount of years as rent if you choose not to apply it towards the selling Price and the original owner still retains and keeps the property as well..

    Has anyone heard of this idea or even if this is legal/doable? Curious because this is the first time I'm looking to rent for awhile and if its worthwhile I might just pay rent for X amount of years until it pays off the price of the house and then have the house turned over to me..I don't know..just a thought. Was curious if anyone else has been involved or knows anything about this situation
     
  2. Dave_Hounddriver

    Dave_Hounddriver DI Forum Luminary Highly Rated Poster

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    The only time I have seen this is when low income people buy a house through Pagibig and cannot afford the payments. They want you to give them back the money they have put into it so far and keep making the payments for them. Thus they don't care if you don't pay because Pagibig is taking the house back if they don't do this and if you do give them their down payment back they may just do the same again if you skip out.

    I have not seen this plan without any down payment. But the down payment part will be flexible if they are close to getting the house foreclosed on. At a minimum you will have to pay all the late payments to get the bank off their back and then you could negotiate the balance.

    I have seen houses in my subdivision where Pagibig did repossess them and will sell them to a qualified purchaser so if you have a wife/gf who qualifies for Pagibig that may be an option. As a single foreigner, be prepared to put down about 20 % of the purchase price and then "rent to own" the difference. Such is what I seen here, other experiences may be different.
     
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  3. msls6

    msls6 DI Member Blood Donor Veteran Navy

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    I have heard of foreigners being able to own a condo (if 60% of the condos in the development are owned by Filipinos), but I do not think foreigners can own land.
     
  4. Dutchie

    Dutchie DI Senior Member Showcase Reviewer Veteran Army

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    Never ever enter into any deal regarding real estate without consulting a qualified, experienced and bona-fide lawyer. The only exception would be an outright rental contract for a set period. Anything that involves more than that and you'll want to involve a lawyer (whom you choose and pay for).
    For example, if a property is encumbered with a mortgage, the bank's rights to the property will always come before you and your rights as a "rent to own" party.
    So much better to buy and get financing yourself, than to rely on a private contract partner who may default on whatever obligation and see a third party (mortgage bank) confiscate your dream.
     
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  5. Dr. Shiva

    Dr. Shiva DI Senior Member

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    When you see a house/lot "For Assume" then it is most time a house/lot repossessed by Pag-Ibig. You pay the "For Assume" price to be able to move in and then you pay down the remaining Pag-Ibig balance. Some "For Assume" house/lots are coming from bank repossessing the house/lot. I dunno if you can buy a house/lot with delivering the complete price at once. (If it comes from a bank, you have more certainly the possibility to purchase it by paying the complete price at once if you want.)

    If you want to buy a mortgaged house/lot you need certainly a lawyer to get rid off the mortgage from the title when you purchase the house/lot.

    Better is to search for a house/lot with a clean and unencumbered title. Check the title with the DENR to check if there are hidden encumbrances or if the title is genuine.
     
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  6. Dave_Hounddriver

    Dave_Hounddriver DI Forum Luminary Highly Rated Poster

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    You are right. But foreigners can BUY land on a rent to own, they can just never transfer it to their name so by the time its paid for you either have to sell it or put it in a filipina's name.

    I see a lot of people urging caution, but use the grey matter, if the down payment is small and the payments are the same as rent then its hard to get screwed over on a rent to own. Just watch that down payment and get a lawyer to write up the agreement.

    Also, its hard to sell if you still owe on it. Its not like some countries where you can sell the place and pay off the amount owing from the proceeds of sale. You cannot transfer title if there is a lien on the title and they will not remove the lien until its paid off and you cannot pay it off if you cannot sell it. Catch 22. So think of it more like renting without anyone being able to kick you out or raise your rent provided the payments are made each month. IF you ever pay it off that's a bonus.
     
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  7. Dr. Shiva

    Dr. Shiva DI Senior Member

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    There is a legal way, where foreigners can own lot. But it is very rare. Look for a townhouse with condo title. In Manila there are some available. The benefit is you can own the lot where the townhouse is on it. The backdraw that you have to live in a rowhouse complex and can not choose your direct neighborhood.
     
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  8. Jack Peterson

    Jack Peterson DI Forum Luminary Highly Rated Poster SC Connoisseur Veteran Air Force

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    Yep! about as rare as Rocking Horse Poop, Sorry, just have to disagree there is No way any foreigner can own land
     
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  9. Brian Oinks

    Brian Oinks That's Mr. Pig to you Boy! :) Highly Rated Poster

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  10. Jack Peterson

    Jack Peterson DI Forum Luminary Highly Rated Poster SC Connoisseur Veteran Air Force

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    You know Brian that this was never actually Implemented, The Inheritance commision made mincemeat of it, as the Law states that the Spouse of a filipino actually falls 3 rd in Line, all we can hope for is that the Kids do not kick us out
     
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