the tenant/purchaser is protected from events involving the grantor/seller, before the transfer of ownership. For example, if the grantor sells the property to third parties after the transcription, the tenant can oppose the stipulated and transcribed contract and buy the property himself.
if the seller goes bankrupt, the tenant benefits first from the proceeds of the property auction and the rents he had paid are returned to him. In fact, the transcription provides that, in the event of default by the seller, part of the fees are intended to guarantee the credit of the tenant/buyer https://www.texassellmyhouse.com/sell-my-house-fast-universal-city-tx/
The Rent to buy according to the Notary
To make the subject more accessible to citizens, the National Notary Council has created various materials:
Rent to Buy and other ways to buy a house
a document showing the advantages and disadvantages of rent to buy for the seller and the buyer
a contractual hypothesis .
Among the points of the Notary that summarize everything there is to know about rent to buy, the points dedicated to legal protection, taxes and fiscal convenience stand out.
As far as the protections provided by law are concerned , the owners are advised to agree with the tenants on a higher fee than a normal rent and on the part of the fees to be withheld in the event that the tenant ultimately decides not to buy the property. ‘immobile.
While the tenants are protected by the transcription of the rent to buy in the real estate registers. This allows tenants to know if there are mortgages, foreclosures or other detrimental mortgages pending on the property. Furthermore, in the event of the seller’s bankruptcy, the contract is not revoked.
On the tax level, there is no specific discipline. In general terms, the rent component by way of enjoyment has the tax treatment of rental income; the component of the fee as a deposit / down payment follows the rules of the preliminaries / sales.
It can be asserted that in the period of enjoyment of the property, the taxes related to income for the enjoyment of the property are charged to the owner as in any rental contract. While the costs of transcription in the real estate registers are borne by the buyer , such as the costs and taxes due for the deed of sale of the property.
