"Rent to buy" is a growing phenomenon that allows for the setting aside of costs for the acquisition of a house by initially paying its rent.
Thanks to "Rent to buy"; it is possible to acquire a house after "trying it". This contractual tool actually allows you to set aside a part of the money paid for the lease to make up the deposit for the acquisition.
The purchase is not always obligatory but should be prepared for in most contracts so as not to distort the meaning of this formula.
The planned duration of the rent contract before the title deed is only set out as three years, but the buyer (obviously never the seller) can ask to pay it in advance.
Rent to buy sets out the signing of the contract at the same time as the preliminary contract in order to fix the conditions for the future sale.
These documents, both paid, will protect the buyer from the seller's future considerations, but also of failure, death, foreclosures and collateral.
The law on Rent to buy
Rent to Buy is relatively new in Italy, and is regulated by Decree 133 of 2014, known as "the Made in Italy decree", converted into law 164/2014. The law means the immediate enjoyment of a property and the right to acquire it within a determined period, after paying the rent with an amount of money also intended for the property's purchase.
Setting aside the down payment, the lease regulation can end up being more costly compared to what would be legally expected, based on the place and price per square metre.
The tenant is safeguarded for a period of ten years, across three of the preliminary contracts, thanks to the transcription of the contract in property registers.
Rent to Buy and who it works for
Rent to buy is a gradual formula that allows you to buy a house by playing for time, whilst pursuing other projects in the meantime.
Rent to buy can be useful to those who, while getting the loan easily, do not have enough financial clout to pay the deposit.
Someone who in the meantime has a property to sell could also use it, for example, or those who need to consolidate their own economic situation, or those who want to build a credit history to then more easily get a mortgage.
It could be of value for very "substantial" real estate purchases for commercial or industrial use.
On the other hand, it favours those sellers that have placed properties on the market for a long time or contractors that guarantee a fuller range of clients.
If one of the parties is a debtor.