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This week’s tip from the trenches by Richard Silver
Some sellers enter into contracts to buy a new furnace or water heater or alarm system that are “rent-to-own” contracts offered by some of the Utility Companies. Because most people own the furnace or alarm, when it comes to selling…
…,those contracts have to be bought out and for the cost of the buyout, the seller could have bought two of each product.This can complicate the sale and there needs to be absolute clarity and disclosure to all parties that these contracts exist and are either assumed or bought out. Be careful when you enter into these contracts as well as service contracts and always read the fine print assuming that one day you may sell and what your options may be.
Have you experienced any issues related to rent-to-own contracts? Share it with us in the comments below.