Rent to Buy Agreement is composed of two(2) types of agreement: The Tenancy Agreement and The Option Agreement.
The Tenancy Agreement
You will be required to enter into an Assured Shorthold Tenancy (AST) Agreement, which will run on a periodic basis. The Tenancy Agreement will be fixed for the first six months and you will be unable to serve notice to end your tenancy during this period.
The Tenancy Agreement will need to be signed by both parties before you move into your home. You will be provided with a copy of the Tenancy Agreement during the application process to give you time to read and understand the commitment you are entering in to. Our appointed Letting Agent will be happy to answer any general questions you may have.
The Tenancy Agreement will set out the responsibilities of both RTB365 as your landlord and yourself as our customer. This will include your liability for ongoing rent payments and the upkeep of the property. It will also outline when you may need to contact us, for example, if you need to gain consent to keep pets, alter the property (including decorating) or if there is any change to the household details.
The Tenancy Agreement is a legally binding contract between yourself and your landlord. It is important to remember that any breach of the agreement could lead to further action being taken to end the tenancy.
The Option Agreement
You will be required to a sign a Rent to Buy Option Agreement, along with your tenancy Agreement, before you move into your home. The Option Agreement sets out the terms and conditions should you decide to purchase the property either during or at the end of the five-year rental period.
There may be certain circumstances which may result in RTB365 being unable to sell the property to you at the end of the five-year period, such as if the current value of the property is less than the original value stipulated in the Option Agreement, or if there have been any breaches in the terms of the Tenancy Agreement.