Cell: 604-855-2521 |


Once in a while I have a client wanting me to look for a property where the seller is willing to rent out the property with the option to purchase it at a later date.


I don’t have to tell you that this scenario does not apply within a seller’s market when the properties are selling fast, for top dollar.

But this does become a plan “B” for people that:


  • Have financial difficulties such as no down-payment or too much debt.
  • Have employment difficulties (have a good job but not enough time on the job to get a mortgage from the lender.)
  • Have bruised credit, but are working on improving it and hoping that they will succeed within a certain time frame.


There are a few common misconceptions that people have in regards to the structure of Rent-to-Own.



  • Often buyers believe that the rent amount that they pay to the seller will be considered as a down payment in the near future.

-Reality: Only part of your monthly rent will go toward the down payment.  Example: Let’s say that you are paying $2,000 rent for a house that would normally rent out for $1,500/month.  This means that $500/month is going to your saving account towards your down payment.

  • If I decide not to go ahead with the contract I can get all my money back.

-Reality: Depending on how the contract is structured, there is a good possibility that you will forfeit all of your money if you don’t go ahead with the contract.


Let’s look at the risks and rewards for this kind of a purchase.



  • What happens if after renting for a set term you re-apply for a mortgage and you are declined again? Likely you will lose your hard earned/saved cash and your contract will be terminated.
  • What if the seller (that owns the property and title) gets him/herself into a legal battle, tax problems, or divorce and clearing the title becomes impossible for some time?
  • What if the market value of the property declines to the point that the lender refuses to finance it?
  • Who reimburses you for your improvements made to the home while living there?
  • Who pays for the taxes, insurance…etc.
  • Are you being asked for an upfront fee from the sellers?



  • Renting to own gives you extra time to save money towards purchasing the home.
  • If you’re bad at saving, rent-to-own is like a regimented savings plan.
  • If you’re self-employed, you have time to establish your business financially.
  • If the home is not to your liking, you can walk away. *as per contract agreed upon
  • You can try out homeownership in a very realistic manner.


Rent to own is certainly a less that traditional route to homeownership, but for some people it bridges a difficult gap. The best rent-to-own scenario would be between a buyer and seller who trust one another implicitly and who understand the risks involved. Be realistic; if you choose to rent-to-own, make sure it is something you want and something you can afford to do.


In closing the best advice I can give you is  this, Consult a professional before getting yourself into contract you don’t fully understand .


Written by Tibor Bogdan and Pat Pelletier



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What is a pre-sale?

Example scenario: When the developer intends to build an apartment building and applies for financing, the bank will grant financing under certain conditions. One of them will likely be a certain percentage of pre-sales the developer will need to secure before receiving the funds.
It is common practice for a developer to approach several real estate investors and offer them an opportunity to purchase units of the non-existent building at a discounted price, and on good terms.

Once the number of pre-sales is accomplished, the developer goes ahead with the construction, which will likely take two years or longer to complete. During construction, their marketing team offers the remainder of the units for sale at market value to the public.

If you are a RE investor, you know that it is preferable to be buying at the pre-sale prices, not market value prices.

The question is, how do you get the invitation to buy a pre-sale?
In the past many years, investors have made substantial income by buying at wholesale prices and selling at retail prices even before they needed to complete their purchase. I saw many of them lining up and sometimes even camping overnight in front of the sales center to get a chance to buy at lower prices, but not everyone was lucky enough. You needed to be well-connected to get an opportunity, and you had to act fast.

Today is a bit of a different story. Several projects in the Lower Mainland and Fraser Valley offer really good prices and incentives to secure a unit now and complete the purchase two or three years later. The list of incentives varies from one project to the next. Besides attractive prices, you can get low deposit amounts (5-15%), low or no assignment fees, free updates, a mortgage rate buy-down program, extra parking and more.

A month ago, I helped a few of my clients purchase a presale in Surrey that sold out in 2 days, and I know of another good developer that will be offering a few units for sale as well.

If you would like to know more about these opportunities, I would encourage you to call or email me, and I’ll be happy to send you details on those projects.
Kind regards,
Tibor Bogdan
Century 21 Creekside Realty Ltd.
45428 Luckakuck Way #190, Chilliwack, BC V2R 3S9
cell: 604-855-2521
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