Great Questions to Ask Yourself before Entering Any Rent-to-Own, Lease-to-Own, or like agreement.
Q. Is the initial contact made by a consultant, such as by an unsolicited phone call, letter, or e-mail?
We always suggest that if you receive a call like this, you confirm how the company received your number, address, or email. Did they comply with regulations?
Q. Are you told to stop all communications with the lender?
We suggests always keeping the lines of communication open with you financial institution. In times of financial distress, you must keep your communication lines open with your lender to ensure you are fully aware and informed.
Q. Is the agent/consultant demanding payment before doing any work?
We do not charge any fees to a homeowner or tenant buyer. Any such fees are paid by the investor to our company.
Q. Do the fees seem high for the services offered?
Q. Are you asked to sign a wage assignment, a lien on any of your property, or a security agreement for payment?
If so, proceed with caution and obtain ILA (Independent Legal Advice). You have the right to proceed with a different remedy should one arise. If a better opportunity arises for resolution, we encourage and suggest you take it.
Q. Are you not given the right to cancel the contract or agreement for the consultant’s services?
Agreements can be cancelled without a charge or recourse. We will provide you options within and outside our scope of business.
Q. You are rushed to complete signing and final paperwork without seeking Independent Legal Advice (ILA)?
AFS Inc. suggests that all parties obtain Independent Legal Advice be finalizing any agreement.
Q. Whom is preparing the Rent-to-Own / Lease-to-Own Documents?
We will only prepare the initial Purchase Contract. Once the contract is assigned to one of our Investor Partners, the designated law firm will prepare residential lease and buy-back agreements. We do this to ensure everything is compliant to Provincial Law.
We are confident that the lawyer that provides you ILA will find the contract to be fair for all parties. Many Rent-to-Own and Lease-to-Own companies prepare the documents themselves and at times have clauses that are either unenforceable, or highly favorable to investing party.