...And the national government
backs this now!
For those wanting to
One of the most
interesting commercial strategies to sell
properties during those periods, when the demand
for real estates decreases, is that one of the
renting with an option to buy or the so called
Real estate agents and developers used to resort
to such kind of lease contract instead of
keeping the property inactive. Private owners
who bought to sell can benefit from these
possibilities this way too.
Agents and developers
that decide to launch this
formula let their clients rent the dwelling for
a reasonably moderate price, and after a certain
period from 2 to 5 years the client is entitled
to purchase it. The main advantage is that the
sale price is reduced by the amount that the
tenant has paid throughout the rental period.
The period must be clearly expressed in the
contract; as otherwise, a presumption of an
option period of 15 years will work.
This solution can be also found
attractive by individual landlords or real
who want to sell their properties. They can save
money on the mortgage during the rent period and
increase their future chances of selling the
property. It is easier to find tenants if you
give them an option to buy than to find simple
tenants. There is always a possibility to renew
the lease contract with or without the option to
The option to buy can (and it is highly
in the Land Registry
when the period to opt-to-buy is shorter than
For those wanting to buy:
This mix-financed option is suitable for
people who cannot afford buying a property due
to its high price, since they do not have enough
money to pay a deposit or can not obtain a
mortgage loan from the bank.
And this is especially interesting during the
periods of insecurity in the
real estate market or financial uncertainty,
when the interest rate increase is
unpredictable, and it is unknown weather the
consumers can cope with this increase. Such a
situation can be a good chance for those ones
who are interested in a lease with option to
The National Ministry of Housing is including
this type of contract among those which will
receive Official subsidies within the Housing
If you want to include the option to buy in the
lease contract you can use the clause below as a
– The Purchase Option.
(Yes, I am “generously” giving to you a clause
as a model!)
“The parties agree that before the term of
the present contract, FIVE YEARS, comes to an
end, the tenant should be able to acquire the
property of the real estate – object of this
To purchase the property, the tenant must
formally inform the landlord about it within the
last month before the date of expiration.
In case of possible purchase the sale price of
the dwelling would be of ONE HUNDRED AND TWENTY
THOUSAND (120.000) EUROS. Rental payments are
not included in this price.
The sale of the real estate would be formalized
by a public deed, free of charges. And the
payment of the whole agreed price must be done
in the moment of the contract signature.
Expenses and taxes originated by the sale would
meet the requirements of the Civil Code.
Any of the parties shall be able to register
this lease purchase contract in the Property
Book Office. The cost of the registration would
be paid by the party who promotes it.
Of course, we
always advise you to use a good
to take charge of the drafting of this kind of