Who pays the taxes and insurance for a rent to own home?

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asked Jan 6, 2019 in Real Estate - Renting by KennethMoyer (170 points)
Who pays the taxes and insurance for a rent to own home?

I'm renting to own a home and the home owner is now requesting that I pay for the real estate taxes and now I must have homeowners insurance on the home or I face eviction?

Can the homeowner legally evict me for not paying the property taxes or having homeowners insurance on the home that I do not own?

I really cannot afford to pay both the property taxes, and Homeowners insurance on top of the house payment.

Can the homeowner legally force me to get homeowners insurance and pay the taxes on the property?

1 Answer

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answered Jan 6, 2019 by GreenRacheal (640 points)
Unless you actually own the home and the deed is in your name then you're just renting the home right now until you pay the home off and then he changes the deed into your name.

Yes you're renting to own which in the future you should own the home after making the payments.

But right now you're considered a tenant until you exercise the right to purchase the home and get the deed into your name.

You're not obligated or required to pay the taxes or have Homeowners insurance on the home you're renting to own even though the landlord is requesting you too.

In fact you cannot purchase homeowners insurance for a home that you do not own yet.

Your name has to be on the homes deed before you can purchase homeowners insurance so you need to tell your landlord that.

You're not legally required to pay his property taxes or pay for his homeowners insurance to protect the home.

The only insurance you can purchase when you don't own the home is renters insurance which only covers your personal property.

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