We will develop a list of the most frequently asked questions relating to Rent to Buy, Rent to Sell, Rent now buy later etc.
Where do the deposit payments go?
As it stands currently the owner of the Rent to Buy property, or the Rent to Buy Manager if you are in the middle, will collect the initial deposit and any extra payments that are to be credited towards the final deposit. Also current practice is that these payments are non-refundable if the Tenant Buyer decides not to exercise the option & buy the property, this should be made clear to them.
If you are acting as a Rent to Buy manager standing in between the Landlord Seller & Tenant Buyer you will be responsible to pay all agreed amounts to the property owner which will be deducted from the amounts you receive from the Tenant Buyer.
In order for the Tenant Buyer to confirm the amount of deposit they have paid when they apply for a mortgage you need to keep accurate & provable financial records.