Tenancies — No comments
30
Jul 10

Lease-To-Own

What is a lease-to-own house purchase? Well, a lease-to-own house purchase (sometimes also known as “lease purchase” or “rent-to-own”) is a lease combined with an option to purchase the property within a specified period, usually 3 years or less, for an agreed consideration.

What many people do not realize is that by utilizing a lease-to-own purchase, they can afford their dream home though it may initially look beyond their means. By using this facility, there are some benefits that you can enjoy, one of which is that it gives you time to repair your credit.

Most of the lease-to-own companies will work with you notwithstanding your imperfect credit. During the course of the lease-to-own period which usully runs between 2 to 3 years, the company will work with you to help repair, rebuild and re-establish your credit. Through this method, it is envisaged that by the time the term is complete, your credit would have been in a much better standing to qualify for mortgages.

Using lease-to-own also allows you to start home ownership with less down payment. If raising 10% down payment beyond your means, you can look at lease-to-own homes where the usual rates are between 3% to 5% for down payments.

Lease-to-own homes also allow you to lock into the purchase price of today as the price of the house will not fluctuate but rather, is tied down to the lease-to-own purchase agreement.

Land Law — No comments
28
Jul 10

Difference between Ownership by Deeds and Torrens System

The system of ownership of immovable properties by Deeds differs in many respect to the Torrens system. This article will give you a brief description of the differences between ownership by deed and ownership in the Torrens system.

Legal Title
In the Deed system, the legal title on the estate passes upon the act of parties. In the Torrens system, the legal title passes upon the act of the State i.e. when the relevant authorities make an endorsement indicated the transfer of legal title.

Title
In the Deed system, the title to the land is manifested through the chain of deeds. In the Torrens system, the Issue Document of Title (also commonly known as the Land Grant) provides the record of the ownership.

Convenience
In the Deed system, a potential buyer for the piece of land would have to sieve through various sale and purchase agreements and deeds to satisfy himself that the vendor is the current owner. In the Torrens system, a search at the registry would indicate the ownership.

Adverse Possession
The doctrine of adverse possession is recognised in the Deed system. Not so in the Torrens system.

Security
As security for lending and similar transactions, the owner mortgages and conveys the land to the mortgageee. In the Torrens system, the title continues to be vested in the owner. The register merely shows that the title has been pledged (charged) to the chargee.

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