Scenario
Joe can’t afford to buy a home with his existing salary range. He heard about Rent-to-Own Scheme, but the owner told him, it’s not acceptable in Malaysia because not regulated under the law.
Is it true ?
Mythbusted.
Rent-To-Own is a commercial concept with no prescribed meaning legally and not regulated under any specific legislation. It can be initiated by anyone for as long as it is agreed and accepted by the parties. Owner of ready property, existing Landlords, existing Tenants, Property Developer can all easily entered into any form of Rent to Own arrangement on a willing parties basis.
It’s a hybrid of the legal concepts of a lease/ tenancy and property ownership ultimately. It’s not new as you can easily drawn an analogy to the common practice of hire-purchase for cars in Malaysia.
Basically, you hire (rent) the property for a period of time that entitle you to an option to ultimately purchase the same (own). Hence, Rent to Own.
So, how much did you know about this Legal Myth? Share with us your thoughts and feedback to us. Ask us a question on AskCA@Thursday or suggest a Myth Buster for us.
Thanks!