Sanla tira is a Filipino term that refers to an agreement between a homeowner and a tenant where the homeowner temporarily transfers ownership of their property to the tenant in exchange for the latter`s payment of rent. This agreement is known as a “rent-to-own” or “lease-purchase” agreement in English.
Under this agreement, the tenant pays rent to the homeowner for a certain period of time, typically one to three years. A portion of the rent is then credited towards the purchase price of the property, which is agreed upon by both parties. Once the agreed-upon amount has been paid, ownership of the property is transferred to the tenant, and the rent payments end.
This type of agreement is particularly attractive to those who may not have enough funds to purchase a home outright or who are struggling to obtain a traditional mortgage. It can also be beneficial to homeowners who may be having difficulty finding a buyer for their property.
However, it is important to note that there are some risks associated with this type of arrangement. Tenants should be aware that they may be required to make repairs to the property during the rental period, and if they are unable to fulfill the terms of the agreement, they may forfeit their right to purchase the property.
Additionally, it is important to ensure that the terms of the agreement are legally binding and enforceable. Both parties should seek the assistance of a lawyer to draft a contract that includes all relevant terms and conditions.
In summary, a sanla tira agreement in English is a rent-to-own or lease-purchase agreement between a homeowner and a tenant. While these agreements can be beneficial to both parties, it is important to carefully review the terms and conditions and seek legal advice to ensure a successful and legally binding agreement.
