Rent-to-own agreements provide a simple way for an individual or family to rent a home and be assured they can own the property in the future.

It involves a lease with an option be buy at a specified time and date. In some cases, a portion of the monthly rent can be used for part of the down payment.

However, some of those agreements are written in a way that is questionable to attorneys. They can require the tenant to pay for all maintenance and repair costs.

A recent investigation by The New York Times calls into question some rent-to-own agreements, arguing that some of these deals are risky, lack consumer protections, and even may not be enforceable in some states, it was noted in a report by the National Association of Realtors.

"Smaller firms, in particular, are offering renters the opportunity to lease less expensive homes with an option to buy. But housing lawyers are reporting an increase in disputes involving rent-to-own transactions and are cautioning renters to read contracts carefully before they sign.

"Some renters later discovered building code violations and major problems with the homes they moved into. One renter told The New York Times he faced an $8,000 cost to install a new sewerage system.

` "The renter says (the landlord) helped him find a contractor to make the repairs but then rolled the cost into a new contract, which then valued the property at $60,000. That also increased his monthly costs by $65 to $470 a month."

The report included quotes by tenants indicating confusion about the rent-to-own agreement:

"Some renters now say they were confused by the contracts' terms and requirements when they signed them. They later find they are stuck with big, unexpected bills for repairs.

"If it's a lease and they are claiming that none of the landlord-tenant obligations apply, then I would argue they have to adhere to federal truth in lending rules," says Judith Fox, a professor of law at the University of Notre Dame. "You can't have it both ways."

Q: Are mortgage rates still rising?

A: At last report on Sept. 22, mortgage rates declined a bit. Here's a portion of that release:

"Freddie Mac released the results of its Primary Mortgage Market Survey, showing average fixed mortgage rates ticking down slightly from last week's post-Brexit high.

"The 30-year fixed-rate mortgage averaged 3.48 percent with an average 0.6 point for the week ending September 22, 2016, down from last week when it averaged 3.50 percent. A year ago at this time, the 30-year FRM averaged 3.86 percent.

"The15-year FRM this week averaged 2.76 percent with an average 0.5 point, down from last week when it averaged 2.77 percent. A year ago at this time, the 15-year FRM averaged 3.08 percent."

Q: Is home flipping increasing?

A: Yes. In fact that form of investment is now at a six-month high. The number of investors flipping homes is at the highest level since the second quarter of 2007 — a nine-year high.

To define the term, a property that is sold in an arms-length sale for the second time within a 12-month period based on publicly recorded sales deed is considered a home flipping.

"Homes flipped in Q2 2016 accounted for 5.5 percent of all single family and condo sales during the quarter, down from 6.7 percent of all sales in the first quarter but up from 5.4 percent of all sales in the second quarter of 2015," it was reported by RealtyTrak.

"A total of 39,775 investors (including both individuals and institutions) completed at least one home flip in Q2 2016, the highest number of home flippers since Q2 2007 — a nine-year high."

Despite the risks involved in these transactions, home flipping is becoming more accessible for smaller operators, thanks to an increasingly competitive lending environment with more loan options for real estate investors, who are also benefitting from the historically low mortgage interest rates.

` "The 15-year FRM this week averaged 2.77 percent with an average 0.5 point, up from last week when it averaged 2.76 percent. A year ago at this time, the 15-year FRM averaged 3.11 percent."

To find out more about Jim Woodard and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com. Jim Woodard's email: [email protected]. COPYRIGHT 2016 CREATORS.COM.