Purchase Agreement – The contract becomes a purchase agreement if the Tenant decides to buy the property.
Rent-to-Own Option-to-Purchse
Sample
Rental Application – Landlord use this form to get Tenants written approval (consent) to access background checks and Tenant screenings.
Purchase Agreement – The contract becomes a purchase agreement if the Tenant decides to buy the property.
How does Rent-to-Own Work?
Rent-to-own (lease-to-own) works by letting the Tenant have the option to purchase the rental property at a set time as an option along with the rental lease agreement.
Sample Arizona Lease to Own Purchase Agreement
Rental Application – Recommended for potential tenants to fill out this form before signing the Florida lease-to-own option agreement in order for Landlords to verify the applicants employment history.
Purchase Agreement – The contract becomes a purchase agreement if the Tenant decides to buy the property.
Florida Leasing Laws
Landlord-Tenant Relationship Laws: Title 6, Chapter 83 (Landlord and Tenant)
Rent-to-Own / Purchase Agreement Laws: Title 40 (Real and Personal Property)
Sample Florida Lease-to-Own Option to Purchase
Rental Application – Before signing the rent-to-own lease agreement, a landlord uses a rental agreement that checks the tenant’s credit report and income to make sure that they are suitable renters and can pay the rent.
Purchase Agreement – The contract becomes a purchase agreement if the Tenant decides to buy the property.
CA Leasing Laws
Landlord-Tenant Relationship Laws: Civil Code – Division 3, Part 4, Title 5, Chapter 2 (Hiring of Real Property)Rent-to-Own / Purchase Agreement Laws: Civil Code – Division 2, Part 4 (Acquisition of Property)
Sample California Rent-to-Own Lease Agreement Template
By Type (2)
There are two types of lease-to-own agreement templates:
- Option to Purchase: The tenant can choose to buy the property at any time during the lease period.
- Lease-Purchase: The tenant must buy the property by the end of the lease period, usually at a predetermined price.
By State
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- New Hampshire
- New Mexico
- New York
- Texas
- Washington D.C.
Lease-to-Own Agreement Process Steps
Negotiate the Rental Terms
Landlord and tenant must agree on the following in a lease to own agreement:
- Monthly Rent Amount
- Lease Term (Start and End Dates)
- Security Deposit (if any)
- Utilities and Services
The Option to Purchase Terms
After finalizing rental terms, decide:
- Purchase Price
- Downpayment
- Option Term
- Option Fee (if any)
The lease-purchase terms often include a condition that both parties agree to enter a purchase agreement in “good faith.”
Screen the Tenant
- Screen the tenant with a credit, background, and criminal checks using services like MySmartMove.com or RentPrep.com.
- Check for sex offender status (nsopw.gov)
Verify Tenant Income
The tenant provides:
- Bank Statements (last 2-3 months)
- Pay Stubs (last 2 weeks)
- Tax Returns (last 2 years)
- Employment Verification
Sign the Lease with Purchase Option
Both parties sign the agreement. Tenant provides:
- First Month’s Rent
- Security Deposit
- Prorated Rent (if applicable)
- Additional Fees (pet fees)
Tenant Moves In
Tenant moves in per the lease start date, introduces themselves to neighbors, and follows property rules.
Activate Purchase Option
Tenant informs the landlord of their intent to buy, often with an earnest money deposit.
Enter a Purchase Agreement
Parties agree on:
- Financing Contingency
- Inspection Periods
- Repair Negotiations
- Property Survey
- Closing Date
Include Required Disclosures
Seller provides disclosures about property defects and includes the Lead-Based Paint Disclosure (if built before 1978).
Close the Sale
Closing the sale includes the following:
- Making sure the Buyer funds are available, transfers payment, and receives the deed.
- The deed is recorded at the county office, officially transferring ownership.
Sample Lease to Own Agreement
Rental Application – This form is recommended for Tenants to fill out before signing the agreement in order for the Landlord to verify credit and employment history.
Purchase Agreement – The contract becomes a purchase agreement if the Tenant decides to buy the property.
Laws
This contract agreement is governed by Alaska’s Uniform Residential Landlord & Tenant Act (Title 34, Chapter 3).
Sample Alaska Rent-to-Own Option to Purchase
Rental Application – This form is for Tenants to fill out in order for Landlords to get access to the potential Tenants credit, finances, and employment history.
Purchase Agreement – The contract becomes a purchase agreement if the Tenant decides to buy the property.
What to Include in an Alabama Lease-to-Own Agreement?
An Alabama lease-to-own (or rent-to-own) agreement lets a tenant rent a property with the option to buy it later. This type of deal includes parts of the regular lease with a purchase contract. It includes rent details, security deposits, late fees, and rules on occupancy, furnishings, utilities, and pets. The agreement covers maintenance, property access, and tenant rights if the landlord sells the property.
Lease Details, Option Fees, and Purchases
- Lease Details – The agreement should include the lease length, monthly rent, payment dates, late fees, and who is responsible for maintenance and repairs.
- Purchase Option – This gives the Tenant the choice (but not the obligation) to buy the property. It includes the purchase price, how to exercise the option, and any rent that goes toward the purchase price.
- Option Fee – Tenants pay a non-refundable option fee to have the option to buy in future.
Landlord-Tenant Laws, Terms, and Required Disclosures
- Landlord-Tenant Laws – Lease-to-own agreements are under Alabama’s landlord-tenant laws – the Uniform Residential Landlord and Tenant Act. It covers rental agreements, Tenant rights, and Landlord duties.
- Required Disclosures – Landlords must follow state and federal disclosure laws.
Attach Addendum
- An attached lease addendum includes the purchase option, price, financing, inspection period, any fixtures or personal property that come with the sale, rules on disputes, property safety, and lead paint disclosure.