Purchase Agreement – The contract becomes a purchase agreement if the Tenant decides to buy the property.
Rent-to-Own
When does the lease-to-own agreement become a purchase contract?
When the Tenant agrees to purchase the property the agreement becomes a Hawaii Purchase and Sale Agreement.
Sample Hawaii Lease-to-Own Agreement
This rent-to-own option purchase agreement becomes a Georgia purchase and sale contract when the Tenant agrees to purchase the rental property.
Sample Georgia Lease-to-Own Agreement
Purchase Agreement – The contract becomes a purchase agreement if the Tenant decides to buy the property.
Sample Delaware Rent-to-Own Agreement
Purchase Agreement – The contract becomes a purchase agreement if the Tenant decides to buy the property.
Sample
Sample
Arizona Rental Application Form – Landlord use this form to get Tenants written approval (consent) to access background checks and Tenant screenings.
Arizona Purchase Agreement Form – The Arizona lease-to-own purchase agreement template 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 California rent-to-own lease agreement template, 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
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- 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.