Rent-to-Own Contract Template
All states | 17 types
When to Use a Rent-to-Own Contract
A rent-to-own contract template can be a strategic solution for various situations:
- This agreement secures a future sale, allowing you to earn rental income in the meantime;
- It provides an income from a property that might otherwise stay vacant.
- If you want to own the premises but lack money for a purchase, a rent-to-own contract is a useful option;
- It enables you to gain ownership by making rental payments that contribute to the purchase price.
What Should a Rent-to-Own Contract Include?
A rent-to-own agreement form should be detailed and composed of clearly stated terms:
Identification of the parties: Full legal name, address, and contact details.
Rental duration: Start and end date of the rental period.
Use of the premises: Requirements for the tenant to occupy the property.
Payment terms: Lease payments, late charges, purchase price, and the final purchase date.
Purchase option: Terms for buying the premises.
How to Write a Rent-to-Own Contract
Below is a detailed guide outlining each step involved in finalizing rent-to-own contracts:
- Add the full names and residence details of the landlord and tenant. Phone numbers and emails aren't strictly required, but they usually come in handy in rent-to-own forms.
- Next, let's get specific about the rental property itself. Clearly list the full address and any legal property descriptions like lot numbers, and don't forget to mention any furnishings or appliances.
- Negotiated the rental term yet? Make sure you add those start and end dates in the rent-to-own agreement template.
- Then, proceed with describing the payment terms. Outline the lease fee, the due date, and acceptable payment methods.
- Define any late fees or penalties for missed payments.
- Set policies for property alterations, repairs, and improvements.
- Specify the total purchase price and the planned date of sale in the rent-to-own agreement template.
- Clarify the terms under which the tenant can exercise their option to buy.
- Establish conditions for terminating the contract before the agreed-upon end date.
- Finally, sign the rent-to-own form. You can digitally add signatures by using the Loio Sign feature.
Is a Rent-to-Own Contract Legally Binding?
As soon as both parties sign the rent-to-own template, it becomes a contract that is legally binding. So, before signing, make certain you've carefully reviewed every single term and condition.
How to Get a Rent-to-Own Contract
Online legal platforms like Loio offer a convenient solution – providing customizable contract templates, specifically a rent-to-own sample contract. Alternatively, you can enlist the services of a real estate lawyer who can offer rent-to-own contract examples and create a customized agreement tailored to your specific circumstances.
Do I Need to Notarize the Rent-to-Own Contract?
A notary acknowledgment is not obligatory either for a hard copy or a rent-to-own contract sample created on Loio. However, that extra authentication step provides a layer of security and valuable protection just in case you ever need it.