Rent-to-Own Lease AgreementUnited States · PDF
Note: The Landlord/Seller is the current property owner. The Tenant/Buyer is the party who will rent the property with an option to purchase it at the end of the lease term.
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Day of each month rent is due.

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Select utilities that are included in the rent. Unselected utilities are the tenant's responsibility.

Important: Monthly rent in a rent-to-own agreement is often higher than market rate because a portion may be credited toward the purchase price. Make sure both parties understand the rent credit terms in Section D.
Why This Matters: The purchase option is the core of a rent-to-own agreement. It defines the price the tenant can buy the property for, how much rent is credited toward the purchase, and the option fee that secures the right to buy. Without these terms, the agreement is just a standard lease.
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The agreed-upon price at which the tenant may purchase the property.

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Non-refundable upfront payment that grants the tenant the right to purchase. Typically 1-5% of purchase price.

% of monthly rent credited toward purchase
days advance written notice
Why This Matters: In rent-to-own agreements, maintenance responsibilities are critical because the tenant may become the future owner. Clearly defining who handles repairs prevents costly disputes and protects both parties' investment in the property.

Minor repairs typically include items under a certain dollar threshold.

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Repairs below this amount are considered minor.

Whether the tenant can make modifications to the property during the lease.

Note: Default and termination clauses protect both parties. The tenant needs to understand what triggers forfeiture of the option fee and accumulated rent credits. The landlord needs enforceable remedies for lease violations.
days to cure payment default
days to cure non-monetary default
Note: This Rent-to-Own Lease Agreement is for general informational purposes. Rent-to-own agreements are subject to both landlord-tenant and real estate contract laws, which vary by state. Some states impose specific requirements on lease-purchase agreements, including disclosure obligations and recording requirements. Consult an attorney for guidance specific to your jurisdiction.