Our firm develops fair lease-to-buy agreements for landlords and tenants.
Lease-to-buy agreements include all the components of a standard lease, but they give the tenant the option to buy the rental property sometime following the start of the tenancy. A lease-to-buy agreement provides financial benefits to both tenants and landlords, making them a popular real estate option in the Greensboro, North Carolina area.
A lease-to-buy agreement is typically comprised of two agreements:
- Standard lease agreement—Under a rent-to-own agreement, the home’s title remains with the landlord until the tenant decides to purchase the property.
- Option to purchase—Within a lease-to-buy agreement, the option to purchase gives the tenant the option to buy the property within a certain period of time. In exchange, the renter usually has to pay an option fee upfront or higher-than-market rent.
Under many lease-to-buy agreements, the tenant is responsible for making necessary repairs to the rental property since presumably, they will eventually own the home. Even though the tenant will likely own the home in the future, they must also comply with the terms of the lease (e.g. not letting pets live in the home) in case they decide not to exercise their option to purchase.
Lease-to-buy agreements, while they can be beneficial for both tenant and landlord, require both parties to fulfill specific contractual obligations. Ensure your lease-to-buy agreement protects your rights as either a landlord or tenant by having our professionals at Innovative Closing Solutions develop and review this contract. Contact us today!