You might be surprised to learn that there really are no specific federal laws that govern the rent-to-own real estate market. There are however, various state and local laws that could pertain to rent-to-own home lease agreements depending on where you plan to purchase.
Due to the nature of a rent-to-own agreement it can contain areas that appear to be a rental contract and areas that look more like a purchase agreement which puts into a legal gray area. The upside to this sort of arrangement is that both the seller and the purchaser have more flexibility to come to terms in the contract that will best suit the interest of both parties. This makes it especially important that you fully understand the typical terms in a rent-to-own contract so you know what to expect and what to avoid.
There are few more common terms in a rent-to-own agreement that you need to be aware of while searching for a rent-to-own home. These terms are very important to understand when dealing with a potential seller, and can make the difference when you come to the table to sign the contract. While a lot of terms are negotiable these are some items that are typically found in all rent-to-own agreements:
As with any legal agreement you should absolutely get a real estate attorney to review the rent-to-own contract and have them go over the details. A lawyer can help you make the right decisions about a rent-to-own contract and help you negotiate the provisions so that you get the most out of it. Here are some of the more important questions you and your lawyer should be asking about the contract.
Now that you have a better understanding of rent-to-own home laws, you can view our rent-to-own home listings available in your local area.