Common Contracts
1 similar Own Agreement contracts
How to make a rent to own agreementOwn Agreement • August 2nd, 2021
A rent-to-own lease agreement is a standard lease contract with an added purchase-option for the tenant (buyer). This arrangement is common for homeowners seeking to collect rent on their home and possibly sell to the tenant at a pre-negotiated price. Owner financing is common. By State What Should be Included The following 8 items should be included in a rent-to-own agreement: Tenant/Buyer Name and Address; Landlord/Seller Name and Address; Monthly Rent ($); Utilities and Services; Fees; Purchase Price; Closing Date; and Property Disclosures. Owner-Financing It is common for a rent-to-own agreement to convert into a purchase agreement with owner-financing (select the option in the standard purchase agreement). The seller would hold the first (1st) mortgage meaning if the buyer did not pay monthly amounts the seller would have the first lien and rights to the property. Seller Benefits Collect a higher monthly payment; Only pay taxes on the interest collected, the principal amount is no
