An Arkansas rent-to-own agreement provides tenants with the opportunity to lease a property, coupled with the option to potentially purchase it at a predetermined price. This arrangement is designed to cater to individuals facing challenges in qualifying for a traditional mortgage. It introduces financial flexibility by allowing a portion of the monthly rent to contribute towards the property’s future purchase.
Tenants are not compelled to finalize the acquisition. Despite this, any deposit and down payment submitted towards the prospective purchase become non-refundable in the event the tenants opt not to proceed.
Purchase Agreement Laws: Title 18, Chapter 12 (Conveyances).