A California rent-to-own agreement extends beyond a conventional lease, offering tenants the exclusive option to purchase the property at a predetermined price.
A unique feature of this arrangement is its consideration for financial flexibility, allowing a portion of the monthly rent to contribute toward the property’s future purchase; nevertheless, there is no obligation for the tenant to proceed. However, any deposit and down payment made towards the purchase price are forfeited in the event the tenant decides against the acquisition.
Landlord-Tenant Laws: Civil Code – Division 3, Part 4, Title 5, Chapter 2 (Hiring of Real Property).
Purchase Agreement Laws: Civil Code – Division 2, Part 4 (Acquisition of Property).