A Colorado rent-to-own agreement combines the advantages of leasing with the potential for future homeownership. It grants tenants an exclusive option to buy the property at a predetermined price, adding a layer of flexibility to the traditional renting process. Prospective tenants are typically required to complete a rental application to help landlords assess their eligibility and background before entering into the agreement.
A portion of the monthly rent may contribute towards the property’s future purchase, empowering tenants to progressively build equity and facilitate the home-buying process. When tenants decide to exercise their option to buy, they will enter into a residential purchase agreement that outlines the terms and conditions of the sale.
Landlord-Tenant Laws: Title 38, Article 12 (Tenants and Landlords).
Purchase Agreement Laws: Title 38 (Property – Real and Personal).
