An Indiana rent-to-own lease agreement grants tenants the flexibility to allocate a portion of the monthly rent toward the property’s future purchase. It explicitly outlines the predetermined purchase price for the property, ensuring both tenants and landlords have a clear understanding of the financial commitment involved. While tenants hold the exclusive right to buy the property through a real estate purchase agreement, they are under no obligation to do so.
This arrangement allows individuals to meticulously consider their homeownership goals alongside their current situation, akin to a thorough vetting process in a rental application, without facing immediate financial strain. However, it is crucial to note that any upfront deposit or down payment towards the property’s purchase price is rendered non-refundable if the tenant ultimately decides not to exercise their purchase right.
Landlord-Tenant Laws: Title 32, Article 31 (Landlord-Tenant Relations).
Purchase Agreement Laws: Title 32 (Property).
