An Iowa rent-to-own lease agreement, complemented by a real estate purchase agreement, is a legal document that provides tenants the unique option to buy the property before the lease expires. This type of agreement permits a portion of the monthly rent to contribute towards the future purchase of the property, enabling tenants to progressively build equity.
This strategic arrangement benefits both tenants and landlords. Thanks to the initial rental application process, it supports individuals who may encounter challenges such as credit issues or insufficient savings for a down payment. Additionally, it offers landlords the advantage of consistent monthly rent and the possibility of securing dedicated tenants.
Landlord-Tenant Laws: Chapter 562A (Uniform Residential Landlord and Tenant Law).
Purchase Agreement Laws: Chapter 558 (Conveyances) and Chapter 558A (Real Estate Disclosures).
