An Iowa rent-to-own lease agreement is a legal document that empowers tenants with the exclusive option to buy the property before the end of the lease. It allows a part of the monthly rent to contribute to the property’s future purchase, empowering tenants to build equity progressively.
This arrangement is designed to benefit both tenants and landlords. It assists individuals who may face challenges such as credit issues or limited savings for a down payment and landlords who gain the stability of predetermined monthly rent and the potential to secure committed tenants.
Landlord-Tenant Laws: Iowa Code Chapter 562A (Uniform Residential Landlord and Tenant Law).
Purchase Agreement Laws: Iowa Code Chapter 558 (Conveyances) and Chapter 558A (Real Estate Disclosures).
