A Montana rent-to-own agreement is a unique arrangement that combines a residential lease agreement and a purchase option agreement. The tenant can buy the property at the end of their lease, but they don’t have to follow through with this part of the contract if their plans change.
It’s beneficial for tenants who aren’t yet sure if they want to own a home but want to test out living at a property first. This contract is also helpful for landlords who need help finding a prospective buyer in a competitive real estate market. It is also necessary to use a rental application to screen potential tenants before signing.
If you settle on selling the property, you would need a residential purchase agreement to finalize the transaction.
Landlord-Tenant Laws: Title 70, Chapter 24 (Residential Landlord and Tenant Act)
Purchase Agreement Laws: Title 70: Chapter 20 (Transfer of Real Property) and Chapter 21 (Recording Transfers and Other Transactions Relating to Real Property)
