A New Jersey rent-to-own agreement is a hybrid rental/purchase contract that lets tenants buy the property they’re renting. This agreement can benefit both tenants and landlords. For example, tenants who don’t have the funds to purchase the property outright can allow them to rent the property while they save money and apply for a loan.
Landlords can benefit from this arrangement because it lets them generate revenue from rent payments and secure a potential buyer. This way, they don’t have to leave their property on the market longer than necessary. Once a landlord finds a willing tenant, they can create the agreement and include terms like the monthly payments and the consideration for the buy option.
Evaluation of potential tenants with a rental application before signing lease agreements is essential. A residential purchase agreement is also necessary to officially finalize the sale of your home.
Landlord-Tenant Laws: Title 46, Chapter 8 (§ 46:8-1 to § 46:8-1-50) and Title 2A, Chapter 42
Purchase Agreement Laws: Title 46 (Property)
