A New York rent-to-own agreement is a contract that establishes a tenancy and gives the tenant the opportunity to buy the property from the landlord at a later date. This arrangement helps landlords who want to earn rental income and obtain a potential buyer. It also benefits tenants who wish to test out a property before buying it and save money for the downpayment.
Before reaching this stage, it’s important to conduct a thorough screening of prospective tenants using a rental application to ensure suitability before finalizing any rental contracts.
After negotiating with the tenant, the landlord highlights the agreed-upon purchase price in the document. They also explain the period during which a tenant can accept/decline the option and the consideration a tenant must pay to secure their buying rights.
Once all terms are agreed upon, a residential purchase agreement is essential for legally finalizing the property sale when the time comes.
Landlord-Tenant Laws: RPP Article 7 (Landlord and Tenant)
Purchase Agreement Laws: RPP Article 8 (Conveyances and Mortgages) and RPP Article 14 (Property Condition Disclosure)
