A Rhode Island rent-to-own agreement is a legally binding contract that outlines the details of a lease arrangement. This agreement allows the tenant to have the option of buying the property they are renting before the contract ends. To secure this option, the tenant must provide the property owner with financial consideration, which can be in the form of a non-refundable fee or a rent premium.
This contract outlines essential details, including the tenant’s rent payments, maintenance responsibilities, and use of the premises. To ensure a potential renter is a good fit for tenancy, the landlord has them first complete a rental application. If the tenant wants to purchase the property after a successful tenancy, they can finalize the agreement with a residential purchase agreement.
Landlord-Tenant Laws: Title 34, Ch. 34-18 (Residential Landlord and Tenant Act).
Purchase Agreement Laws: Title 34, Ch. 34-11 (Form and Effect of Conveyances), Title 5, Ch. 5-20.8 (Real Estate Sales Disclosures).
