A South Dakota rent-to-own agreement is a rental contract that doubles as a purchase agreement, allowing renters to purchase the property at a later time during the rental period. The lease contract will be entered into after the landlord and tenant have discussed and negotiated the purchase’s terms. If all goes well, they can finalize the tenant’s purchase with a residential purchase agreement.
Before beginning a rent-to-own agreement that may lead to a purchase agreement, the landlord or property owner should have the prospective tenants complete a rental application. This way, the landlord or property owner can assess whether the candidates will be able to fulfill their tenant responsibilities, like paying rent and providing an option consideration fee upfront.
Landlord-Tenant Laws: Title 43, Ch. 32 (Lease of Real Property).
Purchase Agreement Laws: Title 43, Ch. 26, ยง 43-4-38.
