A Tennessee rent-to-own agreement is a hybrid form used by homeowners to lease real estate to tenants with the added option of purchasing the property at the lease’s end. This agreement includes standard lease elements such as rental amount, lease duration, and both parties’ rights and responsibilities.
Additionally, it integrates terms outlining how the tenant can purchase the property, necessitating the landlord to assess the tenant’s financial capability to ensure they can meet the monthly rent and potential purchase. Homeowners can use a rental application to gauge potential tenants’ likelihood of meeting their obligations before signing this type of lease with them.
If a tenant enjoys the property and has the financial means to do so, they can enter a residential purchase agreement with the previous homeowner to take ownership themselves.
Landlord-Tenant Laws: Title 66, Ch. 28 (Uniform Residential Landlord and Tenant Act).
Purchase Agreement Laws: Title 66, Ch. 5 (Conveyances of Property).
