A Texas rent-to-own agreement is a unique lease that combines standard rental terms with an option for the tenant to purchase the property before the contract’s expiration. This agreement outlines the lease duration, security deposit, monthly rent, and tenant’s property expenses, alongside conditions for a potential sale.
Typically, the tenant has the lease period to decide to buy, and if they opt to purchase, the specifics are documented in a purchase agreement. At the lease signing, it’s crucial for the landlord to confirm the tenant’s financial capability to afford the property. They can increase the likelihood of finding a suitable tenant by having prospective individuals complete a rental application.
If the tenant decides to buy at the expiration of the lease, they can enter into a residential purchase agreement with the landlord or property owner.
Landlord-Tenant Laws: Title 8, Ch. 92 (Residential Tenancies).
Purchase Agreement Laws: Title 2, Ch. 5 (Conveyances).
