A Utah rent-to-own lease agreement is a legal document that allows tenants to lease property with an option to buy before the lease terminates, aimed at those unable to secure a mortgage immediately. This option, typically negotiated before signing, lets tenants fund their future homes. Upon giving notice of intent to buy, the parties create a residential purchase agreement based on mutual terms.
The purchase price, either negotiable or fixed, is determined at the lease’s inception, and landlords may charge an extra fee to secure this buying option, which is credited towards the purchase if the tenant proceeds with the acquisition. Landlords can ensure they find trustworthy tenants who may be likely to purchase at the end of the lease by having candidates fill out a rental application in advance.
Landlord-Tenant Laws: Title 57 (Real Estate).
Purchase Agreement Laws: Title 57, Ch. 1 (Conveyances) & § 57-22-4(3).
