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 expires, aimed at those unable to secure a mortgage immediately. This option, typically negotiated before signing, enables tenants to finance their future purchases. Upon giving notice of intent to buy, a purchase contract is formed based on agreed-upon 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.
Landlord-Tenant Laws: Title 57 (Real Estate).
Purchase Agreement Laws: Title 57, Ch. 1 (Conveyances) & § 57-22-4(3).
