A Virginia rent-to-own lease agreement is a contract that combines a standard rental contract with a unique clause that permits the tenant to purchase the property after meeting specific conditions. Before the lease begins, the landlord has the tenant fill out a rental application to determine their eligibility for tenancy.
Upon approval, the tenant pays a non-refundable option fee, which is credited towards the purchase price, establishing their right to buy the property. The terms of purchase are pre-negotiated and agreed upon by both parties.
If the tenant chooses not to buy, the lease simply terminates at the end of its term without any further obligation to either party. If they want to buy the residence, they can enter into a residential purchase agreement with the property owner/landlord.
Landlord-Tenant Laws: Virginia Residential Landlord and Tenant Act.
Purchase Agreement Laws: Title 55.1, Subtitle 1 (Property Conveyances).
