A Washington, DC rent-to-own agreement provides tenants with a place of residence but also an exclusive option to buy the property at a predetermined price. It allows a portion of monthly rent payments to accumulate as credit towards the future purchase, enabling tenants to gradually build equity. Before finalizing the arrangement, landlords typically require prospective tenants to complete a rental application to assess their suitability.
The agreement typically covers maintenance duties, property inspections, appraisals, lease renewal or extension conditions, termination terms, and dispute resolution procedures. Once the tenant decides to exercise the purchase option, the parties sign a residential purchase agreement to formalize the property sale terms.
Landlord-Tenant Laws: Title 42, Chapters 32-36A and District of Columbia Municipal Regulations Title 14, Chapter 14-3.
Purchase Agreement Laws: Title 42, Chapter 36B (Lease-Purchase Agreements) and Title 42, Chapter 34, Subchapter IV (Opportunity to Purchase).
