A Wisconsin rent-to-own agreement is a legally binding document that combines a standard rental contract with an option for the tenant to purchase the property during the lease term. The tenant pays a nonrefundable fee to secure buying rights, and if they decide to buy, they must submit an offer within a designated term.
Failure to purchase within this period results in the loss of the option fee and any related funds. If the tenant opts not to buy, the lease continues as a standard agreement, with no obligations at the term’s end. The parties may convert the document to a residential purchase agreement if the tenant chooses to buy.
Before entering a rent-to-own contract, the landlord should issue a rental application. This way, they can collect information on the prospective tenant and determine if they’ll be able to fulfill their tenant obligations.
Landlord-Tenant Laws: Chapter 704 (Landlord and Tenant).
Purchase Agreement Laws: Chapter 706 (Conveyances of Real Property; Recording; Titles).
