An Alabama rent-to-own agreement is a form used by property owners to rent their real estate to tenants while giving them the option to purchase the property. The agreement effectively combines a lease agreement with a purchase agreement, allowing the parties to negotiate a rent amount, the term of the lease, the purchase price of the home, and all other rental/purchase conditions.

It’s important to understand that the tenant has the option to purchase the property, and they are not contractually obligated to do so. However, in most cases, the tenant will opt to commit to the purchase as they will likely have paid increased rent, an option fee, utilities, and maintenance. These investments will be lost at the end of the lease term if the purchase is not completed.

Rental Laws – Title 35, Chapter 9A (Alabama Uniform Residential Landlord and Tenant Act)

Purchase Agreement Laws – Title 6, Ch. 9, Art.5, Div. 3 (Conveyance)

Related Forms

• Alabama Lease Agreement
• Alabama Purchase Agreement