A Delaware rent-to-own agreement combines a residential lease and real estate purchase agreement, granting a tenant the right to rent property for a set term with the option to purchase before the term expires. This type of arrangement is favorable to individuals who wish to acquire a residence but lack the financial means to be approved for a mortgage or make a down payment.
With a rent-to-own agreement (also called a “lease option”), the tenant can improve their credit, save money, and make contributions towards the purchase price while their lease is active. Due to the likelihood that the tenant will become the owner of the residence, they will usually be responsible for making repairs and maintaining the premises during the rental term.
Purchase Agreement Laws – Delaware Code Title 25, Part I, Chapter 3 (Titles and Conveyances)
A Summary of Residential Landlord-Tenant Code must be given to new tenants by their landlord at the beginning of the rental term.
Federal law states that if a dwelling was constructed before 1978, the landlord must disclose the potential existence of lead-based paint on the premises.
Tenants must be given the name(s) and business address(es) of all owners, property managers, or agents of the rental unit.