A Hawaii rent-to-own agreement allows potential home-buyers to lease a property that they are interested in owning with the option to purchase before the lease expires. Many individuals lack the credit score and savings to apply for a mortgage and make the initial down payment to buy residential real estate. By entering into a rent-to-own lease, also known as a “lease option,” they can rent property as a tenant while they work to improve their credit and raise the funds necessary to complete the purchase. Once both parties have signed the agreement, it remains legally binding until its termination date or the tenant breaks their lease.
Purchase Agreement Laws – Title 28, Chapter 502 (Bureau of Conveyances; Recording)
The contact information of any owners, agents, and managers who are authorized to manage the premises must be provided to the tenant, along with the landlord’s tax excise number.
If a rental property was built before 1978, tenants must be informed in writing that lead-based paint may be on the premises.
The landlord is required to make a record of the property’s condition before a lease is signed.