A Massachusetts rent-to-own agreement is a useful contract that enables an individual to buy a piece of residential property from a landlord/seller after leasing it for a fixed term. Entering into a rent-to-own arrangement means the tenant/prospective buyer will pay monthly rent as well as an option fee at the beginning of the term. It is up to the parties to negotiate these payment amounts as well as the percentage that will go towards the purchase price of the property. The purchase price may be included in the agreement, or the seller may elect to use the fair market value at the time of purchase to determine the price.
Lease Laws – Chapter 186 (Estates for Years and At Will)
Purchase Agreement Laws – Chapter 183 (Alienation of Land) and Chapter 184 (General Provisions Relative to Real Property)
The landlord must provide fire insurance information (company name, amount of insurance, etc.) to the tenant if they request it. The information must be provided within fifteen (15) days of the request.
Landlords must provide this disclosure form if they’re renting out property built before 1978.
A security deposit receipt containing the amount of the deposit, the manner in which it will be used, the institution where it will be held, and the person who will be receiving the funds must be delivered to the tenant.
This statement of condition form must be provided to tenants so they are aware of any issues with the property. This is only applicable if a security deposit was demanded by the landlord.