A Nebraska rent-to-own agreement, also called a lease with option to purchase, establishes a residential rental arrangement between a landlord and tenant wherein the tenant retains the option to purchase the property after the lease period ends. The tenant usually pays higher rent as the landlord will set aside a percentage of that amount as payment towards the property. However, the allocation of rent is purely at the landlord’s discretion, so the parties must negotiate these terms to guarantee a fair arrangement.
The landlord can also demand that the tenant pay a fee to secure their option to purchase the property at the end of the lease (similar to a down payment). All rent payments and fees are nonrefundable, so the tenant must ensure they can use the lease period (typically 1-3 years) to save enough money for the down payment on the property and/or secure a loan from a bank by building their credit score.
Lease Laws – Chapter 76, Article 14 (Landlord and Tenant)
Purchase Agreement Laws – § 76 (101 – 2,126) (Real Property)
When a property was built prior to 1978, landlords renting out this property must provide this lead-based paint disclosure to prospective tenants.
Landlords are required to provide names and addresses of the owner or person authorized to act on their behalf (for the purposes of sending and receiving notices) and the person authorized to manage the premises.