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)

Related Forms

• Nebraska Lease Agreement
• Nebraska Purchase Agreement