A Rhode Island rent-to-own agreement is a contract that establishes the terms and conditions of a leasing arrangement whereby the tenant is granted the option of purchasing the rented property before the contract terminates. The tenant secures their option (buying rights) by providing the property owner with financial consideration, typically in the form of a non-refundable fee or a rent premium.
If the tenant decides to buy, they must notify the owner within the designated option term, when the purchase option is active. If they fail to notify the owner, the lessee’s option fee will be forfeited (unless stated otherwise in the agreement) and the owner will be permitted to negotiate with other buyers.
Purchase Agreement Laws – Title 34, Ch. 34-11 (Form and Effect of Conveyances)
Purchase Agreement Disclosures – Title 5, Ch. 5-20.8 (Real Estate Sales Disclosures)
The landlord must inform each prospective tenant of any outstanding minimum housing code violations on the property.
Tenants must be notified of the name, phone number, and address of the building’s manager and the owner or an individual authorized to act for the owner to receive notices, demands, and legal paperwork.
Federal law requires landlords to issue this lead paint disclosure to residential tenants if the property they lease was built before 1978.