A Tennessee rent-to-own agreement is a form that homeowners can use to rent real estate to a tenant while providing them the option to buy the property towards the end of the lease term. The agreement contains information found in a standard lease, including the rental amount, the lease duration, and the rights and responsibilities of the landlord and tenant.
Where a rent-to-own contract differs is the addition of a purchase deposit (referred to in the agreement as “consideration,”) which gives tenants the buying rights to the property and can serve as a down payment on the property. This rental arrangement is valuable to prospective homeowners who are not yet ready to buy due to monetary restrictions or other limitations, as they can use the lease term to gather the requisite funds and improve their credit.
Purchase Agreement Laws – Title 66, Ch. 5 (Conveyances of Property)
The names and addresses of the owner and landlord, and agents authorized to accept service of process and receive notices and demands on their behalf shall be provided to the tenant before they begin their lease term.
This disclosure must be provided for property built pre-1978 due to the hazards of toxic lead paint.
Landlords may show potential tenants the property within thirty (30) days before the end of a rental term if the right of access has been established in the lease agreement and twenty-four (24) hours’ notice of entry has been delivered to the tenant.