What Does Rent To Own Mean

Rent to own typically means the owner has promised to sell the property to the tenant for a certain price within a certain time frame. Often a portion of the rent paid will go toward either the purchase price or buyer’s closing costs associated with the purchase in the form of a rent credit.

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Most of the time a rent to own agreement allows some of the rent to go toward the purchase price of the property. Most often there is a deposit which is non-refundable. However, at the time of settlement both the deposit and the rent credit is applied at settlement.