What is a rent-to-own contract?
A rent-to-own agreement is a deal in which you commit to renting a property for a specific period, with the option of buying it before the lease runs out. ... lease-option contracts give you the right to buy the home when the lease expires, while lease-purchase contracts require you to buy it.
Throughout the contract, the renter will pay more than the fair market value of the property in rent each month (the extra money will be applied to the down payment at a future date). At the end of the contract, the renter will typically have the option to buy the home or walk away.