Arkansas Lease to Own Agreement
An Arkansas lease to own agreement, also called an “option to purchase”, is a legal contract that acts as a standard lease, but offers the tenant(s) the ability to purchase the rental property if they so choose. The tenants are given a window of time in which they can make the purchase, which is often towards the end of the rental term. It is important not to confuse this type of deal with a Lease to Purchase contract, as that requires the tenant to purchase the property regardless of whether or not they can afford it.
Equally important to understand is that the contract does not outline purchase terms, but merely establishes that the tenant has the right to buy. Should the tenant wish to exercise their option to purchase, they will enter into a binding purchase agreement with the landlord that establishes purchase price, how the tenant will pay for the property, any contingencies, and more.