Colorado Lease to Own Agreement
The Colorado Lease to Own Agreement is entered into between a lessor (landlord) and a lessee (tenant) and is structured to act like a typical lease agreement with the added option for the tenant to purchase the property when the agreement terminates. Before signing the contract, the buyer and seller will either agree to sell the house for the market price at the end of the term or decide on a purchase price in advance. Buyers typically prefer the latter, as it gives them a chance to plan and can also prove advantageous in the event home prices increase. Tenants pay monthly rent as usual, although the cost of the rent is typically higher, as a portion of the rent adds up in the form of a credit which can be used for a downpayment if the tenants decide to purchase the property.