Florida Lease to Own Agreement
The Florida Lease to Own Agreement is an alternative to outright purchasing a home, allowing tenants to rent the property as normal, but have the option to purchase the rental at the end of the lease’s term. Typically, landlords will require tenants to pay a slightly higher monthly rent, a portion of which serves as a down payment in the event the tenants decide to purchase said property. It is important to keep in mind that this amount is forfeited if the rented property is not purchased. Landlords considering a Lease to Own contract should keep in mind Florida Statute § 697.01, which conveys that the agreement can be considered a mortgage if default or breach occurs – leading to the property entering into foreclosure instead of the tenant being evicted.