Minnesota Lease to Own Agreement

The Minnesota Lease to Own Agreement is a contract structured very similarly to a residential lease, but contains an added section dedicated to the arranging and recording of details regarding the purchase of the rented property. Favorable to tenants unable to afford a down payment or loan for whatever reason bestowed upon them, the agreement aids tenants by having a set percentage removed from their monthly rent, which contributes to a down payment if the tenant(s) exercise the option to purchase. The downside? If the tenant(s) don’t buy the home, the landlord keeps the down payment.