Missouri Lease to Own Agreement


A Missouri lease-to-own agreement combines a residential lease with a purchase agreement. This agreement is a “middle ground” option between outright selling a property and turning it into a standard rental. Interested tenants can negotiate the lease terms and purchase price of the property. It is beneficial for tenants to set the purchase price at the beginning of the agreement since home appreciation could result in a higher price if not predetermined.

What is the Purpose of a Lease-to-Own?

A lease-to-own agreement provides an option for homeowners who want to sell their property and tenants who want to buy a home but cannot afford a down payment or mortgage. It benefits both parties by allowing tenants to own a home and providing property owners with steady rental income and a predetermined sale price.

Before signing, both parties should understand the agreement’s terms and conditions. A lease-to-own contract involves significant financial implications for the tenant and property owner. A qualified real estate attorney must review the document to ensure legal compliance and a binding agreement.

Tenants who fulfill the agreement’s terms may retain their option to purchase the property and keep their investment. Property owners must be comfortable with the agreement’s terms and receive fair market value for their property. Carefully considering and negotiating the lease-to-own agreement’s duration can result in a mutually beneficial arrangement for both parties.

Missouri Rental-Purchase Agreement Laws Chapter 442