Arkansas Rent-to-Own Lease Agreement
An Arkansas rent-to-own agreement allows tenants to lease a property with the option to purchase it at a predetermined price. This type of agreement is particularly beneficial for individuals who may have difficulties qualifying for a traditional mortgage. Key features include:
Arkansas Rent-to-Own Lease Agreement
Overview
- Financial Flexibility: A portion of the monthly rent can be applied towards the future purchase of the property.
- Rental Application: Prospective tenants are typically required to complete a rental application, which helps landlords evaluate the tenant’s eligibility and background before entering into the rent-to-own agreement.
- Non-Compulsory Purchase: Tenants are not obligated to purchase the property. However, any deposit or down payment made towards the purchase becomes non-refundable if the tenants choose not to proceed with the acquisition.
- Purchase Agreement: If tenants decide to move forward with the purchase, they will enter into a residential purchase agreement that outlines the terms and conditions of the sale.
Purchase Agreement Laws
The laws governing purchase agreements in Arkansas include:
- Title 18, Chapter 12: This chapter pertains to conveyance laws, which regulate the transfer of property ownership.
Landlord-Tenant Laws
The following laws govern landlord-tenant relationships in Arkansas:
- Title 18, Chapter 16: This chapter addresses general landlord and tenant laws.
- Title 18, Chapter 17: This chapter is specifically known as the Arkansas Residential Landlord-Tenant Act of 2007, which provides additional regulations and protections for residential tenants and landlords.
Statutes
- A.C.A. § 18-16-303 – Security Deposit Exceptions
- A.C.A. § 18-16-304 – Security Deposit Maximum
- A.C.A. § 18-16-305 – Deadline for Returning Security Deposit
- Ark. Code § 18-16-306 – Remedies
- A.C.A. § 5-37-307 – Returned Check Fees (Part 1)
- A.C.A. § 5-37-304 – Returned Check Fees (Part 2)
- A.C.A. § 18-17-401 – Rent Is Due
- A.C.A. § 18-17-701(b) – Rent Grace Period
- A.C.A. § 18-17-701(2) – Landlord Allowed to Recover Court and Attorney Fees (Part 1)
- A.C.A. § 18-17-704 – Landlord Allowed to Recover Court and Attorney Fees (Part 2)
- A.C.A. § 18-17-704 – Notice to Terminate Tenancy (Month-to-Month Lease)
- A.C.A. § 18-17-704 – Notice to Terminate Tenancy (Week-to-Week Lease)
- A.C.A. § 18-17-701 – Termination for Nonpayment (Part 1)
- A.C.A. § 18-16-101 – Termination for Nonpayment (Part 2)
- A.C.A. § 18-17-901(b) – Termination for Nonpayment (Part 3)
- A.C.A. § 18-17-601 – Tenant’s Duties
- Ark. Code § 18-17-602 – Access
- A.C.A. § 18-16-108 – Abandonment of Personal Property
- A.C.A. § 18-16-112(b) – Domestic Violence Situations: Protection from Termination
- A.C.A. § 18-16-112(b) – Domestic Violence Situations: Locks
- A.C.A. § 18-16-112(d) – Domestic Violence Situations: Proof of Status
- A.C.A. § 18-60-304 – Termination for Lease Violation
- A.C.A. § 20-27-608 – Retaliation Prohibition (Lead Hazards)
- A.C.A. § 16-56-111 – Statute of Limitations for Written Contracts
- Ark. Code § 18-17-502(d)(3) – Implied residential quality standards
- Ark. Code Ann. § 18-17-301 – General Definitions
FAQs
An Arkansas rent-to-own agreement allows tenants to lease a property with the option to purchase it later at a predetermined price. This arrangement is beneficial for individuals who may struggle to qualify for a traditional mortgage, as it provides financial flexibility by allowing part of the monthly rent to contribute towards the future purchase.
The key laws governing landlord-tenant relationships in Arkansas include Title 18, Chapter 16, which covers general landlord and tenant laws, and Title 18, Chapter 17, known as the Arkansas Residential Landlord-Tenant Act of 2007. These laws outline the rights and responsibilities of both landlords and tenants.
If the tenant decides not to proceed with the purchase in a rent-to-own agreement, any deposit or down payment made towards the prospective purchase becomes non-refundable. This means the tenant will lose that amount if they choose not to finalize the acquisition.
To initiate the rent-to-own process in Arkansas, prospective tenants typically need to complete a rental application. This application helps landlords assess the tenant’s eligibility and background before entering into the rent-to-own agreement.
Once a tenant decides to proceed with the purchase in a rent-to-own agreement, they will enter into a residential purchase agreement. This document outlines the terms and conditions of the property’s sale, including the purchase price and any other relevant details.
No, tenants are not required to purchase the property in a rent-to-own agreement. They have the option to decide whether or not to finalize the acquisition, but any deposits made will be non-refundable if they choose not to proceed.