Nevada Rent-to-Own Lease Agreement
A Nevada rent-to-own agreement is a legal document that merges a traditional lease agreement with a purchase option. This arrangement allows a tenant to rent a property while having the opportunity to purchase it from the property owner at a later date. The terms of the agreement are negotiated between the tenant and the property owner in accordance with state law.
Nevada Rent-to-Own Lease Agreement
Key Elements of a Rent-to-Own Agreement
The rent-to-own agreement includes several specific components:
- Rent Amount: The monthly payment the tenant agrees to pay for occupying the property.
- Consideration: The value exchanged in the agreement, which may include the rent payments and any option fees.
- Option Fee: A fee paid by the tenant for the right to purchase the property at a later date.
- Purchase Price: The agreed-upon price for the property if the tenant decides to purchase it.
- Lease Duration: The length of time the tenant is allowed to rent the property before making a purchase decision.
Tenant Responsibilities
The tenant is required to make monthly rent payments as outlined in the agreement. Additionally, they may be eligible to apply a rent credit towards the purchase price of the property, which can reduce the overall cost if they choose to buy.
Screening Tenants
Before finalizing any agreements, it is advisable for landlords to screen potential tenants using a rental application. This process helps ensure that the tenant is qualified to enter into a rent-to-own agreement.
Finalizing the Sale
To complete the sale of the property once the tenant decides to purchase, a residential purchase agreement should be utilized.
Relevant Laws
The following chapters of Nevada law govern the relevant agreements:
- Landlord-Tenant Laws: Chapter 118A (Landlord and Tenant: Dwellings)
- Purchase Agreement Laws: Chapter 111 (Estates in Property; Conveyancing and Recording) and Chapter 113 (Sales of Real Property)
Statutes
- Nev. Rev. Stat. § 118.175 – Liability of tenant
- Nev. Rev. Stat. § 118A.200 – Rental agreements: Signing; copies; required provisions; disputable presumptions; use of nonconforming agreement unlawful
- Nev. Rev. Stat. § 118A.242 – Security deposit: Limitation on amount or value; surety bond in lieu of security deposit; duties and liability of landlord; damages; disputing itemized accounting of security deposit; prohibited provisions
- Nev. Rev. Stat. § 118A.242(8) – Security deposit: Limitation on amount or value; surety bond in lieu of security deposit; duties and liability of landlord; damages; disputing itemized accounting of security deposit; prohibited provisions
- Nev. Rev. Stat. § 118A.242(4)(5) – Security deposit: Limitation on amount or value; surety bond in lieu of security deposit; duties and liability of landlord; damages; disputing itemized accounting of security deposit; prohibited provisions
- Nev. Rev. Stat. § 118A.300 – Advance notice of increase of rent
- Nev. Rev. Stat. § 118A.325 – Right of tenant to display flag of the United States in certain areas; conditions and limitations on exercise of right
- Nev. Rev. Stat. § 118A.345 – Right of tenant or cotenant to terminate lease due to domestic violence, harassment, sexual assault or stalking
- Nev. Rev. Stat. § 118A.355 – Failure of landlord to maintain dwelling unit in habitable condition
- Nev. Rev. Stat. § 118A.330 – Landlord’s access to dwelling unit
- Nev. Rev. Stat. § 118A.390 – Unlawful removal or exclusion of tenant or willful interruption of essential items or services; procedure for expedited relief
- Nev. Rev. Stat. § 118A.510 – Retaliatory conduct by landlord against tenant prohibited; remedies; exceptions
- Nev. Rev. Stat. § 202.470 – Maintaining or permitting nuisance: Penalty
- Nev. Rev. Stat. § 40.251 – Unlawful detainer: Possession of property leased for indefinite time after notice to surrender; older person or person with a disability entitled to extension of period of possession upon request; federal worker, tribal worker, state worker or household member of such worker may request extension of period of possession
- Nev. Rev. Stat. § 40.2512 – Unlawful detainer: Possession after default in payment of rent; exception
- Nev. Rev. Stat. § 40.2514 – Unlawful detainer: Assignment or subletting contrary to lease; waste; unlawful business; nuisance; violations of controlled substances laws
- Nev. Rev. Stat. § 40.2516 – Unlawful detainer: Possession after failure to perform conditions of lease; saving lease from forfeiture; recovery of possession following unlawful detainer
- Nev. Rev. Stat. § 41.620(1)(b) – Returned Check Fees
- Nev. Rev. Stat. § 118A.260 – Disclosure of Names and Addresses
- Nev. Rev. Stat. § 118A.290 – Landlord’s Duties
- Nev. Rev. Stat. § 118A.310 – Tenant’s Duties
FAQs
A Nevada rent-to-own agreement is a legal document that combines a lease and a purchase option, allowing a tenant to rent a property while having the opportunity to buy it later. The terms are negotiated between the tenant and the property owner according to state law.
Key elements of a Nevada rent-to-own agreement include the rent amount, consideration, an option fee, the purchase price, and the duration of the lease. Additionally, tenants can earn rent credits that apply towards the purchase price.
In a rent-to-own agreement, tenants make monthly rent payments, and a portion of these payments can be credited towards the purchase price of the property. This rent credit helps reduce the overall cost when the tenant decides to buy.
Landlord-tenant relationships in Nevada are governed by Chapter 118A, which outlines the rights and responsibilities of both parties regarding dwellings.
Before signing a rent-to-own agreement, it’s important to screen potential tenants using a rental application. This helps ensure that the tenant is qualified and capable of fulfilling the lease terms.
A residential purchase agreement is used to finalize the sale of the property once the tenant decides to exercise their purchase option in a rent-to-own scenario. This agreement outlines the terms of the sale.
In Nevada, purchase agreements are governed by Chapter 111, which deals with estates in property, conveyancing, and recording, as well as Chapter 113, which covers the sales of real property.