South Carolina Rent-to-Own Lease Agreement
A South Carolina rent-to-own agreement is a legal document that allows tenants to lease a property with the option to purchase it at a specified time. This arrangement typically involves an upfront fee or an additional monthly payment, known as a rent premium, which is credited towards the property’s total sales price.
South Carolina Rent-to-Own Lease Agreement
Overview
In a South Carolina rent-to-own agreement, tenants have the opportunity to lease a property with the potential to buy it later. Key components of this agreement include:
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Upfront Fee or Rent Premium: Tenants may be required to pay an upfront fee or an additional monthly payment, referred to as a rent premium. These payments are applied toward the total sales price of the property.
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Decision to Purchase: If the tenant decides not to purchase the property, the landlord retains all rent payments and any other charges collected during the lease term, unless the contract states otherwise.
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Completion of Purchase Agreement: If the tenant chooses to buy the property, both the tenant and the property owner must complete a residential purchase agreement.
Tenant Selection Process
Before entering into a rent-to-own agreement, landlords must identify a suitable tenant. This process typically involves:
- Rental Application: Potential tenants are usually required to complete a rental application to demonstrate their ability to fulfill the obligations of the lease.
Legal References
The following legal references govern landlord-tenant relationships and purchase agreements in South Carolina:
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Landlord-Tenant Laws: Title 27, Ch. 40 (Residential Landlord and Tenant Act).
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Purchase Agreement Laws:
- Title 27, Ch. 7 (Form and Execution of Conveyances).
- Title 27, Ch. 50 (The Residential Property Condition Disclosure Act).
Statutes
- S.C. Code § 27-40-10 – Short title
- S.C. Code § 27-40-410(b) – Security deposits; prepaid rent
- S.C. Code § 27-40-410(c) – Disclosure of Deposit Calculations
- S.C. Code § 27-40-310(c) – Terms and conditions of rental agreement
- S.C. Code § 27-40-210 (11) – Late Fees
- S.C. Code § 34-11-70 – Prima facie evidence of fraudulent intent in drawing check, draft, or other written order, reasonable and probable cause for prosecution
- S.C. Code § 27-40-630(a)(1) – Wrongful failure to provide essential services
- S.C. Code § 27-40-630(c) – Tenant Allowed to Repair and Deduct Rent (No Statute)
- S.C. Code § 27-40-640 – Landlord’s noncompliance as defense to action for possession or rent
- S.C. Code § 27-40-770(a) – Periodic tenancy; holdover remedies
- S.C. Code § 27-40-770(b) – Periodic tenancy; holdover remedies
- S.C. Code § 27-40-770(c) – Periodic tenancy; holdover remedies
- S.C. Code § 27-40-750 – Remedy after termination
- S.C. Code § 27-40-730(a) – Abandonment After Default
- S.C. Code § 27-40-730(b) – Abandonment Due to Termination of Utilities
- S.C. Code § 27-40-730(c) – Remedies for absence, nonuse, and abandonment
- S.C. Code § 27-40-730(d) – Disposal of Abandoned Property (Less Than $500)
- S.C. Code § 27-40-730(f) – Disposal of Abandoned Property (Greater Than $500)
- S.C. Code § 27-40-530(a) – Access
- S.C. Code § 27-40-530(b)(1) – Access
- S.C. Code § 27-40-530(c) – Access
- S.C. Code § 27-40-530(e) – Access
- S.C. Code § 27-40-530(b)(1) – Access
- S.C. Code § 27-40-530(b)(2) – Access
- S.C. Code § 27-40-710(b) – Noncompliance with rental agreement; failure to pay rent; removal of evicted tenant’s personal property
- S.C. Code § 27-40-710(a) – Noncompliance with rental agreement; failure to pay rent; removal of evicted tenant’s personal property
- S.C. Code § 27-40-760 – Recovery of possession limited
- S.C. Code § 27-40-420 – Disclosure
- S.C. Code § 27-40-440 – Landlord to maintain premises
- S.C. Code § 27-40-430 – Landlord to deliver possession of dwelling unit
- S.C. Code § 27-40-510 – Tenant to maintain dwelling unit
- S.C. Code § 27-40-910 – Retaliatory conduct prohibited
- S.C. Code § 15-3-530 – Three years
FAQs
A South Carolina rent-to-own agreement allows tenants to lease a property with the option to purchase it at a later date. Tenants typically pay an upfront fee or a rent premium, which is deducted from the property’s total sales price if they choose to buy.
If a tenant decides not to purchase the property, the landlord retains all rent payments and other charges collected during the lease term, unless the contract specifies otherwise.
In South Carolina, a purchase agreement must comply with Title 27, Chapter 7, which covers the form and execution of conveyances, and Title 27, Chapter 50, which pertains to the Residential Property Condition Disclosure Act.
Landlords can find suitable tenants by having potential candidates fill out a rental application. This process helps ensure that the chosen tenant can meet their obligations under the rent-to-own agreement.
The rent premium is an additional monthly payment made by the tenant, which is typically deducted from the total sales price of the property if the tenant decides to purchase it.
Landlord-tenant relationships in South Carolina are governed by Title 27, Chapter 40, known as the Residential Landlord and Tenant Act.
Tenants should understand that they have the option to buy the property at a specified time, the implications of paying a rent premium, and that they may lose all rent payments if they choose not to purchase the property.