Washington Rent-to-Own Lease Agreement

Key Features of the Agreement

One of the primary aspects of a rent-to-own lease agreement is the establishment of purchase terms. The landlord has the discretion to set these terms at a fixed price or allow for negotiation. Additionally, tenants are granted the right of first refusal, meaning they have the opportunity to purchase the property before the landlord considers other offers.

Tenant Application Process

Before entering into a rent-to-own agreement, prospective tenants must complete a rental application. The landlord reviews the information provided to assess the tenant’s ability to pay rent and fulfill other obligations, such as maintenance and repairs. This evaluation is crucial in determining whether the tenant is suitable for the rent-to-own arrangement.

Conversion to Purchase Agreement

When the tenant decides to proceed with purchasing the property, they must notify the landlord. At this stage, both parties will convert the lease into a residential purchase agreement that reflects the previously agreed-upon terms. This conversion formalizes the transaction and outlines the responsibilities of both the landlord and the tenant in the purchase process.

Legal References

The Washington rent-to-own lease agreement is governed by specific landlord-tenant laws, primarily found in RCW Title 59, which addresses landlord and tenant rights and responsibilities. Additionally, the laws concerning purchase agreements are outlined in Title 64, Chapter 64.04, which deals with conveyances.

This structured approach ensures that both landlords and tenants understand their rights and obligations under the rent-to-own agreement, fostering a transparent and fair process for property transactions in Washington State.

Statutes

• Washington RCW §§ 59.18.060 – Landlord-Duties
• Washington RCW §§ 59.18.130 – Duties of tenant
• RCW §§ 59.18.280 – Moneys paid as deposit or security for performance by tenant-Statement and notice of basis for retention-Remedies for landlord’s failure to make refund-Exception
• Wash. Rev. Code § 59.18.270 – Moneys paid as deposit or security for performance by tenant-Deposit by landlord in trust account-Receipt-Remedies under foreclosure-Claims
• Wash. Rev. Code § 59.18.285 – Nonrefundable fees not to be designated as deposit-Written rental agreement required-Remedies
• Wash. Rev. Code § 59.18.260 – Moneys paid as deposit or security for performance by tenant-Written rental agreement to specify terms and conditions for retention by landlord-Written checklist required
• Wash. Rev. Code § 59.18.063 – Landlord-Written receipts for payments made by tenant
• Wash. Rev. Code § 62A.3-515 – Checks dishonored by nonacceptance or nonpayment; liability for interest; rate; collection costs and attorneys’ fees; satisfaction of claim
• Wash. Rev. Code § 59.18.115 – Substandard and dangerous conditions-Notice to landlord-Government certification-Escrow account
• Wash. Rev. Code § 59.18.100 – Landlord’s failure to carry out duties-Repairs effected by tenant-Procedure-Deduction of cost from rent-Limitations
• Wash. Rev. Code § 59.18.310 – Default in rent-Abandonment-Liability of tenant-Landlord’s remedies-Sale of tenant’s property by landlord, deceased tenant exception
• Wash. Rev. Code §59.04.030 – Tenancy for specified time-Termination
• Wash. Rev. Code § 59.18.200(1a-b) – [Effective 1/1/2028] Tenancy from month to month or for rental period-End of tenancy-Armed forces exception-Exclusion of children-Conversion to condominium-Demolition, substantial rehabilitation of the premises-Notice
• Wash. Rev. Code § 59.04.050 – Tenancy by sufferance-Termination
• Wash. Rev. Code § 59.12.030(3) – Unlawful detainer defined
• Wash. Rev. Code § 59.12.030(4) – Unlawful detainer defined
• Wash. Rev. Code § 59.12.030(5) – Unlawful detainer defined
• Wash. Rev. Code § 59.18.150(6) – Landlord’s right of entry-Purposes-Searches by fire officials-Searches by code enforcement officials for inspection purposes-Conditions
• Wash. Rev. Code § 59.18.150(5) – Landlord’s right of entry-Purposes-Searches by fire officials-Searches by code enforcement officials for inspection purposes-Conditions
• Wash. Rev. Code § 59.18.290 – Removal or exclusion of tenant from premises-Holding over or excluding landlord from premises after termination date-Attorneys’ fees
• Wash. Rev. Code § 59.18.300 – Termination of tenant’s utility services-Tenant causing loss of landlord provided utility services
• Wash. Rev. Code § 59.18.060 – Landlord-Duties
• Wash. Rev. Code § 59.18.130 – Duties of tenant
• Wash. Rev. Code § 59.18.065 – Landlord-Copy of written rental agreement to tenant
• Wash. Rev. Code § 59.18.257 – Screening of prospective tenants-Notice to prospective tenant-Costs-Adverse action notice-Violation
• Wash. Rev. Code § 59.18.575(1b) – Victim protection-Notice to landlord-Termination of rental agreement-Procedures
• Wash. Rev. Code § 59.18.575(2-3) – Victim protection-Notice to landlord-Termination of rental agreement-Procedures
• Wash. Rev. Code § 59.18.575(4) – Victim protection-Notice to landlord-Termination of rental agreement-Procedures
• Wash. Rev. Code § 59.18.580 – Victim protection-Limitation on tenant screening service provider disclosures and landlord’s rental decisions
• Wash. Rev. Code § 59.18.240 – Reprisals or retaliatory actions by landlord-Prohibited
• Wash. Rev. Code § 59.18.250 – Reprisals or retaliatory actions by landlord-Presumptions-Rebuttal-Costs
• Wash. Rev. Code § 59.18.140 – Reasonable obligations or restrictions—Tenant’s duty to conform—Landlord’s duty to provide written notice in increase of rent