Contracts
In New Mexico, a 'rent-to-own' agreement is best characterized as:
AA standard lease with no purchase option
BA combination of a lease and an option to purchase, allowing the tenant to credit rent toward a future purchase✓ Correct
CA deed of trust arrangement
DA form of seller financing without a lease
Explanation
A rent-to-own (lease-purchase or lease-option) agreement combines a lease with a purchase option or agreement. Rent payments may partially credit toward the purchase price. It gives the tenant/buyer time to arrange permanent financing.
Related New Mexico Contracts Questions
- In New Mexico, which of the following is an example of an 'executory' contract?
- In New Mexico, a listing agreement is a contract between the seller and:
- In New Mexico, a real estate contract is 'integrated' when:
- In New Mexico, what is the difference between rescission and cancellation of a purchase contract?
- A buyer makes an earnest money deposit on a property. The seller then defaults on the contract. What is the buyer's most likely remedy?
- In New Mexico, what is a 'release of contingency'?
- What is the effect of an option contract in New Mexico real estate?
- A New Mexico lease that contains an option to purchase is best described as a:
Practice More New Mexico Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Mexico Quiz →