Contracts
A 'rent-to-own' arrangement in Pennsylvania where a portion of rent credits toward the purchase price should be:
AHandled verbally to maintain flexibility
BDocumented in a written lease-purchase or lease-option agreement with clearly stated terms✓ Correct
CApproved by PREC before implementation
DOnly used for commercial properties
Explanation
Rent-to-own arrangements in Pennsylvania must be carefully documented in writing — either a lease-purchase (obligation to buy) or lease-option (right but not obligation). The agreement should specify: credit amount per month, purchase price, option period, and what happens if the tenant/buyer doesn't purchase.
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