Contracts
What is a 'lease-to-own' (rent-to-own) agreement in Rhode Island real estate?
AA standard rental lease with no purchase option
BAn agreement that combines a lease with an option or obligation for the tenant to purchase the property at a specified price and time✓ Correct
CA lease that automatically converts to ownership after 30 years
DA government-sponsored program for affordable homeownership
Explanation
A rent-to-own agreement gives the tenant an option (or sometimes an obligation) to purchase the property at a predetermined price within a specified time. A portion of the rent may be credited toward the purchase price.
Related Rhode Island Contracts Questions
- A Rhode Island buyer submits an offer with a 48-hour acceptance deadline. The seller makes a counteroffer changing the price. The original offer is now:
- When both parties agree to terminate a real estate purchase contract and release each other from obligations, this is called:
- A buyer and seller have an executed purchase contract. The seller then receives a higher offer. Under the contract, the seller:
- An 'assignment' of a contract means:
- A Rhode Island purchase contract includes a home inspection contingency. What right does this give the buyer?
- What is an 'integration clause' in a Rhode Island purchase agreement?
- What is a 'contingency' in a Rhode Island real estate contract?
- Novation in a contract context means:
Practice More Rhode Island Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Rhode Island Quiz →