Rent-to-own agreements in Ontario are not standardized and carry significant legal complexity – both parties should retain a real estate lawyer. This is an arrangement where a tenant occupies a property under a lease that includes either an option to purchase (lease-option) or an obligation to purchase (lease-purchase) at a predetermined price. A portion of monthly rent may be credited toward the down payment or purchase price. The Landlord and Tenant Board has limited jurisdiction over rent-to-own arrangements.
Synonyms:
rent to own|lease option|lease to own