Free template
Rent-to-Own Agreement Template – Texas
Prepare a Rent-to-Own Agreement in Texas with built-in purchase option terms for flexible property ownership.
Downloaded 3538 times
Download template
Rent-to-Own Agreement
This Rent-to-Own Agreement ("Agreement") is entered into on [Effective Date], by and between:
Seller/Landlord: [Full Legal Name], residing at [Address]
and
Buyer/Tenant: [Full Legal Name], residing at [Address]
Property Address: [Full Street Address, City, State, Zip]
1. Term and Option Framework
The Term begins [Start Date] and ends [End Date] unless ended earlier as allowed here. So long as the Agreement is in good standing, the Buyer/Tenant may exercise an option to purchase per the deadlines below. A mid‑term reconciliation will confirm rent credits and compliance.
2. Rent; Credits; Option Fee
Monthly rent is $[Rent Amount], due on the [Day]; $[Credit Amount] per month accrues as a conditional credit applied only at closing. An option fee of $[Option Fee] is paid on execution and is ☐ applied to price ☐ non‑refundable if no closing occurs. Late rent after [Grace Period] days may incur fees where lawful.
3. Purchase Price and Timelines
Purchase price is $[Price] or based on [Formula/Appraisal]. Notice of Exercise due by [Notice Deadline]; closing targeted for [Closing Deadline]. Time is of the essence for all option‑related dates.
4. Inspections; Condition; Disclosures
Inspections may be obtained within [Inspection Period] days and thereafter with reasonable notice. Seller/Landlord will share available disclosures and known material facts. Material findings over $[Threshold] trigger the remedy path described here: [Repair/Credit/Termination].
5. Maintenance Responsibilities
Buyer/Tenant handles routine upkeep and minor repairs up to $[Minor Cap] per incident. Seller/Landlord remains responsible for major systems/structure unless damage is caused by misuse. Alterations require prior written consent.
6. Insurance, Taxes, Utilities
Seller/Landlord maintains property insurance and taxes during the lease period unless otherwise written; Buyer/Tenant maintains renters liability insurance naming Seller/Landlord as additional interest. Utilities/HOA obligations are allocated as follows: [Allocation]. Proof of insurance must be provided upon request.
7. Financing; Lender Access; Closing
Buyer/Tenant is responsible for financing; Seller/Landlord will cooperate with appraisal and lender requests. At closing, option fee and accrued credits are applied to the price; title transfers by [Deed Type] free of undisclosed liens. Closing costs are allocated: Buyer/Tenant [List]; Seller/Landlord [List].
8. Default; Remedies
Material breach, non‑payment, or failure to maintain insurance constitutes default. Buyer/Tenant default may result in termination and retention of non‑refundable consideration where lawful. Seller/Landlord default allows Buyer/Tenant to pursue lawful remedies including credit preservation and return of option consideration.
9. Early Termination; Transfers
Any assignment/sublease requires written consent; early termination for hardship may be negotiated in good faith. Upon surrender, keys and devices must be returned and utilities settled. Security deposit handling (if any) is documented in an addendum.
10. Law; Entire Agreement; Notices
This Agreement is governed by [State] law and represents the entire understanding. Amendments must be written; notices delivered per Section [Notices]. Severability and non‑waiver apply.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.
Seller/Landlord:
[Printed Name]
Signature: ______________________________
Date: ______________________________
Buyer/Tenant:
[Printed Name]
Signature: ______________________________
Date: ______________________________
No time to fill it up? Generate your custom agreement with AI Lawyer in seconds
Details
Learn more about
Rent-to-Own Agreement Template – Texas
Texas Rent-to-Own Agreement FAQ
What is a Rent-to-Own Agreement?
A Rent-to-Own Agreement (also called a Lease-to-Own or Lease-Option Agreement) is a contract that allows a tenant to rent a property with the option or obligation to buy it later.
Part of each rent payment may go toward the future purchase price, helping the tenant build equity over time.
The agreement outlines key terms such as the purchase price, option fee, rental period, and maintenance responsibilities.
It benefits tenants who want to become homeowners but need time to improve their credit or save for a down payment, while giving landlords a potential sale at a later date.
When to use a Rent-to-Own Agreement?
A Rent-to-Own Agreement should be used when both the landlord and tenant are interested in a future property sale but aren’t ready to complete the purchase immediately. It’s ideal for tenants who plan to buy but need time to save for a down payment, improve credit, or secure financing, and for landlords who want steady rental income while keeping a potential sale on the table.
This type of agreement is also useful when the housing market is uncertain — it locks in a potential purchase price and terms in advance, protecting both parties from future fluctuations.
What should be included in a Rent-to-Own Agreement?
A Rent-to-Own Agreement should clearly define all terms related to both the rental and the future purchase.
It’s essential to include all details that protect both the tenant-buyer and the landlord-seller.
A complete Rent-to-Own Agreement typically includes:
Property details: Full address and description of the property.
Rental terms: Monthly rent amount, payment dates, and lease duration.
Option to purchase: Whether the tenant has the right or obligation to buy the property.
Purchase price: Either a fixed amount or a formula for determining it later.
Option fee or deposit: Any upfront payment that applies toward the purchase price.
Rent credit: Portion of rent payments that will be credited toward the purchase.
Maintenance responsibilities: Which party is responsible for repairs and upkeep.
Default and termination clauses: What happens if either party fails to meet the terms.
Signatures: Both parties must sign to make the agreement legally binding.
Having all these elements in writing helps prevent misunderstandings and ensures that both parties understand their financial and legal commitments.
Can a Rent-to-Own Agreement be changed after signing?
Yes, a Rent-to-Own Agreement can be changed after signing, but only if both parties agree in writing.
Any modification — such as adjusting the purchase price, rent amount, or option period — must be documented through a formal amendment signed by both the tenant-buyer and the landlord-seller.
Verbal agreements or informal changes have no legal effect and can create disputes later.To avoid confusion, both parties should keep copies of all signed amendments along with the original agreement.
Who is responsible for repairs and maintenance during the Rent-to-Own period?
Responsibility for repairs and maintenance under a Rent-to-Own Agreement depends on what’s stated in the contract, but typically the tenant handles day-to-day upkeep, while the landlord remains responsible for major structural repairs until ownership transfers. For example, tenants are usually expected to take care of minor issues such as cleaning, lawn care, and small appliance repairs, while the landlord covers larger problems like roof damage, plumbing, or electrical failures.
However, some Rent-to-Own contracts shift more repair duties to the tenant, especially if part of the rent is being credited toward the purchase price. That’s why it’s crucial to review the maintenance section carefully before signing — and make sure all responsibilities are clearly written into the agreement.
Similar templates
