Rent-to-buy: our insights

The “rent-to-buy” agreement, with the tight credit market and stricter down payment requirements, has emerged as a trend for people who otherwise would not be home buyers.

Rent-to-buy is a particular kind of contract, introduced by D.L. 133/2014. It is a hybrid contract, halfway between sale and lease. The landlord delivered the property to the tenant in exchange for a fee (such as location). At the end of a predetermined period of time, not exceeding 10 years, the tenant has the right (not the obligation) to purchase the property, serving the pre-agreed price a portion of the fees already paid.

With the rent-to-buy option, if property values plummet, the renter can remain a renter until the agreement expires. Should values rise, the rental payments count toward a purchase of the home. It alloes to buy any type of real estate, apartments, commercial properties or even lands.

Our professionals are available to provide further clarification.