A North Carolina rent-to-own lease agreement is a contract between a landlord and tenant in which they come to mutual terms for both a residential tenancy and the purchase of a property. Both parties enter a standard leasing term upon signing the document into effect. However, the option-to-buy provision contained within the lease permits the tenant to transition from renting to owning the same residence where they reside. Both parties usually reach purchase conditions, such as the property’s total price and applicable closing dates, before executing their lease agreement and through open negotiations. Once they finalize rental and purchase terms, the parties must sign the contract into effect. Note that the tenant must exercise their right to buy, meaning they can opt to deny the deal within reason.
When selling residential properties, the seller must provide any potential buyers with the following two (2) disclosure forms, if applicable.
Lead-Based Paint Disclosure – Sellers of residential buildings constructed before 1978 must provide purchasers with a written statement disclosing their knowledge on the use of toxic lead-based paint in the premises.
Residential Property Disclosure Statement (G.S. 47E-4(b)) – Sellers of residential properties must issue purchasers with a standardized statement in which the material condition of the property is disclosed, including the defects in water supply, sewage disposal, heating, and plumbing.