A North Carolina lease-to-purchase agreement, also known as a lease-option or rent-to-own agreement, is when you lease premises to someone with the idea that they can buy it after some time has passed. In North Carolina, the lease term must be active for at least four months before the lessee can purchase the premises.
In North Carolina, the required disclosures for a Lease to Purchase Agreement may include, but are not necessarily limited to:
- Disclosure of Option Terms: The terms of the option to purchase, including the purchase price, the duration of the option period, and any conditions that must be met for the option to be exercised.
- Rent and Security Deposit Details: Clear information on monthly rent payments, due dates, and the amount of any security deposit required.
- Maintenance Responsibilities: Clarification of maintenance responsibilities, specifying whether the tenant or landlord is responsible for property upkeep and repairs during the lease-option period.
- Property Condition Disclosure: Disclosure of the current condition of the property, including any known defects or issues that may affect the habitability of the property.
- Tenant’s Right to Inspection: Notification of the tenant’s right to inspect the property before entering into the purchase agreement.
- Financial Terms: Explanation of how rent credits (if applicable) will be applied toward the purchase price, and any other financial arrangements relevant to the lease-option.
- Consequences of Default: Information on the consequences of defaulting on lease payments or not exercising the option to purchase.
North Carolina also prohibits some terms. These include:
- Confession of judgments
- Security interest
- Wage assignment