Lease purchase agreements (LPA) in Virginia, also known as rent-to-own agreements, allow consumers to rent property for personal use with the option to purchase. The Virginia Lease-Purchase Agreement Act regulates these agreements.
LPA requirements in Virginia
- Disclosure of total cost, payment schedule, and ownership terms. Lessors must clearly state the total payments required to acquire ownership and that the consumer doesn’t own the property until all payments, purchase option terms, and fees are completed.
- Limits on fees and prohibited practices. Late fees and pickup fees must be separately disclosed. Agreements cannot contain wage assignments, waivers of consumer rights, or confessions of judgment.
- Reinstatement rights. Depending on payment frequency, consumers can reinstate an agreement after default by paying past due amounts and fees within two to five days. Consumers who return property can reinstate the agreement for 21-45 days with limited exceptions.
- Advertising disclosures. Ads featuring specific payment amounts must state it’s a lease-purchase deal, the total payments to acquire ownership, and that no ownership rights exist without completing payments.
- Violations constitute prohibited practices under theVirginia Consumer Protection Act. Remedies like damages, attorney fees, and injunctions may apply.