Terms & Conditions

1. Agreement Structure
The Rent-to-Buy program consists of two separate agreements:
A Residential Lease Agreement
An Option to Purchase Agreement (or Lease-Purchase Agreement, if applicable)
Signing these agreements does not immediately transfer ownership of the property.
2. Option Fee (Option Consideration)
The buyer-tenant is required to pay a one-time, non-refundable option fee at the start of the agreement.
This fee secures the exclusive right to purchase the property during the agreed term.
The option fee is credited toward the purchase price at closing if the buyer completes the purchase.
If the buyer does not complete the purchase, the option fee is forfeited.
3. Lease Term
The lease term typically ranges from 12 to 60 months, as agreed upon in writing.
The buyer-tenant has the right to occupy the property during this period, subject to the lease terms.
Monthly rent must be paid on time and in full.
4. Rent Credits
A portion of each on-time monthly rent payment may be credited toward the future purchase price.
Rent credits apply only if all payments are made on time and the purchase is completed.
Late or missed payments may result in loss of rent credits for that month.
5. Purchase Price
The purchase price is either:
Fixed at the beginning of the agreement, or
Determined by a pre-agreed formula or appraisal method
The purchase price is clearly stated in the Option/Purchase Agreement.
6. Maintenance and Repairs
The buyer-tenant is responsible for routine maintenance and minor repairs, unless otherwise stated.
Major structural repairs will remain the responsibility of the seller, as specified in the agreement.
The buyer-tenant must keep the property in good condition.
7. Taxes, Insurance, and Utilities
The seller remains responsible for property taxes and homeowner’s insurance during the lease term.
The buyer-tenant is responsible for utilities and renter’s insurance unless otherwise stated.
8. Financing Responsibility
The buyer-tenant is responsible for securing mortgage financing before the end of the lease term.
Approval for financing is not guaranteed and is not the responsibility of the seller.
Failure to obtain financing does not entitle the buyer-tenant to a refund of option fees or rent credits.
9. Right to Purchase
In a Lease-Option, the buyer-tenant may choose whether or not to purchase the property.
In a Lease-Purchase, the buyer-tenant is contractually obligated to complete the purchase.
All purchase notices must be submitted in writing within the timeframe specified.
10. Default
The buyer-tenant may be considered in default if they:
Fail to pay rent on time
Violate lease terms
Fail to maintain the property
Fail to close on the purchase when required (lease-purchase)
Default may result in termination of the agreement and forfeiture of option fees and rent credits.
11. No Ownership Rights Until Closing
The buyer-tenant does not gain any ownership interest, equity, or title to the property until the purchase is completed and recorded.
Occupancy alone does not create ownership rights.
12. Early Termination
Early termination by the buyer-tenant may result in loss of option fees and rent credits.
Any early termination terms must be documented in writing.
13. Legal & Professional Advice
All parties are encouraged to seek independent legal and financial advice before entering into a rent-to-buy agreement.
This program does not constitute a loan, mortgage, or guarantee of ownership.
14. Governing Law
The agreement shall be governed by the laws of the state or jurisdiction where the property is located.
Important Notice
Rent-to-Buy programs are designed to provide flexibility, not certainty. Participation does not guarantee financing approval or ownership.

Red Cat Homes is happy to provive referrals to help the Buyer-Tenant. But it is the resposubility of the Buyer-Tenant to the exclusive opprtunity to create certantly for themselves to complete the purchase at the end of the term.