What typically occurs in a rent-to-own agreement upon completion of the lease?

In a rent-to-own agreement, upon completion of the lease, the property is typically sold to the tenant at an agreed price. This type of agreement usually involves a portion of the rent payments being credited toward the purchase price of the home, allowing the tenant to build equity while they rent. This arrangement provides an opportunity for tenants who may not currently qualify for a mortgage or who want to test living in the property before making a full commitment to purchase.

The agreed-upon price is usually established at the beginning of the lease period, which protects the tenant from market fluctuations that could increase property values over time. Essentially, the rent-to-own model is designed to benefit both parties, giving the tenant a path to homeownership while providing the property owner with a potential buyer at the end of the lease.