Guide to the rental agreement with redemption

The rental agreement with redemption, also known as “rent to buy”, is an innovative solution in the real estate market that combines elements of renting and buying. This type of contract offers unique flexibility for both the landlord and the tenant, allowing the latter to live in the property with the possibility of buying it at the end of the rental period. Let’s see in detail how it works, the advantages, the clauses and the details of a facsimile of a rental agreement with redemption

What is the Rental with Redemption Agreement?

A rental agreement with redemption is an agreement where a tenant has the option to purchase the property at the end of the rental period. During the rental period, the tenant pays a monthly fee that may include a part earmarked for future purchase. This contract specifies the terms of the rent, the purchase price, and the terms for exercising the purchase option.

Advantages of the Rental Agreement with Redemption

This type of contract has several advantages for both the landlord and the tenant:

  1. For the Owner:
    • It guarantees a constant flow of income.
    • It increases the chances of selling the property in the future.
    • It reduces the risk of vacant properties.
  2. For the Tenant:
    • It offers the possibility to test the property before buying it.
    • It allows you to accumulate part of the rent as an advance for the purchase.
    • It provides time to organize the finances necessary for the purchase.

How Does the Rental with Redemption Agreement Work?

In a rental agreement with redemption, the parties define:

  • Rental period: The period during which the tenant lives in the property before exercising the purchase option.
  • Rent fee: The monthly amount paid by the tenant, a part of which can be used for the purchase.
  • Purchase price: The price set for the purchase of the property at the end of the rental period.
  • Exercise clauses: The conditions that the tenant must meet to exercise the purchase option.

Essential Clauses of the Rental Agreement with Redemption

A rental agreement with redemption must include several basic clauses to be valid and clear. Let’s see the main ones:

  1. Property Description: Details of the property subject to the contract, including appurtenances.
  2. Length of Lease: Period specified for the lease.
  3. Monthly Fee: Amount of the monthly fee and its division between rent and redemption.
  4. Purchase Price: Total amount for the purchase of the property.
  5. Payment Methods: Methods and timing of payment of the fee and the purchase price.
  6. Expenses and Utilities: Responsibilities related to condominium expenses and utilities.
  7. Withdrawal Clauses: Conditions for withdrawal by the tenant.
  8. Detention and Possession: Provisions regarding the delivery and possession of the property.

Facsimile of the Rental Agreement with Redemption

Here is an example of a rental agreement with redemption that can be used as a basis for drafting your own contract:


Mrs/Mrs… was born in… … Province (…) on…/…/…, with Tax Code…, resident in… Province (…) in Street/Square… Number… ,
hereinafter referred to as “Leasing Party and Promising Seller


Mrs/Mrs… was born in… … Province (…) on…/…/…, with Tax Code…, resident in… Province (…) in Street/Square… Number…
hereinafter referred to as “Conducting and Promissary Buyer Party”,

hereinafter jointly referred to as ‘the Parties’,

agree and stipulate the following:

The Leasing Party leases the property located in the Municipality of… (Cap… Province…), in Street/Square… Number…
The property is composed as follows:…

The term of the lease is months… starting from…/…/… and will end on…/…/… The monthly fee is set at…,… €, of which…,… € will be withheld in case of purchase and…,… € deducted from the purchase price in case of non-purchase

The Leading Party undertakes to enter into contracts relating to the utilities necessary for the use of the property. The Leasing Party delegates the Leading Party to participate in condominium meetings to deliberate on the services charged to
the tenant.

Price and Payment
The sales price is established in…,… € + taxes, whose payment is regulated as follows:
—… €, as initial payment, already received by the Leasing Party, by bank transfer of…/…/… Bank… number 12345678943, of which… € as a deposit and… € as a down payment

Immovable State
The Leading Party declares to have visited the property and found it to their liking. The Conductor will have the right to make the following improvements:…

Urban Planning Mention
The Leasing Party undertakes to provide all the urban planning and administrative declarations required for the final act of sale

Energy Performance
The Leasing Party has provided the Energy Performance Certificate of the building, drawn up by a Qualified Technician, the original of which will be delivered to the registered Notary

Detention and Possession
The entry into legal possession of the property will take place at the same time as the signing of the final act of sale, to be concluded by…/…/…

Faculty of Withdrawal
The Referring Party will not have the right to withdraw from the purchase obligation. If this right of withdrawal is provided for, it must be notified at least 6 months in advance

Final Clauses
This contract is mandatory and not translational. Any changes must be agreed in writing

The Parties mutually authorize the communication of their personal data to third parties in relation to the fulfilment of this contract pursuant to Regulation (EU) n. 2016/679 and Legislative Decree 2003 n. 196 and subsequent amendments.

Competent Court
Any dispute relating to this contract will be the exclusive competence of the Court identified by law

Read, approved and signed.

Place… Date,…/…/…

The Leasing and Promising Seller Party Signs

The Receiving Party and Promissary Buyer Signs

The rental agreement with redemption represents a versatile and advantageous solution for both parties involved in the real estate transaction. It provides security and flexibility, allowing the tenant to evaluate the property and prepare for the purchase while guaranteeing the landlord a continuous income and a potential future sale. Ensuring that all clauses are clearly specified and understood is essential for the success of this type of contract

Leave a Reply

Your email address will not be published. Required fields are marked *


10 Free Mining Apps to Generate Passive Income

img 0005

Crypto Sniper Bot: what it is and how to use it