- Customer: admin
- Categories: 1 Column, 1 Column + sidebar, 2 Columns, 2 Columns, 2 Columns + sidebar, 2 Columns fullscreen, 3 Columns, 3 Columns, 3 Columns + sidebar, 3 Columns fullscreen, 4 Columns, 4 Columns, 4 Columns fullscreen, Grid Alternative, Portfolio Classic, Portfolio Grid
- Tags: Basement
- Date post: December 12, 2014
Rent-to-own, also known as rental-purchase, is a type of legally documented transaction under which tangible property, such as furniture, consumer electronics and home appliances, is leased in exchange for a weekly or monthly payment, with the option to purchase at some point during the agreement.
A rent-to-own transaction differs from a traditional lease, in that the lessee can purchase the leased item at any time during the agreement (in a traditional lease the lessee has no such right), and from a hire purchase/installment plan, in that the lessee can terminate the agreement by simply returning the property (in a hire purchase the buyer has a limited time, if any, to cancel the agreement).
The usage of rent-to-own transactions began in the United Kingdom and Europe, and first appeared in the United States during the 1950s and 1960s. While rent-to-own terminology is most commonly associated with consumer goods transactions, the term is sometimes used in connection with real estate transactions.