Rent To Own Property Lawyers

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What Is Rent to Own Property?

A common alternative to buying high cost merchandise such as appliances, furniture, and electronics outright, is a rent-to-own (RTO) transaction. In a RTO transaction, consumers can rent merchandise and at a certain point they can obtain ownership of the item.

What Are the Benefits of Rent to Own Transactions?

RTO transactions can provide many benefits to consumers. These benefits include:

What Are the Drawbacks of Rent to Own Transactions?

Consumers who participate in RTO transactions can also experience drawbacks. The final purchase price for an item bought through RTO is usually much greater than if the item was bought using a single payment at a retail store or purchased with store financing. Usually, the final cost to the consumer can be three to four times more.

What Does the Law Say about Rent to Own Transactions?

Nearly every state has rules regulating RTO transactions. Although each state has variations to what must be disclosed in a RTO contract, they generally include the following disclosures:

How Do Rent to Own Companies Repossess Merchandise?

Since the rent to own merchandise will likely be inside your residence, RTO companies cannot enter your property and remove the item without your permission, as doing so would constitute trespass. Therefore, there are numerous tactics that RTO companies use to regain possession of the item without committing trespass, but what may be legal in one state may be illegal in another. Below are some examples of tactics used by RTO companies:

Do I Need a Lawyer?

If you are a business and would like to provide a RTO option to your customers, a business attorney can discuss the statutory requirements in your area and can help draft a form contract. If you are a customer who is experiencing a problem with a RTO contract, an attorney can discuss your rights and the remedies available in your area.

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Last Modified: 07-02-2014 01:36 PM PDT

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