Rent-to-Own

Importance: 0.57

Is a company: no

Is a proper noun: no

Synonyms

  • rental purchase

Acronyms

  • RTO

Alternate Spellings

  • layaway

Definition of Rent-to-Own

  1. An arrangement where one makes periodic rental payments towards the eventual goal of purchasing an asset. Most often used to purchase consumer goods, rent-to-own arrangements can also be used to purchase real estate. Also known as a "rental purchase."

Related Terms and Acronyms

  • Rental Agreement (RA) Bank, Important,
    • A document that states the terms and conditions for tenancy of a dwelling.
  • Purchase Option Bank,
    • The portion of a vehicle lease that determines how much a lessee pays the lessor at the end of the lease to buy the vehicle. The price is usually the residual value.
    • An agreement where a portion of monthly rent can be credited toward the purchase of a property.
  • Lease (lse) Bank,
    • A written agreement in which the property owner allows a tenant to use property in exchange for rent, and for a specified period. Or, a written agreement in which a car dealer allows a consumer to use a vehicle in exchange for payments for a specified period.
  • Seller Carryback Definition,
    • A form of financing in which the seller of a property accepts a down payment and agrees to accept payments until the property is paid for.
  • Rent Bank,
    • When one party pays another for the use of an asset, service or property.
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