How can I create a rent-to-own agreement for a family friend with bad credit?

UPDATED: Oct 1, 2022

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How can I create a rent-to-own agreement for a family friend with bad credit?

I have a home with a mortgage on it but had to move for a job. I have a family

friend who would like to take over the mortgage payments, and when they are done with the payments I would deed the home to them. How could I go about doing this? Would a lease to own agreement be best?

Asked on August 5, 2018 under Real Estate Law, New Hampshire


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Yes, a lease to own would be best, and make sure that the agreement is clear that you do not transfer title until the full amount for the home is paid in full (all payments made). You should be able to use a standard or commercially available lease-to-own agreement as the starting point, but since the house is such a major asset for you, to make sure you protect yourself, bring your draft agreement to a landlord-tenant attorney in your state (every state has some difference in landlord-tenant law) to review with you.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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