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A lease to purchase arrangement allows tenants to buy the property from the landlord after renting for a specified period. This is established through a legally binding contract, but sellers may have options to exit the agreement under certain conditions. Breaking the lease may incur fees, and the landlord could pursue legal action for non-compliance. Tenants might need to continue paying rent until the lease ends. Sellers can also require non-refundable upfront down payments for rent-to-own agreements, usually less than standard down payments for home purchases, which are typically around 20% of the sale price.
