Rent to Buy

A particular contract that combines elements of leasing and sale, allowing a prospective buyer to rent a property for a period with the option (or obligation) to purchase it later, crediting part of the rent towards the price. Introduced formally by a 2014 law (Art. 23 DL 133/2014), rent to buy contracts in Italy let the tenant immediately occupy the property and pay an agreed monthly amount, one part being rent for use and another part set aside as savings toward the purchase. By the end of the agreed term, the tenant-buyer can decide to buy the property, subtracting the accumulated saved portion from the agreed sale price. If they decline, the owner must return the saved portion (and is free to keep the rent portion). The law also provides that the contract be registered and that the buyer’s future purchase right is protected by a special transcription in the Conservatoria, valid up to 10 years . This protects the tenant-buyer against the owner selling to others or defaulting. Rent to buy can help buyers who presently cannot get a mortgage or need to test the property. However, if they don’t eventually buy, they lose the rent paid (but not the saved part). Each contract’s terms (duration, percentages) can vary widely. This scheme is not very common yet, but it exists as an alternative path to homeownership.