Rent to Buy Agreement

This Agreement can be used to create an arrangement where a customer can rent an item with the option of buying it at the end of the rental period.

calendar_month

Last updated October 24, 2025

flag

Suitable for Australia

Rent to Buy Agreement

Create & Customise Legal Templates Online

legal documents graphic

What is a rent to buy agreement?

A rent to buy agreement lets you rent an item for a set period, with the option to purchase it at the end. Part of your rental payments may count towards the final purchase price.
legal documents graphic

When should you use a rent to buy agreement?

Use this agreement when you want to use an item immediately but may wish to buy it later, especially for expensive or specialised goods like vehicles, equipment, or appliances.
legal documents graphic

What should be in a rent to buy agreement?

The agreement should include the rental period, payment schedule, purchase option details, and terms covering maintenance, insurance, and what happens if payments are missed.
docs

Create unlimited legal documents and eSignatures for only $39/month.

Upgrade to a Lawpath legal plan to boost your new business.

View plans & pricing

How to create a legal document

  • check_circle

    Access the Document Library

  • check_circle

    Select the template that matches your needs

  • check_circle

    Customise by adding or removing clauses with assistance from Lawpath AI

  • check_circle

    Personalise with your headers, footers, logos, or additional text

  • check_circle

    Store all documents securely in your account for easy access

Start creating your first document

Frequently asked questions

What is a rent to buy agreement?

keyboard_arrow_up

When should you use a rent to buy agreement?

keyboard_arrow_up

What should be in a rent to buy agreement?

keyboard_arrow_up

What protections does this agreement offer to both parties?

keyboard_arrow_up

Are there any significant limitations or risks for renters?

keyboard_arrow_up

What types of items are suitable for this agreement?

keyboard_arrow_up

What steps should I take after completing the agreement?

keyboard_arrow_up

View Sample Rent to Buy Agreement

Rent to Buy Agreement
risk level indicator at Low level

The Legal Risk Score of a Rent to Buy Agreement Template is Low

Our legal team have marked this document as low risk considering:

  • The items rented under this agreement remain the property of the company throughout the rental period, and the renter has limited rights to them unless they decide to purchase, which might restrict the renter's use and control over the items.
  • Renters are required to make payments in advance and may face substantial penalties including interest on overdue payments, which could impose a significant financial burden.
  • The renter is responsible for the maintenance and proper operation of the items, which could lead to additional costs or liabilities if not managed correctly.

Articles about Rent to Buy Agreement

How Do Rent To Buy Schemes Work?
By Paul Taylor|Jul 17, 2019

How Do Rent To Buy Schemes Work?

Rent to buy schemes are a large part of the retail market. Whilst these deals can be appealing, there are a number of things you should be aware of.

5 Benefits Of Using A Hire Purchase Agreement
By Jenelle Miranda|Apr 30, 2019

5 Benefits Of Using A Hire Purchase Agreement

Are you looking to buy equipment for your business but can't afford them right now? Read here about how hire purchase agreements can benefit your business today.

What is a Hire Purchase Agreement? (2025 Update)
By Carmen Zhu|Jan 7, 2025

What is a Hire Purchase Agreement? (2025 Update)

Need equipment for your business but lacking the upfront funds? Learn about how a hire purchase agreement can help you here.

What's the Difference Between Renting and Leasing?
By James Hodgson|Feb 6, 2020

What's the Difference Between Renting and Leasing?

Considering renting property or just want an explainer on the difference between renting and leasing? This guide clarifies some questions you may have.

How Does Vendor Finance Work?
By Avi Bhargava|Feb 7, 2019

How Does Vendor Finance Work?

Thinking of purchasing a property but suffering from poor credit? Read below to find more about an alternative to taking out a mortgage.

What is a Consumer Lease?
By Parissa Tosif|Aug 27, 2019

What is a Consumer Lease?

Thinking about entering into a consumer lease? This article breaks down what is a consumer lease and how it works.

Pest Inspection Checklist Before Purchase – Part 2
By Dominic Woolrych|Nov 28, 2025

Pest Inspection Checklist Before Purchase – Part 2

Don't purchase a property before making sure that it's the right one for you. Read about carrying out a pest inspection in this guide.

Joint Tenants vs Tenants in Common (2025 Update)
By Adam Lewis|Jan 8, 2025

Joint Tenants vs Tenants in Common (2025 Update)

Looking to purchase a property, but don't know how you should allocate ownership? Read this article to find out about joint tenants and tenants in common.

What is Rent Abatement?
By Janette Nalbandian|May 28, 2025

What is Rent Abatement?

When looking to lease a commercial property, you may come across a lease incentive known as 'Rent Abatement'. Read about it in this article.

Looking for more documents?

Privacy Policy

A Privacy Policy outlines how your business will use, store and collect your customers' information. A Privacy Policy is required by law in certain circumstances.

Get document

Loan Agreement

This Loan Agreement can be used by lender when offering a loan to a Borrower.

Get document

Non-Disclosure Agreement (Mutual)

A Non-Disclosure Agreement (Mutual) allows you and another party to share confidential information while legally forbidding either party from disclosing that information to any other person or entity.

Get document

Non-Disclosure Agreement (One Way)

A Non-Disclosure Agreement (One Way) allows you and another party to share confidential information while legally forbidding the other party from disclosing that information to any other person or entity.

Get document

Business Sale Agreement

A Business Sale Agreement is used to clearly set out all relevant terms of the sale when selling or buying a business.

Get document

Shareholders Agreement

A Shareholders Agreement allows you to clarify the relationship between shareholders of your company.

Get document

Services Agreement (Pro-Supplier)

This Services Agreement (Pro-Supplier) sets out the relationship between you, the service provider, and the business receiving the services. This version of the Services Agreement is drafted in favour of the supplier from a commercial and legal perspective.

Get document

Discretionary Trust Deed

A Discretionary Trust Deed is used to establish a discretionary trust in any state or territory in Australia.

Get document

Browse all legal documents