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Tennessee Rent-to-Own Lease Agreement

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Updated July 22, 2025

A Tennessee rent-to-own lease agreement is a lease that contains an option for a tenant to purchase the property during the lease period. The lease is a standard agreement that includes negotiated terms related to the purchase of the property. If the tenant decides not to buy, the lease terminates normally.

Tennessee Laws

Requirement to Record: Not legaly required but must be recorded to establish notice to third parties.[1]

Expiration: Constructive notice does not expire by statute.

Maximum Term: There is no maximum term for a lease with an option to purchase.

No Duration: If the lease does not set an expiration for the option, it will expire automatically at the end of the lease.

Signing Requirements: Must be in writing and signed by the seller.[2]

Required Disclosures (3)

1. Agent/Landlord Identification – The landlord must disclose the name, address, and telephone number or email address of the person authorized to manage the premises. This person may be the landlord, property owner, or some other authorized agent.[3]

2. Lead-Based Paint Disclosure & EPA Pamphlet – Landlords renting properties built before 1978 must inform prospective tenants that the walls and ceilings could contain lead-based paint.

3. Showings – If the landlord intends to show the property to successive tenants during a tenancy, then this must be stated within the lease agreement.[4]

Seller’s Disclosures (2)

1. Residential Property Condition Disclosure – Informs buyers of the material condition of a property. The seller is legally obligated to provide this disclosure to the buyer unless the buyer waives their right by signing a Waiver (see below).[5]

2. Waiver of Property Condition Disclosure – Creates an arrangement where the buyer willingly waives their right to receive a property condition report. If signed by both parties, the buyer agrees to purchase the property “as is.”[6]

Sample

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