Legal Question in Landlord & Tenant Law in Indiana

Rent With Option to Buy Agreement in Indiana and eviction:

I'm a landlord and want to sign a RENT WITH OPTION TO BUY AGREEMENT with a new renter so that in 2 years time that renter can enter a Purchase to Buy Agreement if he (the renter) decides to purchase my property.The renter would put a non-refundable deposit down for the option to buy when the RENT WITH OPTION TO BUY AGREEMENT is originally signed plus the renter would pay the 1st rental payment rent and damage deposit (each on separate cashier's checks or bank drafts).

If later during the tenancy the renter damages the property or stops paying rent completely, can I evict the tenant according to the usual Landlord Tenant Eviction Laws? Or would some other laws apply and what would they be?


Asked on 1/12/12, 4:29 pm

1 Answer from Attorneys
terrence rubino rubino ruman crosmer smith and sersic

maybe but you could have a problem. in the case of a conditional sales contract the seller cannot simply declare a default, terminate and evict because the buyer may have "equity" in the property. the risk is that some judge interpets the option price as a down payment and then you have to appeal and who knows what then happens. i suggest you obtain an experienced real estate lawyer in your area and at the very least make sure the agreement is very explicit. you are welcome to call our ken wilk and ask him what he thinks - there is no charge for phone calls. i dont recognize your zip so we probably wouldnt be the ones to actually do it but at least ken should be able to give you another opinion. you can find him on our website rubinoruman.com. good luck.

Read more
Answered on 1/13/12, 4:49 am


Related Questions & Answers

More Landlord & Tenants questions and answers in Indiana