Rent to Own Contract
Rent to Own Agreement
Both Parties Agree That:
Monthly rent payments will be paid by the Customer in exchange for the use of the instrument or property listed on the front of this contract. All payments will be made in advance by the due date and will be paid directly to the Rent to Own Distributor (Distributor).
Payments shall be scheduled for reoccurring month ACH and will be processed on the same date each month. Limited exception payments may be made by, cash, check, money order, bank check, or credit card (VISA, Master Card, Discover, or American Express). Credit card payments will carry a 3% transaction fee.
Each monthly payment is composed of three parts:
1. Rent/Principal plus (+) 2. Administrative fee plus (+) 3. Taxes
Rent/Principal One hundred percent (100%) of the rent / principal portion of each payment applies toward the eventual purchase of the instrument.
The instrument listed on the contract shall remain the property of Distributor the until such time as the customer has paid the entire principal balance on the instrument. Therefore, the instrument may not be taken out of the state of Customer Delivery without express permission of the Distributor. The customer has no equity in this instrument until the principal balance is paid in full. During the rental period, The Distributor will apply rental payments toward the purchase of the instrument listed as stated on the front of this contract unless the contract is terminated either by choice or default. Payment of the remaining principal balance may be made at any time without penalty. When the principle of the instrument is paid in full, this contract will be deemed complete, and no future payments will be required.
An Administrative Fee for this contract will be charged for each month the instrument is on a rent-to-own contract. The Administrative Fee amount is shown on the posted monthly payment table. Once instrument is paid in full, no further administrative fees will be due.
Sales taxes (if required) will be collected on the rental portion of this contract at the appropriate tax rate. Sales tax rates may change from time to time and such changes will be made known to the customer no less than 30 days before the new sales tax rates go into effect. Customer will be responsible to pay any increases or decreases in sales tax rates. If customer chooses to pay the remaining principle balance on the instrument, sales tax will be charged on the open principal balance.
Change of Address: Customer will notify Distributor in writing of any changes of address no less than 30days after Customer has moved from the address listed on the contract. Such change of address will become a part of this contract, and any future written communication will be sent to this new address. Distributor will supply customer with approved change of address form. Customer may obtain this change of address form at any time by contacting the Distributor. Distributor will notify Customer in writing of any changes of address no less than 30-days prior to the address change. Upon notification, Customer will immediately use the new address for any and all correspondence or payments to Distributor.
Contract Termination: The Customer can terminate this contract and affect the return of the instrument to the Distributor at any time. Upon termination of this contract the instrument must be returned to Distributor in the same condition as when it was rented, normal wear and tear excepted, and any outstanding payments due, including administrative fee(s), taxes, and applicable late fees, will be paid by the customer. Payments are to be made until the instrument is in possession of Distributor. All monies paid will be retained by Distributor for the use of the instrument.
Payments will be considered late if they are received more than five days past the normal due date. If a due date occurs on a weekend or a national holiday, the due date shall be the following business day. Late payments shall accrue a fee of five dollars ($5.00) per occurrence.
This contract shall be considered in DEFAULT if:
(a) the customer fails to make any scheduled rental payment within thirty (30) days of the due date, and/or
(b) if the customer declares bankruptcy, and/or
(c) if the customer moves the from the address listed on the front of this contract without notifying Distributor.
Should the customer default on this contract Distributor may declare the entire outstanding principal balance, administrative fee(s), taxes, and any late fees be immediately due and payable. Distributor has the right to cancel this contract and recover the instrument wherever it be located. The customer will be held responsible for reasonable costs of collection of the instrument and/or past due rental payments including attorney’s fees, court costs, interest, collection fees and any damage to the instrument. Delinquent rental accounts are placed in outside hands for collection. A $25.00 RETURNED CHECK fee will be applied to the rental account for any check returned for any reason.
If the customer files for BANKRUPTCY protection in any court prior to the full principal balance being paid, the instrument MUST be immediately returned to THE DISTRIBUTOR. This is a RENTAL contract and as such the instrument shall not be considered as an asset or debt collection in any bankruptcy case. The instrument is the property of THE DISTRIBUTOR and must be returned forthwith.