This is a contract in which the tenant has the option to buy the property at a specified price after a specified rental period.

The rent paid during the tenancy is usually higher than the market rate as it also includes a portion of the property’s purchase price. Therefore, the contract must specify how the payments are divided between rent and the purchase price.

It must be signed before a notary and registered with the land registry. This ensures the tenant that the property will not be sold to others during the rental period.

The contract offers a viable alternative when the purchaser does not have sufficient funds to buy the property immediately but expects to accumulate them in future years.

Landlords typically do not favour such contracts, as they limit their ability to dispose of the property, even if tenants breach the agreement (e.g., by ceasing to pay rent). To fully regain their disposal rights, the contractual commitment to the tenant must first be removed from the land registry. If the tenant is uncooperative, a court order is required. Complications may also arise for the landlord in executing the contract upon the tenant’s death.

For these reasons, such contracts are relatively uncommon and are mainly used for properties that are difficult to sell.