The following lease agreement form is meant to be used by one individual dealing with another individual or a commercial transaction between non-consumers. It therefore does not contain disclosures required by the Federal Consumer Leasing Act.
The Federal Consumer Leasing Act, which is part of the Truth in Lending Act, applies to any lease of consumer goods for more than four months in which the total contractual obligation does not exceed $25,000. (It does not apply to leases of real estate.) This law requires the lessor (the owner of the auto you lease, for example) to disclose information before you sign the lease. Among the most important items are
" the capitalized cost -- that is, the cost of the goods being leased (the capitalized cost is negotiable to the same extent that the price of goods is negotiable if you were buying them instead of leasing them);
" the total amount of any initial payment you are required to pay;
" the number and amounts of monthly payments;
" the total amount for fees, such as license fees and taxes;
" any penalty for default or late payments;
" the annual mileage allowance and the extra charges involved if you exceed that allowance;
" whether you can end the lease early, and the method of computing the charge if you do so;
" whether you can purchase the auto at the end of the lease and for what price;
" any liability that you may have for the difference between the estimated value of the auto and its market value at the time you end the lease; and
" any extra payment that you must make at the end of the lease.
Puerto Rico Lease or Rental Agreement of Personal Property with Option to Purchase and Own Personal Property — Lease or Rent to Own In Puerto Rico, individuals looking for flexible ownership options can benefit from a Lease or Rental Agreement of Personal Property with an option to Purchase and Own Personal Property — known as Lease or Rent to Own. This unique agreement allows renters to lease assets and gradually acquire ownership over time. Here are a few types of Lease or Rent to Own agreements commonly found in Puerto Rico: 1. Residential Property Lease or Rent to Own Agreement: This type of agreement applies to residential properties such as houses, apartments, or condos. It allows tenants to lease the property for a specific period, typically ranging from one to three years, with an option to purchase the property at the end of the lease term. This arrangement gives prospective home buyers a chance to build equity while renting and provides the opportunity to purchase the property without the immediate need for a substantial down payment. 2. Vehicle Lease or Rent to Own Agreement: This type of agreement is applicable to vehicles, including cars, motorcycles, trucks, or recreational vehicles. It allows individuals to lease a vehicle for a predetermined period, usually between two and five years, with the option to purchase the vehicle at the end of the lease term. This option is beneficial for those who want to drive a vehicle without committing to a long-term loan upfront while ensuring the opportunity to buy the vehicle later on. 3. Equipment Lease or Rent to Own Agreement: This type of agreement pertains to leasing or renting various types of equipment used for businesses or personal needs. It can include construction machinery, office equipment, agricultural tools, or technology devices. The lessee pays a monthly fee to rent the equipment with the possibility of owning it once the lease term ends. This arrangement is advantageous for businesses that require access to expensive equipment without the burden of an immediate upfront purchase. 4. Consumer Goods Lease or Rent to Own Agreement: This type of agreement involves leasing or renting consumer goods like furniture, electronics, appliances, or even musical instruments. It enables individuals to enjoy the benefits of owning such goods over time while making affordable monthly payments. At the end of the agreement, lessees have the option to purchase the goods at a predetermined price or return them. No matter which type of Puerto Rico Lease or Rental Agreement of Personal Property with an option to Purchase and Own Personal Property you choose, it is crucial to thoroughly review the terms and conditions before entering the agreement. As with any legal agreement, potential lessees or renters should seek proper legal advice to ensure they fully understand their rights and obligations to make informed decisions.
