Tennessee Rental-Purchase Agreement Act
The Tennessee Rental-Purchase Agreement Act: Everything You Need to Know
Are you planning to rent out a property or lease a big-ticket item in Tennessee? If so, you need to be familiar with the Tennessee Rental-Purchase Agreement Act. This act outlines the rules and regulations governing rental-purchase agreements in Tennessee, protecting both renters and landlords.
Here are some key points you should know:
1. What is a Rental-Purchase Agreement?
A rental-purchase agreement is a contract wherein a renter agrees to pay a specific amount of money for a rented item or property for a specified period of time. This type of agreement is often used for big-ticket items such as furniture, appliances, electronics, and vehicles.
2. What Does the Tennessee Rental-Purchase Agreement Act Cover?
The Tennessee Rental-Purchase Agreement Act outlines the rights and responsibilities of both renters and landlords. It covers issues such as the duration of the rental, the amount of money to be paid, and the rights of the renter in case of default or non-payment.
3. Disclosure Requirements
The Act requires landlords to disclose certain information to renters before entering into a rental-purchase agreement. This includes the total cost of the rental, the amount of each payment, and the total number of payments needed to complete the rental.
4. Late Fees
The Act also regulates late fees that may be imposed on renters who fail to make payments on time. The maximum late fee that can be charged is $7.50 or 5% of the payment due, whichever is greater.
5. Termination Rights for Renters
Under the Act, renters have the right to terminate the rental-purchase agreement at any time without incurring any penalty or additional cost. They may also request the return of any prepaid amounts.
6. Repossession Rights for Landlords
Landlords have the right to repossess the rented item or property if the renter defaults on payments. However, they must follow certain procedures, including providing notice to the renter and allowing them to cure the default.
7. Consumer Protections
The Act provides several consumer protections for renters, including the right to receive a copy of the rental-purchase agreement and the right to dispute any charges or fees assessed by the landlord.
The Tennessee Attorney General’s Office is responsible for enforcing the Tennessee Rental-Purchase Agreement Act. If a landlord violates the Act, renters may file a complaint with the Attorney General’s Office for investigation.
In conclusion, if you are planning to enter into a rental-purchase agreement in Tennessee, it is crucial to understand your rights and responsibilities under the Tennessee Rental-Purchase Agreement Act. By familiarizing yourself with this Act, you can protect yourself from potential disputes or legal issues down the line.