What is the Rental Agreement with Redemption?
The Rental Agreement with Redemption allows a subject, the renter, to grant the use of the movable property to another subject, the user, who has the possibility to purchase the property against payment of a price.
By redemption, we mean the right (not the obligation) of the user to purchase the asset and become its owner. In this case, the user, at the end of the rental agreement, will inform the renter that he wishes to purchase it upon payment of a pre-established sum in the contract. There is no rule that sets the redemption price. Normally it varies between 1% and 40% of the value of the property depending on the type of property rented, the state of wear, etc.
A rental with redemption can be useful when the user wants to try an asset for a period before buying it, to check if it is suitable for his needs and if it has the characteristics he was looking for. This contract also allows him to postpone the full payment, but to use the asset immediately.
When using long-term rental with redemption
The long-term rental with redemption can be used to rent movable property, machinery, and equipment of any kind (construction, film, IT, etc.) which can be purchased at the end of the rental period, paying a predetermined price. This contract is also suitable for concluding a car or van purchase agreement.
This contract can be used between individuals, for example, by a student who rents a PC and then decides to redeem it. It can also be used among professionals, for example, a company that rents equipment directly from the manufacturer with the option to purchase it.
This contract should not be confused with the leasing contract with which it has elements in common. Leasing is a finance lease with which only authorized parties (banks or financial intermediaries) are obliged to purchase an asset according to the user’s instructions and grant it to him for use.
Furthermore, you cannot use the rental with redemption if you want to subscribe to a trial sale or a sale subject to satisfaction. In the first case, the buyer can try the good and decide not to buy it for any reason within a certain period of time granted by the seller. In the second case, however, the buyer can purchase it with reserve to check if the good complies with the promised characteristics.
What the model of the rental agreement with final redemption contains
Our rental agreement with final redemption meets all legal requirements. The main clauses included concerns:
- Description well: the detailed description of the property (or property), to be included in the contract or in the Annex;
- Accessory services: you can also include in the contract services instrumental to the use of the asset;
- Fee: the amount to be paid for the enjoyment of the property. It can be paid in a single solution or in several installments;
- Redemption: the price and the terms of redemption of the asset are defined;
- Deposit: any obligation of the user to pay a sum as a guarantee for delays, non-fulfillment or damage;
- Duration: The period of use and enjoyment of the asset;
- Delivery and return: the parties determine the place and who must pay the costs of delivery and any installation;
- Maintenance: among the accessory services you can regulate the maintenance of the asset;
- Responsibility: who will have to answer for any damages is disciplined;
- Insurance: the user can be expected to take out insurance to cover all direct damages, for liability to third parties, for fire and theft or others.
After the purchase, we will guide you step by step through all the subsequent formalities necessary for your rental agreement to be duly constituted.
Information you need
To answer the interview will need the data to the parties and the detailed information of the goods covered by the charter.
The document can be modified free of charge in all its parts without time limits. Don’t worry so if you don’t have all the information available during the interview, you can always enter it later.
Remember that our interview does not generate a simple facsimile of a rental agreement with redemption. Based on your answers, the system automatically draws up a customized contract model for your exact needs, guaranteeing its legal correctness.
- Rental agreement (leasing of movable property)
- Hot freight
- Equipment rental
- Operational rental with the final redemption
- Long-term rental with redemption
- Equipment rental with redemption
Other useful templates and facsimiles
- Free Loan Agreement: to grant free use of an asset with the obligation to return it
- Contract for the sale and purchase of movable goods: to transfer the ownership of any movable property to a buyer
- Sales Agreement with Reservation of Appreciation: to allow the buyer a certain period of time to check the property and choose whether to buy it or not