Renting To Own It
Civ. Code 1812.631 — default after 7 or 10 days, and reinstatement for up to one year after returning the property
When default comes. A consumer may be deemed in default if a weekly payment is not made by the end of the seventh day after it is due, or a payment on a longer interval by the end of the 10th day.
Reinstatement. A consumer in default may reinstate the agreement, without losing any rights or options, by paying all past due payments with late fees by the end of that seventh or 10th day while keeping the property, or within one year after the payment in default if the property is returned or tendered to the lessor.
Who loses the right. The lessor may not deny reinstatement except to a consumer who stole or unlawfully disposed of the property, damaged it through intentional or reckless conduct, or defaulted on three consecutive occasions, and the lessor carries the burden of proving the denial was in good faith.
Buying it early. Within three months of signing, the consumer may acquire ownership by paying the cash price and past due fees less the payments made. After that, the consumer may acquire ownership at any time for past due amounts plus the cash price multiplied by the share of payments remaining.
A loss of income. After one-half or more of the payments to ownership have been made, a consumer whose income falls 25 percent or more through involuntary job loss, reduced employment, illness, pregnancy or disability has each payment reduced by that percentage or 50 percent, whichever is less, on providing some evidence of it.
The disclosures the agreement must carry, and the remedies for a violation, are set out in other sections that are not on this page. Whether a particular agreement can still be reinstated is a question for a licensed California attorney.
Sources for this section (2)
- Civ. Code 1812.631 — Default and reinstatement
- Civ. Code 1812.632 — Early purchase, and reduced payments after a loss of income
Legal information, not legal advice. Verified as of September 2026. Applying it to a particular situation is the work of a licensed California attorney.