Renting to Own It
ORC 1351.05 — the grace period, and the right to get it back after it goes
A rental purchase is a lease with an option on the end of it, and the chapter that governs it treats a missed payment very differently from the way a loan would. There is a grace period before default, and after the property has gone back there is still a period in which the whole agreement can be put back exactly as it was.
Who handles this in Ohio: legal aid programs, lawyer referral and the state offices, listed in the Ohio directory.
| What the agreement discloses | Under the section |
|---|---|
| What the agreement disclosesThe total amount of any initial payment | Under the sectionIncluding advance payment, delivery charge or trade in allowance |
| What the agreement disclosesAll other charges | Under the sectionIndividually itemized, where they are not included in the lease payments |
| What the agreement disclosesWho is liable for loss or damage | Under the sectionNamed |
| What the agreement disclosesThe right to reinstate | Under the sectionAs set out in the reinstatement section |
| What the agreement disclosesWho maintains or services the property | Under the sectionNamed |
There is a grace period before anybody is in default. A lessee who fails to make a timely payment is allowed, before being determined to be in default, a grace period of not less than two days where payments are weekly and not less than five days where they are monthly. A monthly grace period of that kind is available not more than three times per year, which is the limit on it rather than a limit on the length of the first one.
Reinstatement is the part nobody is told about. A lessee who fails to make timely payments has the right to reinstate the original agreement without losing any rights or options previously acquired, within three lease terms after the expiration of the last lease term for which a timely payment was made, where the lessee surrenders the property to the lessor when requested. Everything already paid toward ownership survives the reinstatement rather than starting again.
Before reinstating, the lessor may require the lessee to pay any unpaid lease payments, delinquency charges, a reasonable reinstatement fee of not more than five dollars, and a delivery charge where redelivery of the property is necessary. Five dollars is the ceiling the section puts on the fee itself.
| The moment | What the chapter provides |
|---|---|
| The momentA weekly payment is missed | What the chapter providesNot less than two days before default is determined |
| The momentA monthly payment is missed | What the chapter providesNot less than five days before default is determined |
| The momentMonthly grace periods a year | What the chapter providesNot more than three |
| The momentAfter the last term paid for on time expires | What the chapter providesThree lease terms in which to reinstate |
| The momentThe fee to reinstate | What the chapter providesA reasonable fee of not more than five dollars |
What the total of payments to acquire ownership comes to, whether an agreement is a lease purchase or a credit sale, the early purchase option, and the remedies where the disclosures were never made are each their own question and are not worked out here. Whether a particular agreement complies, and what a particular breach is worth, are questions for a licensed Ohio attorney. The Ohio Attorney General's consumer protection section takes complaints about rental purchase agreements.
Sources for this section (2)
- ORC 1351.02 — Disclosures required in connection with a lease purchase agreement
- ORC 1351.05 — Reinstatement of a lease purchase agreement after default
Legal information, not legal advice. Verified as of September 2026. Applying it to a particular situation is the work of a licensed Ohio attorney.