Q: Is it legal to create a retroactive contract for a rent-to-purchase agreement in Arizona?
I have had great tenants for 3 years renting my home. I am selling my house, and I would be interested in offering it to them (they have expressed interest previously). As agent fees usually run about 6%, I was wondering if I could write a retroactive contract wherein a portion (equal to that 6%) of their previous rent would go towards the down payment for them.
A: I do not recommend using any kind of retroactive contract. A normal residential real estate purchase contract should be used to document this transaction. But your intention is fine. There is no problem in reducing the purchase price of the home in any amount that you and your tenants agree upon. It is not unusual, when selling without a real estate agent, to reduce the purchase price by 5- 6% since no real estate commission will be paid.
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