Article updated on June 2, 2025
Rent -to-own in Senegal refers to a specific form of real estate acquisition. It is also called lease-purchase . It allows for a much more flexible way to buy property. Indeed, buying real estate often requires a down payment in the case of a loan or paying the entire amount upfront to become a homeowner. With rent-to-own, individuals have the opportunity to acquire a home even if they don't have these sums available. We explain everything about rent-to-own in Senegal in this article.
What is rent-to-own?
Rent-to-own is, by definition, a contract that allows the tenant of a property to become the owner after renting it. This method of ownership therefore has two phases:
- The rental phase : the tenant rents the property for the number of years specified in the rent-to-own agreement. This period is generally between 4 and 5 years. During this time, the tenant pays the owner the rent as well as an additional fee. This additional fee represents the tenant's down payment, which will be factored in later during the purchase phase.
- The accession phase : This is the period during which the tenant will exercise the purchase option stipulated in the contract and become the full owner of the property.
Of course, this contract will only be effective if it is executed before a notary . The notary is a public official and the only one authorized to make this transaction valid.
The advantages of rent-to-own in Senegal
Rent-to-own offers a much more flexible way to acquire property than traditional purchasing. Instead of paying the full price upfront, the buyer can pay for the property in installments. The goal is to allow buyers to become homeowners even if they don't have the funds for an immediate cash purchase.
This also allows people who cannot obtain a mortgage to become homeowners. Indeed, obtaining a loan usually requires a security deposit, which is not something everyone can afford. Therefore, rent-to-own agreements can resolve certain situations.
The obligations of both parties
As we saw above, the lease-purchase involves two parties: the owner and the tenant. These parties are subject to rules stipulated in the contract drawn up by the notary.
- For the tenant-buyer : These are standard rules, similar to those found in a typical lease agreement. They are responsible for paying the property's operating expenses and carrying out any necessary minor repairs. If the property is part of a condominium, they will be considered a co-owner and must therefore attend general meetings.
- For the owner : Once a rent-to-own agreement is signed, the owner can no longer use their property as they see fit. They no longer have the right to sell it to someone else. Furthermore, they must also continue to pay the condominium fees.
Exercising the purchase option
This process takes place after the rental period . The procedure requires that, three months before the end of the rental period, the landlord sends the tenant a registered letter with acknowledgment of receipt. In this letter, the tenant will be offered the opportunity to pay the remaining balance to become the new owner of the property. For this process to be legally valid, it must also be formalized by a notary .
The tenant is not obligated to accept the exercise of the purchase option. They may refuse within the legally prescribed timeframe. They may be required to pay compensation to the landlord if they exceed this timeframe.
As for the landlord, if they no longer wish to sell their property, they will have to pay the tenant a penalty (generally 2% of the total property price). In addition, they will have to return the tenant's entire down payment, which was paid in addition to the rent.
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