Episode Description
One missed disclosure, one careless ad, or one unopened bankruptcy notice can turn a profitable rent-to-own deal into a full-blown legal mess. That’s why we brought on Nick Garrard, NSRA legal counsel and an attorney who works deep in the shed rent to own world, to help us get practical about where dealers get exposed and how to stay ahead of it.
We talk through what really changes when you move from traditional RTO items to higher-value sheds, and why the fundamentals still come back to the Rental Purchase Agreement Act, state-required disclosures, and consistent contract language. Nick breaks down how multi-state expansion creates risk in unexpected places, especially advertising. Some states can require specific pricing and term disclosures the moment you market an offer, even if your home office is somewhere else. If you have ever wondered why one state feels “easy” and another feels like a compliance minefield, we get into real examples like California maintenance requirements and pricing caps mentioned in places like West Virginia.
Then we shift into bankruptcy, the topic most dealers avoid until it lands on their desk. Nick explains how rent-to-own agreements are typically treated as true leases in bankruptcy, what “assume or reject” means, and why deadlines are everything. We also cover what you can often do yourself, like filing a proof of claim and requesting notice, so you save legal fees while still protecting your assets.
We wrap with where NSRA is headed, how collaboration with APRO is raising standards through ethics and better data, and what to expect at upcoming industry events. Subscribe, share this with a dealer who needs it, and leave a review if the show helps you run tighter. What state compliance issue has surprised you the most?
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