Do I need to subdivide before I can rent to own?

[Bridger L Logan]

My wife and I currently have parcel with two single family houses that we are house hacking.

We are renting out the 3 bed 1bath and living in the 2 bed 2 bath. The tenants have been there much longer than we've lived here and they treat the place like it's their own with seasonal decor, lawn care, and family get togethers.

I wanted to structure a rent to own scenario for them but am wondering do I need to subdivide the parcel into 2 separate parcels before I can do that?

I've always had that as an idea for a potential exit strategy and would like to see what's possible.

Any input/ advice appreciated!! Thanks

[Dave Spooner]

@Bridger L Logan I'd suggest calling the city about it, but my hunch is that you do not need to subdivide it just to sign a rent to own contract or to begin collecting on it. I would expect it needs to be subdivided before the tenant takes ownership though. 

You can sign a contract for (just about) anything. It would be a breach of contract if you are unable to deliver ownership at the end though and I think you'll need it subdivided to do that.

I would also contact a local lawyer. Shouldn't be too expensive and will be well worth it. Just make sure they specialize in real estate locally.