What is the ruling on lease-to-own if the final payment is distributed over the monthly installments, and what is the ruling on lease-to-own with a promise to transfer ownership?

For the validity of a lease-to-own contract, several conditions must be met. The most important of these are the existence of two separate contracts, each independent of the other in terms of timing, or the existence of a promise of ownership at the end of the lease term, and that the lease be a genuine lease and not a disguised sale.

Including the final payment with the rent makes the lease a disguised sale. The agreement is not valid if the final payment is the price in a subsequent sale contract, due to the lack of independence of the sale contract from the lease. The rule for prohibition is when two different contracts are applied to one and the same asset at the same time.