Would-be homebuyers secured a partial victory from the Indiana Supreme Court against Rainbow Realty Group after it concluded the parties’ rent-to-buy agreement was not a land-sale contract. However, relief awarded to the tenants under Indiana’s Deceptive Consumer Sales Act was reversed.
Asserting the Court of Appeals’ ruling in a rent-to-own dispute will adversely impact tenants across the state, Indiana Legal Services filed a petition Monday to transfer its litigation against Rainbow Realty Group for the company’s rent-to-own practices. In its transfer petition,Indiana Legal Services argued Rainbow's rent-to-buy contract is a lease governed by the state’s Landlord-Tenant Act.
Would-be homebuyers who won a fraud decision against a company that sells “rent-to-buy” fixer homes after they were evicted lost at the Indiana Court of Appeals on Thursday. An appellate panel reversed a ruling against Indianapolis-based Rainbow Realty, ordering Marion Superior Court to rule in its favor instead.