Lease Purchase Agreement

In a standard Lease-Purchase Contract, the two parties agree to a lease period during which rent is paid, and the terms of the sale at the end of the lease period, including sale price. Often, the contract is structured in two parts, one representing the lease term and the other a contract of sale.

Document everything in writing. Keep a written record of everything that is agreed on, and be careful to use the right terms in the agreement. Consult an attorney. Use separate agreements. Keep the term short. Take a security deposit. Pay like an owner. Factor in repair costs. Don't give large rent credits.

The California Residential Lease Agreement-With Option to Purchase is a form used specifically for a purchase agreement that begins as landlord-tenant lease agreement.

A lease purchase agreement in real estate is a rent-to-own contract between a tenant and a landlord for the former to purchase the property at a later point in time. The renter pays the seller an option fee at an agreed-upon purchase price, giving them exclusive rights to buy the property.

You sign one of two types of agreements. You and the landlord set a purchase price. You pay an option fee. You decide how long the rental term will be. Maintenance roles will be defined. Your monthly payment covers rent and down payment savings. When the rental term nears its end, you apply for a mortgage.

The Lease Must be in Writing It does not matter if the lease is handwritten or typed. If the lease is for more than one year, it must be in written form and contain the following terms.