Employee Lease Agreement With Option To Purchase In California
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In summary, if you`re looking for a way to rent a property in California with the option to eventually buy, a lease option agreement might be the right choice for you. Just be sure to understand the legal requirements and consult with an attorney to ensure a successful transaction.
Typically, a tenant is required to give written notice of their exercise of the option several months before the current term of the lease expires — typically a period of time ending three to six months before expiration of the current term of occupancy.
“When you do a lease option, you're betting that you're going to qualify for a mortgage and be able to execute and buy the property,” says Timothy McFarlin, a California real estate attorney. “Make sure you have a path to do that.”
Under California civil code, tenants without leases maintain rights like limits on rent increases, proper notice before eviction, and requiring the landlord to maintain habitable living conditions. Be aware that without a lease, landlords only need to provide 30 days' notice to increase rent or terminate tenancy.
While you can sue a tenant without a lease, there are a few things to consider before you proceed. First, tenants that do not have a written lease may still have significant protection under the law. Second, it can be more difficult to argue and win your case without a written lease to refer to.
In summary, if you`re looking for a way to rent a property in California with the option to eventually buy, a lease option agreement might be the right choice for you. Just be sure to understand the legal requirements and consult with an attorney to ensure a successful transaction.
Verbal rental agreements are legally binding in California, but it's best to document important communications and keep records of rent payments. Landlords must follow the proper eviction process, providing adequate notice and obtaining a court judgment, even if there is no written lease.
