Residential Property Lease With Purchase Option In North Carolina
Description
Form popularity
FAQ
For example, a tenant and landlord may agree to a five-year lease with a five-year option to renew. At the end of the first five years, the tenant is given the chance to continue the lease for another five years. If you think you may renew, be sure to bring up extension provisions with your landlord.
As a first concern, all leases should be in writing, even if the law does not require it. North Carolina's Statute of Frauds only requires that leases exceeding three years from the making need be in writing.
North Carolina General Statutes 47G-1 through 47G-7 govern the rent-to-own, or “option contract” law. There are minimum contract requirements that must be present before the rent-to-own lease agreement is considered valid.
No, leases don't have to be notarized to be legally binding in North Carolina. However, many prefer this.
Flexible path to buying a home: A lease option could be a suitable alternative if you aspire to become a homeowner but can't quite afford it just yet. Using this type of contract, you get a little more time to potentially save toward the down payment or work to improve your credit.
If you like the space, you can renew your lease at the end of the term. For example, a tenant and landlord may agree to a five-year lease with a five-year option to renew. At the end of the first five years, the tenant is given the chance to continue the lease for another five years.
A 5-year lease can provide more stability than a 3-year lease, allowing you to plan for the future with a secure location. It can also be less of a risk if you're renting a storefront or restaurant in a good location that customers are used to, as they may be less likely to move to a new location.