Note: This "Supplemental" Package DOES NOT contain a Lease Agreement! This popular package is intended for Landlords who have already have a Lease Agreement form, but would like to take advantage of our package discount on other fundamental lease-management forms.
A residential lease agreement with purchase option, also known as a rent-to-own agreement, is a legally binding contract between a landlord (or seller) and a tenant (or buyer) that combines elements of a traditional lease and a real estate purchase agreement. This type of agreement allows the tenant to rent a residential property for a fixed period, with the option to buy the property at a predetermined price at the end of the lease term. It provides an opportunity for tenants who may not currently qualify for a mortgage or need more time to save for a down payment to eventually become homeowners. The residential lease agreement with purchase option typically includes the following key components: 1. Lease Term: Specifies the duration of the lease agreement, which is typically shorter than a traditional lease, ranging from one to three years. 2. Monthly Rent: Outlines the amount of rent the tenant is required to pay each month, which may include a portion that is credited towards the eventual purchase price. 3. Purchase Price: States the agreed-upon price at which the tenant can purchase the property at the end of the lease term. This price is usually determined upfront or based on an agreed upon formula. 4. Option Fee: Refers to a non-refundable fee paid by the tenant to the landlord, which grants the tenant the exclusive right to purchase the property within a specified timeframe. 5. Maintenance Responsibilities: Details the responsibilities of both the landlord and the tenant regarding property maintenance and repairs during the lease term. 6. Security Deposit: Describes the amount of money the tenant is required to pay as a security deposit, which may be refundable if the tenant chooses not to exercise the purchase option. 7. Default and Termination Clauses: States the consequences and procedures in the event of default, early termination, or non-compliance with the terms of the agreement. 8. Property Condition: Clarifies the condition of the property at the beginning of the lease term and outlines any provisions for property inspections. Different variations of residential lease agreements with purchase options include: 1. Lease-purchase agreement: Similar to a rent-to-own agreement, this arrangement obligates the tenant to purchase the property at the end of the lease term. Unlike a rent-to-own agreement, there is usually no option fee involved, and a portion of the monthly rent may not be credited towards the purchase price. 2. Lease-option agreement: This variation provides the tenant with the option, but not the obligation, to purchase the property at the end of the lease term. It offers flexibility to the tenant, who can choose not to proceed with the purchase, forfeiting only the option fee. In summary, a residential lease agreement with purchase option offers tenants the opportunity to lease a property for a fixed period while having the option to purchase it at the end of the lease term. By combining elements of a lease and a purchase agreement, it provides flexibility and potential homeownership for tenants who may require more time or financial stability before buying a property.
