The relationship of landlord/tenant or lessor/lessee is created by contract. The person who owns the real property is known as the lessor or landlord. The lessee, or tenant, is the one who occupies the property.
Tenancies are classified by duration as tenancies for years, from year to year, month to month, and at will. A tenancy for years is one under which the tenant has an estate of definite duration. The term "for years" is used to describe such a tenancy even though the duration of the tenancy is for only one year or for less than a year. A tenancy from year to year or month to month is one under which a tenant, holding an estate in land for an indefinite duration, pays an annual, monthly, or weekly rent.
A Pennsylvania Lease of Unfurnished House with Option to Purchase, also known as a Lease or Rent to Own agreement, is a legal document that outlines the terms and conditions for leasing a house with the option to buy it in the future. This type of agreement provides flexibility for both the landlord/seller and the tenant/buyer. The agreement typically starts with a lease period, during which the tenant will live in the house and pay rent as they would in a standard lease agreement. However, what sets this agreement apart is the inclusion of an option to purchase the property at a predetermined price. This option gives the tenant an opportunity to buy the house within a specified timeframe, usually ranging from 1 to 5 years. Pennsylvania Lease of Unfurnished House with Option to Purchase agreements can come in different forms, depending on the specific terms agreed upon by the parties involved. Some common types of lease-to-own agreements in Pennsylvania include: 1. Lease Option Agreement: This type of agreement grants the tenant the exclusive option to purchase the property but does not obligate them to do so. The tenant pays an option fee upfront to secure the right to buy the house, which is generally non-refundable but may be credited towards the purchase price if the tenant decides to buy. 2. Lease Purchase Agreement: In this arrangement, the tenant is obligated to purchase the property at the end of the lease term. A portion of the monthly rent payment is often credited towards the purchase price, enabling the tenant to build equity while leasing. 3. Lease Agreement with Purchase Addendum: This variation combines a traditional lease agreement with an addendum outlining the terms of the option to purchase. This option provides more flexibility as the tenant can choose whether to exercise their right to buy the property during or after the lease term. It's important to note that Pennsylvania Lease of Unfurnished House with Option to Purchase agreements should be carefully reviewed and understood by both parties, preferably with the assistance of a real estate attorney. The agreement should cover essential details such as the purchase price, option fee, lease term, rent amount, maintenance responsibilities, and any other specific terms agreed upon. Overall, a Pennsylvania Lease of Unfurnished House with Option to Purchase offers a unique opportunity for tenants to potentially become homeowners while giving landlords/sellers the security of a lease agreement.
