This Option to Purchase Addendum to Residential and Lease Agreement is entered into by and between the lessor and the lessee. The lessor agrees not to offer the residence for sale to anyone during the term of the lease, and to give the lessee (tenant) the option to purchase the residence at any time prior to the expiration of the lease, provided the lessee gives notice of intent to purchase in accordance with the provisions of the Addendum. At that point, a separate contract of sale will be executed and the sale will proceed as any sale would.
Please note: This Addendum form is NOT a lease agreement. You will need a separate Residential Lease Agreement. The Addendum would be attached to that Agreement
Chico California Option to Purchase Addendum to Residential Lease — Lease or Rent to Own is a legal document that allows tenants to potentially become homeowners. This addendum is an agreement between the landlord and the tenant, providing the tenant with the option to purchase the rented property at a predetermined price within a specified period. The Chico California Option to Purchase Addendum includes various details and provisions to ensure a smooth transition from renting to owning. By incorporating relevant keywords, let's dive into the key elements in this addendum: 1. Rent-to-own agreement: The Chico California Option to Purchase Addendum provides a unique opportunity for tenants to rent a property while having the option to buy it within a specific timeline. 2. Purchase price: The addendum stipulates the predetermined purchase price at which the tenant can acquire the property. This price is agreed upon by both parties and remains fixed for the duration of the option period. 3. Option fee: To secure the right to purchase, the tenant usually pays an option fee, which is a non-refundable deposit. This fee is typically a fraction of the purchase price but will be credited towards the down payment or purchase price if the tenant decides to exercise the option. 4. Option period: This addendum establishes the duration of the option period. It sets a specific timeframe during which the tenant has the exclusive right to exercise the option to purchase. The length of this period may vary, but it is typically two to five years. Additional types or variations of the Chico California Option to Purchase Addendum to Residential Lease — Lease or Rent to Own might include: a. Fixed purchase price addendum: This type of addendum states a fixed purchase price that remains unchanged throughout the option period, ensuring certainty for both parties. b. Escalation addendum: In some cases, the addendum might include an escalation clause, allowing for the purchase price to increase gradually over the option period to account for market fluctuations or appreciation. c. Rent credit addendum: This type of addendum specifies a portion of the monthly rent that will be credited towards the purchase price if the tenant decides to exercise the option. It provides an incentive for the tenant to transition from renting to owning. d. Early termination addendum: Occasionally, the addendum may include provisions for the tenant to terminate the lease and option to purchase early, under specific circumstances agreed upon by both parties. Overall, the Chico California Option to Purchase Addendum to Residential Lease — Lease or Rent to Own provides a pathway for tenants to potentially become homeowners while residing in the rental property. It offers a flexible and mutually beneficial arrangement where tenants can test the property, stabilize their financial situation, and work towards homeownership.
