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
A Murrieta California Option to Purchase Addendum to Residential Lease, also known as Lease or Rent to Own, refers to a legal agreement that grants tenants the opportunity to buy the property they are currently leasing. This addendum is a beneficial tool for both landlords and tenants, as it provides flexibility and potential future ownership. Murrieta, California, being an attractive real estate market, offers various types of Option to Purchase Addendums to Residential Leases — Lease or Rent to Own. Here are a few different options available: 1. Standard Option to Purchase Addendum: This is the most common type of addendum used in Murrieta, California. It grants the tenant the right, but not the obligation, to purchase the property at a predetermined price within a specific timeframe. The terms and conditions, including the purchase price, are outlined in the addendum. 2. Lease-Option Addendum: This addendum differentiates between the lease and the option to purchase. It specifies that the tenant will pay a premium, commonly known as option money, for the right to buy the property at a later date. It also includes details on the rental payments, lease term, purchase price, and how the option money will be applied to the purchase. 3. Lease-Purchase Addendum: Unlike the Lease-Option addendum, this type of addendum combines the lease and purchase into a single agreement. It binds both parties to proceed with the purchase at the end of the lease term. The purchase price and other pertinent details are established upfront, giving the tenant certainty about becoming the property owner. 4. Rent Credit Addendum: This addendum incorporates a rent credit provision, offering the tenant the opportunity to accumulate credits towards the purchase price through on-time rental payments. The accumulated credits can then be applied as a down payment when exercising the option to purchase. 5. Escrow Addendum: An Escrow Addendum is used when the tenant intends to use an escrow account to hold the option money or the accumulated rent credits. It ensures that both parties are protected during the lease period and until the purchase is finalized, providing an extra layer of security and transparency. The Murrieta California Option to Purchase Addendum to Residential Lease — Lease or Rent to Own is a valuable arrangement for both tenants and landlords. It provides tenants with the ability to potentially own a property they reside in while giving landlords a solid long-term tenant who may decide to purchase. It is crucial for all parties involved to thoroughly read and understand the terms and conditions outlined in the addendum before signing, and seek legal advice if necessary, to ensure a fair and mutually beneficial agreement.
