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
Joliet Illinois Option to Purchase Addendum to Residential Lease — Lease or Rent to Own In Joliet, Illinois, tenants have the opportunity to explore the option of purchasing the property they are leasing through the Option to Purchase addendum. This addendum is designed to provide tenants with the flexibility and freedom to transition from renting to homeownership within a specific timeframe. It establishes a lease or rent-to-own agreement, where tenants can choose to buy the property at a predetermined price after a certain period. Types of Joliet Illinois Option to Purchase Addendum to Residential Lease — Lease or Rent to Own: 1. Fixed Option Period: The addendum may include a fixed option period, commonly ranging from one to three years. This period grants the tenant exclusive rights to purchase the property within the specified timeframe, ensuring that the landlord cannot sell the property to any other party during this period. 2. Purchase Price Determination: The addendum will outline the purchase price for the property, which is typically determined at the beginning of the lease term. This predetermined price provides tenants with a clear understanding of the cost to acquire the property, allowing them to plan their finances accordingly. 3. Option Fee: The addendum may require tenants to pay an option fee, which is a non-refundable amount typically paid upfront or as a part of the monthly rent. This fee grants tenants the option to purchase the property at the predetermined price, and it is often credited towards the down payment or closing costs if they eventually decide to exercise the option. 4. Rent Credits: In some cases, the addendum may offer rent credits, whereby a portion of the monthly rent payments is credited towards the eventual purchase of the property. This allows tenants to build up equity in the property while they are still renting, making it easier to secure financing when the option to purchase is exercised. 5. Maintenance and Repairs: The addendum can include provisions outlining the responsibilities for maintenance and repairs during the lease period. It will specify who is responsible for certain repairs and maintenance tasks, ensuring that both parties are clear on their obligations. 6. Financing Contingencies: The addendum may include provisions for financing contingencies, which protect tenants in case they are unable to secure a mortgage within the option period. This provision allows tenants to back out of the purchase agreement without penalty if they are unable to obtain financing. In conclusion, the Joliet Illinois Option to Purchase Addendum to Residential Lease — Lease or Rent to Own offers tenants in Joliet the opportunity to transition from renting to owning a property. It provides a clear framework, specifying the option period, purchase price, option fee, rent credits, maintenance responsibilities, and potential financing contingencies. This addendum allows tenants to plan for homeownership while enjoying the benefits of renting in the interim.Joliet Illinois Option to Purchase Addendum to Residential Lease — Lease or Rent to Own In Joliet, Illinois, tenants have the opportunity to explore the option of purchasing the property they are leasing through the Option to Purchase addendum. This addendum is designed to provide tenants with the flexibility and freedom to transition from renting to homeownership within a specific timeframe. It establishes a lease or rent-to-own agreement, where tenants can choose to buy the property at a predetermined price after a certain period. Types of Joliet Illinois Option to Purchase Addendum to Residential Lease — Lease or Rent to Own: 1. Fixed Option Period: The addendum may include a fixed option period, commonly ranging from one to three years. This period grants the tenant exclusive rights to purchase the property within the specified timeframe, ensuring that the landlord cannot sell the property to any other party during this period. 2. Purchase Price Determination: The addendum will outline the purchase price for the property, which is typically determined at the beginning of the lease term. This predetermined price provides tenants with a clear understanding of the cost to acquire the property, allowing them to plan their finances accordingly. 3. Option Fee: The addendum may require tenants to pay an option fee, which is a non-refundable amount typically paid upfront or as a part of the monthly rent. This fee grants tenants the option to purchase the property at the predetermined price, and it is often credited towards the down payment or closing costs if they eventually decide to exercise the option. 4. Rent Credits: In some cases, the addendum may offer rent credits, whereby a portion of the monthly rent payments is credited towards the eventual purchase of the property. This allows tenants to build up equity in the property while they are still renting, making it easier to secure financing when the option to purchase is exercised. 5. Maintenance and Repairs: The addendum can include provisions outlining the responsibilities for maintenance and repairs during the lease period. It will specify who is responsible for certain repairs and maintenance tasks, ensuring that both parties are clear on their obligations. 6. Financing Contingencies: The addendum may include provisions for financing contingencies, which protect tenants in case they are unable to secure a mortgage within the option period. This provision allows tenants to back out of the purchase agreement without penalty if they are unable to obtain financing. In conclusion, the Joliet Illinois Option to Purchase Addendum to Residential Lease — Lease or Rent to Own offers tenants in Joliet the opportunity to transition from renting to owning a property. It provides a clear framework, specifying the option period, purchase price, option fee, rent credits, maintenance responsibilities, and potential financing contingencies. This addendum allows tenants to plan for homeownership while enjoying the benefits of renting in the interim.
