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
Naperville, Illinois Option to Purchase Addendum to Residential Lease — Lease or Rent to Own: Explained If you are looking for an opportunity to secure your dream home in Naperville, Illinois, the Option to Purchase Addendum to Residential Lease — Lease or Rent to Own is a fantastic solution. This addendum offers prospective tenants the chance to rent a residential property with the option to purchase it at a later date. This unique agreement provides flexibility for those who wish to experience living in the home before committing to full ownership. Key Features of the Naperville Illinois Option to Purchase Addendum: 1. Rental Agreement: The addendum creates a standard residential lease agreement, which allows you to move into the property and enjoy all the benefits of living in Naperville. It outlines the monthly rental rate, security deposit, and lease term. 2. Option Fee: To secure the right to purchase the property in the future, tenants pay an option fee upfront. This fee is a non-refundable payment that grants the tenant the exclusive right to buy the property during the lease term. 3. Purchase Price: The addendum clearly states the predetermined purchase price of the property, which remains fixed throughout the lease term. This safeguards tenants against any market fluctuations that may occur. 4. Lease Term Considerations: The addendum outlines the length of the lease term and any specific expectations or obligations during this period. It also includes provisions for extending the lease term, if desired. 5. Option Exercise Notice: At any point during the lease term, tenants have the right to provide an option exercise notice to the landlord if they decide to purchase the property. This notice should be given within a specified time frame, according to the terms of the addendum. Different Types of Naperville Illinois Option to Purchase Addendum to Residential Lease — Lease or Rent to Own: 1. Fixed Rent Lease with Option: This type of addendum sets a fixed rental rate for the duration of the lease term, allowing tenants to accurately plan and budget. It ensures rent stability without the worry of unexpected increases. 2. Graduated Rent Lease with Option: In this arrangement, the rental rate increases gradually over the course of the lease term. This option proves beneficial for those who anticipate increased financial capabilities in the future. 3. Lease with Rent Credit Option: This type of addendum offers tenants the opportunity to build up rent credits during the lease term. These credits can be applied towards the purchase price of the property when exercising the option to buy. 4. Lease with Down Payment Credit Option: This addendum provides tenants the chance to accumulate a down payment credit throughout the lease term. The accumulated credit can be used as a portion of the down payment when purchasing the property. The Naperville Illinois Option to Purchase Addendum to Residential Lease — Lease or Rent to Own presents an incredible opportunity for individuals or families who desire to rent a home initially but have the potential ambition to become homeowners in the future. By selecting the most suitable addendum type, tenants can secure a lease agreement that aligns with their financial goals and dreams of homeownership.
