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
Newark, New Jersey Option to Purchase Addendum to Residential Lease — Lease or Rent to Own Introduction: The Newark, New Jersey Option to Purchase Addendum to Residential Lease, also known as Lease or Rent to Own, is a document that establishes an agreement between a landlord and a tenant regarding the potential purchase of the leased property. This addendum provides an opportunity for renters to eventually own the property they are leasing, giving them the flexibility to become homeowners in the future. Key Features: 1. Lease with Option to Purchase: This addendum is designed to offer tenants the option to buy the property they are currently leasing. It outlines the terms and conditions of this option, providing a clear path for the tenant to transition from renting to owning the property. 2. Purchase Price: The addendum defines the purchase price that the tenant will pay if they choose to exercise the option to purchase. This price can be negotiated between the landlord and tenant, ensuring a fair agreement for both parties. 3. Option Fee: The addendum may require the tenant to pay an option fee for the right to purchase the property within a specified timeframe. This fee is typically non-refundable and serves as a consideration for the landlord's commitment to sell. 4. Option Period: The addendum clearly states the duration of the option period, during which the tenant can decide whether to exercise their right to purchase the property. This period allows tenants to evaluate the property and their financial situation before committing to the purchase. 5. Maintenance and Repairs: The addendum often includes provisions for maintenance and repairs during the lease period. It specifies the responsibilities of both the landlord and the tenant in maintaining the property. Types of Newark New Jersey Option to Purchase Addendum to Residential Lease — Lease or Rent to Own: 1. Fixed-Term Lease with Option to Purchase: This type of lease addendum offers tenants the option to buy the property at a predetermined price within a specific timeframe. The option is only valid for the duration of the lease term. 2. Month-to-Month Lease with Option to Purchase: This addendum is suitable for tenants who prefer a flexible lease agreement. It allows them to rent the property on a month-to-month basis while retaining the option to purchase, which can be exercised at any time during the tenancy. 3. Rent Credit Lease with Option to Purchase: In this type of addendum, a portion of the monthly rental payments is credited towards the future purchase price. This enables tenants to save money and accumulate equity while renting, making homeownership more accessible. Conclusion: The Newark, New Jersey Option to Purchase Addendum to Residential Lease — Lease or Rent to Own provides an excellent opportunity for tenants interested in transitioning from renting to owning property. With various types of lease agreements available, tenants have the flexibility to choose an option that aligns with their financial goals and personal circumstances. This addendum benefits both landlords and tenants by providing a clear roadmap for a potential property sale and offering tenants the possibility of homeownership.
