A lease to own home agreement is a popular option for individuals who are looking to purchase a property, but may not have the immediate financial means to do so. This agreement allows renters to lease a property for a set amount of time, with the option to purchase the property at the end of the lease term.
If you are considering entering into a lease to own home agreement, it`s crucial to have a clear and comprehensive agreement in place. Here is a sample lease to own home agreement to give you an idea of what to expect:
PARTIES
This lease to own home agreement, hereinafter referred to as “Agreement,” is made between [landlord`s name], hereinafter referred to as “Seller,” and [tenant`s name], hereinafter referred to as “Buyer.”
PROPERTY
Seller agrees to lease to Buyer, and Buyer agrees to lease from Seller, the property located at [property address], hereinafter referred to as “Property.”
LEASE TERM
The lease term shall commence on [lease start date] and end on [lease end date]. At the end of the lease term, Buyer shall have the option to purchase the Property from Seller.
PURCHASE PRICE
The purchase price for the Property shall be [purchase price]. This price shall be fixed for the duration of the lease term. If Buyer chooses to exercise their option to purchase the Property, the purchase price shall be applied as a credit towards the purchase price of the Property.
OPTION TO PURCHASE
Buyer shall have the option to purchase the Property at any time during the lease term. If Buyer chooses to exercise their option to purchase, they must provide written notice to Seller at least [notice period] days prior to the end of the lease term.
CONDITIONS OF SALE
The sale of the Property shall be subject to the following conditions:
1. Buyer shall provide a down payment of [down payment amount] at the time of purchase.
2. Buyer shall obtain financing for the remaining balance of the purchase price.
3. The sale shall be completed within [closing period] days following Buyer`s notice of exercise of option to purchase.
4. Seller shall provide a clear title to the Property.
MAINTENANCE AND REPAIRS
Buyer shall be responsible for the maintenance and repair of the Property during the lease term. If any repairs are required, Buyer shall provide written notice to Seller. Seller shall have the right to inspect the Property to ensure that it is being properly maintained.
DEFAULT
If Buyer defaults on any of the terms of this Agreement, including but not limited to the payment of rent, Seller shall have the right to terminate this Agreement and retain all payments made by Buyer as liquidated damages.
GOVERNING LAW
This Agreement shall be governed by and construed in accordance with the laws of the state of [state].
IN WITNESS WHEREOF, the parties have executed this lease to own home agreement as of the date first above written.
[signature block for Seller]
[signature block for Buyer]
As a tenant, it`s important to thoroughly review and understand all aspects of the lease to own home agreement before signing. It`s also recommended to consult with a real estate attorney to ensure that all terms and conditions are fair and reasonable. With a clear and comprehensive agreement in place, a lease to own home agreement can be a viable option for individuals who are looking to make their dream of homeownership a reality.