Rent-to-Own Agreement (Lease with Option to Purchase)
Dated __________
This Agreement is made between __________, of __________ (the "Landlord-Seller"), and __________, of __________ (the "Tenant-Buyer"), for the property at __________ (the "Property"). It combines a residential lease with the purchase terms below.
1. Property. The Property is located at __________, more fully described as: __________.
2. Lease term and rent. The lease begins on __________ and ends on __________. The Tenant-Buyer will pay rent of __________ per month, due on the first day of each month. The Tenant-Buyer will also pay a security deposit of __________, held and returned as required by law.
3. Purchase. The Landlord-Seller grants the Tenant-Buyer the exclusive option, but not the obligation, to buy the Property. The purchase price is __________.
4. Option fee. No option fee is payable.
5. Rent credits. No part of the rent is credited toward the purchase price. If the lease ends because of the Tenant-Buyer's default, accumulated rent credits are forfeited.
6. Exercising the option. To buy the Property, the Tenant-Buyer must give the Landlord-Seller __________ on or before __________. If the option is not exercised by that date, it expires, and the parties' relationship continues only as a lease until the lease ends.
7. Closing. The sale will close on or before __________. At closing, the Tenant-Buyer will pay the purchase price less the credits earned under this Agreement (estimated at $0.00, leaving $0.00). The Landlord-Seller will deliver title free of liens other than those the Tenant-Buyer accepts in writing. Financing is the Tenant-Buyer's responsibility.
8. Maintenance and repairs. The Tenant-Buyer is responsible for routine maintenance and minor repairs; the Landlord-Seller is responsible for major repairs to the structure, roof and building systems. The Tenant-Buyer will keep the Property in good condition and will not make structural changes without written consent.
9. Taxes, insurance and HOA. Property taxes are paid by the Landlord-Seller; homeowner's insurance on the building by the Landlord-Seller; any homeowners' association dues by the Landlord-Seller. The Tenant-Buyer is responsible for insuring personal belongings.
10. Default. Rent is late if not received within 5 days after its due date. If either party fails to meet a term of this Agreement and does not correct it within a reasonable time after written notice, the other party may pursue the remedies available under applicable law.
11. Inspections and disclosures. The Tenant-Buyer may have the Property inspected before signing and before closing. The Landlord-Seller will provide any disclosures required by law.
12. Recording and entire agreement. Either party may record a memorandum of this Agreement where permitted. This Agreement is the complete agreement between the parties, and any change must be in writing and signed by both.
13. Governing law. This Agreement is governed by the laws of the State of __________.
__________
Landlord-Seller