Lease to Own Agreement Template

Lease to Own Agreement Template

What Is a Lease to Own Agreement?

A Lease to Own Agreement is a type of Lease Agreement under which the tenant rents the property with the intention of buying it when the lease term runs out.

You can download a printable Lease to Own Agreement template via the link below.

Alternate Names:

  • Lease to Purchase Agreement;
  • Rent to Own Agreement.

Whether you are looking for a temporary lease with a later purchase or you cannot pay the full price of the house or apartment and prefer to pay in installments - this is the document for you. Once the lease term is up and you have paid the negotiated price, you become the new legal owner of the place - for residential or commercial purposes. Note that this contract legally obligates the renter to become a purchaser once the lease expires.

ADVERTISEMENT

How to Structure a Lease to Own Agreement?

Here is how you should complete a Lease to Own Agreement:

  1. Identify the parties to the contract - the individual or entity that owns the property in question and their counterpart that wishes to lease and then purchase the estate. You may only add the names and addresses of the parties, and it is up to you to write down more details such as driver's license numbers.
  2. Outline the lease portion of the deal. Just like in any other Lease Agreement, you need to describe the property, negotiate the amount of the rent (usually paid on the first day of each month), the term of the lease (not more than two or three years), and the security deposit to safeguard the property and the interests of the current owner. If the property comes with furniture and appliances, list them in the agreement or the separate document - the future tenant must check their condition before signing the papers and agreeing to accept the items in their present state. Determine which party will pay for the utilities and services, and who is responsible for the maintenance and routine repairs of the house or office space.
  3. State the sale and purchase terms. Confirm the tenant becomes the legal owner of the property once they have made enough lease payments and/or paid an additional sum of money considered to be a purchase price. Typically, the parties agree to keep the value of the estate the same despite inevitable changes in the housing market.
  4. Negotiate the potential termination of the agreement. If the tenant decides not to exercise their right to purchase property at the end of the lease, the contract should be flexible enough to allow them to convert it into a traditional lease agreement - or they may move out so that the landlord starts looking for another renter who will be willing to buy their property.
  5. Confirm you agree to all terms and conditions of the agreement, sign and date the document. Since this contract involves substantial sums of money, you may think about notarization to add an extra level of protection to your deal.

Check out these property-related topics:

Download Lease to Own Agreement Template

4.6 of 5 (21 votes)
  • Lease to Own Agreement Template

    1

  • Lease to Own Agreement Template, Page 2

    2

  • Lease to Own Agreement Template, Page 3

    3

  • Lease to Own Agreement Template, Page 4

    4

  • Lease to Own Agreement Template, Page 5

    5

  • Lease to Own Agreement Template, Page 6

    6

  • Lease to Own Agreement Template, Page 7

    7

  • Lease to Own Agreement Template, Page 1
  • Lease to Own Agreement Template, Page 2
  • Lease to Own Agreement Template, Page 3
  • Lease to Own Agreement Template, Page 4
  • Lease to Own Agreement Template, Page 5
  • Lease to Own Agreement Template, Page 6
  • Lease to Own Agreement Template, Page 7
Prev 1 2 3 4 5 ... 7 Next
ADVERTISEMENT