Sample Rent with Option to Buy Contract

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Are you considering a rent with option to buy contract for your next home? It can be an excellent option for those who may not have the funds for a down payment or are unsure if they want to commit to a home purchase right away.

A rent with option to buy contract, also known as a lease-purchase agreement, allows you to rent a property with the option to purchase it at a later date. It typically involves paying an upfront option fee, which is a percentage of the purchase price, and a portion of the monthly rent going towards a future down payment.

Before signing a rent with option to buy contract, it`s important to understand the terms and conditions. Here`s a sample contract to help you get started:

1. Option Fee: The Tenant/Buyer agrees to pay the Landlord/Seller a non-refundable option fee of $X,XXX, due on [date]. This fee will be applied towards the purchase price if the Tenant/Buyer exercises their option to buy.

2. Monthly Rent: The Tenant/Buyer agrees to pay monthly rent of $XXX, due on the first of each month. X% of the rent payment will be applied towards the purchase price if the Tenant/Buyer exercises their option to buy.

3. Option Period: The Tenant/Buyer has the right to purchase the property within X months from the date of this contract. If the option to buy is not exercised within this period, the Landlord/Seller may keep the option fee and the rent credits.

4. Purchase Price: The purchase price of the property is $X,XXX,XXX. If the Tenant/Buyer exercises their option to buy, the option fee and rent credits will be applied towards the purchase price.

5. Closing Costs: The Tenant/Buyer is responsible for all closing costs associated with the purchase of the property, including but not limited to, title insurance, appraisal fees, and loan fees.

6. Maintenance and Repairs: The Tenant/Buyer is responsible for all maintenance and repairs to the property during the lease period.

7. Default: If the Tenant/Buyer fails to pay rent or exercise the option to buy, the Landlord/Seller may terminate the contract and keep the option fee and rent credits.

It`s important to have a real estate attorney review any rent with option to buy contract before signing to ensure it meets legal requirements and protects your interests. With the right contract in place, a rent with option to buy can be a great way to achieve homeownership.