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Lease to Purchase Option Agreement

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					This lease agreement is made between a landlord and a tenant to lease real property
and grants the tenant an option to purchase. This document contains the material terms
of the lease agreement including the rent amount, the term of the tenancy, and the
permitted uses of the premises. The option to purchase included in this lease gives the
tenant the option to buy the property within a specified period under the terms stated in
the agreement. Many of the standard clauses commonly used in these types of
agreements are included in this document, but it may be customized to ensure that the
specific understandings of the parties are properly set forth. This lease agreement
should be used by a landlord and a tenant when entering into a residential lease with an
option to purchase.
                       LEASE TO PURCHASE OPTION AGREEMENT




This Lease to Purchase Option Agreement (“Lease”) is made on ____ [Month] ____ [Date],
20____ by and between ________________________________ [Instruction: Insert the name
of Lessor]( hereinafter termed as the “Lessor”) and ________________________________
[Instruction: Insert the name of Lessee]( hereinafter termed as the “Lessee”). Lessor and
Lessee may individually be referred to as the “Party” and collectively be referred to as the
“Parties”.

WHEREAS, Lessor is the sole owner of certain real property being, lying and situated at
[Instructions: Insert address of Premises]

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
(hereinafter termed as the “Premises”) agreed upon the following terms and conditions:

1. Option to Purchase. In consideration of the Lessee meeting all obligations as stated herein
    under this Lease, the Lessor hereby grants the Lessee an “Option to Purchase”.
2. Lease Term. Lessee understands that time is of the essence in this Lease. The Lease will
    start on ____ [Month] ____ [Date], 20____ and will end on ____ [Month] ____ [Date],
    20____.
3. Notice Required Exercising Option. To exercise the Option to Purchase, the Lessee must
    deliver to the Lessor written notice of Lessee’s intent to purchase. In addition, the written
    notice must specify a valid closing date. The closing date must occur before the original
    expiration date of the Lease Agreement, or the date of the expiration of the Lease designated
    in Paragraph 2, whichever occurs later.
4. Option Consideration. As consideration for this Lease, the Lessee shall pay the Lessor a
    non-refundable fee of ________ ($___) [Instruction: Insert the consideration amount E.g.,
    Fifty dollars only ($50)], receipt of which is hereby acknowledged by the Lessor. This




© Copyright 2012 Docstoc Inc.                                                        2
    amount shall be credited to the purchase price at closing if the Lessee timely exercises the
    Option to Purchase.
5. Purchase Price. The total purchase price for the Premises is _______ ($______)
    [Instruction: Insert the consideration amount E.g., Fifty thousand dollars only
    ($50,000)]. Provided that the Lessee timely executes the Option to Purchase, is not in default
    of the Lease, and closes the conveyance of the Premises, Lessor shall credit towards the
    purchase price at closing the sum of _____ ($______) [Instruction: Insert the closing
    amount E.g., Fifty dollars only ($50)] from each monthly lease payment that the Lessee
    timely made. However, Lessee shall receive no credit at closing for any monthly lease
    payment that the Lessor received after the due date specified in the Lease.
6. Remedies upon Default. If Lessee defaults under this Lease, then in addition to any other
    remedies available to Lessee at law or in equity, Lessor may terminate this Option to
    Purchase by giving written notice of the termination. If terminated, the Lessee shall lose
    entitlement to any refund of rent or option consideration. For this Lease to be enforceable and
    effective, the Lessor must comply with all terms and conditions of the Lease.
7. Lease Payment. Lessee agrees to pay to Lessor as rent for Premises the amount of ________
    ($___) [Instruction: Insert the amount of rent E.g., One Thousand dollars only
    ($1,000.00)] (‘Rent’) each month in advance on the first day of each month to the Lessor or
    any other address designated by Lessor.
8. Late Charges/Insufficient Fund. If any amount under this Lease is more than _______ (__)
    days late [Instruction: Insert number of days E.g., fifteen (15) days], Lessor agrees to pay
    a late fee of ________ ($___) [◊ Instruction: Insert the late fee amount E.g., Fifty dollars
    only ($50)]. Also the Lessee agrees to pay charges of ________ ($___) [◊ Instruction:
    Insert the late fee amount E.g., Fifty dollars only ($50)] for each check given by Lessee to
    Lessor that is returned back to Lessor for lack of sufficient fund.
9. Quiet Enjoyment. Lessee shall be entitled to quiet enjoyment of the Premises, and Lessor
    will not interfere with that right, as long as Lessee pays the rent in a timely manner and
    performs all other obligations under this Lease. Any assignment or sublease without Lessor’s
    written prior consent shall, at Lessor’s option, terminate this Lease.
10. Maintenance, Repairs or Alterations: Lessee shall maintain the premises in a clean and
    sanitary manner including all equipment, appliances, furniture and furnishings therein, in as



© Copyright 2012 Docstoc Inc.                                                          3
    good condition as received. Lessee shall maintain any surrounding grounds, including lawns
    and shrubbery, and keep the same clear of rubbish and weeds, if such grounds are part of the
    premises and are exclusively for use of the Lessee. Lessee shall make no alterations to the
    buildings or improvements on the Premises or construct any building or make any other
    improvements on the Premises without the prior written consent of Lessor. Any and all
    alterations, changes, and/or improvements built, constructed or placed on the Premises by
    Lessee shall, unless otherwise provided by written agreement between Lessor and Lessee, are
    and will become the Premises of Lessor and remain on the Premises at the expiration or
    earlier termination of this Lease.
11. Entry and Inspection: Lessee shall permit Lessor or Lessor’s agents to enter the Premises at
    reasonable times and upon reasonable notice for the purpose of inspecting the Premises or for
    making necessary repairs.
12. Security/Damage Deposit: The security deposit of ________ ($___) [◊ Instruction: Insert
    the security deposit E.g., Fifty dollars only ($50)] shall secure the performance of the
    Lessee’s obligations hereunder. Lessor may apply all or portions of said deposit on account
    of Lessee’s obligations hereunder. Upon exercise of the option, Lessor shall credit said
    deposit towards the purchase price of the Premises.
13. Binding Effect. The conditions contained in the Lease shall apply to and to bind the parties
    and the heirs, legal representatives, successors and permitted assigns of the parties.
14. Governing Law and Venue. This Lease shall be governed, construed and interpreted by,
    through and under the Laws of the State of _____________________. The parties further
    agree that the venue for any and all disputes related to this Lease shall be
    _____________________, ____________________________________ [Instruction: Insert
    the County and State].
15. Attorney Fees: The prevailing Party shall be entitled to all costs incurred in connection with
    any legal action brought by either Party to enforce the terms hereof or relating to the
    Premises, including reasonable attorneys’ fees.
16. Entire Agreement; Modification. This document sets forth the entire Lease and
    understanding between the parties relating to the subject matter herein and supersedes all
    prior discussions between the Parties. No modification of or amendment to this Lease, nor




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Description: This lease agreement is made between a landlord and a tenant to lease real property and grants the tenant an option to purchase. This document contains the material terms of the lease agreement including the rent amount, the term of the tenancy, and the permitted uses of the premises. The option to purchase included in this lease gives the tenant the option to buy the property within a specified period under the terms stated in the agreement. Many of the standard clauses commonly used in these types of agreements are included in this document, but it may be customized to ensure that the specific understandings of the parties are properly set forth. This lease agreement should be used by a landlord and a tenant when entering into a residential lease with an option to purchase.