An owner of real estate property who is merely renting out the use of the property will only have to use the regular rent Contract Template for every new tenant. A rent-to-own contract is similar to this contract but differs on one very significant point: the option to own the property at the end of the lease duration. Naturally, a rent or lease contract with a “buy” option may only be used once, if it ends in a successful purchase.
If you are a landlord or homeowner, or someone looking to become one, you can use these free samples of rent to own contracts as guidelines or templates in drafting such a contract.
This kind of deal goes by a variety of names:
These deals are relatively rare, compared to straight-lease or straight-purchase options.
If you go for the lease to purchase option, you will have to pay the owner a one-time premium fee called the “option money.” This fee will reserve the property for your option. The owner will not be legally allowed to offer a purchase option on that property to anyone else while you are leasing it.
At the end of the lease, you have the option to purchase the property or opt out.
Note: You can only opt out of buying if the contract explicitly states it as an option; i.e., make sure it uses the word option. If it is a “lease-purchase” contract, you will be legally obligated to buy the property at the end. Make sure you get an attorney to look over the contract details before signing.
Real estate contracts are full of legal details and not everyone has the know-how and resources to tackle them adequately. Not to mention there is a lot of fine print. This holds true in real estate just as much as in any other contract, such as a Consulting Contract Template or Loan Contract Template.
Use these contracts as templates to make sure you get all the important details covered. Included in the examples are rent-to-own contracts for residential properties as well as motor vehicles.
If you’re a seller, a lease-to-purchase option is the best way to go if
For buyers, this kind of deal is for you if
Note for sellers: No tenant is going to consider buying if the unit is falling apart. Look into drafting a good Renovation Contract Template and get the place spruced up before the first leasers come knocking.