A lease-purchase agreement is used when an individual or a company is searching to buy or rent a house or a corporate place, but cannot pay all the money at ago. If this is the case, then that person can take the property on rent and pay the money in installments until she has paid every penny to the owner. You own the house after the end of the lease term. You may also see purchase templates.
The above template gives an owner and a tenant the agreement regarding a lease arrangement of either a property or any vehicle. This exclusive template includes the elements of a traditional rental agreement with the right for later purchase of the house or vehicle. It can be easily edited and customized the way you like best. Agreement documents can also be of great help while creating any kind of agreement.
Take a look at this elaborate residential lease-purchase agreement template here which begins with the identification of the lessor, the lessee, the property- and then goes to include the terms and conditions of the contract template such as of the purchase of the property, utilities, maintenance/repair, rent, term, possession, security deposit, notices, attorney fees and so on.
This standard equipment lease agreement template here that starts with the declaration of the agreement between two parties, followed by the definition of the legal terms. Such agreements also give further information related to the payment and prepayment of the lease, title, security, damage/replacement, tax details, etc.
The first step you need to do is give the agreement a title. This title should be enough to give the gist of everything you need and want your readers to know. There are many agreement templates in Word for you to choose the best from so that you can create the right agreement effortlessly.
Step 2: Identify the Parties
Once you have the title of your agreement ready, the next step would be to identify the parties or the people that are to be involved in the agreement. All the details of every person/party involved in the agreement should be mentioned clearly. These details could be – the name of the parties, the company’s name, the contact details of the parties, the location, addresses, etc. should be mentioned in the agreement without fail.
Step 3: Terms and Conditions
The terms and conditions play a major role in any agreement. These act like rules and regulations of a contract that everyone involved should follow without fail. These terms and conditions should be mentioned in the lease agreement as it gets easier for everyone else involved in the agreement to follow the same.
Step 4: Laws, Warranties, and Termination
Do not forget to mention the state laws you are supposed to follow, as not everyone knows what they have to follow. Mention the law in detail, with a declaration if needed. The warranties, that is, till when is the agreement legible and what happens after that should also be mentioned. The rules of termination and the consequences should be mentioned as well. This way, everyone involved in the agreement will know what rules to follow.
Step 5: Review and Signatures
There are many agreement templates in Google Docs available on the internet if you need to make agreements in the form of documents. Once you are done drafting the agreement, review it time and again, just to be sure you haven’t missed any important details. Once you make all the changes needed in the agreement, the next thing to do would be to get the agreement signed by all the parties involved. Once the agreement is signed, it is legally bound.
If your university is planning to purchase or lease space off-campus, you would need this form to notify your institution’s administrative board. The form would be eligible to provide you with the requested duration, the reason behind the lease, etc. Many commercial lease agreement templates can be of great help to you if you are creating agreements for leasing a commercial property.
The lease to purchase option agreement form template shows a form that is to be filed by the filled and signed by the lessor and the lessee. It gives detailed formatted information of the agreement so that you can refer to it in a better way. You can download this agreement template for free.
The vehicle lease agreement template can be downloaded if one wants to go through an agreement form that is taking place between a cab service company(lessor) and a lessee. It also gives elaborated details of the agreement such as the terms and conditions of the agreement, logos, services, equipment, warranties, etc.
You can download the above shown blank lease-purchase agreement to go through the lease details between the lessor and the lessee such as the lease of equipment, lease term, rental payments, purchase of equipment, representations, covenants, warranties, events of default and remedies, payment of taxes, fees, permits, and utility services, etc.
What is Included in a Lease Purchase Agreement?
A lease purchase sample agreement usually begins with the declaration of the contract between the parties involved. Then, it will mention the property and the option fee which refers to the tenant’s initial payment for the real estate. A contract usually defines the monthly payment with the rent credit. the cost of the monthly charges, downpayment, etc.
Another crucial part of the agreement is the duration of the time frame the lease-purchase agreement is valid for. It includes terms, conditions and any warranties like any other contract must. These terms and conditions are usually the ones set up by the owner for the tenant.
Here is a sample car lease and service agreement document that allows the lesse to take the lessor’s vehicle on lease for a given period under certain terms and conditions that give the subject details, use of the vehicle, responsibility, expiration, etc. It usually ends with the signature of both the tenant and the owner. All the terms and conditions have to be agreed upon.
What Are the Benefits of the Lease Purchase Agreements?
A lease-purchase agreement is beneficial for both the landlord/seller and the tenant/buyer. To start with, the homeowner here can ask for a higher rent compared to the usual rate and the tenant would be willing to pay it as he is getting flexible financing terms.
Then, as the tenant is hopeful to buy the property in the future, the landowner will have this peace of mind of proper maintenance of the property by the tenant. For the tenant, such an agreement is always handy as they won’t have to shell out as much down payment as is usual while purchasing a house. As a potential client or buyer, you can save a lot of money and time here.
If you are looking for help in drafting a lease-purchase agreement, well, these are elaborate documents and are a tedious thing to do any day. If so, then let go of all your worries and take the help of the templates available above, as they can be easily edited and customized the way you like best. They can also be printed anytime, anywhere as they are available on any electronic device.
1. What Does a Lease-Purchase Mean?
Lease-Purchase is a type of hire-purchase under which a portion of the rent is applied to the purchase price of the leased asset. Once the entire price is paid, the ownership of the asset is transferred from the seller (the lessor) to the buyer (the lessee).
2. What is a Lease-Purchase Agreement?
A lease-purchase agreement is an agreement between a landlord and tenant, wherein, the landlord legally obligates the tenant to buy the property at the end of the lease. The contract usually includes a portion of rent held in an escrow account until the lease term is completed.
3. What are the Main Elements of a Lease Purchase Agreement?
Following are the main elements of a lease-purchase:
Details of the lessor and lesse
Option to Purchase
Term and Downpayment
Repair and Improvements
Financing Security/Damage Deposit
Acknowledgment and Signature
4. Can a Seller Back Out of a Lease-Purchase Agreement?
A signed lease-purchase contract is a legally binding document, so if a seller or a buyer wants to back out once the contract is signed, they stand the risk of being exposed to legal ramifications. But if the buyer sympathizes with the seller’s condition, they might let the seller keep the house.
5. What are the Advantages of Lease Purchases?
For a seller, the up-front option payment can raise the return on investment, and it stays with him even if the tenant does not purchase the property. For a tenant or buyer, the lease-purchase will give time to resolve credit problems so they can qualify for a traditional mortgage.