Free Rent to Own Agreement

This Rent to Own Agreement (the "Agreement") is entered between [Landlord Name] residing at [Landlord Address] (the "Landlord") and [Tenant Name] residing at [Tenant Address](the "Tenant").

I. Property Description

The Seller or Landlord has entered into an agreement stating their intention and willingness to lease the property that is situated in or referred to by the specific address or geographical location provided herein - subsequently referred to in this document as the "Property" to the Tenant or Buyer.

II. Term of Lease

The lease agreement is structured such that its commencement is predetermined to initiate on [Date]. Once this lease agreement has been kick-started on the specified day, it is then designed to continue and persist with full force for a period that adds up to a total of thirty-six months. To put it in simple terms, the agreement is intended to last a total of three years post the commencement date.

III. Rent Payments

The tenant and prospective buyer have expressed agreement and consent to make a payment that is categorized as monthly rent for $1,500. This amount has to be paid punctually on, or if possible before, the date which is the first day of each consecutive month for the entire duration that the lease agreement is applicable and in effect. In terms of the transactional method, the payments associated with rent are to be made using a bank transfer.

IV. Option to Purchase

The proprietor of the property is granting to the leaseholder the exclusive right, or option, to acquire ownership of the said property within the duration of the lease agreement. This exclusive right to transact and become the owner of the property can be invoked or utilized by the tenant at any point within the duration of their lease contract. The agreed and officially stipulated price that one will have to pay to exercise this right and complete the transaction of ownership transfer is fixed at $200,000.

V. Option Fee

As a part of the arrangement allowing the Tenant the possibility of making a future purchase, the Tenant is agreeing to provide a non-refundable fee of $5,000 as an option fee to the Landlord. The terms of the agreement dictate that this sum will not be reimbursed no matter the circumstances. However, if the Tenant ultimately decides to make use of this purchase option, this initial payment will not go entirely to waste, but will instead be put towards reducing the overall purchase price of the property.

VI. Maintenance and Repairs

• The Tenant is responsible for all regular maintenance and minor repairs about the Property, including cleaning, small functional repairs, or aesthetic enhancements needed to maintain habitability and standard upkeep.

• Exceptions include situations where considerable repairs, those exceeding the specified limit referred to as [Repair Limit] in this contract, are needed.

• In such cases, the Tenant/Buyer will not be held responsible for the expenses; instead, these costs will be borne by the Seller/Landlord as outlined in this agreement.

VII. Utilities

The Tenant or Buyer will be held accountable for all utility bills that are incurred during the tenure of the lease. These utility bills include but are not limited to, the charges for water, electricity, gas, and internet services used during the lease term.

VIII. Condition of the Property

The Tenant confirms that they have meticulously inspected the property and agrees to accept it as is, including all its characteristics, capabilities, or state. About any property damages or dysfunctions, the Landlord will not be held accountable, except in cases where it is proven that such issues resulted directly from their negligence.

IX. Default

If the Tenant does not fulfill their obligation to pay the required rent or if they violate any other stipulations laid out within this agreement, the Landlord reserves the right to bring the lease to an end. Moreover, in such circumstances, any prior payments that have been made by the Tenant will be kept by the Landlord as a form of compensation for damages incurred.

X. Governing Law

This RentThis Agreement of Rent to Own will be regulated by and interpreted according to the laws of the State of [State]. In case any disputes emerge from or about this agreement, such disputes will be resolved through a prescribed process of arbitration to be conducted at the specified venue [Arbitration Venue].

This agreement constitutes the entire understanding between the parties and supersedes all prior agreements and understandings, whether written or oral.

[Landlord Name]

[Tenant Name]

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