The parties should enter into a sale agreement. The following points must be negotiated by the tenant and the landlord: This form must accompany a rental contract — the main contract on the terms of the tenancy. As a general rule, the option to purchase the property is only available for a predetermined period of time. Declare the first calendar date at which the buyer/tenant can purchase the property on an empty line between the term «Start a period» and the label «month, day, year,» and then indicate the last date of the calendar at which the buyer/tenant can purchase the property in the empty second line. The next section, which requires attention, «6th consideration option,» should have the written and numerical dollar amount that the buyer/tenant must pay to the seller/landlord for the option to purchase the property in accordance with this agreement. This payment is non-refundable as long as the seller/lessor complies with its obligations and is applied to the purchase price as a credit to the buyer/tenant at the time of purchase. Use the empty lines in the words «… A non-refundable amount,» to record the amount the buyer/tenant must pay for this option. In the section entitled «7th Purchase Price,» the total amount of money for which the «seller/renter» will sell the property in question to the buyer/tenant must be produced on the first two empty items. This amount should first be tendered in words and then numerically. The total amount of money from the monthly rents paid by the buyer/tenant for the duration of this document, which are used as a credit on the Purchas price, must also be documented here. This information should be on empty lines according to the terminology «… Credit in purchase price at the close of the sum. A special tenancy agreement is used when a tenant wishes to rent a property for a specified period of time, usually several years, and has the option of acquiring the property at the end or before the end of the period.
Often, the tenant cannot buy the house immediately for a number of reasons — because they don`t have the money for a down payment, they don`t have enough credit points, they don`t have credit or they`re not ready to commit. And in a slow market, a lease option contract gives a seller more options as he or she earns a stable income. Keep in mind that this agreement is a standard contract for residential real estate with the option to purchase the property for a lifetime. The buyer is not related to the purchase of the property. Although when the buyer decides to buy the property, the seller is obliged to sell according to the terms of the contract.