Residential Lease Option to Purchase Real Estate
A Lease Option is a purchasing technique.
It is a lease for a fixed period of time with an option to purchase the property on a future date. The price of the property is usually agreed upon at the inception of the agreement. With a Lease Option to Purchase, the tenant has the right, but not the obligation, to purchase the property.
The Residential Lease Option to Purchase Form has provisions for extensive financial terms, This Document is a well-written form that can do much to create a smooth transaction and protect all parties.
This Document is made up basically of two parts. The Lease Portion and the Option Portion. Many items have to addressed, such as disposition of deposits if the option is executed, and disposition of deposits if the Option is NOT executed.
The “What Happens IF” or “What Happens IF NOT” is the theme of the entire Form.
In addition to the above described document, we have included two Sample Letters The first one is a letter of intent to notify the owner in the event a decision is made to Exercise the Option. The second letter may be used in the event you decide to Assign the Option to Purchase the property to someone else.