CONSIDERING that the tenant wishes to exercise on the tenant`s purchase option the option to purchase the leased premises under the conditions provided for in this agreement. A rental agreement is a binding legal document used to define a number of conditions, rules and conditions relating to the first rental of a residential property and the subsequent sale of that property (if the tenant decides to buy it). The deal is a popular option for tenants who want to buy a home but can`t do so due to financial constraints at the moment. Common reasons are that the tenant cannot afford to pay or does not have sufficient creditworthiness to obtain a loan. Tip: Still not sure if this is the right deal for you? Here`s a New York Times article on some of the benefits and risks of a rent-to-own deal. This form has been designed to accompany a residential rental agreement – the main contract that governs the rental conditions. Of all the parts of the agreement that can be negotiated, maintenance and ancillary costs are some of the most important. Both parties should carefully note any type of fees and which party is responsible for the payment. In some cases, the owner may be willing to pay for all maintenance, insurance, and other incidental expenses, with the exception of the routine mower and other routine tasks. In other cases, the landlord may expect the tenant to be responsible for most of the cost of the home.
Whatever decision is made, the section should describe precisely what is agreed in order to avoid future disputes. Appointing a lawyer to review the contract can ensure fairness and help draw attention to unforeseen terms in the contract. As a Rent-to-Own agreement is a kind of combination between a rental agreement and a real estate purchase agreement, there are many details to include. Make sure that all the details below are included in the drafting of your agreement. Before signing the lease, the parties negotiate a purchase price for the property. It is recommended not to negotiate the price at a later date, as the collection of the option fee must allow the tenant to purchase at any time throughout the rental. . . .