A real estate lease option agreement form is a legally binding contract between a landlord and tenant that allows the tenant the option to purchase the property at a later date.
If you are considering entering into a lease option agreement, it is important to understand the key terms and provisions that should be included in your agreement. This will help ensure that both parties are clear on the terms of the agreement and that it is enforceable.
Here are some key provisions that should be included in a real estate lease option agreement form:
1. Description of the Property: This section should include the address and legal description of the property that is being leased and optioned.
2. Option Price: The option price is the price at which the tenant has the option to purchase the property at a later date. This section should specify the option price and any conditions that apply to it, such as a requirement for the tenant to put down a certain amount of money as a deposit.
3. Option Period: The option period is the length of time during which the tenant has the option to purchase the property. This section should specify the option period and any conditions that apply to it, such as a requirement for the tenant to pay rent during the option period.
4. Rent: The rent section should specify the amount of rent that the tenant will pay during the lease term and any conditions that apply to it, such as a requirement for the tenant to pay rent on time or to maintain the property in good condition.
5. Maintenance and Repair: This section should specify which party is responsible for maintaining and repairing the property during the lease term and option period.
6. Default: The default section should specify what happens if either party defaults on their obligations under the agreement. This may include provisions for termination of the agreement, forfeiture of the option deposit, or legal action.
7. Binding Effect: The binding effect section should specify that the agreement is binding on both parties and their successors and assigns.
If you are considering entering into a real estate lease option agreement, it is important to consult with an experienced attorney to help you draft a legally binding agreement that protects your rights and interests. With the right agreement in place, you can enjoy the benefits of leasing a property while still having the option to purchase it at a later date.