RENT-TO-OWN AGREEMENT
THIS RENT-TO-OWN AGREEMENT ("Agreement") is made on [Date], BETWEEN: [Owner Name], of [Owner Address] ("Owner") AND [Tenant/Buyer Name], of [Tenant Address] ("Tenant/Buyer").
1. PROPERTY DESCRIPTION
The property subject to this Agreement is located at [Property Address], legally described as [Legal Description] ("Property").
2. LEASE TERMS
2.1 Lease Period: [Start Date] to [End Date] with option to purchase.
2.2 Monthly Rent: $[Amount] due on the [Day] of each month.
2.3 Security Deposit: $[Amount] due upon signing, refundable subject to terms herein.
3. PURCHASE OPTION
3.1 Purchase Price: $[Amount] fixed for the duration of this Agreement.
3.2 Option Fee: $[Amount] non-refundable fee for exclusive purchase option paid upon signing.
3.3 Option Exercise: Must be exercised by [Date] with [Notice Period] written notice to Owner.
4. RENT CREDITS
4.1 [Percentage]% of monthly rent payments will be credited toward purchase price.
4.2 Total credits cannot exceed $[Amount] over the lease term.
4.3 Credits are forfeited if purchase option is not exercised or lease is terminated for cause.
5. PROPERTY MAINTENANCE
5.1 Tenant/Buyer responsible for routine maintenance and repairs under $[Amount] per incident.
5.2 Owner responsible for major repairs exceeding $[Amount] and structural issues.
5.3 Property must be maintained in good condition for purchase option to remain valid.
6. INSURANCE AND TAXES
6.1 Tenant/Buyer shall maintain renter's insurance with minimum coverage of $[Amount].
6.2 Owner remains responsible for property taxes and homeowner's insurance during lease term.
6.3 Upon exercise of purchase option, all tax and insurance obligations transfer to Buyer.
7. DEFAULT AND TERMINATION
7.1 Default in rent payments for [Days] days may result in forfeiture of option and eviction proceedings.
7.2 Option fee and accumulated rent credits are forfeited upon default or failure to exercise option.
8. CLOSING PROCEDURES
8.1 Standard real estate closing procedures apply if option is exercised.
8.2 Buyer responsible for customary closing costs including title insurance, recording fees, and attorney fees.
8.3 Property conveyed "as-is" with right of inspection [Days] prior to closing.
9. RIGHT OF FIRST REFUSAL
9.1 If Owner receives bona fide offer to purchase during lease term, Tenant/Buyer has right of first refusal.
9.2 Tenant/Buyer has [Days] to match offer terms or waive right of first refusal.
10. GOVERNING LAW
This Agreement shall be governed by the laws of [State/Jurisdiction].
11. MISCELLANEOUS
11.1 Time is of the essence in this Agreement.
11.2 This Agreement binds heirs, successors, and assigns of both parties.
11.3 Any modifications must be in writing and signed by both parties.
DISCLAIMER
This template should be reviewed by real estate counsel and may require state-specific disclosures and compliance with rent-to-own regulations.
SIGNATURES
OWNER:
_________________________ Date: __________ [Owner Name]
TENANT/BUYER:
_________________________ Date: __________ [Tenant/Buyer Name]
