This Option to Purchase Addendum to Residential and Lease Agreement is entered into by and between the lessor and the lessee. The lessor agrees not to offer the residence for sale to anyone during the term of the lease, and to give the lessee (tenant) the option to purchase the residence at any time prior to the expiration of the lease, provided the lessee gives notice of intent to purchase in accordance with the provisions of the Addendum. At that point, a separate contract of sale will be executed and the sale will proceed as any sale would.
Please note: This Addendum form is NOT a lease agreement. You will need a separate Residential Lease Agreement. The Addendum would be attached to that Agreement
Tempe Arizona Option to Purchase Addendum to Residential Lease — Lease or Rent to Own Introduction: The Tempe Arizona Option to Purchase Addendum to Residential Lease — Lease or Rent to Own is a legal agreement that offers tenants the option to purchase a property they are currently leasing. This addendum provides an opportunity for individuals who may not have sufficient funds or credit score to buy a home immediately but have the intent to purchase it in the future. By opting for this agreement, tenants can secure a property for a specified time period while working towards homeownership. Key Features: 1. Lease with an Option to Purchase: This addendum allows tenants to lease a property with an added provision of having the option to purchase it within a specified time frame, usually ranging from one to three years. 2. Price Negotiation: The addendum outlines the agreed-upon purchase price of the property. It provides flexibility for the tenant to negotiate the terms, purchase price, and other conditions before finalizing the lease agreement. 3. Option Fee: Tenants are usually required to pay an option fee, which grants them the exclusive right to purchase the property within the given time period. This fee is non-refundable and typically ranges from 1-5% of the purchase price. 4. Rent Credit: A portion of the monthly rental payment may be credited towards the purchase price if the tenant decides to exercise the option to buy. This serves as an incentive for tenants to fulfill the lease agreement and make on-time rental payments regularly. 5. Property Maintenance: The responsibility for property maintenance and repairs typically lies with the tenants during the lease period, just like with a regular residential lease agreement. However, major structural repairs and maintenance may still be the responsibility of the landlord or property owner, as specified in the addendum. Types of Tempe Arizona Option to Purchase Addendum to Residential Lease — Lease or Rent to Own: 1. Fixed Price Option: In this type, the purchase price is predetermined and remains fixed throughout the lease period. This provides stability and enables tenants to plan accordingly. 2. Price Adjustment Option: Here, the purchase price is determined at the time when the option is exercised, rather than being predefined. This allows tenants to benefit from potential market fluctuations that could result in a lower purchase price. 3. Delayed Option Exercise: This type allows tenants to delay their decision to exercise the option to purchase until a later date, often after a certain number of years. This provides flexibility for tenants who need additional time to secure financing or improve their credit score. 4. Lease Term Extension Option: Some addendums may include an option to extend the lease term beyond the initial agreement. This can be beneficial to tenants who require more time to fulfill their purchase plans or need extra time to address financial constraints. 5. Early Termination Option: This addendum may include a provision that allows tenants to terminate the lease agreement before the end of the specified term if they decide not to exercise the option to purchase. However, this may result in forfeiting the option fee and any accumulated rent credits. Conclusion: The Tempe Arizona Option to Purchase Addendum to Residential Lease — Lease or Rent to Own provides a unique opportunity for tenants to transition from renting to homeownership. By carefully considering the terms, type of addendum, and personal financial situation, individuals can take advantage of this arrangement to secure their future home.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
