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
Orange California Option to Purchase Addendum to Residential Lease — Lease or Rent to Own is a legally binding agreement that allows tenants the opportunity to eventually purchase the property they are currently leasing. This addendum provides both tenants and landlords with certain rights and obligations, ensuring a smooth transition from renting to homeownership. The Orange California Option to Purchase Addendum to Residential Lease — Lease or Rent to Own offers several types to suit the specific needs of the parties involved. Some common variations include: 1. Fixed Purchase Price Lease — This type of addendum sets a specific purchase price at the beginning of the lease term. It provides tenants with the assurance that they can buy the property at a predetermined price, regardless of market fluctuations. 2. Percentage Price Increase Lease — Under this addendum, the purchase price is determined based on a certain percentage increase from the initial lease term. This option allows tenants to take advantage of potential property value appreciation while still providing them with a predetermined framework. 3. Price Negotiation Lease — This type of addendum allows tenants and landlords to negotiate the purchase price during the lease term. It gives tenants the flexibility to assess the property value over time and negotiate a fair price with the landlord. Irrespective of the type chosen, the Orange California Option to Purchase Addendum to Residential Lease — Lease or Rent to Own includes specific terms and conditions that both parties must adhere to. These may include: 1. Option Period — The addendum typically outlines the duration of the option period, during which the tenant has the exclusive right to purchase the property. 2. Option Fee — Tenants may be required to pay an option fee, which grants them the option to buy the property at a later date. This fee is typically non-refundable and may or may not be applied towards the purchase price. 3. Rent Credits — Some addendums may provide rent credits, wherein a portion of the monthly rent payments is applied towards the down payment or purchase price of the property. This incentive encourages tenants to pursue homeownership. 4. Maintenance and Repairs — The addendum should address how responsibility for maintenance and repairs will be divided between the parties during the lease term and option period. 5. Financing Contingencies — The addendum may outline any financing contingencies, specifying that the option to purchase is subject to the tenant securing financing to complete the purchase. The Orange California Option to Purchase Addendum to Residential Lease — Lease or Rent to Own is an excellent alternative for individuals who aspire to become homeowners but may not have immediate access to traditional financing or a substantial down payment. By leveraging this addendum, tenants can enjoy the benefits of leasing while working towards homeownership in a controlled and structured manner.
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.
