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
Elgin, Illinois Option to Purchase Addendum to Residential Lease — Lease or Rent to Own The Elgin, Illinois Option to Purchase Addendum to Residential Lease — Lease or Rent to Own is a legal document that grants tenants the opportunity to purchase the rental property at a predetermined price within a specified period. This addendum serves as an agreement between the landlord and tenant, outlining the terms and conditions of the lease-to-own arrangement. Here are a few key details that the Elgin, Illinois Option to Purchase Addendum to Residential Lease — Lease or Rent to Own covers: 1. Option Price: The addendum specifies the purchase price agreed upon by the landlord and tenant. This price remains fixed for the duration of the lease and protects the tenant from potential market fluctuations. 2. Option Fee: To secure the option to purchase the property, the tenant typically pays a non-refundable fee at the beginning of the lease. This fee can be negotiated between the involved parties. 3. Term of Option: The Elgin, Illinois Option to Purchase Addendum states the duration of the lease, during which the tenant has the option to exercise their right to purchase the property. Typically, this period ranges from one to three years. 4. Rent Credit: A portion of the monthly rent paid by the tenant is often credited towards the purchase price of the property. The addendum should outline the amount or percentage of rent credit applied. 5. Maintenance and Repairs: The addendum clarifies the responsibilities of the landlord and tenant concerning maintenance and repairs during the lease term. It usually states that the tenant is responsible for general upkeep, while major repairs remain the landlord's responsibility. 6. Financing and Approval: The tenant must secure their own financing to exercise the option to purchase. The addendum may include language regarding the tenant's need to obtain financing approval from a lender. Types of Elgin, Illinois Option to Purchase Addendum to Residential Lease — Lease or Rent to Own: 1. Fixed Purchase Price Addendum: This type of addendum includes a specific purchase price that remains constant throughout the lease term, regardless of any property value fluctuations. 2. Escalating Purchase Price Addendum: In this variation, the purchase price increases by a predetermined percentage each year. It allows the tenant to benefit from potential property value appreciation. 3. Market Value Purchase Addendum: This addendum determines the purchase price based on the fair market value of the property at the time of exercising the option. It allows the tenant to take advantage of favorable market conditions. The Elgin, Illinois Option to Purchase Addendum to Residential Lease — Lease or Rent to Own offers flexibility and a pathway to homeownership for tenants. It allows them to rent a property while having the opportunity to purchase it in the future. However, it's essential for both parties to thoroughly review and understand the terms and conditions stated in the addendum before signing the agreement.Elgin, Illinois Option to Purchase Addendum to Residential Lease — Lease or Rent to Own The Elgin, Illinois Option to Purchase Addendum to Residential Lease — Lease or Rent to Own is a legal document that grants tenants the opportunity to purchase the rental property at a predetermined price within a specified period. This addendum serves as an agreement between the landlord and tenant, outlining the terms and conditions of the lease-to-own arrangement. Here are a few key details that the Elgin, Illinois Option to Purchase Addendum to Residential Lease — Lease or Rent to Own covers: 1. Option Price: The addendum specifies the purchase price agreed upon by the landlord and tenant. This price remains fixed for the duration of the lease and protects the tenant from potential market fluctuations. 2. Option Fee: To secure the option to purchase the property, the tenant typically pays a non-refundable fee at the beginning of the lease. This fee can be negotiated between the involved parties. 3. Term of Option: The Elgin, Illinois Option to Purchase Addendum states the duration of the lease, during which the tenant has the option to exercise their right to purchase the property. Typically, this period ranges from one to three years. 4. Rent Credit: A portion of the monthly rent paid by the tenant is often credited towards the purchase price of the property. The addendum should outline the amount or percentage of rent credit applied. 5. Maintenance and Repairs: The addendum clarifies the responsibilities of the landlord and tenant concerning maintenance and repairs during the lease term. It usually states that the tenant is responsible for general upkeep, while major repairs remain the landlord's responsibility. 6. Financing and Approval: The tenant must secure their own financing to exercise the option to purchase. The addendum may include language regarding the tenant's need to obtain financing approval from a lender. Types of Elgin, Illinois Option to Purchase Addendum to Residential Lease — Lease or Rent to Own: 1. Fixed Purchase Price Addendum: This type of addendum includes a specific purchase price that remains constant throughout the lease term, regardless of any property value fluctuations. 2. Escalating Purchase Price Addendum: In this variation, the purchase price increases by a predetermined percentage each year. It allows the tenant to benefit from potential property value appreciation. 3. Market Value Purchase Addendum: This addendum determines the purchase price based on the fair market value of the property at the time of exercising the option. It allows the tenant to take advantage of favorable market conditions. The Elgin, Illinois Option to Purchase Addendum to Residential Lease — Lease or Rent to Own offers flexibility and a pathway to homeownership for tenants. It allows them to rent a property while having the opportunity to purchase it in the future. However, it's essential for both parties to thoroughly review and understand the terms and conditions stated in the addendum before signing the agreement.
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.
