The following lease agreement form is meant to be used by one individual dealing with another individual or a commercial transaction between non-consumers. It therefore does not contain disclosures required by the Federal Consumer Leasing Act.
The Federal Consumer Leasing Act, which is part of the Truth in Lending Act, applies to any lease of consumer goods for more than four months in which the total contractual obligation does not exceed $25,000. (It does not apply to leases of real estate.) This law requires the lessor (the owner of the auto you lease, for example) to disclose information before you sign the lease. Among the most important items are
" the capitalized cost -- that is, the cost of the goods being leased (the capitalized cost is negotiable to the same extent that the price of goods is negotiable if you were buying them instead of leasing them);
" the total amount of any initial payment you are required to pay;
" the number and amounts of monthly payments;
" the total amount for fees, such as license fees and taxes;
" any penalty for default or late payments;
" the annual mileage allowance and the extra charges involved if you exceed that allowance;
" whether you can end the lease early, and the method of computing the charge if you do so;
" whether you can purchase the auto at the end of the lease and for what price;
" any liability that you may have for the difference between the estimated value of the auto and its market value at the time you end the lease; and
" any extra payment that you must make at the end of the lease.
Illinois Lease or Rental Agreement of Personal Property of any Type with Option to Purchase and Own Personal Property — Lease or Rent to Own: In the state of Illinois, individuals seeking to lease or rent personal property with the option to purchase and eventually own it can enter into a Lease or Rental Agreement. This agreement provides a flexible arrangement where the tenant has the opportunity to rent the desired personal property for a specific period, with the option to buy and become the owner at the end of the lease term. There are several types of Illinois Lease or Rental Agreements available, catering to different types of personal property. Some common types include: 1. Illinois Residential Lease or Rental Agreement with Option to Purchase and Own Personal Property — Lease or Rent to Own: This agreement applies to personal property typically found within a residential setting, such as furniture, appliances, or electronics. Tenants can lease the items they need for their home, while having the option to purchase and eventually own them. 2. Illinois Commercial Lease or Rental Agreement with Option to Purchase and Own Personal Property — Lease or Rent to Own: This agreement is designed for businesses and commercial entities in Illinois. It enables businesses to lease equipment, machinery, or specialized tools necessary for their operations, with the option to buy and own them in the future. 3. Illinois Vehicle Lease or Rental Agreement with Option to Purchase and Own Personal Property — Lease or Rent to Own: This type of agreement focuses specifically on personal vehicles, including cars, trucks, or motorcycles. It allows individuals who may not be able to afford an immediate vehicle purchase to lease a vehicle for a defined period, with the option to buy and own it later. It's important to note that each of these agreements follows Illinois state laws and regulations. They outline the terms and conditions governing the lease period, monthly rental payments, purchase price options, and other relevant details. Additionally, the agreements specify the responsibilities of both the tenant and the lessor, including maintenance, repairs, and insurance coverage during the lease term. Renting or leasing personal property with the option to purchase and own provides an alternative path to ownership for individuals who may not have the immediate financial means to make a full purchase. It offers flexibility and the opportunity to assess the suitability of the property or equipment before committing to ownership.
