The relationship of landlord/tenant or lessor/lessee is created by contract. The person who owns the real property is known as the lessor or landlord. The lessee, or tenant, is the one who occupies the property.
Tenancies are classified by duration as tenancies for years, from year to year, month to month, and at will. A tenancy for years is one under which the tenant has an estate of definite duration. The term "for years" is used to describe such a tenancy even though the duration of the tenancy is for only one year or for less than a year. A tenancy from year to year or month to month is one under which a tenant, holding an estate in land for an indefinite duration, pays an annual, monthly, or weekly rent.
New Jersey Lease of Unfurnished House with Option to Purchase — Lease or Rent to Own The New Jersey Lease of Unfurnished House with Option to Purchase is a contractual agreement that allows tenants to lease a house with the option to buy it at a later date. This type of agreement is commonly known as a "rent-to-own" or "lease-to-own" agreement and provides potential homeowners with the opportunity to rent a property initially and then transition into homeownership. Key Features of New Jersey Lease of Unfurnished House with Option to Purchase: 1. Lease Term: The agreement outlines the length of the lease term during which the tenant will rent the unfurnished house. Typically, this is a predetermined period, such as one to three years. 2. Rent Payments: The lease agreement specifies the monthly rent amount, which may include additional charges like utilities, maintenance, and property taxes. It is important for tenants to understand and budget for these costs. 3. Option to Purchase: The tenant has the exclusive option to purchase the house within a specific time frame outlined in the lease. This provision sets the purchase price and terms, empowering the tenant to become a homeowner. 4. Rent Credits: A portion of the monthly rent payments may be credited toward the purchase price of the house. These accumulated credits can further reduce the overall purchase price, providing an incentive for tenants to exercise the option to buy. 5. Home Maintenance: The tenant is responsible for maintaining the property during the lease term, ensuring it remains in good condition. Regular upkeep and repairs may be necessary to avoid penalties or reductions in the option credit. Types of New Jersey Lease of Unfurnished House with Option to Purchase: 1. Fixed-Term Lease with Option to Purchase: This type of agreement sets a fixed lease term, usually one to three years, during which the tenant has the option to buy the property. The purchase price, option fee, and monthly rent are predetermined and cannot be changed during the lease term. 2. Month-to-Month Lease with Option to Purchase: In this arrangement, the lease operates on a monthly basis, allowing tenants greater flexibility. The option fee, purchase price, and monthly rent may be subject to negotiation or periodic adjustments, making it easier for tenants to enter into the agreement. 3. Lease Purchase Agreement: Unlike a lease option, a lease purchase agreement commits both parties to the sale of the property at a specific date and price. In this case, tenants are legally obligated to buy the property, making it suitable for those who are certain about their desire to become homeowners. Overall, the New Jersey Lease of Unfurnished House with Option to Purchase provides a viable pathway for individuals or families interested in buying a house but are unable to secure traditional financing immediately. It offers the flexibility to live in and test out a property before making the final decision to purchase, easing the transition from tenant to homeowner.
