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
The Fargo North Dakota Option to Purchase Addendum to Residential Lease, also known as the Lease or Rent to Own agreement, provides tenants with the opportunity to eventually purchase the property they are currently leasing. This addendum is designed to outline the terms and conditions of the lease agreement while incorporating a future pathway for the tenants to become homeowners. There are a few different types of Fargo North Dakota Option to Purchase Addendums to Residential Lease — Lease or Rent to Own, including: 1. Basic Option to Purchase Addendum: The basic Option to Purchase Addendum includes the essential terms and conditions necessary for the tenant to exercise their right to buy the property at a future date. It typically contains details such as the purchase price, the length of the option period, and any specific requirements or responsibilities of the tenant. 2. Rent Credit Option to Purchase Addendum: In this type of addendum, a portion of the monthly rent paid by the tenant is applied as a credit towards the future purchase price of the property. This allows the tenant to accumulate savings for the down payment incrementally, making it more affordable and accessible. 3. Lease Extension Option to Purchase Addendum: The Lease Extension Option to Purchase Addendum is beneficial when the tenant requires more time before being able to exercise their option to buy the property. It extends the original lease term, providing the tenant with additional months or years to prepare financially or make necessary arrangements. 4. Adjustable Purchase Price Option to Purchase Addendum: This type of addendum provides flexibility by allowing the purchase price to fluctuate based on certain factors, such as the real estate market conditions or property appraisal. It ensures that the price reflects the current fair market value of the property at the time of purchase. 5. Repairs and Maintenance Option to Purchase Addendum: The Repairs and Maintenance Option to Purchase Addendum establishes the responsibilities and obligations of both the tenant and the landlord regarding necessary repairs and regular maintenance during the lease term. It ensures that the property remains in good condition throughout the rental period and future purchase process. By incorporating a Fargo North Dakota Option to Purchase Addendum to a Residential Lease, both landlords and tenants can benefit. Tenants can pursue their dream of homeownership while renting, and landlords can secure long-term tenants who are committed to maintaining the property. It is crucial for all parties involved to carefully review and understand the terms and conditions laid out in the addendum, seeking legal counsel if necessary, to ensure a smooth and successful transition into homeownership.
