This Residential Lease Agreement and Option to Purchase is entered into by and between the lessor and the lessee. This agreement provides that the lessor will rent to the lessee a personal residence located at the address listed in the agreement. The lessee is responsible for paying rent on a monthly basis and the premises must be used as a private dwelling and for no other purpose.
An option is a contract to purchase the right for a certain time, by election, to purchase property at a stated price. An option may be a right to purchase property or require another to perform upon agreed-upon terms. By purchasing an option, a person is paying for the opportunity to elect or "exercise" the right for the property to be purchased or the performance of the other party to be required. "Exercise" of an option normally requires notice and payment of the contract price. The option will state when it must be exercised, and if not exercised within that time, it expires. If the option is not exercised, the amount paid for the option is not refundable. Sometimes an option is the right to renew a contract, such as a lease or some other existing business relationship. A "lease-option" contract provides for a lease of property with the right to purchase the property during or upon expiration of the lease.
A Bend Oregon residential lease agreement with the option to purchase, also known as a lease or rent-to-own agreement, is a legal contract that allows tenants to lease a property with the opportunity to buy it in the future. This type of agreement provides flexibility and potential homeownership for tenants who may not be ready to purchase upfront but are interested in securing their residence. In a Bend Oregon residential lease agreement with the option to purchase, both the landlord/seller and the tenant/buyer agree on the terms and conditions of the lease, along with specific details about the potential purchase of the property. This agreement outlines the monthly rent, lease duration, option period, purchase price, and other essential provisions. Different types of Bend Oregon residential lease agreements with the option to purchase include: 1. Fixed Purchase Price Lease Option: This type of agreement allows the tenant/buyer to purchase the property at a pre-determined price agreed upon at the beginning of the lease term, irrespective of the property’s market value at the time of purchase. 2. Graduated Purchase Price Lease Option: In this arrangement, the purchase price of the property increases gradually over the lease period. This type of agreement can benefit tenants who anticipate an increase in their income or need time to save for a larger down payment. 3. Market Value Lease Option: With a market value lease option, the tenant/buyer and landlord/seller agree to determine the purchase price based on the fair market value of the property at the time of exercising the option. This type of agreement ensures that the purchase price aligns with the current real estate market conditions. 4. Lease-Purchase Agreement: Similar to a lease option, a lease-purchase agreement combines a traditional lease with a commitment to purchase the property at the end of the lease term. Unlike a lease option, the tenant/buyer is obligated to buy the property, and failure to do so may result in penalties. The Bend Oregon residential lease agreement with the option to purchase provides tenants with an opportunity to live in their desired property while preparing for homeownership. It offers a sense of stability, as tenants can move towards their goal of buying a home while residing in the property they intend to purchase. Ultimately, this type of agreement provides a pathway for individuals or families to transition from renting to owning a home in Bend, Oregon.
