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 Knoxville Tennessee Option to Purchase Addendum to Residential Lease, also known as the Lease or Rent to Own agreement, is a legally binding document that outlines the terms and conditions for a tenant to potentially purchase the leased property in Knoxville, Tennessee. This addendum serves as an additional contract provision, allowing the tenant the option to buy the property at a later date, commonly referred to as a rent-to-own or lease with an option to purchase agreement. The Knoxville Tennessee Option to Purchase Addendum to Residential Lease offers several variations to cater to different lease or rent-to-own scenarios. These options include: 1. Fixed Purchase Price Addendum: This type of addendum specifies a predetermined purchase price for the property. The tenant and landlord agree on the price at the time of lease inception, ensuring the price remains unaffected by market fluctuations during the lease term. 2. Market-Adjusted Purchase Price Addendum: In this scenario, the purchase price of the property is determined based on its market value at the time the tenant exercises the option to purchase. This addendum allows for a fair and current valuation of the property, considering factors such as market trends and property improvements. 3. Rent Credit Addendum: With this addendum type, a portion of the tenant's monthly rent payments is allocated as a credit toward the future purchase price. For example, a certain percentage of each rent payment may be deducted from the final purchase price if the tenant exercises the option to buy. 4. Lease Term Extension: This addendum allows for a lease term extension beyond the initial agreed-upon duration, providing the tenant with more time to complete the purchase. The extension may be accompanied by modifications in the purchase terms, such as the purchase price or rent credit percentage. 5. Maintenance and Repairs Addendum: This addendum specifies the responsibilities of the tenant and landlord for property maintenance and repairs during the lease term. It ensures that the property remains in good condition until the purchase option is exercised. 6. Option Expiration Addendum: If the tenant decides not to exercise the option to purchase before the specified expiration date, this addendum outlines the consequences and potential next steps. It may cover matters such as the return of any rent credits accumulated, lease termination procedures, and the property's future listing for sale. The Knoxville Tennessee Option to Purchase Addendum to Residential Lease — Lease or Rent to Own is designed to protect the interests of both the tenant and landlord. It grants tenants the flexibility to potentially become homeowners while allowing landlords to secure a committed tenant and potentially sell their property in the future. It is crucial for both parties to thoroughly understand the terms and seek legal advice before signing such an addendum to ensure a successful and equitable lease-to-own experience.
