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 Memphis Tennessee Option to Purchase Addendum to Residential Lease, also known as the Lease or Rent to Own Addendum, is a legal document that outlines the terms and conditions of a lease agreement with an option to purchase a residential property in Memphis, Tennessee. This addendum provides flexibility for tenants who wish to transition from renting to becoming homeowners. The addendum contains several key components and relevant keywords, including: 1. Option to Purchase: This clause grants the tenant the exclusive right to purchase the property within a specified timeframe, usually for a predetermined price or based on fair market value at the time of exercising the option. 2. Lease Term: This section outlines the duration of the lease agreement, including the start and end dates. It may also include provisions for renewal or extension if the tenant decides to exercise the option to purchase. 3. Rent Payments: The addendum specifies the amount and frequency of rent payments as well as any applicable late fees. It's essential to clarify how the rent paid during the lease period will be applied if the tenant decides to exercise the purchase option. 4. Option Fee: The tenant may be required to pay an option fee upfront to secure the option to purchase. This fee is usually non-refundable and may be credited towards the purchase price if the option is exercised. 5. Purchase Price: The addendum should detail the purchase price or a formula to determine it, such as fair market value. Clear language should be used to explain if any portion of the rent paid will be credited towards the purchase price. 6. Inspection and Repairs: This clause addresses the tenant's right to inspect the property and request repairs before exercising the option to purchase. It may also outline the landlord's responsibility for maintaining the property's condition. 7. General Provisions: This section includes miscellaneous provisions, such as dispute resolution methods, governing law, and the parties' responsibilities for taxes, insurance, and utilities during the lease period. Multiple variations of the Memphis Tennessee Option to Purchase Addendum to Residential Lease — Lease or Rent to Own may exist, depending on individual preferences, specific circumstances, and legal requirements. Some possible variations may include specific language regarding property condition, maintenance responsibilities, option fees, and purchase price calculations. It's essential for both parties involved, landlords and tenants, to thoroughly review and understand the addendum before signing. Consulting with a real estate attorney or a qualified professional can help ensure that the agreement meets all legal requirements and protects the interests of both parties.
