OPTION TO PURCHASE LEASED REAL ESTATE
I, [SELLER'S NAME] , of [CITY, STATE] , referred to as SELLER, grants to [BUYER' S NAME] , of [CITY, STATE] , referred to as BUYER, the exclusive rights to purchase the following parcel of real estate:
[LEGAL DESCRIPTION] , commonly known as [MAILING ADDRESS] .
This right is contingent upon acceptance and satisfaction of the conditions contained herein and will expire on [DATE].
BUYER may obtain an extension of the option by paying SELLER the amount of $ [AMOUNT], ( [SPELL OUT] dollars). The extension will be for ________days from the expiration date noted above. Only one extension will be granted. If the BUYER elects not to purchase the above property during the extension the parties agree that SELLER shall retain the payment as liquidated damages.
BUYER must exercise this option to purchase in writing to the SELLER. The sales price shall be a total of $ [NUMBER] ([SPELL OUT] dollars). SELLER will credit BUYER __________ per month of rental payments towards the down payment requirements for the purchase of the property.
Amounts paid to extend the option shall be credited to the purchase price if the option is exercised during the extension period.
The BUYER must close within [NUMBER] days of exercising the option. Time is of the essence. SELLER shall convey a merchantable warranty deed to BUYER for the Property described above upon closing.
The SELLER shall maintain fire and other adequate insurance until the closing occurs. SELLER shall also pay reasonable and customary closing costs for this transaction.
SELLER________________________ BUYER________________________
WITNESS_______________________ WITNESS______________________
Option To Purchase Leased Real Eastate
A lease purchase contract combines a basic lease contract with an option-to-purchase contract. The tenant/buyer pays to the landlord/seller a non-refundable option deposit that is applied to the purchase price of the home. The tenant/buyer then pays to the landlord/seller a sum that is typical to the rental amount usually on a monthly basis. A portion of that monthly payment is then applied to the purchase price of the home. During, or at the end of the lease period, the tenant/buyer has exclusive right to buy the home under the terms to which both parties have previously agreed.
