Lease Agreement with Option to Purchase Real Estate - Part 5 - fill in the blanks

Sep 16, 2026

Uploaded by Noah

Lease Agreement with Option to Purchase Real Estate establishes a contractual relationship between a Tenant/Buyer and a Landlord/Seller for leasing a described property and granting an exclusive right to purchase during the lease term or any extension. It defines key terms including rent amount, payment timing, and monthly rent credit application to the purchase price, plus procedures for notice and termination. The agreement also allocates responsibilities for utilities, legal compliance, surrender conditions, insurance coverage, default remedies, and reimbursement when improvements or conveyance failures occur.

LanguageEnglish

CategoryForms

FormatPDF

Pages3

Reading Time1 min

AccessFree to download

Lease Agreement with Option to Purchase Real Estate

Description

Term and Extensions

Rent and Purchase Credit

Option to Purchase

Covenants of Tenant/Buyer

Covenants of Landlord/Seller

Breach by Tenant/Buyer

Costs of Improvements

Further Encumbrances

Lease Agreement with Option to Purchase Real Estate This LEASE AGREEMENT WITH OPTION TO PURCHASE REAL ESTATE (hereinafter referred to as the Lease/Option) is made this day of , 20 ,by and between the following parties: ______________________________________________________________________________________________________________ located at (hereinafter referred to as the Tenant/Buyer); and ______________________________________________________________________________________________________________ located at (hereinafter referred to as the Landlord/Seller) . In consideration of the mutual promises and covenants hereinafter stipulated, the parties hereby agree as follows (1) DESCRIPTION: The Landlord/Seller agrees to lease, and, the Tenant/Buyer agrees to rent the real property and improvements, hereinafter called property; located at: as more fully described as follows: ______________________________________________________________________________________________________________ ______________________________________________________________________________________________________________ (2) TERM: The term of this Lease/Option shall be for a period of months commencing on ,20 ,and ending on The term will be automatically extended for periods of months, unless the Tenant/Buyer gives notice to the Landlord/Seller of its intent to terminate this Lease/Option, by mailing a written notice to the last provided address of the Landlord/Seller. Liability for payment will not extend beyond notice to terminate this agreement. Possession shall be given to Tenant/Buyer on (3) RENT: Tenant/Buyer agrees to pay to the Landlord/Seller, the sum of $ per month, with the first payment beginning as rent for the property, for the term of this Lease/Option, and during any extensions thereof. All rental payments shall be due and payable in advance on the 10th day of each and every month. An amount equal to $ for each month in which rent was paid, shall be credited to the Tenant/Buyer and applied to the purchase price of the property in the event that the Tenant/Buyer exercises its option hereunder; otherwise, this credit shall be non-refundable and considered forfeited if the option is not exercised. (4) OPTION TO PURCHASE: The Tenant/Buyer, as part of the consideration herein, is hereby granted the exclusive right, option and privilege of purchasing property at any time during the term of this Lease/Option agreement or any extension thereof. The Tenant/Buyer shall notify the Landlord/Seller in writing of the exercise of this option at least ten (10) days prior to the expiration of the initial term of this Lease/Option or the expiration of any extension thereof, by mail to the last-provided address of Landlord/Seller. (5) COVENANTS OF TENANT/BUYER: Commencing with and during the term of this agreement, including extensions, the Tenant/Buyer hereby covenants and agrees as follows: (A) That the Tenant/Buyer will pay all utility charges and bills, including, but not limited to, water, sewer, gas, oil, and electric, which may be assessed or charged against the property; (B) That the Tenant/Buyer will not use the property for any unlawful purpose; and that the Tenant/Buyer will conform to and obey all laws, ordinances, rules, regulations, requirements and orders of all Federal, Stale, and Local governmental authorities, agencies, departments, bureaus, boards or officials, respecting the use of the property; and (C) That the Tenant/Buyer will surrender and deliver up the property, at the end of the term or any extensions thereof, should the option herein not be exercised, in as good order and condition as the same now exists, reasonable use and natural wear and tear excepted. (6) COVENANTS OF LANDLORD/SELLER: The Landlord/Seller hereby covenants and agrees as follows: (A) That the Landlord/Seller shall pay for and maintain fire and extended coverage insurance on said property in the minimum amoun

FAQs

What does the Lease/Option agreement cover?

It covers leasing a specified real property and improvements, and granting the Tenant/Buyer an exclusive option to purchase during the lease term or any extension.

How is rent handled if the Tenant/Buyer exercises the purchase option?

Monthly rent payments are due in advance on the 10th of each month. An amount equal to a stated portion of each paid month is credited to the Tenant/Buyer and applied to the purchase price if the option is exercised.

What happens if the Tenant/Buyer breaches the agreement?

If the Tenant/Buyer fails to perform required covenants or abandons the property, the Landlord/Seller may re-enter, repossess, and enjoy the property as if the Lease/Option had not been made, with limited exceptions in the agreement.

Sep 16, 2026

Uploaded by Noah