Rent-To-Own Agreement - Lease Agreement with Option to Purchase Real Estate

Sep 16, 2026

Uploaded by Patrick

A standard rent-to-own lease agreement setting out the parties’ duties and financial terms for leasing real property with an option to purchase. The document defines property description, lease/option term and possible automatic extensions, monthly rent and rent-credit application to the purchase price, and the procedure and timing for exercising the purchase option. It also states tenant and landlord covenants, insurance and utility responsibilities, and remedies for tenant default and landlord payment delinquency.

LanguageEnglish

CategoryForms

FormatPDF

Pages3

Reading Time1 min

AccessFree to download

Rent-To-Own Agreement

Parties and Lease/Option Overview

Description

Term

Rent and Rent Credit

Option to Purchase

Purchase Option Price and Terms

Covenants of Tenant/Buyer

Covenants of Landlord/Seller

Breach by Tenant/Buyer

Default by Landlord/Seller (Payments)

Costs of Improvements

Rent-To-Own Agreement The information on this document is not legal advice and is not guaranteed to be correct, complete or up-to-date. The law is different from jurisdiction to jurisdiction, and is also subject to interpretation by different courts. The law is a personal matter, and no general information or legal document like the Rent-To-Own agreement can fit every circumstance. Therefore, we suggest you consult a licensed attorney in your area before finalizing any agreement. Standard Rent-To-Own Agreement This Lease Agreement with Option to Purchase Real Estate (hereinafter referred to as the Lease/Option) is made this (date) / / , by and between the following parties: (hereinafter referred to as the Tenant/Buyer); and (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: _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ 2. TERM: The term of this Lease/Option shall be for a period of months commencing on , 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 and RENT CREDIT: 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 1st 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. PURCHASE OPTION PRICE AND TERMS: The Tenant/Buyer agrees to pay for said property the sum of $ less any sums for which the Tenant/Buyer is entitled to claim reimbursement or offset in accordance with this agreement; the net sum to be paid in cash, certified check, or cashier’s check at closing. Tenant/Buyer has given a non-refundable option consideration of $ for the purchase. Additional sums will be properly credited. 6. 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, State, and Local governmental a

FAQs

What is a rent-to-own lease/option agreement in this document?

It leases real property to the tenant/buyer while granting an exclusive right to purchase during the lease/option term or any extension, subject to the stated notice and payment terms.

How does the rent credit work if the option to purchase is exercised?

A portion of each month’s rent is credited to the tenant/buyer and applied to the purchase price when the tenant/buyer exercises the option. If not exercised, the credit is non-refundable and forfeited.

What happens if the tenant/buyer breaches the lease/option?

If the tenant/buyer fails to perform covenants or abandons the property, the landlord/seller may re-enter, repossess, and treat the lease/option as void, with legal action tied to defaults.

Sep 16, 2026

Uploaded by Patrick