A lease to own contract is one that is entered into between two parties namely the owner of a property and the tenant. The main idea of this contract is to facilitate the purchase of the leased property from the owner after a specific period of time. The contract provides for all the details of the lease to own transaction that takes place between the owner and the tenant. The contract has details such as amount of down payment, period of tenancy, rent amount and date of transfer of ownership of property etc is provided.
Sample Lease to Own Contract
This lease to own contract is entered into between Mr. John Anthony who is the owner of the property and Mr. Reid James who is the tenant of the property with effect from the 5th of July 2013.
Details of property on lease to be converted to sale:-
Details of property owner:-
Mr. John Anthony,
Details of property tenant:-
Mr. Reid James,
Terms of lease to own contract:-
1. The lease of the property starts from the 5th of July from when the tenant can move into and take occupancy of the property.
2. The tenant has to make a onetime down payment of 25000 pounds along with a rent of 4000 pounds that needs to be paid every month on the 5th.
3. From the rent amount 1500 pounds will be collected towards the purchase price of the property.
4. The tenant needs to pay an amount of 15000 pounds after the completion of three years of tenancy to purchase the property from the owner.
5. After the completion of three years when the tenant pays the amount of 15000 pounds to purchase the property the ownership will be transferred legally to the tenant.
Signature of owner _________________
Signature of tenant _________________