Rent-to-Own (Lease Option) Agreement

This Rent-to-Own Agreement (this "Agreement") is entered into by and between:

seller_name (the "Seller" or "Landlord"); and

buyer_name (the "Buyer" or "Tenant").

The Seller and Buyer are each referred to herein as a "Party" and collectively as the "Parties."

Recitals

WHEREAS, the Seller is the owner of the real property located at property_address (the "Property");

WHEREAS, the Buyer desires to lease the Property with an option to purchase the Property at a predetermined price during the option period;

WHEREAS, the Seller is willing to grant such a lease and option upon the terms and conditions set forth herein; and

WHEREAS, the Parties desire to set forth their mutual rights and obligations with respect to the lease and option to purchase.

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

PART I — OPTION TO PURCHASE

1. Grant of Option

In consideration of the Option Fee (defined below), the Seller hereby grants to the Buyer the exclusive option to purchase the Property during the Option Period (defined below) at the Purchase Price and upon the terms and conditions set forth in this Agreement (the "Option").

2. Option Fee

2.1 Amount

The Buyer shall pay the Seller a non-refundable option fee of option_fee (the "Option Fee") upon execution of this Agreement. The Option Fee shall be paid in full prior to or simultaneously with the commencement of the lease term.

2.2 Non-Refundable Nature

The Option Fee is non-refundable and shall be forfeited by the Buyer if the Buyer fails to exercise the Option within the Option Period for any reason. The Option Fee represents consideration for the Seller's grant of the exclusive option and the Seller's agreement not to sell the Property to any other party during the Option Period.

2.3 Credit Toward Purchase Price

If the Buyer exercises the Option, the Option Fee shall be credited toward the Purchase Price at closing.

3. Option Period

The Option Period shall commence on the date of this Agreement and shall expire at 11:59 PM local time on the date that is option_period from the date of this Agreement (the "Option Period"). The Option shall automatically expire at the end of the Option Period if not exercised by the Buyer.

4. Purchase Price

The purchase price for the Property shall be purchase_price (the "Purchase Price"). The Purchase Price is fixed and shall not be adjusted for changes in market conditions during the Option Period, unless the Parties agree otherwise in writing.

5. Rent Credits

5.1 Monthly Rent Credit

For each month during the Option Period in which the Buyer pays the full Rent on time (by the due date without a late fee being incurred), the Buyer shall receive a rent credit of [amount or percentage — e.g., "$200" or "twenty percent (20%) of the monthly Rent"] toward the Purchase Price (the "Rent Credit").

5.2 Accumulation

Rent Credits shall accumulate during the Option Period and shall be applied to the Purchase Price at closing if the Buyer exercises the Option. If the Buyer does not exercise the Option, all accumulated Rent Credits shall be forfeited.

5.3 Late or Missed Payments

No Rent Credit shall be earned for any month in which Rent is paid late or not paid in full. The Seller shall maintain a record of Rent Credits earned and shall provide the Buyer with an updated accounting upon request.

6. Exercise of Option

6.1 Notice

The Buyer may exercise the Option by delivering written notice to the Seller (the "Exercise Notice") at any time during the Option Period. The Exercise Notice shall be delivered by certified mail, hand delivery, or confirmed email.

6.2 Closing

If the Buyer exercises the Option, the closing of the purchase shall take place within sixty (60) days after the date of the Exercise Notice (the "Closing Date"), or on such other date as the Parties may agree in writing.

6.3 Closing Costs

At closing, each Party shall be responsible for its own customary closing costs unless the Parties agree otherwise in writing. The Buyer shall be responsible for: title insurance, recording fees, and Buyer's attorney fees. The Seller shall be responsible for: transfer taxes, Seller's attorney fees, and any mortgage payoff costs.

7. Financing Contingency

The Buyer acknowledges that the Buyer is responsible for obtaining financing to complete the purchase. The Buyer shall use commercially reasonable efforts to obtain mortgage financing on terms acceptable to the Buyer. If the Buyer is unable to obtain financing approval within forty-five (45) days after delivering the Exercise Notice, the Buyer may withdraw the Exercise Notice, in which case: (a) the lease shall continue for the remainder of the Option Period; (b) the Option Fee shall not be refunded; and (c) any accumulated Rent Credits shall be preserved for a future exercise attempt during the remaining Option Period.

8. Title and Condition

8.1 Marketable Title

At closing, the Seller shall convey to the Buyer good and marketable title to the Property, free and clear of all liens, encumbrances, and defects, except for: (a) current real estate taxes and assessments; (b) utility easements of record that do not materially impair the use of the Property; and (c) any matters disclosed in the title commitment and accepted by the Buyer.

8.2 Property Condition

The Property is sold in its "as-is" condition as of the Closing Date, except for latent defects known to the Seller but not disclosed. The Seller shall provide all disclosures required by applicable law, including property condition disclosures, lead paint disclosures, and any other required disclosures.

8.3 Inspections

The Buyer shall have the right to conduct inspections of the Property, at the Buyer's expense, within thirty (30) days after delivering the Exercise Notice. If the inspections reveal material defects, the Buyer may negotiate repairs with the Seller or withdraw the Exercise Notice.

PART II — LEASE AGREEMENT

9. Lease Term

The lease term shall be coterminous with the Option Period, commencing on the date of this Agreement and continuing for option_period. If the Buyer does not exercise the Option, the lease shall terminate at the end of the Option Period unless the Parties agree otherwise in writing.

10. Rent

10.1 Amount and Due Date

The Buyer/Tenant shall pay monthly rent of monthly_rent (the "Rent"), due on the first (1st) day of each calendar month.

10.2 Late Fees

If Rent is not received by the fifth (5th) day of the month, a late fee of five percent (5%) of the monthly Rent shall be assessed, or the maximum permitted by law, whichever is less.

10.3 Payment Method

Rent shall be paid by check, electronic transfer, or other method acceptable to the Seller.

11. Security Deposit

The Buyer shall pay a security deposit of [amount], which shall be held and returned in accordance with applicable law.

12. Maintenance and Repairs

12.1 Buyer/Tenant's Responsibilities

During the Option Period, the Buyer shall be responsible for:

(a) All routine maintenance and minor repairs (individually costing less than $500);

(b) Lawn care, landscaping, and snow removal;

(c) Keeping the Property clean, sanitary, and in good condition;

(d) Pest control; and

(e) Replacing filters, batteries, light bulbs, and other consumable items.

12.2 Seller/Landlord's Responsibilities

The Seller shall be responsible for:

(a) Major structural repairs (roof, foundation, exterior walls);

(b) Major systems repairs (HVAC, plumbing, electrical) costing $500 or more; and

(c) Compliance with applicable building and housing codes.

12.3 Improvements by Buyer

The Buyer may make cosmetic improvements to the Property (painting, landscaping, minor fixtures) without the Seller's consent. Any structural modifications or improvements costing more than $1,000 shall require the Seller's prior written consent. All improvements shall become part of the Property.

13. Insurance

The Buyer shall maintain renter's insurance throughout the lease term. The Seller shall maintain property insurance covering the structure. If the Buyer exercises the Option, the Buyer shall obtain homeowner's insurance effective as of the Closing Date.

14. Default

14.1 Buyer's Default

The following shall constitute a default by the Buyer:

(a) Failure to pay Rent within ten (10) days after written notice;

(b) Material violation of any term of this Agreement not cured within thirty (30) days of written notice;

(c) Abandonment of the Property;

(d) Illegal activity on the Property; or

(e) Failure to maintain the Property as required by this Agreement.

14.2 Consequences of Default

Upon default by the Buyer: (a) the Option shall automatically terminate and all Option Fees and Rent Credits shall be forfeited; (b) the Seller may terminate the lease and pursue eviction in accordance with applicable law; and (c) the Seller may pursue all other remedies available at law or in equity.

14.3 Seller's Default

If the Seller materially breaches this Agreement, the Buyer shall provide written notice and a thirty (30) day cure period. If uncured, the Buyer may seek specific performance of the Option or pursue other remedies at law or equity.

15. Governing Law

This Agreement shall be governed by the laws of the state in which the Property is located.

16. General Provisions

16.1 Entire Agreement

This Agreement constitutes the entire agreement between the Parties.

16.2 Amendments

This Agreement may only be amended by written instrument signed by both Parties.

16.3 Severability

If any provision is held invalid, the remaining provisions shall remain in effect.

16.4 Notices

All notices shall be in writing and delivered personally, by certified mail, or by confirmed email.

16.5 Recording

The Buyer may, at the Buyer's expense, record a memorandum of this Agreement in the applicable county records to provide notice of the Buyer's option to purchase.

16.6 Counterparts

This Agreement may be executed in counterparts. Electronic signatures shall be deemed original signatures.

DISCLOSURE: This agreement is a template. Rent-to-own transactions involve significant legal and financial considerations. Both Parties are strongly encouraged to consult with an attorney and a financial advisor before signing.

IN WITNESS WHEREOF, the Parties have executed this Rent-to-Own Agreement.

Seller / Landlord

seller_name

[Electronic signature will be collected via zsign]

[Date will be recorded automatically]

Buyer / Tenant

buyer_name

[Electronic signature will be collected via zsign]

[Date will be recorded automatically]