The Alaska Lease to Own (Option to Purchase) Agreement satisfies both landlords and tenants who wish to exchange property for a set amount of money over a long period of time. This option does provide an alternative to the usual method of selling and buying a property, however, both parties need to be very clear on their responsibilities and the provisions of such an agreement. For instance, tenants may feel this is a way to save money, however, ultimately the goal of a landlord providing such an option is to, after all, make a profit. Similarly, as with any lease, landlords who expect money to be paid during a certain time period with no damage to the property may be affected by drastic life changes in a tenant’s life or suddenly discover they have accidentally rented to an unscrupulous lessee.

It is, therefore, considered very wise to have such agreement options in writing. Since this will bear the dated signatures of both parties or be part of a lease document that requires such validation, this option is considered binding to its terms if entered.

How to Write

Step 1 – The first item of the Alaska Lease to Purchase Option Agreement will define the date the lease goes into effect, the seller/landlord’s name and the buyer/tenant’s name.

Step 2 – The next paragraph will require the county and street address of the property.

Step 3 – The second item will deal with the rent. The first paragraph here will name the annual rent which will be broken down in the next two items by defining the monthly rent and when that monthly rent is due. Finally, the security deposit will be documented here.

Step 4 – The second item will deal with the “Utilities and Services.” The first area to be filled out in this paragraph will outline the tenant’s responsibility while the second area will name the landlord’s responsibilities.

Step 5 – The third item will name additional terms the Tenant will agree too. Read this very carefully.

Step 6 – The fourth item will name when the “Option to Purchase” will commence and when that option will expire. The fifth item which follows this will give additional terms to this and both parties should be in agreement on these two items before signing.

Step 7 – The sixth item, “Option Consideration,” will name the non-refundable amount to be paid and its terms.

Step 8 – The next item, “Purchase Price,” will define the total purchase price of the property, the credit the tenant will be awarded and the terms to receive this credit.

Step 9 – The remaining items should be reviewed carefully as this is a binding contract.  The signature lines at the bottom must have the signature, printed name, and signature date of the Seller/Landlord, Buyer/Tenant, Agent, and Witness.