Arkansas Lease with Option to Purchase (Lease to Own) Agreement

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The Arkansas Lease with Option to Purchase (Lease to Own) Agreement is an arrangement where a landlord or property manager agrees to lease a property to a tenant(s) while making the option to buy the property available during the lease term. Each of the terms in this agreement should be reviewed carefully and agreed to by both parties. This is because the state of Arkansas has set penalties for cases where damages occur or when a contractual agreement has been violated (Arkansas Rental Purchase Act, 1987). Once two or more parties have signed a lease with this option they will be held responsible to each other under the terms of this document and must act in a lawful manner.

As one goes through this document, several parts will be set in stone while others will need to be defined. The disclosure areas are what is usually necessary for the nature of this agreement to be considered valid in this state (of course, this document should be reviewed by one’s attorney). Information that is required to be entered will deal with unique terms that should be discussed and agreed upon by both parties. If anything entered does not match one’s expectations of the terms they should refrain from signing the agreement and discuss the matter. This should be considered as a major commitment and thus every precaution to making sure it is beneficial should be made.

How to Write

Step 1.  The introduction of this agreement will require the effective lease term, address of leased property, and the parties be defined. Those filling out this section will need to enter the day, month, and year of the agreement. Then the full name of the Landlord and Tenant. The second paragraph will require the leased property be defined. This will require the county, state, and street address be entered.

Step 2. In item 1, the rent will be defined. This will require the total dollar amount received over the term of the lease, the monthly rent amount, and the security deposit amount be entered in the appropriate spaces.

Step 3. Item 2 will cover the “Utilities and Services,” Each party (Tenant and Landlord) will need to have the utilities/services he or she will pay for documented in their respective areas.

Step 4. The next couple of sections will deal directly with the lease option to buy. The first section to require specifics be entered is the “Option Term.” Here the date range for the option to purchase must be defined. Enter the Month, Day, and Year for the start date of this option on the first line and the Month, Date, Year, for the final date to exercise this option.

Step 5. Item 6, or “Option Consideration” will require the non-refundable fee the Tenant/Buyer must pay in consideration for this option.

Step 6. Of course, the purchase price for this leased property must be solidified. The purchase amount must be entered on the second line of this section in the spaces provided. Following this will be a space to enter the amount credited to purchase price when the sale is being closed.

Step 7. The “Governing Law and Venue” will need the county which has jurisdiction over the leased with option to buy property.

Step 8. The final section is the signature section. This will require the Landlord, Tenant, Agent, and Witness signatures. Each signature provided must be followed with the printed name of that individual.