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

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The Arizona Lease with Option to Purchase (Lease to Own) Agreement includes the specifics for a leasing tenant to purchase the rented space as property. Spelling out the details of this option can be imperative in making sure that both lessor and lessee understand their responsibilities during the lease when choosing to transfer ownership of the property. By documenting the information in this agreement both parties will have a reference to what was agreed to rather than relying on memory. Due to the stakes involved these precautions would be considered mandatory by nearly any wise investor’s standard.

This contract will require a wealth of information to be entered across the sections contained. It is important that both parties have a frank discussion regarding this information before it is filled out. The dates and terms that are agreed upon will need to be adhered to once signed. That is, the option can only be chosen according to its terms. Furthermore, the lease itself must also be honored while it is in effect regardless of whether the option to buy is used or not. Generally speaking, it would be a wise decision to consult an attorney before signing onto such a long-term commitment however, if the terms are agreeable to the lessor and lessee than both parties can enjoy a preferable method of transferring a property.

How to Write

Step 1 – The first section will establish several facts. The day, month, and year of the agreement, the name of lessor, the name of lessee, the physical address of the leased property must be entered here.

Step 2 – The first item, “Description,” the physical address of the property and a detailed description of the property should be entered here.

Step 3 – The “Term” section will define the time periods involved with the lease. Enter the number of months the lease will be in effect for than the month and year it shall begin. After this fill in the date the lease shall end. If the lessee decides to employ the purchase option, the extension period must be defined next to be followed by the date the lessee/buyer takes possession.

Step 4 – The “Rent” terms will be defined in the third option. Here, the amount for the rent, the beginning date, and the credit amount toward the purchase must all be entered here.

Step 5 – The “Covenants of Landlord/Seller” will require the minimum amount of insurance the Landlord will be responsible for with respect to the property.

Step 6 – The “Further Encumbrances” will define encumbrances such as mortgages and liens. This information must be entered in the appropriate areas.

Step 7 – The “Maintenance and Repairs” section will need the maximum dollar amount a tenant will be required to pay for improvements or maintenance.

Step 8 – The “Special Provisions” paragraph requires the date the landlord must fulfill his or her requires before the lease becomes null in the paragraph marked “A.” The paragraph labeled “C” requires a time frame for a Wood Destroying Organism Report to be supplied. The maximum amount of money a Landlord is required to pay to correct the resulting damage.

Step 9 – The “Option to Purchase Terms” will require several pieces of information over the next few paragraphs. The “Price and Terms” paragraph will the purchase price be entered. Anything that is included with the property shall be entered in the “Included in the Purchase” paragraph, the Prorate amount the Landlord and Tenant must pay must be listed in their appropriate areas in the “Costs and Prorations” paragraph.

Step 10 – The final section will validate this document with the appropriate signatures. The day, month and year of the agreement must be entered. This will be followed by the signature and printed name of the Landlord and Tenant. Below this is an area where two witnesses may sign and print their names.