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

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The Colorado Lease with Option to Purchase (Lease to Own) Agreement Template is a contract agreement between the owner of a property and a tenant where the tenant will have the opportunity to purchase the property being rented while the lease is still in effect. A written and signed lease to own will give a definitive sense of security to each party since it is enforceable in a court of law. Therefore, the Landlord/Seller and Tenant/Buyer must adhere to the terms of the contract they are signing in order to live up to the obligations each has to the other. By providing a signature several other facts are verified as well. For instance the Landlord/Seller must own and be able to rent/sell the property concerned and the Tenant/Buyer must have the resources and responsible attitude necessary to at least maintain the property in question.

It is important to note the strict requirements this document will place on each signing party. Since this is a signed contract, it will be very difficult (if not impossible) to alter or terminate prematurely especially if one party may suffer greatly as a result. Therefore both the Landlord/Seller and the Tenant/Buyer are encouraged to perform due diligence by running a credit/background check on each other and having an attorney review the document before signing. These precautions may prove to be of great value as an ounce of prevention or a measure of assurance.

How to Write

Step 1 – Enter the Date of the contract agreement, the name of the Seller/Landlord and the full name of the Buyer/Tenant in the appropriate spaces provided within the first paragraph.

Step 2 – Enter the County and State where the property being rented is located. Then enter the street address in the spaces provided for the second paragraph.

Step 3 – In the “Rent” section, list the total amount of rent which will be received in one year, then enter the monthly payment, and the calendar day of the month it will be due on (in their respective spaces). The last two spaces of this paragraph are reserved for the Security Deposit amount. Enter this amount both as a word and as a dollar value.

Step 4 – The “Utilities and Services” section will define both what the Tenant shall pay for and what the Landlord shall pay for in respect to the utilities necessary for maintaining a residence. First enter the Tenant responsibilities. Then in the next paragraph, list the Landlord responsibilities.

Step 5 – The next section, which will require information, is the “Option Term” section. On the first line, enter the date the Option to Purchase first becomes available to the Tenant. On the second line, enter the termination date for this option. That is when it is no longer available.

Step 6 – In “Option Consideration,” enter the amount of money the Tenant/Buyer must give the Landlord/Seller to reserve the option to purchase the property.

Step 7 – The “Purchase Price” section requires two pieces of information. The first will be the full purchase price of the property. Later in this paragraph, enter the amount derived from the monthly rent that shall be credited at the time of purchase.

Step 8 – The final section will be the “Entire Agreement; Modification” section where the Seller/Landlord, Buyer/Tenant, Agent, and Witness must all provide their signatures and print their name below their signature.