Connecticut Lease to Own (Option to Purchase) Agreement Template

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The Connecticut Lease to Own (Option to Purchase) Agreement Template is a contract which shall initially act as a lease and will later (potentially) act as a real estate transaction. This option promises to be beneficial to all the parties who enter it, yet certain things need to be kept in mind. That is, both Landlord and Tenant, are seeking their own goals which may not necessarily entail saving the other party money.

In any property sale, the owner is seeking to make a profit while the buyer seeks to save a significant amount of money. This is a contract which will hold all participants to its terms and conditions…and will only be beneficial if each party has goals conducive to the other and has represented itself accurately. Bearing this in mind, it is highly recommended for each entity (Landlord/Seller and Tenant/Buyer) to obtain consent from the other party for a background and/or credit check. This is standard procedure for a landlord but, tenant/buyers should at least consider this as well. For instance, it would be disastrous if halfway through the agreement, the landlord loses the property due to foreclosure. Such an occurrence could devastate a Tenant/Buyer’s finances and their ability to recover may be substantially crippled after paying a large amount into a lease to buy arrangement. Therefore, it is a good idea to run these checks and possibly consult an attorney before providing a signature.

Much of this contract will be fixed information and disclosures, however, there are some negotiables. These will have to be entered after they have been discussed and agreed to by both parties but before anyone provides a signature. Once this document is signed a Connecticut court of law would treat it as a binding agreement.

How to Write

Step 1The introductory section will need several definitions entered. Enter the following information on the blank lines of the first two paragraphs in this order: date of the agreement, full name of the Seller/Landlord, the full name of the Buyer/Tenant, the county where the property is located, the city where it is located, and the street address of the property being rented.

Step 2The first section is titled “Rent.” Here, some details regarding the tenant’s rent must be entered. Enter these details in the order they are being presented in: the total amount of rent received by the end of the lease (in words then numerically), the monthly payment, the calendar day it will be due each month, and the security deposit amount.

Step 3The “Utilities and Services” section will require a list of the utilities and other amenities the tenant will be responsible for financially. Below this enter the financial obligations of the landlord in this regard.

Step 4Item 4, titled “Option Term,” is the portion of this lease that will outline the tenant’s available choice to become a buyer. The next several sections will expand upon this. In “Option Term” enter the first date the tenant may purchase the property then enter the last date this option will be available to the tenant

Step 5Read the next sections carefully then, in the section titled “Option Consideration” enter the non-refundable fee which may be applied at the time of purchase. Read this paragraph carefully as well since it will describe conditions and terms regarding this fee as it relates to the tenant’s option to buy.

Step 6The “Purchase Price” section presents the details of the purchase amount. Enter the total purchase amount of the property being leased on the second line. Then enter the portion amount of rent which will be applied to the purchase price on the sixth line.

Step 7Read all the paragraphs leading to “Governing Law and Venue.”  In this section (Item 17) enter the name of the county whose laws apply to the property and this lease agreement.

Step 8After thoroughly reading through the entire document, locate the signature lines at the bottom. All participating parties must sign if they are to be a part of this agreement. There will be a space for each individual’s signature and a space for the printed version of that signature. She Seller/Landlord will have room for two individual signatures. The next signature lines are for the buyer/tenant, also with enough space for two individual signatures. Finally, there will be a space for one agent signature and one witness signature.