Delaware Lease to Own (Purchase Option) Agreement Template

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The Delaware Lease to Own (Offer to Purchase) Agreement Template is a multi-purpose document Delaware landlords may use should they wish to eventually sell a property they are leasing. There are a lot of pros to selling a property in this manner for both parties. For example, the tenant will have an opportunity to judge for themselves if they would like a particular property and neighborhood while landlords usually stand to make a reasonable profit by collecting rent, in addition, the purchase amount of the property.

This document is structured to address the most common issues that both a lease and a real estate purchase must place in writing. The goal is to have a lease agreement which will define each party’s roles and solidifying the arrangement for renting a property while also giving the landlord and tenant the opportunity to effect a transfer of property ownership. Both of these will require set terms and amounts. Additionally, there will be several conditions and disclosures which must be present. Finally, there will areas requiring input for negotiables specific to these parties and their needs.

It should be noted that once this agreement is signed it will compel all the parties involved to follow the Delaware Landlord-Tenant Code and the Federal Housing & Habitability act for the duration of the lease portion.

How to Write

Step 1 – Enter the date of the lease, the name of the seller/landlord, and the name of the buyer/tenant entering the agreement.

Step 2 – The paragraph beginning with the word “Whereas” requires the county, state, and street address where the property is located. This should be entered in the order it has been named in these instructions.

Step 3 – In the paragraph labeled “Rent,” enter the rent yearly rent amount to be paid while the contract is in effect. Next enter the monthly amount which must be paid, the calendar day of the month the rent will be due and the security deposit amount to be given to the landlord in case of damages.

Step 4 – The “Utilities and Services” paragraph requires that the tenant and landlord both define what utilities and services they are financially responsible for maintaining. The first blank space will be for the tenant’s responsibilities and the second blank spaces are for the landlord to define the utilities and services for the property he/she will be responsible for.

Step 5 – The “Option Term” will require that two dates be entered. The first calendar day that a tenant will be allowed to transition to property buyer should he or she wish to should be entered first. The second date to be entered must be the last calendar date a tenant is eligible to take advantage of this option.

Step 6 – The “Option Consideration” is a non-refundable purchase fee which will be applied to the purchase at the time of closing. Enter this amount in the space provided.

Step 7 – Item 20, will require the signature verification from all parties involved in the lease to solidify the agreement. First, the tenant must give their initials as confirmation they have received a copy of Delaware Title 25 (Residential Landlord-Tenant Code). Next, the seller/landlord must provide his or her signature and print his or her name. Below this, the Buyer/Tenant must sign and print his or her name. There will be enough space for two landlords and two tenants here. If there is an agent and witness involved with this lease they two must sign and print their names.