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Georgia Residential Lease to Own (Option to Purchase) Agreement Template

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The Georgia Lease with Option to Purchase (Lease to Own) Template acts to solidify two separate agreements involving a property transaction, as well as a rental agreement, between landlord and tenant as one document. This contract may be very useful for a variety of reasons. For one, when done correctly a lease to own agreement may save both the landlord and the tenant a reasonable amount of time and money provided that both have fully read and understood the contract they are signing. After all, once this is signed by all the relevant parties, it will hold each one to the validity of their roles as well as the conditions listed within the document itself.

The key difference between such an agreement and a simple purchase agreement, is that it will give the tenant an opportunity to live on the property they are purchasing while assuring the landlord they will receive at least some money for the consideration of providing the option to buy the property to the tenant. Obviously, since this is only an option and a tenant/buyer may reserve the right to deny the option a landlord would want some assurance of the tenant/buyer’s intention and ability to keep the property in sellable condition. A lease agreement fulfills this concern nicely. Both parties, thus, may benefit from participating in such a contract.

How to Write

Step 1 – In the first paragraph of the agreement enter the date, month, and year of the agreement in the first three blank lines.

Step 2 – Inter the full name of the lessor (landlord/seller) and the full name of the lessee (tenant/buyer) on the fourth and fifth blank lines respectively.

Step 3 – Next enter the name of the city, the name of the county, and the state where the property is located.

Step 4 – Enter a description of the property being leased (currently) and the street address of the property.

Step 5 – In the “Option to Purchase” section, locate item “a,” then enter the total dollar amount required to purchase the property. On the lines immediately following the option price, enter the requirements placed upon the tenant to successfully purchase the property.

Step 6 – Locate the item labeled “b” in “Option to Purchase.”  Here, enter the date this option will expire. That is, the last date the tenant will be allowed to purchase the property.

Step 7 – The item labeled as “c” in “Option to Purchase,” enter the dollar amount the tenant has paid the landlord to be given the option to purchase the property while leasing the property. It should be noted that if the tenant exercises the option to purchase, this amount shall be applied as a credit to the purchase price whereas, if the tenant decides not to exercise this option then this amount shall be forfeit to the landlord.

Step 8 – On the blank space in “Personal Property” paragraph, enter any property on the premises which shall be recognized as part of the purchase.

Step 9 – In “Term” enter the start date of the lease in the first blank line then enter the number of years and months the lease shall exist for.

Step 10 – In “Rent,” enter the monthly amount which the lessee must pay the landlord. Then, enter where this amount must be submitted. This may either be the landlord’s address or the address of an agent who is authorized by the landlord to accept this payment.

Step 11 – In “Security/Damage Deposit,” enter the amount of money which the landlord shall require as a deposit to hold (and use to repair if a tenant damages a property).

Step 12 – Enter the paragraph number where the property is defined in the “Bill of Sale” line.

Step 13 – Define the number of days the purchase must be completed after the option to purchase has been exercised.

Step 14 – The final section “Prorations” shall require the signature of the lessee/buyer and the date this signature was provided. There shall be enough space for two residents to provide this. Below this will be the space where the property owner must sign this contract then provide the date of his/her signature. It should be noted that an agent authorized by the property owner may sign this on behalf of the owner.