The Hawaii residential lease to purchase agreement is a legal document that will allow tenant(s) to enter into an agreement to lease a landlord’s property, with an option to purchase the property, after an agreed amount of time.
Initially, the tenant will enter into the agreement to lease the premises, with a stated date and expiration date of the offer to sell the property to, by the landlord to the tenant(s). If the tenant(s) would like to exercise the purchase option, then the process would begin by the tenant, delivering written notice to the landlord and arranging to pay a non-refundable fee or deposit.
Should the tenant(s) decide against the purchase of the property, then arrangements must be made between the parties, if the landlord would choose to go forward with the sale of the property to other parties. The fee would not be refunded. This document will set forth a complete agreement between the parties. Once the document has been completed and reviewed, one witness must be present and provide their signature in witness of the signatures of all parties.
How to Write
Step 1 – The Parties –
- Enter the date in which the agreement has commenced (mm/dd/yyyy)
- Submit the seller’s name
- Enter the name of the Buyer/Tenant
Step 2 – The Property –
- Provide the county where the property is situated
- Enter the name of the city where the property is located
- Enter the street address of the property
Step 3 – Rent –
- Provide the dollar amount of the annual rent amount
- Enter the monthly installment amount
- Provide the day of each month that the rent is due
- Submit the amount of the security deposit (that shall be returned upon termination of the lease and once the property is vacated
Step 4 – Utilities and Services –
- The landlord must enter a brief description of the utilities that the tenant(s) will be responsible to pay
- The landlord must enter the utility expenses that the landlord is willing to furnish (if none, enter “N/A”)
- Read the remaining portion of this section
Step 5 – Titled Sections – The parties must both read and agree to all of the following Titled Sections. Enter any other required information contained within the varying sections, as follows:
Tenant Further Agrees –
- The tenant(s) must review and agree to this section and subsections a through g
Option Term –
- The landlord must provide the purchase option commencement in mm/dd/yyyy format
- Enter the expiration date in mm/dd/yyyy format
Notice Required to Exercise Option –
- Read the information at the beginning of this section
Option Consideration –
- Submit the amount of the non-refundable fee (a receipt will be provided by the landlord in acknowledgment)
Purchase Price –
- The landlord must enter the price for purchase that is agreed upon by the parties
- The landlord must submit the amount that they are willing to credit toward the purchase of the property, upon conveyance (the sale and transfer of the deed) from each monthly rental payment made to the landlord in a timely fashion
- AND
- Exclusivity of Option
- Closing and Settlement
- Financing Availability – (seller/landlord will not guarantee financing with regard to the property)c
- Financing Disclaimer
- Remedies Upon Default
- Commission
- Recording of Agreement
- Acknowledgments
- Timing
- Governing Law and Venue
- Option to Purchase Controlling
- Entire Agreement
Step 6 – Signatures –
- Once the document has been completed by the landlord and the Tenant(s) have had the opportunity to carefully review all terms and conditions, all parties must apply signatures in agreement. Provide the following:
- The Seller/Landlord’s Signature(s)
- The Seller’s printed name(s)
- AND
- The Buyer/Tenant’s Signature(s)
- Buyer/Tenant’s printed name(s)
- AND
- Agent’s Signature
- Agent’s printed name
- AND
- The signature of one (1) witness
- Witness’ printed name
