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

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The Iowa Lease with Option to Purchase (Lease to Own) Agreement Template provides the opportunity for a landlord to sell a leased property to a tenant while the lease is in effect. This could save time and money for all parties directly involved with the rented property named in the lease.

The opportunity for the tenant to purchase the property is presented during the lifetime of the lease for a very specific period of time. By defining the time period, both parties may enjoy a certain level of protection. Tenants will enjoy a release from a high-pressure situation that may be caused by a landlord desperate to sell near the termination of the lease while landlords have a defined time period so they are not counting on a sale that may not occur.

The overall purpose of this agreement is to give both parties a balance between a lease agreement and a sales contract. Such a balance is achieved by the terms and conditions that have been named within this agreement. That is, the lease portion will seek to define the identity of the landlord and tenant so that they may be named as such. Then each one will be assigned responsibilities to the other, the property, and the contract itself. The option to purchase will also seek to define the role of buyer and seller. Once done each of these parties will be assigned obligations appropriate to their respective roles. In achieving both these goals this template is able to solve most of the general complications arising from such agreements nicely.

How to Write

Step 1 – In the first paragraph, on the top of the page, enter the date of the lease, the seller/landlords full name, and the buyer/tenant’s full name.

Step 2 – There will be three available spaces in the second paragraph needing information. Enter the county, city, and street address of the property this lease concerns itself with.

Step 3 – The first item, “Rent,” enter the full annual rent required by the lease (Note there will be a line to write it out and a line to enter the dollar amount). Then, enter the monthly rent, the calendar date where the rent will be due, and the security deposit amount.

Step 4 – “Utilities and Services” requires a list of the utilities that a lessee is responsible to pay for during the lease. Below this will be an opportunity to lest the utilities and services that a lessor will be required to pay for or supply to the tenant for the duration of the lease.

Step 5 – The “Option Term” section defines the time period when the lessee may choose to buy the property. Enter the start date of this time period and the termination date of this opportunity. This will be the only time period where the lease will allow for the purchase of this property under the terms of this lease.

Step 6 – Now it will be time to define the “Option Consideration.” Here, enter the non-refundable fee the buyer/tenant has paid the seller/landlord to have the option to purchase the property on the blank line provided. (Note this fee will be applied to the purchase price as a credit should the buyer/tenant decide to purchase).

Step 7 – The “Purchase Price” shall require the amount of money a buyer/tenant must pay the seller/landlord in order to acquire the property on the first two blank lines. Then on the last two blank lines, enter the amount of money the seller/landlord shall apply as a credit (at the time of purchase) from each monthly rent payment to the purchase price.

Step 8 – Enter the county who retains jurisdiction over this property and agreement in the “Governing Law and Venue.”

Step 9 – At the bottom of the page, each individual participating in this agreement must sign and print his/her name (Seller/Landlord, Buyer/Tenant, Agent, Witness).