Idaho Lease to Own (Option to Purchase) Agreement Template

Create a high quality document online now!

The Idaho Lease to Own Agreement Template acts as both a lease contract and purchase agreement. That is, it will start as a property rental agreement. The property owner or an authorized agent will be treated as a landlord in the eyes of the government entity and will need to meet the requirements of such a role. The leaseholder will be considered a tenant and will also need to meet all the requirements of a lease-holding tenant. Obviously, both parties will have to adhere to the agreement they have signed for this situation. There will be a few differences here and there between this type of agreement and a lease. For instance, it is customary for the rent to be higher in this case since part of the rent money will be applied as a credit to the purchase should the tenant wish to become a buyer.

The lease-holding tenant will have the option to buy the property only during a certain period of time. This will protect the landlord who wants to sell the property from wasting time with an erroneous expectation of selling it to the tenant. Should the tenant decide to utilize the option to buy, that party will be known as a buyer and the landlord or property owner will be known as a seller. Here, two both will be expected to meet the requirements of their city, state, and federal laws regarding property purchase agreements. The tenant will only have a limited amount of time to engage this option (this time period will be defined in the lease). Regardless of whether a tenant purchases the property or not it is important to note that at all times while this lease is in effect both parties must assume the obligations of a landlord and tenant according to the government and the lease itself.

How to Write

Step 1 – Fill in the blanks of the first paragraph. This will define the parties and the lease date. Enter the current date, the full name of the seller/landlord and the full name of the buyer/tenant. The next paragraph will require the county, state, and street address of the property this lease relates to entered in the spaces provided.

Step 2 – The first item will be “1. Rent.” Here, enter the full amount of rent that will be received during the lifetime of the contract. Then enter the monthly rent amount. Finally, enter the amount the landlord must hold for the security deposit.

Step 3 – The second item is “Utilities and Services.” In the first blank spaces enter the utilities the tenant must furnish and pay for. Below this will be a set of blank lines regarding the utilities and/or services the landlord shall pay for.

Step 4 – The next item that will require information is item “4. Option Term.”  This will define when the tenant may opt to become a buyer. On the first line, enter the first date a tenant may begin the property purchase process. On the second line enter the last date this option may be employed by the tenant.

Step 5 – It is standard for an option to own agreement to give the landlord some form protection from the loss of a purchase should the tenant decide not to purchase and will be defined in “6. Option Consideration.” This shall be in the form of a non-refundable dollar amount. This amount will be applied as a credit at the time of purchase, however, will be kept by the landlord if the tenant does not purchase the property. Enter this amount in the blank lines provided.

Step 6 – The seventh item, “Purchase Price.” Here, enter the full dollar amount necessary to purchase the property on the first two blank lines (first written out then numerically). The next set of blank spaces shall disclose the credit from each monthly rent payment that will be credited in the tenant/buyer’s favor at the time of purchase.

Step 7 – The final item requiring information shall be item 17. Here, enter the county whose laws this lease and the signature parties must follow at all times.

Step 8 – Item 19 will provide the binding effect of this contract to the concerned parties. Each must sign and print his/her name. There will be a space for two seller/landlords, two buyer/tenants, one agent, and one witness to do so.