Kentucky Lease Agreement with Option to Purchase Form

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The Kentucky Lease with Option to Purchase Agreement Template delivers a method of renting a property out to a potential buyer while fulfilling the basic requirements of purchase agreements. This lease will cover the required subjects of a residential agreement in order to solidify each party’s assigned roles in relation to the rented property. Similarly, it will contain the option for a tenant to buy the property itself from the landlord/property owner provided certain conditions have been met. For instance, the buyer/tenant will have to pay a higher rate of rent as well as for the Option to Purchase contained within the contract. This may seem biased however, the landlord will apply this money to the property’s purchase price as a credit in favor of the buyer/tenant when the purchase is being made. As a form of compensation, the seller/landlord will retain the funds should the tenant decide not to purchase.

There will also be a very specific time period defining when the buyer/tenant may choose to buy the property from the landlord. This will add a level of organization to the landlord’s financial planning while defining the tenant as tenant-potential buyer or tenant. Once this time period has elapsed the buyer/tenant may not be able to purchase the property under the same conditions and pricing as defined in the lease at a future date. Simply put, they will have lost the chance to once the purchase period expires. It should be noted, the exact time period may be whatever is agreed upon.

This lease will contain quite a few other conditions and will disclose quite a bit of information. It is highly recommended that both parties take every precaution in making sure the will commit themselves to the responsibilities imposed upon them by this document. As mentioned before, once this agreement is signed, it will be binding for the period it defines itself as effective.

How to Write

Step 1 – The first paragraph will have three blank spaces requiring information. The first is reserved for the month, day, and year of the lease. The last two will require the full name of the Seller/Landlord and the full name of the Buyer/Tenant.

Step 2 – The second paragraph possesses three blank spaces that need information entered. First, enter the county and the city where the property is located. Then enter the street address of the property.

Step 3 – Now that the date, parties, and property has been identified it is time to define terms, conditions, and obligations. Begin in Item 1 where you must enter the yearly rent rate on the first two blank spaces (first written out then entered numerically). Then enter the monthly rent amount on the next two blank lines and, finally, enter the security deposit amount.

Step 4 – The next step will be to define the “Utilities and Services” section where the first set of blank lines are reserved for documenting all utilities and/or services the tenant must provide the rented property for the lifetime of the lease. The second set of blank lines will be where to define the utilities and services the landlord must provide the rental property for the duration of this agreement.

Step 5 – Now that the finances of the lease portion of this document have been defined, it is time to define the purchase information. The first step to this will be Item 4 or “Option Term.” Document the time period the Buyer/Tenant will be allowed to purchase the property by defining the first calendar date and the last calendar date on the blank lines provided.

Step 6 – The next section (“Option Consideration”) will define the amount of money the Buyer/Tenant has paid the Seller/Landlord for the opportunity to purchase the property.

Step 7 – The final section defining the purchase requiring information to be entered is Item 7 (“Purchase Price”). On the first two blank lines enter the total purchase amount due to buying the property. Then on the second two blank lines enter the credit amount the Seller/Landlord will apply to the purchase price.

Step 8 – After reading through the information, terms, and conditions provided in sections eight through sixteen, enter the county this property is located in on the space in Item 17 (“Governing Law and Venue”).

Step 9 – At the end of the agreement, each Seller/Landlord must sign and print his/her name. Then each Buyer/Tenant must sign and print his/her name. Below this will be ample lines for a witness and participating agent to sign and print their names as well.