Massachusetts Lease to Own (Option to Purchase) Agreement Form

Create a high quality document online now!

The Massachusetts Lease to Own (Option to Purchase) Agreement Form gives landlords and tenants and alternative to the standard property purchase requirements and processes in today’s market. Seller/Landlords operating in the negative will benefit from the additional income of a higher than market value rent and option fees while Buyer/Tenants who may not necessarily qualify for a loan or are able to afford the standard 15-20% down payment are able to build equity in a residence in a more affordable manner. Obviously, one does not need to be in dire straits or have bad credit to qualify to enter this lease.

This contract will be divided into several sections. Each individual section will contain information pertinent to the lease agreement or the option to purchase. Note there will be several differences between the Landlord/Tenant lease as a result of the option to purchase the property. For instance, as mentioned before there will be a slightly higher rent for the property while it is in the rental phase. This is a consideration to the purchase and insurance for the landlord. If the Tenant decides to become a buyer, a percentage (defined on this lease) will be applied to the purchase price. If the Tenant decides not to purchase then the landlord will receive some compensation, in addition to the option fee, for allowing the consideration. This lease contract will provide a balanced arrangement while remaining in compliance with Massachusetts laws and regulations.

How to Write

Step 1 – The first paragraph will have three blank spaces. In the first blank space, enter the date of the lease. Then enter the name of the Seller/Landlord and the name of the Buyer/Tenant in the last two spaces, in that order.

Step 2 – The first item is labeled “Rent.” Here, write in the yearly rate of rent on the first blank line. Then enter this amount as a number in the parenthesis. The next two blank lines will need the monthly rent amount entered. The last two blank lines will require the security deposit amount to be entered.

Step 3 – The “Utilities and Services” item contains two sets of blank lines. In the first set, enter the utilities/services the Tenant shall pay for. Then in the second set of blank lines, enter the utilities/services the Landlord shall pay for or provide.

Step 4 – The next item requiring attention is labeled “Option Term.” Here, enter the calendar date the tenant will first be allowed to purchase the property on the first line. On the second line enter the last calendar date the Tenant will be allowed to purchase the property.

Step 5 – Item 6 or “Option Consideration” will require the amount of money the Buyer/Tenant pays the Seller/Landlord for the option to purchase the property in this lease.

Step 6 – In the “Purchase Price” item, enter the total amount of money the property will cost to buy in the first two blank spaces provided. Then on the next two blank spaces, enter the amount of money the Seller/Landlord should the lease be successful and the Buyer Tenant wishes to buy the property.

Step 7 – Locate the seventeenth item, known as “Governing Law and Venue,” then enter the municipality that shall hold jurisdiction over both the leasing relationship and the property purchase.

Step 8 – The last item, “Entire Agreement,” shall be the one that provides the binding effect of this contract on the Seller/Landlord of the property and the Buyer/Tenant of the property. In this section, each Seller/Landlord participating in this agreement must sign and print his/her name. Below this will Be a space for the Buyer/Tenant to sign and print his or her name. Any Agents and Witnesses involved should also sign and print their names below this.