Minnesota Lease to Own (Option to Purchase) Agreement Form

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The Minnesota Lease Lease to Own (Option to Purchase) Agreement Form provides documentation for a rental arrangement that may evolve to a property purchase. This contract will operate within the confines of the Minnesota Rental Purchase Act providing the necessary disclosures and conditions that accompany a rental-purchase. There will also be negotiable elements which are left to the discretion of the Seller/Landlord and the Buyer/Tenant. While both parties must remain strictly adherent to the laws of their county, state, and federal governments in terms of lease negotiables or property purchase regulations, there will be room for quite a bit of flexibility. Thus when sitting down to discuss the terms of both the lease portion of this document and the purchase option, both parties should be very honest about their capabilities and commitments.

Once this contract is signed it shall be legally binding. That is if either side feels the other has violated this agreement he/she may have a court enforce it. This is a fairly popular arrangement in some areas but both parties should keep in mind that while they may avoid extraneous paperwork or staunch requirements of various entities normally associated with a property purchase both have their own interests in mind and must find common ground before finalizing this arrangement.

How to Write

Step 1 – In the first paragraph enter the date of the lease on the first blank line. Then define the role of each signature party by entering the name of the Seller/Landlord and Buyer/Tenant on the second and third blank lines, respectively.

Step 2 – In the second paragraph, there will be three blank spaces. In this order, enter the County, City, and Address of the property.

Step 3 – In Item 1, write out the yearly rental rate and enter it numerically in the first two blank spaces. Then in the next two blank spaces, write out the monthly rental amount and enter it numerically. Finally, in the last two blank spaces, write out the security deposit amount and enter it numerically.

Step 4 – In Item 2, use the blank lines in the first paragraph to list the utilities/services the Tenant shall be responsible to maintain. Then in the second paragraph, provide a list of the utilities/services the Landlord shall maintain during this lease.

Step 5 – In Item 4, define the start date and end date of the time period where a Buyer/Tenant may initial the option to purchase the property.

Step 6 – In Item 6, write out the fee the Buyer/Tenant must pay for the opportunity to purchase the property being leased. Then enter it numerically.

Step 7 – In Item 7, write out purchase price on the first blank line then enter it numerically on the second blank line. Next, write the portion amount (taken from rent payments) that shall be applied as a credit towards the purchase price in the third blank line then enter this amount numerically in the fourth blank line.

Step 8 – In Item 17, name the county this property resides in on the blank line provided.

Step 9 – In Item 20, the Seller/Landlord must sign his or her name then print it on the first two lines (each participating party must sign this agreement, there will be another two lines for a second landlord). Next will be an area titled “Buyer/Tenant’s Signature,” this will be where a Buyer/Tenant must sign and print his/her name. If an agent is involved there will be an area for that agent’s signature and printed name. Finally, the witness present must sign and print his/her name next to the words “Witness’s Signature.”