North Carolina Lease Agreement with Option to Purchase

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The North Carolina Lease Agreement with Option to Purchase is a document drawn between a landlord and tenant to begin by leasing a residential property, with the option to purchase the home at the end of the lease period or any time prior. Generally a purchase price is negotiated at the beginning while the property is being leased and that is the agreed price should the tenant(s) decide to purchase the home later at which point a percentage of the monthly rent will be applied to the price. Until that decision is made, the document acts like a normal lease of 12 or more months. All parties should read the document carefully. If any portion of the form is questionable, you may wish to consult with an attorney to help you better understand your rights as tenant and landlord.

How To Write

Step 1 – Download the document and begin by dating the document in mm/dd/yyyy format

  • Enter the name of the Seller/Landlord
  • Enter the name of the Buyer(s)/Tenant(s)

Step 2 – Property Location –

  • Enter the City where the property is located
  • Enter the County in North Carolina
  • Enter then the street address
  • Both parties must then read the following two paragraphs

Step 3 – Rent – Enter the following:

  • Enter the annual amount that will be paid to the landlord as rent
  • Enter the amount as it breaks down into monthly rental payments
  • Enter the day of the month that the rental payment is due
  • Enter the amount of the security deposit that the tenant will pay to the landlord, that will be returned upon termination of the lease

Step 4 – Utilities and Services –

  • Utilities and services will be the responsibility of the tenant to pay unless the landlord agrees to pay any of the utilities or services as a part of the monthly rent
  • If the landlord intends to be responsible for any of the utilities or services, the landlord must specify the responsibilities, on the lines provided on the document
  • Parties must read and understand the remaining portion of the section

Step 5 – Titled Sections -Read the titled sections – If there is additional information required within any of the sections, the landlord must enter the information in the presence of the tenant

  • Tenant’s Further Agreements to the Lease (read statements A through G)
  • Option Term – The option to purchase period begins on (enter the date in mm/dd/yyyy format – Enter an expiration date at 11:59 PM on your agreed date in mm/dd/yyyy format
  • Notice Required to Exercise Option
  • Option Consideration – Landlord must enter a seller’s fee which is non-refundable, but will be applied to the purchase of the home should the tenant decide to purchase the residence – Read the remainder of this section
  • Purchase Price – Enter the agreed purchase price – If the tenant decides to purchase the residence the landlord agrees to apply a portion of the monthly rent to the purchase of the residence – enter the percentage or amount of the monthly payments that shall be applied in the event the tenant does, in fact, purchase
  • Exclusivity of Option
  • Closing and Settlement
  • Financing Availability
  • Financing Disclaimer
  • Remedies Upon Default
  • Commission
  • Recording of Agreement
  • Acknowledgements
  • Timing
  • Governing Law and Venue – Enter the county in which any conflict will be heard if needed
  • Option to Purchase Controlling
  • Entire Agreement

Step 6 – Signatures – As follows:

  • Seller/Landlord’s Signature(s)
  • Print Seller’s Name(s)
  • AND
  • Buyer(s)/Tenant(s) Signature(s)
  • Print Buyer(s)/Tenant(s) Name(s)
  • AND
  • Agent’s Signature
  • Print Agent’s Name
  • AND
  • Witness’ Signature
  • Print Witness’ Name