New York Residential Lease With Option to Purchase Agreement

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The New York Residential Lease With Option to Purchase Agreement is a legal document that is prepared between a landlord and tenant, providing the tenant the option to purchase the property during the lease period and will advise how long the option to purchase will be open and generally what percentage of the rental payments will be applied toward down payment of the residence. This agreement is structured much like a standard lease agreement inasmuch as it will detail all responsibilities with regard to the tenant as well as the responsibilities with regard to the landlord. If at any point any portion of the document is unclear to the tenant, they may wish to consult with a knowledgeable real estate attorney to ensure that they are confident that they understand the document they are signing.

How To Write

Step 1 – Download the document – Landlord and Tenant- Begin by entering the following:

  • Date the document is being completed, in mm/dd/yyyy format
  • Enter the Seller/Landlord’s full legal name
  • Enter the Buyer/Tenant’s full legal name
  • Enter the county where the property is located
  • Enter the name of the city in New York where the property is situated
  • Enter the complete street address
  • Tenant must carefully review the next two paragraphs

Step 2 – Parties Agreement and Option to Rent to Purchase –

  • Enter the full annual amount of the rent that will be paid to the landlord by the tenant
  • Enter the monthly payment amount
  • Enter the date the rent will be due each month
  • Enter the Security Deposit amount to be held in escrow by the Landlord

Step 3 – Respective Responsibilities for Each Party –

  • Enter the utilities and services that the tenant will be responsible for, in the field provided
  • Enter the utilities and/or services for which the landlord agrees to be responsible
  • The tenant must read the remaining paragraph and the tenant’s further numbered agreements (A through G)

Step 4 – Option Term – Enter the following:

  • Enter the date in which the option to purchase which will commence in mm/dd/yyyy format
  • Enter the date of expiration to exercise this option at 11:59 PM on mm/dd/yyyy
  • Tenant must read the paragraph outlining the rules in which the tenant will have the ability to exercise the rent to purchase option
  • Enter the amount of the non-refundable amount tenant will provide to the seller/landlord (this amount will only be recoverable if the option to purchase is exercise along with other rules outlined in the remainder of this paragraph. Tenant should carefully review the remainder of this paragraph
  • Enter the purchase price available to the tenant as long as all of the lease option rules are adhered to
  • Enter the full amount at closing

Step 5 – Titled Sections – The tenant(s) must read, understand and agree to the following, prior to submission of signature(s)

  • 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 New York where any disputes will be worked through)
  • Option to Purchase Controlling
  • Entire Agreement

Step 6 – Signatures – Once the tenant(s) have read and reviewed the information in this document with or without an attorney, provide the following:

Seller(s)/Landlord(s) – 

  • Seller/Landlord’s Signature
  • Print the Seller/Landlord’s name
  • AND

Buyer/Tenant(s) – 

  • Buyer(s)/Tenant(s) Signatures
  • Printed Buyer(s)/Tenant(s) names

Agent –

  • Agent’s Signature
  • Print Agent’s Name

Witness or Notary Public – 

  • Witness’s Signature
  • Print Witness’ name