The Pennsylvania Residential Lease With Option to Purchase Agreement is a legal document, a contract, that is prepared between a lessor and lessee to provide the lessee an option to purchase the leased property at some time during the lease period. The document will provide a window in which the option to purchase will be open and the percentage of the rental payments that will be applied toward down payment of the property.
This lease is structured much as a standard lease agreement that most are familiar with, inasmuch as it will detail all responsibilities regarding the lessee as well as the responsibilities of the lessor. If the language in the document is unclear to the lessee, they may choose to consult with a knowledgeable real estate attorney to ensure that they may be confident that they understand the document they are signing.
How To Write
Step 1 – Download the document – Lessor and Lessee must begin by entering the following:
- Date the document in mm/dd/yyyy format
- Enter the Seller/Lessor’s full legal name
- Enter the Buyer/Lessee’s full legal name
- Enter the county where the premises is situated
- Enter the name of the city in Pennsylvania where the property is located
- Enter the complete street address
- Buyer/Lessor must carefully review next two paragraphs
Step 2 – Parties Agreement to lease and Option to Purchase –
- Enter the full annual amount of the rent, collectively, that will be paid to the lessor by the lessee
- Enter the monthly payment amount
- Provide the date the rent will be due each month
- Provide the amount of the Security Deposit to be held in escrow by the Lessor
Step 3 – Responsibilities for Each Party –
- Specify the utilities and services that the lessee will be responsible for, in the field provided
- Specify the utilities and/or services that the lessor will be responsible
- The Lessee must read the remaining paragraph (A through G)
Step 4 – Option Term – Enter the following:
- Enter the date when the option window to purchase will commence in mm/dd/yyyy format
- Also provide the date of expiration to exercise this option at 11:59 PM on mm/dd/yyyy
- Lessee must read the paragraph outlining the rules surrounding the purchase option
- Enter the amount of the non-refundable amount tenant will provide to the seller/lessor (this amount may be recoverable if the option to purchase is exercised. Lessee should carefully review the remainder of this paragraph
- Enter the agreed purchase price
- Provide the full amount due at closing
Step 5 – Titled Sections – The lessee(s) must read, understand and agree to the following prior to provision of signature(s)
- Exlcusivity 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 Pennsylvania where any disputes would be heard)
- Option to Purchase Controlling
- Entire Agreement
Step 6 – Signatures – Once the lessee(s) have read and reviewed the information in this document enter the following:
Seller(s)/Lessor(s) –
- Seller/Lessor’s Signature
- Print the Seller/Lessor’s name
- AND
Buyer/Lessee(s) –
- Buyer(s)/Lessee(s) Signatures
- Printed Buyer(s)/Lessee(s) names
Agent –
- Agent’s Signature
- Print Agent’s Name
Witness or Notary Public –
- Witness’s Signature
- Print Witness’ name
