In addition to these factors, there are other things that can go wrong with these leasing option contracts. To protect your interests, here are some potential questions that you should keep in mind: the terms of the lease are negotiable, but here too the typical duration is usually 1 to 3 years. Buyers sign up for a forced savings plan when a portion of the rental payment is charged to the purchase price at the end of the lease option agreement. If the buyer is late, the seller does not repay part of the payment of the rental or option and may reserve the right to take legal action for a defined benefit. 3. The length in residential real estate is usually 1 to 3 years. However, it is often careless when the tenant buyer accepts a short period of time (often 2 years or less). The tenant buyer often expects the property to increase in value, particularly if the agreed purchase price is equal to or greater than fair value at the time the option is opened. Perhaps more importantly, often the tenant-buyer has a credit or other financial problems that prevent him from buying immediately.

The option period is used to strengthen the tenant`s credit, accumulate rental credits and position themselves when to purchase. This can often take several years. Once you have found that an option-to-purchase lease is useful for you, ask a real estate lawyer to consult documents that may contain a separate lease and sales contract. Let your lawyer guide you through the agreement and ask for clarification on anything you don`t understand before signing on the points line. Our step-by-step interview process is not only a template, but also creating a rental with a purhase option. Save, sign, print and download the document when you`re done. The lease option and the rental option create owner-tenant relationships. Therefore, if the tenant is late, the owner-seller would evict the tenant buyer or the owner of the tenant option as a normal tenant. One problem that may arise in the context of evicting a tenant from a leasing or leasing option is a Fair Interest Claim.