Lease Option Agreement

Landlord/Seller: [Name] · Tenant/Buyer: [Name] Property: [Address] · Date: [Date]

1. Lease Term

Tenant leases the property for a term of [Duration], from [Start Date] to [End Date], at a monthly rent of [Amount].

2. Option to Purchase

Landlord grants Tenant the exclusive option to purchase the property at any time during the lease term, at a purchase price of [Amount].

3. Option Fee

Tenant pays a non-refundable option fee of [Amount] upon signing, which [is / is not] credited toward the purchase price if the option is exercised.

4. Rent Credit (if applicable)

[State whether a portion of each month's rent, e.g. $[Amount], is credited toward the purchase price if the option is exercised.]

5. Exercising the Option

Tenant must notify Landlord in writing of intent to exercise the option no later than [Date/deadline], after which the parties will proceed to a standard purchase and sale closing within [Timeframe].

6. If the Option Is Not Exercised

If Tenant does not exercise the option by the deadline, the option expires, the option fee (and any rent credit) is forfeited, and the lease [continues on a month-to-month basis / terminates].

7. Maintenance

[State which party is responsible for maintenance and repairs during the lease term — often shifted more toward the tenant in a lease-option than a standard lease.]

Landlord/Seller: ______________________ Date: ____________ Tenant/Buyer: ______________________ Date: ____________

*This document is provided for informational and educational purposes only and does not constitute legal advice. Some states regulate lease-option agreements similarly to seller financing, with specific required disclosures — have this reviewed by a real estate attorney, since getting the option fee and rent-credit terms wrong can lead to real disputes if the tenant later decides to exercise (or not exercise) the option.*