Residential Lease Agreement with Option to Purchase

(includes Move-In / Move-Out Checklist and Lead Paint Disclosure)

Instructions & Checklist

Residential Lease Agreement with Option to Purchase

[_] This package contains (1) Instructions and Checklist for Residential Lease Agreement with Option to Purchase; (2) Information about Residential Lease Agreement with Option to Purchase; (3) Residential Lease Agreement with Option to Purchase; (4) Inspection Checklist; (5) Lead Paint Disclosure.

[_] The Landlord must sign and initial the Lease Agreement

[_] The Tenant(s) must sign and initial the Lease Agreement. If there is more than one adult Tenant, all should sign the Lease Agreement.

[_] Generally both the Landlord and the Tenant(s) get an original signed Lease Agreement each. Therefore, if there is one Landlord and 2 Tenants, 3 original leases should be executed (i.e. signed).

[_] The Landlord and the Tenant(s) should conduct a joint inspection before the beginning of the lease. Some states require the Landlord and Tenant to conduct an inspection of the premises to be rented, before physical occupancy by the Tenant or before the lease is signed. Even if a state does not require a joint inspection, it is always a good idea to do one.

[_] If a lease exceeds a certain number of years, some states require that the Lease be recorded. Recording a Lease would generally also require notarization. The parties should also investigate under what circumstances a Lease may need to be recorded.

[_] If the property is built before 1978 property (i.e. pre-1978 property), federal law requires that the Landlord and Tenant (and their Agents) sign the “Disclosure Of Information On Lead-Based Paint and/or Lead-Based Paint Hazards”. Federal law requires the Landlord to keep the signed copy of the “Disclosure Of Information On Lead-Based Paint and/or Lead-Based Paint Hazards” for a minimum of three years as proof of compliance with the rules. A copy of the “Disclosure Of Information On Lead-Based Paint and/or Lead-Based Paint Hazards” form is included in this package.

[_] These forms contain the basic terms and language that should be included in similar agreements. The laws in some states require a seller to make additional written disclosures, including disclosures about the condition of the house, the neighborhood, environmental disclosures and any other known problems. Some cities and other municipalities may also have specific disclosure requirements that need to be included. Check with a real estate agent or attorney in your area to determine what additional disclosures, if any, are required in your state or locality. If not required by law, a Buyer may still request the disclosures and try to make them part of the agreement.

[_] Laws vary from time to time and from state to state. These forms are not intended and are not a substitute for legal advice. These forms should only be a starting point for you and should not be used or signed without consulting an attorney first to make sure it fits your particular situation. An Attorney should be consulted before negotiating any document with another party.

[_] The purchase and use of these forms is subject to the Disclaimers and Terms of Use found at findlegalforms.com

Information

Residential Lease Agreement with option to purchase

Whenever a Landlord (owner of the house or residence) rents a residence to a Tenant and wishes to give the Tenant an option to purchase the rented premises, an agreement should be written. Both Landlord and Tenant should sign it. The Agreement should set forth the terms of the lease and option. Such a document is generally called a Lease or Rental Agreement with an “option to purchase”. Such an option would allow the Tenant the purchase the property at a predetermined price within a predetermined time frame. Many states will consider oral agreements regarding the rental of real property to be invalid and require a written agreement.

Most states also have different laws relating to residential leases, mainly designed to protect tenants from dishonest landlords.

Some states also require that the landlord and tenant conduct an inspection of the premises to be rented, before physical occupancy by the tenant or before the lease is signed. A joint inspection form is useful to document the inspection and can help avoid problems at the end of the lease. Even if a state does not require a joint inspection, it is always a good idea to fill one out. A joint inspection can also help the Landlord justify any security deposit deductions, if warranted. An “Inspection Checklist” is provided in this forms package.

Different states have different laws regarding the amount and the handling of security deposits. Some states require that security deposit be held in an interest bearing account and that the interest be given to the tenant at the termination of the lease. There are also different time limits in each state as to how quickly Landlords need to give back security deposits to Tenants. Landlords should be familiar with these laws.

If more than one Tenant signs the Lease, all Tenants may be responsible for all the obligations under the Lease if the other Tenant(s) don’t perform their obligations.

Housing built before 1978 may contain lead-based paint. Lead from paint, paint chips, and dust can pose health hazards if not managed properly. Lead exposure is especially harmful to young children and pregnant women. Before renting pre-1978 housing, Landlords must disclose the presence of known lead-based paint and/or lead-based paint hazards in the dwelling. Tenants must also receive a federally approved pamphlet on lead poisoning prevention. An Environmental Protection Agency's pamphlet entitled "Protect Your Family From Lead In Your Home." can be found at: http://www.epa.gov/opptintr/lead/pyfcameraeng.pdf and at http://www.hud.gov/offices/lead/outreach/leapame.pdf and. Additional information can also be found on the EPA site at: http://www.epa.gov