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Arizona Rent-to-Own Lease Option Agreement

Updated on August 15, 2023

The Arizona Rent-to-Own (Lease Option) agreement is a unique contract that offers tenants a pathway to homeownership. It’s a blend of a traditional lease and a home purchase agreement, allowing tenants to buy the property they’re renting at the end of the lease term. This agreement is particularly beneficial for individuals who need time to improve their financial standing or credit score before purchasing a home.

A Flexible Path to Homeownership

The agreement begins with a standard lease term, during which the tenant pays rent monthly. The amount and due date for these payments are clearly specified, and late fees may apply if the rent isn’t paid on time. One of the standout features of this agreement is the flexibility it offers. At the end of the lease term, the tenant can choose to continue renting month-to-month or vacate the premises.

Additional Terms and Conditions

The agreement also outlines the number of occupants allowed, the furnishings provided, the utilities charged, and the parking arrangements. It includes pet provisions, with a refundable pet deposit required to cover potential damage. Smoking policies are also clearly defined, ensuring all parties know the premises’ smoking rules.

Option to Purchase Addendum

Perhaps the most significant part of the Arizona rent-to-own agreement is the “Option to Purchase Addendum.” This addendum allows the tenant to purchase the property under certain terms and conditions. It’s a golden opportunity for tenants to transition from renting to owning, making this agreement a valuable tool for those aspiring to homeownership.

Overview of this Lease

  • Parties Involved (Page 1): The agreement identifies the lessor (seller) and lessee (buyer), along with their respective addresses.
  • Property Description (Page 1): The agreement provides a detailed description of the property, including its location and any personal property included in the sale.
  • Option Consideration (Page 1): The agreement specifies the amount of money the lessee must pay to the lessor for the option to purchase the property.
  • Purchase Price (Page 1): The agreement outlines the property’s purchase price if the lessee chooses to exercise the option to buy.
  • Term of Lease and Option Period (Page 2): The agreement defines the duration of the lease and the period during which the lessee can exercise the option to purchase.
  • Rent Payments (Page 2): The agreement details the amount of rent, due dates, and penalties for late payments.
  • Maintenance and Repairs (Page 3): The agreement assigns responsibility for maintenance and repairs of the property.
  • Insurance (Page 3): The agreement defines who is responsible for insuring the property and what types of insurance are required.
  • Default (Page 4): The agreement explains what constitutes a default, the consequences of a default, and the remedies available to the lessor.
  • Option to Purchase (Page 5): The agreement details the process the lessee must follow to exercise the option to purchase the property.