Rent-to-Own Lease Agreement Template

This Rent-to-Own Agreement ("Agreement") is made and entered into on [Date], by and between:

1. Description of Property: The Owner agrees to rent to the Renter the following property (the "Property"): [Detailed description of the property, including address, size, condition, and any other relevant details]

2. Rental Terms:

• Start Date:
• End Date:
• Rental Period: The rental period shall begin on the Start Date and end on the End Date, unless terminated earlier in accordance with the terms of this Agreement.

3. Responsibilities:

• Repair and Maintenance: The Renter is responsible for routine maintenance and minor repairs during the rental period. The Owner is responsible for major repairs and structural issues.
• Utilities and Other Costs: The Renter is responsible for all utilities and other costs associated with the Property, including but not limited to electricity, water, gas, and waste disposal.

4. Fee and Payment Schedule:

• Monthly Rent: The Renter agrees to pay a monthly rent of [Amount] to the Owner.
• Deposit/Escrow: The Renter agrees to pay a deposit of [Amount], which will be held in escrow and applied to the purchase price or returned to the Renter at the end of the rental period, subject to any deductions for damages or unpaid rent.
• Payment Schedule: Rent payments are due on the [specify day, e.g., 1st] day of each month.
• Late Fees: A late fee of [Amount] will be charged for any payment not received within [specify number of days, e.g., 5 days] of the due date.

5. Option/Obligation to Purchase:

• Option to Purchase: This Agreement [does/does not] include an option to purchase the Property at the end of the rental term. If the option is included, the Renter has the right, but not the obligation, to purchase the Property for [Purchase Price] at the end of the rental period.
• Binding Agreement to Purchase: This Agreement [does/does not] include a binding agreement to purchase the Property at the end of the rental term. If the binding agreement is included, the Renter agrees to purchase the Property for [Purchase Price] at the end of the rental period.
• Terms of Option/Obligation: [Specify any additional terms related to the option or obligation to purchase, such as notification requirements, financing contingencies, etc.]

6. Insurance and Safety Requirements:

• Owner's Insurance: The Owner shall maintain insurance on the Property, including coverage for fire, theft, and liability.
• Renter's Insurance: The Renter shall maintain renter’s insurance, including coverage for personal property and liability.
• Safety Requirements: The Renter agrees to comply with all safety regulations and requirements, including but not limited to maintaining smoke detectors and fire extinguishers.

7. Limitation of Liability to Third Parties: The Owner and Renter agree to indemnify and hold each other harmless from any claims, liabilities, damages, or expenses arising from third-party actions related to the Property, except in cases of gross negligence or willful misconduct.

8. Amendments: This Agreement may be amended only by a written document signed by both parties. Any changes must be discussed and agreed upon by both parties before they take effect.

9. Termination:

• By Either Party: Either party may terminate this Agreement with [specify notice period, e.g., 30 days] written notice.
• For Cause: Either party may terminate this Agreement immediately if the other party breaches any material provision of this Agreement and fails to cure such breach within [specify period, e.g., 10 days] after receiving written notice of the breach.

10. Dispute Resolution: Any disputes arising under this Agreement shall be resolved through the following procedures:

• Negotiation: The parties will first attempt to resolve the dispute through informal negotiation.
• Mediation: If the dispute cannot be resolved through negotiation, the parties agree to attempt to resolve the dispute through mediation.
• Arbitration: If the dispute is not resolved through mediation, it will be submitted to binding arbitration under the rules of the [specify arbitration association, e.g., American Arbitration Association].
• Legal Remedies: The parties agree that the arbitrator's decision will be final and binding and may be entered as a judgment in any court of competent jurisdiction.

11. Signatures: By signing below, the parties agree to the terms and conditions outlined in this Rent-to-Own Agreement.

This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, representations, or agreements, whether written or oral. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.