This Residential Lease Agreement with Option to Purchase is used when a landlord gives a rental tenant the option to purchase the rental property. This lease with option allows the tenant to rent the property and exercise an option to purchase the property at a predetermined price within a certain time frame (usually the beginning and ending dates of the lease). It also sets forth the amount of monthly rental, any security deposit necessary and a provision detailing the option to purchase. In addition, this form also includes a Premises Inspection Sheet. It is imperative that this type of option agreement be set forth in writing and not by oral agreement. A written Residential Lease Agreement with Option to Purchase will prove invaluable in the event there are disagreements or misunderstandings between the parties regarding any provisions of the lease or option.

This Residential Lease Agreement with Option to Purchase contains the following provisions:

• Leased Premises and Term of Lease: Sets out the address and description of the property and the dates of the lease term;
• Lease Payments and Late Fees: States the amount of the monthly rent, the due date and any penalties for late payments or insufficient funds;
• Security Deposit: Sets forth the amount of the security deposit, and conditions for the return of this deposit;
• Option to Purchase: Sets forth that landlord grants tenant the right to purchase the property for a set price and that this option will expire at the end of the lease term. Tenant must notify landlord of any intention to exercise the purchase option and will give the landlord a deposit toward the purchase of the property. This provision also sets forth who will pay the closing costs and that landlord will convey the premises by warranty deed to tenant upon tenant’s written intent to exercise the option to purchase;
• Default: Explains what constitutes default and any available remedies;
• Assignment and Subletting: Sets forth that tenant shall not sublet or assign this lease without prior written consent of the landlord;
• Possession of Property, Utilities and Pets: Describes when Tenant may take possession of the property, who is responsible for utilities and whether pets are allowed;
• Insurance: Both parties will be required to maintain insurance on the property for their respective interests;
• Additional Terms and Conditions: Sets forth other terms and conditions not set forth in this agreement;
• Signatures: Both landlord and tenant must sign this agreement.

Protect Your Rights and Your Property by using this accurate and easy to use form. This lawyer-prepared package includes:

1. Instructions and Checklist
2. General Information
3. Residential Lease Agreement with Option to Purchase for use in Australia

Law Compliance: This form complies with the state and territory laws of Australia