If the landlord knows or believes that the rental property was used to produce methamphetamine, this information must be provided to potential tenants before starting a lease. A lease is a legally binding contract and as with any contract, you must be able to deliver. If you can`t make the purchase of the home at the end of the rental period – for example, you may not qualify for a mortgage due to credit issues – you will lose your first deposit and could have legal consequences. Since you paid the rent and the rent premium, you paid much more for renting a house than with a typical rent. An option-to-purchase lease, also known as an option-to-purchase lease, is a written document between two parties, the potential owner or seller who owns the property and the potential tenant or buyer who rents the property. The agreement describes the agreement between the parties to rent the property, while giving the tenant the opportunity to purchase the property at the end of the rental period. A lease agreement with an option to purchase is used when a tenant wants to rent a property for a certain period of time, usually several years, and has the option to purchase the property no later than the end of the term. Often, the tenant cannot buy the house immediately for a number of reasons – because he does not have the money for a down payment, does not have sufficient solvency, cannot get a loan or is simply not willing to commit. And in a slow market, a lease option agreement gives the seller more options while receiving a stable income. A landlord can use this document to provide a clear understanding of all the conditions related to the use of a residential property and to explain the option conditions.

This document is initially executed as a lease as it describes the monthly payment information and all the responsibilities to be assumed by the owner/seller and the tenant/buyer. Your “tenant” thinks they already own the property. As a seller in a lease, you can think of the contract as nothing more than a residential lease with a future ownership option for the tenant. In other words, they have no ownership rights until the end of the payment plan, and they certainly have no ownership rights if they miss payments. You may have made a deposit (disguised as an optional payment). And maybe you`ve conveniently shifted the burden of maintenance to the tenant. But in the meantime, they are still just a tenant, and if they don`t make the payments, you can blend into an eviction court and exchange the locks. You know this is true because you have a solid contract with entire pages that say “NO REFUND – FLAT RATE IN CASE OF DEFAULT”. An Oklahoma lease is a form used to define the terms of a residential tenancy that includes the option to purchase the rental property before the contract expires. The potential buyer (tenant) usually has to pay a down payment to secure their purchase rights on the property. This fee is usually about 3% of the agreed sale price and can serve as credit for the sale if the tenant exercises his call option. While a standard lease has a fixed term of one (1) year, leases typically last for several years.

The extended lease term gives the tenant sufficient time to acquire funds and improve their financial capacity for mortgage approval. The Oklahoma Residential Lease to Own Agreement is a legal document created as a lease agreement between a lessor/seller and a tenant/buyer that offers an option to purchase for the premises that the tenant(s) rent during the term of the lease. (For you, savvy investors, this warning includes the lease-to-own option and the contract for the deed, which are often disguised versions of a lease-to-own concept.) Without an option-to-purchase lease, tenants/buyers and owners/sellers would have fewer options. The landlord may not be able to keep their verbal promise to sell the property at a certain purchase price at the end of the rental period. Or the tenant could refuse the promise to pay for all maintenance and repair work on the property. There`s also something to say that a portion of your monthly payment will benefit you instead of just paying off your landlord`s mortgage like you would in a traditional lease. For example, if your premium fee is $500 per month, it would be $6,000 after one year. Add that to your $5,000 deposit and you already have $11,000 stored in the agreement for the deposit after your first year. Tip: Still not sure if this is the right deal for you? Here`s a New York Times article about some of the benefits and risks of an option-to-own lease. Be sure to read the wording of the agreement carefully. Some hire-purchase agreements create an OBLIGATION and not the OPTION to purchase the property. Recently, a lawyer in my office said something like, about an Oklahoma eviction judge: “If the document says rent to own, lease or something like that, I read it as a fair property right, and it has no place in the eviction court.” In other words, if an eviction judge catches even a slight puff of the smell of renting with an option to buy, he may very well throw the eviction court case into a foreclosure court, where long delays and high legal fees buzz, waiting to devour innocent real estate investors.

In an lease with an option to purchase, you pay a deposit fee (usually around $5,000) plus rent and “rental premiums.” Your rent payments go into the seller`s mortgage, and premium payments end up becoming your down payment when it`s time to buy the house from the seller. Getting the agreement in writing now also means setting the purchase price at today`s value instead of betting on whether it goes up or down while saving a down payment. .