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Lease Purchase Agreement template
Lease Purchase Agreement sample


What is Lease Purchase Agreement?

Lease Purchase Agreement A Lease Purchase Agreement combines lease and purchase terms for property or equipment, specifying lease duration, purchase option, and terms for converting the lease to ownership.



Sample template:



LEASE PURCHASE AGREEMENT


1. PARTIES AND PROPERTY

1.1. Parties


This Lease Purchase Agreement (the "Agreement") is entered into as of the Effective Date by and between the Lessor ("Lessor") and the Lessee ("Lessee"), collectively referred to as the "Parties".



1.2. Property


The Lessor hereby agrees to lease to the Lessee, and the Lessee hereby agrees to lease from the Lessor, the real property situated at 456 Maple Lane, Springfield, USA, together with all improvements thereon (the "Property"). The Property is a single-family residence having three bedrooms, two bathrooms, and a one-car garage.



2. LEASE AND TERM

2.1. Lease Term


The initial term of this Lease shall commence on the Effective Date and shall continue for a duration of three (3) years, unless sooner terminated in accordance with the terms of this Agreement (the "Lease Term").



3. RENT AND SECURITY DEPOSIT

3.1. Rent Payments


The Lessee shall pay to the Lessor as rent for the Property, without demand, deduction, or set-off, a monthly rental payment in the amount of ________ Dollars ($______), which shall be due and payable in advance on the first day of each calendar month.



3.2. Security Deposit


Upon execution of this Agreement, the Lessee shall deposit with the Lessor the sum of ________ Dollars ($______), as a security deposit (the "Security Deposit"), which shall be held and applied by the Lessor in accordance with applicable laws. Upon termination of this Agreement, the remaining balance (if any) of the Security Deposit shall be refunded to the Lessee within thirty (30) days thereof, less any amounts required to be withheld by the Lessor in accordance with this Agreement and the laws of the United States.



4. PURCHASE OPTION

4.1. Grant of Option


Subject to the terms and conditions of this Agreement, the Lessor hereby grants to the Lessee the exclusive and irrevocable option (the "Option") to purchase the Property during the Lease Term at the purchase price of ________ Dollars ($______) (the "Purchase Price").



4.2. Exercise of Option


The Lessee may exercise the Option at any time during the Lease Term by delivering written notice thereof to the Lessor, accompanied by a non-refundable deposit in the amount of ________ Dollars ($______), which deposit shall be applied towards the Purchase Price upon closing of the purchase transaction.



4.3. Closing


The closing of the purchase transaction (the "Closing") shall take place within sixty (60) days of the Lessor's receipt of the Lessee's notice exercising the Option, or at such other time as the Parties may mutually agree in writing. At the Closing, the Property shall be conveyed by the Lessor to the Lessee by general warranty deed, free and clear of all liens, encumbrances, and claims, subject to any exceptions as may be agreed upon by the Parties.



5. MAINTENANCE AND REPAIRS

The Lessee, at its own cost and expense, shall keep and maintain the Property in good repair and condition during the Lease Term and shall promptly make all necessary repairs and replacements when required. Upon termination of this Agreement, the Lessee shall return the Property to the Lessor in the same condition as when received, reasonable wear and tear excepted.



6. USE OF THE PROPERTY

The Lessee agrees to use the Property for residential purposes only and not for any illegal, immoral, or hazardous purposes. The Lessee shall comply with all applicable laws, rules, regulations, and ordinances affecting the Property and shall not cause or permit any nuisance or disturbance to neighboring properties or occupants.



7. GOVERNING LAW

This Agreement shall be governed by, construed, and enforced in accordance with the laws of the United States and the State in which the Property is located.



8. BINDING EFFECT

This Agreement shall be binding upon and inure to the benefit of the Parties and their respective heirs, executors, administrators, legal representatives, successors, and permitted assigns.



9. ENTIRE AGREEMENT

This Agreement, together with any exhibits, schedules, and attachments hereto, constitutes the entire agreement between the Parties with respect to the subject matter hereof, and supersedes all prior oral or written agreements, understandings, or representations.



10. COUNTERPARTS AND ELECTRONIC SIGNATURES

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. In the event that any signature is delivered by facsimile transmission, email, or other electronic means, such signature shall create a valid and binding obligation of the Party executing the same with the same force and effect as if such signature page were an original thereof.



IN WITNESS WHEREOF, the Parties have executed this Lease Purchase Agreement as of the Effective Date.

_________________________________ _________________________________
LESSOR LESSEE

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Sections of a Lease Purchase Agreement


In this Lease Purchase Agreement, you will see the following sections:

  1. Parties and Property
  2. Lease and Term
  3. Rent and Security Deposit
  4. Purchase Option
  5. Maintenance and Repairs
  6. Use of the Property
  7. Governing Law
  8. Binding Effect
  9. Entire Agreement
  10. Counterparts and Electronic Signatures


Summary of the sections:

  1. Parties and Property : This section introduces the people involved in the agreement (Lessor and Lessee) and describes the property being leased. Think of it as the "who" and "what" of the agreement.

  2. Lease and Term : This part outlines the duration of the lease, which is three years in this case. It's like setting the "when" of the agreement.

  3. Rent and Security Deposit : This section explains the monthly rent amount and the security deposit required. It's like the "how much" part of the agreement.

  4. Purchase Option : This part gives the Lessee the option to buy the property during the lease term at a specified price. It's like a "maybe" for buying the property in the future.

  5. Maintenance and Repairs : This section states that the Lessee is responsible for keeping the property in good condition and making necessary repairs. It's like saying, "You break it, you fix it."

  6. Use of the Property : This part explains that the property can only be used for residential purposes and must follow all laws and regulations. It's like the "rules" for living in the property.

  7. Governing Law : This section states that the agreement is governed by the laws of the United States and the state where the property is located. It's like the "legal playbook" for the agreement.

  8. Binding Effect : This part explains that the agreement is binding on both parties and their successors. It's like saying, "You can't back out of this deal."

  9. Entire Agreement : This section states that the agreement, along with any attachments, is the complete agreement between the parties. It's like saying, "This is the whole deal, and nothing else matters."

  10. Counterparts and Electronic Signatures : This part allows the agreement to be signed in separate copies and accepts electronic signatures. It's like saying, "We can sign this digitally, and it's still valid."

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