Tenancy Purchase Agreement for a residential property between individuals

This agreement outlines the terms and conditions of both the tenancy and the eventual sale. It typically includes the rental period, monthly rent, the portion of rent applied to the purchase price, the purchase price, the time frame in which the option to purchase may be exercised, and any other conditions or contingencies that must be met before the sale can be finalized.
The agreement also specifies the responsibilities of each party, such as maintenance, repairs, and insurance. It’s crucial for both parties to clearly understand their rights and obligations under this agreement to avoid future disputes. The tenant benefits from the ability to lock in a purchase price and test out the property before committing to the purchase, while the landlord can secure a potential sale and earn rental income in the interim. It’s advisable for both parties to seek legal counsel before entering into such an agreement to ensure their interests are adequately protected.