The Kansas Rental Agreement with Option to Purchase (Lease to Own) Form acts as a tool to document both a rental and a purchase agreement in one convenient place. This adds a level of organization and potentially may save some time and money to the parties entering it. The versatility of this agreement lies in its ability to define certain conditions. For instance, in order to protect both the landlord and the tenant from any confusion or uncertainty, a specific time period of when the purchase option may be taken by the tenant. By limiting this decision to a named time period, both parties will enjoy a limited amount of freedom from the pressure of such a decision and the ramifications that come with it. For example, if the tenant has not purchased the property by the expiration of the option to purchase, the landlord will likely be able to make some long-term plans concerning the property rather than be taken off-guard by retaining ownership of a property they believed they would sell. The tenant, too, enjoys certain benefits. For instance, a defined credit will be applied to the purchase price (that would otherwise be lost) should the tenant decide to buy the property. This potentially lightens the load of a such a major purchase.
This agreement seeks to apply a balance of benefits and responsibility to both parties while being in accordance with Federal Law and Kansas State Law concerning both residential leases and purchase agreements.
How to Write
Step 1 – The first section will seek to identify the agreement, parties involved, and property involved. Enter the date of the agreement, the full name of the Seller/Landlord, and the full name of the Buyer/Tenant” in the first paragraph. Then enter county, city, and street address of the property in the second paragraph.
Step 2 – The “Rent” paragraph (Item 1) will fully define the rent the Buyer/Tenant is required to pay the Seller/Landlord to be in compliance with the lease. Enter the yearly rent on the first two spaces provided. The next two spaces will require monthly rent to be entered while the last two spaces of this paragraph will require the security deposit amount to be reported.
Step 3 – The “Utilities and Services” section (Item 2) has two sets of blank spaces used to assign which party shall pay for which utilities and services. Assign the ones the Buyer/Tenant shall pay for in the first set of spaces then the ones the Seller/Landlord shall pay for on the second set of lines.
Step 4 – Read through Item 3 then in “Option Term” (Item 4) the period of time in which a Buyer/Tenant may elect to purchase the property will need definition. Enter the first calendar date the option to purchase the property may be utilized by the Buyer/Tenant on the first blank line Then, on the second, enter the last calendar date the Buyer/Tenant may proceed to purchase the property.
Step 5 – Read through Item 5 then proceed to Item 6.
Step 6 – The “Option Consideration” paragraph (Item 6) will define a condition on part of the purchase price. Here, enter the non-refundable fee a Buyer/Tenant pays the Seller/Landlord for the option to purchase. This fee will be kept by the Seller/Landlord if the Buyer/Tenant does not purchase the property or it will be applied as a credit toward the property’s purchase price should the Buyer/Tenant decide to buy the property.
Step 7 – The “Purchase Price” paragraph (Item 7) will further define payment information should the Buyer/Tenant purchase the property. First, enter the total price of the property on the first two blank lines. Then enter the amount of money (taken from the monthly rent payment) the Seller/Landlord shall apply as credit for the Buyer/Tenant when purchasing the property.
Step 8 – Read through Items 8-16 then, enter the county holding jurisdiction over the property and its purchase in the paragraph labeled “Governing Law and Venue.”
Step 9 – The end of the agreement will require all parties involved with this lease to provide their signatures and their printed names. This shall bind them to their roles as defined in the agreement.