Residential Lease Agreement with Option to Purchase (Canada)

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This Residential Lease Agreement with Option to Purchase is used by a landlord who rents a property to a tenant and also gives the tenant the option to purchase the property. This agreement sets forth the terms of the lease agreement and contains a provision detailing the lease option

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This Residential Lease Agreement with Option to Purchase is for use by a landlord who gives a tenant the option to purchase the rental property. This lease agreement with option allows a tenant to rent the property and exercise an option to purchase the property at a predetermined price within a certain amount of time (usually the beginning and ending dates of the lease). It also sets out the amount of monthly rent and security deposit and a provision which sets out the option to purchase in detail. This form also includes a useful Premises Inspection Sheet. It is imperative that this type of lease 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 residential lease or option to purchase.

This Residential Lease Agreement with Option to Purchase includes the following provisions:
  • Leased Premises and Term of Lease: Sets forth the address and description of the property and the dates of the lease term;
  • Lease Payments and Late Fees: Sets out the amount of monthly rent, due date and penalties for late payments or insufficient funds;
  • Security Deposit: States the amount of the security deposit and conditions for the return of that deposit;
  • Option to Purchase: Sets forth that landlord grants tenant the exclusive right to purchase the property for a set price and when this option will expire. Tenant must notify landlord of any intention to exercise the purchase option and will give the landlord an additional deposit toward the purchase of the property. It also sets forth who will pay the closing costs and that landlord will convey the premises by warranty deed to tenant upon tenantís written intent to exercise the purchase option;
  • Default: Sets out what constitutes a default and the available remedies;
  • Use of Premises: States that the premises may only be used as a residence unless landlord gives written consent to use the premises as a business;
  • Possession of Property, Utilities and Pets: Describes when Tenant may take possession of the property, who is responsible for utilities and the policy regarding pets;
  • Insurance: Both parties will be required to maintain appropriate insurance on the property;
  • Additional Terms and Conditions: Sets forth any other terms and conditions not expressly set out in this agreement;
  • Signatures: Landlord and tenant must both 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 Canada
Law Compliance: This form can be used in the following provinces: Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Ontario, Prince Edward Island, Saskatchewan and Yukon
Number of Pages11
DimensionsDesigned for Letter Size (8.5" x 11")
EditableYes (.doc, .wpd and .rtf)
UsageUnlimited number of prints
Product number#43415
This is the content of the form and is provided for your convenience. It is not necessarily what the actual form looks like and does not include the information, instructions and other materials that come with the form you would purchase. An actual sample can also be viewed by clicking on the "Sample Form" near the top left of this page.












Residential Lease Agreement with
Option to Purchase
(Canada)









This Packet Includes:
1. Instructions and Checklist
2. General Information
3. Residential Lease Agreement with Option to Purchase
4. Inspection Checklist






Instructions and Checklist
Residential Lease Agreement with Option to Purchase

   The Landlord must sign and initial the Lease Agreement

   The Tenant(s) must sign and initial the Lease Agreement. If there is more than one adult Tenant, all should sign the Lease Agreement.

   Generally both the Landlord and the Tenant(s) get an original signed Lease Agreement each. Therefore, if there is one Landlord and 2 Tenants, 3 original leases should be executed (i.e. signed).

   The Landlord and the Tenant(s) should conduct a joint inspection before the beginning of the lease. Some provinces require the Landlord and Tenant to conduct an inspection of the premises to be rented, before physical occupancy by the Tenant or before the lease is signed. Even if a province does not require a joint inspection, it is always a good idea to do one.



   These forms contain the basic terms and language that should be included in similar agreements. The laws in some provinces require a seller to make additional written disclosures, including disclosures about the condition of the house, the neighbourhood, environmental disclosures and any other known problems. Check with a real estate agent or lawyer in your area to determine what additional disclosures, if any, are required in your province or locality.  If not required by law, a Buyer may still request the disclosures and try to make them part of the agreement.

   Laws vary from time to time and from province to province. These forms are not intended and are not a substitute for legal advice. These forms should only be a starting point for you and should not be used or signed without consulting a lawyer first to make sure it fits your particular situation. A Lawyer should be consulted before negotiating any document with another party.








General Information
Residential Lease Agreement with Option to Purchase

Whenever a Landlord (owner of the house or residence) rents a residence to a Tenant and wishes to give the Tenant an option to purchase the rented premises, an agreement should be written. Both Landlord and Tenant should sign it. The Agreement should set forth the terms of the lease and option. Such a document is generally called a Lease or Rental Agreement with an “option to purchase”. Such an option would allow the Tenant the purchase the property at a predetermined price within a predetermined time frame. Many provinces will consider oral agreements regarding the rental of real property to be invalid and require a written agreement.

Most provinces also have different laws relating to residential leases, mainly designed to protect tenants from dishonest landlords.

Some provinces also require that the landlord and tenant conduct an inspection of the premises to be rented, before physical occupancy by the tenant or before the lease is signed. A joint inspection form is useful to document the inspection and can help avoid problems at the end of the lease. Even if a province does not require a joint inspection, it is always a good idea to fill one out. A joint inspection can also help the Landlord justify any security deposit deductions, if warranted. An “Inspection Checklist” is provided in this forms package.

Different provinces have different laws regarding the amount and the handling of security deposits. Some provinces require that security deposit be held in an interest bearing account and that the interest be given to the tenant at the termination of the lease. There are also different time limits in each province as to how quickly Landlords need to give back security deposits to Tenants. Landlords should be familiar with these laws.

If more than one Tenant signs the Lease, all Tenants may be responsible for all the obligations under the Lease if the other Tenant(s) dont perform their obligations.










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LEASE AGREEMENT WITH OPTION TO PURCHASE


This Lease Agreement (“Lease”) is entered by and between _____________________________ (“Landlord”) and ___________________________________________________ (“Tenant”) on __________________ (Date). Landlord and Tenant may collectively be referred to as the “Parties”. This Lease creates joint and several liabilities in the case of multiple Tenants. The Parties agree as follows:

PREMISES: Landlord hereby leases the Premises located at: ___________________________ ___________________________________________ (complete address of Premises) to Tenant.

LEASE TERM: The lease will start on ______________________ (begin date) and will end on _________________________ (end date) (Lease Term).

LEASE PAYMENTS: Tenant agrees to pay to Landlord as rent for the Premises the amount of CAD_________ (“Rent”) each month in advance on the first day of each month at: __________________________________________________ (address for rent payment) or at any other address designated by Landlord. If the term of this lease does not start on the first day of the month or end on the last day of a month, the rent will be prorated accordingly.

LATE CHARGES: If any amount under this lease is more than _____ days late, Tenant agrees to pay a late fee of CAD________.

INSUFFICIENT FUNDS: Tenant agrees to pay the charge of CAD_____ for each cheque given by Tenant to Landlord that is returned to Landlord for lack of sufficient funds.

SECURITY DEPOSIT: At the signing of this Lease, Tenant shall deposit with Landlord, in trust, a security deposit of CAD__________ as security for the performance by Tenant of the terms under this Lease and for any damages caused by Tenant, Tenants family, agents and visitors to the Premises during the term of this Lease. Landlord may use part or all of the security deposit to repair any damage to the Premises caused by Tenant, Tenants family, agents and visitors to the Premises. However, Landlord is not just limited to the security deposit amount and Tenant remains liable for any balance. Tenant shall not apply or deduct any portion of any security deposit from the last or any month's rent. Tenant shall not use or apply any such security deposit at any time in lieu of payment of rent. If Tenant breaches any terms or conditions of this Lease, Tenant shall forfeit any deposit, as permitted by law.

OPTION TO PURCHASE: Landlord grants Tenant the exclusive right to an option to purchase (“Option”) the Premises herein for a gross sales price of   CAD _______________beginning with the term of this lease and expiring on _______________, or, if the lease is earlier terminated, at that time. Tenant shall notify Landlord in writing, prior to the termination date of the option, of Tenants intent to exercise the option to purchase. When exercising the option, Tenant shall also deposit with Landlord the sum of CAD____________ as a deposit towards the purchase price of the premises. Upon exercise of this option by Tenant, a closing shall take place within ________ days.  Before the closing date, Tenant shall make all reasonable efforts to obtain financing to purchase the Premises. In the event Tenants reasonable efforts were unable to procure financing, the deposit shall be returned.  All expenses relating to the sale and to the closing shall be borne (select one) o by Landlord; o by Tenant; o equally by both Parties. The Landlord shall convey the Premises to the Tenant by warranty deed with a merchantable title. Until the written exercise of the option, the relationship between the parties shall be solely that of landlord and tenant. Additional terms relating to option to purchase (or write none): _____________________________________________________________________________
_____________________________________________________________________________

DEFAULTS: If Tenant fails to perform or fulfil any obligation under this Lease, Tenant shall be in default of this Lease. Subject to any statute, ordinance or law to the contrary, Tenant shall have seven (7) days from the date of notice of default by Landlord to cure the default. In the event Tenant does not cure a default, Landlord may at Landlords option (a) cure such default and the cost of such action may be added to Tenants financial obligations under this lease; or (b) declare Tenant in default of the Lease. In the event of default, Landlord may also, as permitted by law, re-enter the Premises and re-take possession of the Premises. Landlord may, at its option, hold Tenant liable for any difference between the rent that would have been payable under this Lease during the balance of the unexpired term, if this Lease had continued in force and any rent paid by any successive Tenant if the Premises are re-let. In the event Landlord is unable to re-let the Premises during any remaining term of this Lease, after default by Tenant, Landlord may at its option hold Tenant liable for the balance of the unpaid rent under this Lease if this Lease had continued in force. The failure of Tenants or their guests or invitees to comply with any term of this Agreement is grounds for termination of the tenancy, with appropriate notice to Tenants and procedures as required by law.
 
QUIET ENJOYMENT: Tenant shall be entitled to quiet enjoyment of the premises, and Landlord will not interfere with that right, as long as Tenant pays the rent in a timely manner and performs all other obligations under this Lease.

POSSESSION AND SURRENDER OF PREMISES: Tenant shall be entitled to possession of the Premises on the first day of the Lease Term. At the expiration of the Lease, Tenant shall peaceably surrender the Premises to Landlord or Landlords agent in good condition as it was at the commencement of the Lease, reasonable wear and tear excepted.

USE OF PREMISES: Tenant shall only use the Premises as a residence. The Premises shall not be used to carry on any type of business or trade, without prior written consent of the Landlord. Tenant will comply with all laws, rules, ordinances, statutes and orders regarding the use of the Premises

OCCUPANTS: Tenant agrees that no more than ____ persons may reside on the Premises, without prior written consent of the Landlord.

CONDITION OF PREMISES: Tenant or Tenants agent has inspected the Premises, the fixtures, the grounds, building and improvements and acknowledges that the Premises are in good and acceptable condition and are habitable. If at any time during the term of this Lease, in Tenants opinion, the conditions change, Tenant shall promptly provide reasonable notice to Landlord.

ASSIGNMENT AND SUBLEASE: Tenant shall not assign or sublease any interest in this lease without prior written consent of the Landlord, which consent shall not be unreasonably withheld. Any assignment or sublease without Landlords written prior consent shall, at Landlords option, terminate this Lease.

DANGEROUS MATERIALS: Tenant shall not keep or have on or around the Premises any item of a dangerous, flammable or explosive character that might unreasonably increase the risk of fire or explosion on or around the Premises or that might be considered hazardous by any responsible insurance company.

UTILITIES AND SERVICES: Tenant will be responsible for all utilities and services required on the Premises, except Landlord will provide: ________________________________________
____________________________________________________________________________________________________________________________________________________________ (list services paid by Landlord or “none”)

PETS: Tenant shall not keep any Pets on the Premises without the prior written consent of the Landlord.  

ALTERATIONS AND IMPROVEMENTS: Tenant agrees not to make any improvements or alterations to the Premises without prior written consent of the Landlord. If any alterations, improvements or changes are made to or built on or around the Premises, with the exception of fixtures and personal property that can be removed without damage to the Premises, they shall become the property of Landlord and shall remain at the expiration of the Lease, unless otherwise agreed in writing.

DAMAGE TO PREMISES: If the Premises or part of the Premises are damaged or destroyed by fire or other casualty not due to Tenants negligence, the rent will be abated during the time that the Premises are uninhabitable. If Landlord decides not to repair or rebuild the Premises, then this Lease shall terminate and the rent shall be prorated up to the time of the damage. Any unearned rent paid in advance shall be refunded to Tenant.

MAINTENANCE AND REPAIR: Tenant will, at Tenant's sole expense, keep and maintain the Premises in good, clean and sanitary condition and repair during the term of this Lease and any renewal thereof. Tenant shall be responsible to make all repairs to the Premises, fixtures, appliances and equipment therein that may have been damaged by Tenant's misuse, waste, or neglect, or that of the Tenant's family, agent, or visitor. Tenant agrees that no painting will be done on or about the Premises without the prior written consent of Landlord. Tenant shall promptly notify Landlord of any damage, defect or destruction of the Premises, or in the event of the failure of any of the appliances or equipment. Landlord will use its best efforts to repair or replace any such damaged or defective area, appliance or equipment.
 
RIGHT OF INSPECTION: Tenant agrees to make the premises available to Landlord or Landlords agents for the purposes of inspection, making repairs or improvements, or to supply agreed services or show the premises to prospective buyers or tenants, or in case of emergency. Except in case of emergency, Landlord shall give Tenant reasonable notice of intent to enter. For these purposes, twenty-four (24) hour notice shall be deemed reasonable. Tenant shall not, without Landlords prior written consent, add, alter or re-key any locks to the premises. At all times Landlord shall be provided with a key or keys capable of unlocking all such locks and gaining entry. Tenant further agrees to notify Landlord in writing if Tenant installs any burglar alarm system, including instructions on how to disarm it in case of emergency entry.

HOLDOVER: In the event Tenant remains in possession of the Premises for any period after the expiration of the Lease Term ("Holdover Period"), a new month-to-month tenancy shall be created subject to the same terms and conditions of this Lease at a monthly rental rate of CAD_____________________ per month, unless otherwise agreed by the parties in writing. Such month-to-month tenancy shall be terminable on thirty (30) days notice by either party or on longer notice if required by law.

ABANDONMENT: If Tenant abandons the Premises or any personal property during the term of this Lease, Landlord may at its option enter the Premises by any legal means without liability to Tenant and may at Landlords option terminate the Lease. Abandonment is defined as absence of the Tenants from the premises, for at least ____ consecutive days without notice to Landlord. If Tenant abandons the premises while the rent is outstanding for more than 15 days and there is no reasonable evidence, other than the presence of the Tenants personal property, that the Tenant is occupying the unit, Landlord may at Landlords option terminate this agreement and regain possession in the manner prescribed by law. Landlord will dispose of all abandoned personal property on the Premises in any manner allowed by law.

EXTENDED ABSENCES: In the event Tenant will be away from the premises for more than ____ consecutive days, Tenant agrees to notify Landlord in writing of such absence. During such absence, Landlord may enter the premises at times reasonably necessary to maintain the property and inspect for damages and needed repairs.

 SECURITY: Tenant understands that Landlord does not provide any security alarm system or other security for Tenant or the Premises. In the event any alarm system is provided, Tenant understands that such alarm system is not warranted to be complete in all respects or to be sufficient to protect Tenant or the Premises. Tenant releases Landlord from any loss, damage, claim or injury resulting from the failure of any alarm system, security or from the lack of any alarm system or security.

SEVERABILITY: If any part or parts of this Lease shall be held unenforceable for any reason, the remainder of this Agreement shall continue in full force and effect. If any provision of this Lease is deemed invalid or unenforceable by any court of competent jurisdiction, and if limiting such provision would make the provision valid, then such provision shall be deemed to be construed as so limited.

INSURANCE: Landlord and Tenant shall each be responsible to maintain appropriate insurance for their respective interests in the Premises and property located on the Premises. Tenant understands that Landlord will not provide any insurance coverage for Tenant's property.  Landlord will not be responsible for any loss of Tenant's property, whether by theft, fire, riots, strikes, acts of God, or otherwise. Landlord encourages Tenant to obtain renters insurance or other similar coverage to protect against risk of loss.

BINDING EFFECT: The covenants and conditions contained in the Lease shall apply to and bind the parties and the heirs, legal representatives, successors and permitted assigns of the parties.

GOVERNING LAW: This Lease shall be governed by and construed in accordance with the laws of the Province of __________________________________________

ENTIRE AGREEMENT: This Lease constitutes the entire agreement between the parties and supersedes any prior understanding or representation of any kind preceding the date of this Agreement. There are no other promises, conditions, understandings or other agreements, whether oral or written, relating to the subject matter of this Lease. This Lease may be modified in writing and must be signed by both Landlord and Tenant.

NOTICE: Any notice required or otherwise given pursuant to this Lease shall be in writing and mailed certified return receipt requested, postage prepaid, or delivered by overnight delivery service, if to Tenant, at the Premise and if to Landlord, at the address for payment of rent. Either party may change such addresses from time to time by providing notice as set forth above.

CUMULATIVE RIGHTS: Landlords and Tenants rights under this Lease are cumulative, and shall not be construed as exclusive of each other unless otherwise required by law.

WAIVER: The failure of either party to enforce any provisions of this Lease shall not be deemed a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Lease. The acceptance of rent by Landlord does not waive Landlords right to enforce any provisions of this Lease.

DISPLAY OF SIGNS: Landlord or Landlord's agent may display "For Sale" or "For Rent" or "Vacancy" or similar signs on or about the Premises and enter to show the Premises to prospective tenants during the last sixty (60) days of this Lease. Tenant agrees that no signs shall be placed on the Premises without the prior written consent of Landlord.

PARKING: Tenant shall be entitled to use _____ parking space(s) for the parking of motor vehicle(s).

KEYS: Tenant will be given ___ key(s) to the Premises and ____ mailbox key(s). , Tenant shall be charged CAD_________ if all keys are not returned to Landlord following termination of the Lease.

LIQUID-FILLED FURNITURE: Tenant shall not use or have any liquid-filled furniture, including but not limited to waterbeds, on the premises without Landlords prior written consent.

INDEMNIFICATION: To the extent permitted by law, Tenant will indemnify and hold Landlord and Landlords property, including the Premises, free and harmless from any liability for losses, claims, injury to or death of any person, including Tenant, or for damage to property arising from Tenant using and occupying the Premises or from the acts or omissions of any person or persons, including Tenant, in or about the premises with Tenants express or implied consent except Landlord's act or negligence

LEGAL FEES: In the event of any legal action by the parties arising out of this Lease, the losing party shall pay the prevailing party reasonable lawyers' fees and costs in addition to all other relief.

ADDITIONAL TERMS & CONDITIONS (Specify “none” if there are no additional provisions):
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
 
IN WITNESS WHEREOF, the parties have caused this Lease to be executed the day and year first above written.

[Signature]

LANDLORD:

___________________________________________________
___________________________________
(Name)


TENANT:
____________________________________________________
___________________________________
(Name)


TENANT:
____________________________________________________
___________________________________
(Name)






PREMISES INSPECTION
MOVE-IN / MOVE-OUT

The Premises should be inspected immediately before the Lease is signed or the premises are occupied

Address of Premises:
Move In date
Move out date
Inspected by (for Landlord)
Inspected by (for Tenant)



MOVE-IN
Comments
MOVE-OUT
Comments

OK
NO

OK
NO

Bedroom 1


________________________


________________________
Bedroom 2


________________________


________________________
Bedroom 3


________________________


________________________
Bathrooms


________________________


________________________
Entry Area


________________________


________________________
Living Areas


________________________


________________________
Balcony


________________________


________________________
Carpeting


________________________


________________________
Ceilings


________________________


________________________
Closets


________________________


________________________
Dishwasher


________________________


________________________
Disposal


________________________


________________________
Drapes / Blinds


________________________


________________________
Doors


________________________


________________________
Fireplace


________________________


________________________
Lights


________________________


________________________
Locks


________________________


________________________
Patio


________________________


________________________
Refrigerator


________________________


________________________
Screens


________________________


________________________
Storage


________________________


________________________
Stove


________________________


________________________
Walls


________________________


________________________
Windows


________________________


________________________
Window coverings


________________________


________________________
Yard


________________________


________________________
_______________


________________________


________________________
_______________


________________________


________________________
_______________


________________________


________________________
_______________


________________________


________________________
_______________


________________________


________________________
_______________


________________________


________________________
_______________


________________________


________________________

NOTES: ___________________________________________________________________________
___________________________________________________________________________

Landlord and Tenant have inspected the P______________ (Date). The move-in conditions are those noted on this inspection as shown above. The parties further agree that a copy of this Joint Inspection was provided to Tenant.

Tenant:
___________________________________
___________________________________

Acknowledged by Landlord:
___________________________________

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The form was perfect for what I needed for a client wanting an unorthodox Lease with Option. Wasn't sure if it was actually catered to AZ law, but it had all the terms and saved me from typing them all out. It covered everything and I like that it was deliverable in Word so that I could make the changes I needed to make.


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