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 tenant’s 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