The Illinois lease to own agreement inscribes the facts surrounding the rental of a residential unit to an express contract. The deal primarily designates an added option to purchase the property for the tenant, once the lease has been fulfilled to the termination date. Within the clauses of the document is the determining terminology outlining the commitments of the rental arrangement, policies, and stipulated responsibilities of the lessor and lessee. The agreement states the names of the tenant, the landlord, and any associated managing officials, the property address, and the rental payment schedule.
A lease to own agreement can be differentiated from a customary residential lease in that upon the expiration of the rental period, the tenant is given the first right of refusal to purchase the property. The option to buy is assigned with a specified option fee, purchase price amount, and expiration date that must be considered to qualify to exercise the option. In the case that the tenant elects to implement the granted option, the owner and buyer can start the negotiation process and draw up a preliminary purchase and sale agreement.