The New Jersey rent-to-own lease agreement (also known as an “option to buy contract”) can be a beneficial document to both buyers/tenants and sellers/landlords. For buyers who don’t have the funds readily available to purchase the property, this form can be employed to acquire the option to purchase the property while, at the same time, renting the premises until the financing is secured. For a seller in a tough market who can’t afford to have the property remain stagnant on the market for a long period of time, this may be a practicable resolution if they can provide this option to an interested party needing more time to gather the necessary resources to procure the residence.
The parties and their representatives should sit down and discuss the layout of the contract. This will include the cost of any required payments associated with the arrangement (deposit for the option’s consideration, periodic lease installments, purchase price, & utility expenses), the term of the option to buy, and the time-span in which in the buyer must deliver the notice required to exercise the option. Following the establishment of these key factors, users of this form must then endorse the document to create a legitimate record of the arranged terms.
Residential Property Lease-Purchase Act – PDF