Example of a residential lease with option to purchase is usually developed when a specific party is interested to find a resident in the specific area therefore owner of the property can usually enjoy a higher rate of lease when compared to normal rental amount. The tenant can enjoy the resident without having stress of big interest amount required to pay by him if he has taken loan for buying property form the bank.
Format of residential lease:
- Monthly installment
- Encumbrances except
Monthly rent required to pay by tenant is mentioned on the residential lease as well as the due date. It must have option to purchase so that after the selected time period the tenant can buy out the property by paying out the rest of amount at once. The example of this sort of lease is mentioned above.