Down Payment Installment agreement - Lease Options,
The implications of signing a down payment instalment agreement
When you are a tenant and want to buy the property you can opt for the down payment installment. Generally when you buy a property you need to give some down payment and the rest of the amount can be given through bank loan. But if you are not in a position to give the down payment as a whole and you are also a tenant at the property then you can opt for paying the down payment in installment.
To carry out this kind of arrangement you need to sign a down payment installment agreement with your land lord. Generally you tend to pay this instalment along with the rent every month but there are clauses that you must abide by
First of all this agreement is time bound. If you fail to make the purchase in that stipulated time frame the agreement may be considered void
The amount that you deposit as the down payment instalment will only be valid if you make the final purchase but if you default or decide not to buy later the down payment made till date will be considered void. And the amount will be forfeited.
You are not bund to make a purchase as you have purchased the option of buying the property in the stipulated time period. However, if you decide not buy the property, there will no bindings on you. at this juncture the agreement just cancels by itself and you walk free, but your money will be forfeited
Down Payment Installment agreement - Lease Options, 10.0 out of 10 based on 1 rating
Tenant move in date:
The Tenant has given the Management Company of this property $______________ as an initial non refundable option consideration amount. Management and Tenant hereby agree that Tenant will pay an additional sum of $___________________ due monthly for a term of _____ concurrent months to Management under the down payment installment plan. Management shall apply additional monthly sum towards the remainder of the option consideration balance of $__________ until Tenant possesses an eventual option consideration balance of $____________________.
This money is for the Tenant’s non refundable option consideration and is NOT extra fees above the agreed upon rent for this unit!
Tenant has elected to purchase a 12 month exclusive option on the above referenced property. Tenant’s failure to pay the additional monthly sum on time shall constitute breach and will result in cancellation of the option agreement, and that ALL OPTION MONIES WILL BE FORFEITED BY TENANT. Tenant’s right to exercise the option is also subject to the Tenant being in compliance with all the terms of the Lease. int.____
Initial Option Payment Amount:
Start Date and Terms of Additional Payments:
End Option Consideration Balance: