What is a lease purchase agreement?

A lease purchase agreement is a type of contract used in residential real estate law in Washington. It is a hybrid between a rental agreement and a purchase agreement. The tenant (renter) of the property agrees to pay a certain amount of rent each month. In exchange, the tenant has the option to purchase the property after a predetermined amount of time. This length of time is typically specified in the agreement and is referred to as the notice period. The notice period can either be a fixed length or can be terminated early at any time by either party. The rent payments made by the tenant can either be used as a type of down payment or can be credited toward the purchase price of the property. If the tenant chooses to purchase the property, the purchase price amount is typically determined ahead of time. The tenant must also typically provide a down payment and/or other funds to make the purchase. If the tenant is unable to follow through with the purchase, then the landlord has the option to keep any money previously paid as rent. This type of agreement is beneficial for both parties because it does not require the tenant to immediately purchase the property and it does not require the landlord to invest in repairs or maintenance for the property.

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What is a lease purchase agreement?

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