190 Bowman St

Lease terms

Purchase Price: $160,000 Option Fee: $5,000 paid upfront. The agreement should clearly state whether it is refundable and exactly how it is applied at closing. Monthly Payment: $1,500 Term: 36 months Purchase Credits: Year 1 receives no purchase credit. Years 2 and 3 receive a $200 monthly credit toward the purchase price, provided the occupant complies with the agreement. Purchase Deadline: Occupant must obtain financing or otherwise complete the purchase no later than the end of the 36 month term. Utilities: Occupant pays all utilities, including gas, electric, water, sewer, trash, and any other services associated with occupancy. Insurance: Occupant is required to maintain the insurance coverage specified by the agreement throughout the term. I would have your attorney specify whether this should be renters insurance, another form of coverage, or both, rather than advertising it simply as homeowners insurance before title transfers. Maintenance: Occupant is responsible for routine maintenance and general upkeep. Your contract should specifically define who pays for larger repairs involving HVAC, plumbing, electrical, roof, structure, sewer, and other major components. Lawn and Exterior: Occupant is responsible for mowing, landscaping, snow removal, and ordinary exterior upkeep. Alterations: No significant alterations, remodeling, painting, additions, or structural changes without written approval. No Assignment or Subleasing: Occupant cannot assign the agreement, sublease the property, or transfer their purchase rights without written approval. Taxes: Clearly identify that property taxes remain the owner's responsibility until title transfers unless your attorney structures the transaction differently. Late Payments and Default: Establish the due date, any applicable grace period, lawful late fees, what constitutes default, and what happens to the purchase option and accumulated credits following default. Early Purchase: Allow the occupant to exercise the purchase right before the end of the 36 months if they become financing eligible sooner. Property Condition: Document the home's condition at move in and have the occupant acknowledge acceptance of that condition, subject to whatever obligations cannot legally be shifted. Financing Responsibility: Make clear that the occupant is responsible for obtaining financing and that you are not guaranteeing mortgage approval. No Financing Representation: Avoid promising that three years will automatically make someone mortgage eligible. Approval ultimately depends on the lender and the occupant's circumstances at that time. Occupancy: Specify who is authorized to occupy the property and establish rules concerning pets, smoking, parking, and other property specific matters.