Short Form Lease Option Agreement with Sellers

Posted on October 6, 2011 by global

Agreement to lease and option the house from seller if you intend to stay in the deal.

Revised 01/19/2015

Lease Agreement with Option to Purchase Real Estate

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99 Responses to Short Form Lease Option Agreement with Sellers

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  1. Mario Acevedo says:
    November 6, 2011 at 9:12 pm

    Ron, Thank you for this form. It very complete and has all the bases covered. I am working on my first ACTS deal, and this form has been a great help.

    Thank You
    Mario Acevedo
    A-Five Properties LLC
    Washington State

    Reply
  2. Richard Valenti says:
    December 10, 2011 at 9:29 pm

    Line 5……………Is this correct as Optionor is written in twice thereby stating Optionor is paying for ALL closing costs?

    Reply
    • Dwight & Tabitha Kitchens says:
      March 8, 2013 at 8:32 pm

      So is regarding Richard’s question it does have optionor as paying all closing costs?

      Is this correct…line 5

      Reply
  3. Gary Weirich says:
    January 8, 2012 at 2:14 am

    I don’t believe this is for an ACTS but rather a sandwich deal.

    Reply
  4. Mercedes Quintanilla says:
    January 11, 2012 at 1:27 am

    Yes, this is for a sandwich deal only.

    Reply
  5. Andrew Strickland says:
    January 25, 2012 at 8:38 pm

    HI,ANDY STRICKLAND HERE.

    CAN I ASSIGN MY OPTION TO PURCHASE AGREEMENT DIRECTLY TO A CASH BUYER WITH OUT EXECUTING A PURCHASE AND SALES AGREEMENT WITH THE SELLER ? I PLAN TO USE A REAL ESTATE ATTORNEY TO HANDLE THE ASSIGNMENT OF MY OPTION AGREEMENT WITH THE SELLER.UNDER CLAUSE # 22 (SPECIAL STIPULATION )I HAVE TWO (2)ADDENDUMS THAT STATE (1)THE ASSIGNMENT WILL BE HANDLED BY AN ATTORNEY AND THAT THE ASSIGNEE HAS TO PAY THE COST OF THE ASSIGNMENT (2)THE ASSIGNEE HAS TO EXECUTE A PURCHASE AND SALES AGREEMENT WITH IN FIVE (5)DAYS OF EXECUTING THE ASSIGNMENT OF THE OPTION TO PURCHASE AGREEMENT WITH THE SELLER.

    Reply
    • debbie says:
      March 28, 2012 at 4:38 pm

      Andrew,

      Ron says, “Yes, but you should follow your attorney’s lead here.”

      Reply
      • Mario Jackson says:
        June 18, 2014 at 3:32 am

        hjey Debbie is the lease option to buy the contract to use with seller if so from that point on do I use the assignment of lease contract to assign my leasing rights to a cash buyer

        Reply
  6. Teresa Boss says:
    January 26, 2012 at 5:19 am

    This form has some discrepancies with the one in the “Control without Ownership” manual.

    #17 is different and #18 actually refers to a Alberta Real Estate Association.

    Can’t use it.

    Reply
    • Marcos Acevedo says:
      January 29, 2012 at 7:56 pm

      I just changed my form to fit my area. It seems to work ok.

      I believe the entire this is just one part of the entire “ACTS” program. I use this if the sellers just won’t deed me the property, but I want to stay in the deal.

      Reply
  7. Marcos Acevedo says:
    January 29, 2012 at 8:00 pm

    ***Correction**
    I believe this is just one part of the entire “ACTS” program. I only use this form if the seller just will not deed me the property but I wan to stay in the deal to cash in on future equity.

    Reply
  8. Des Taylor says:
    February 19, 2012 at 2:50 am

    In Clause 18: Where this refers to Alberta Real Estate Association and AREA you should change this to your own REA, so for Florida you would replace this with Florida Association of Realtors (FAR) and the Florida Bar Association (BAR) contract – (FARBAR)Contract. So Cluse 18 in Florida would read:

    (18) CLOSING DETAILS, COSTS AND PRORATIONS: the closing shall proceed according to the most recent version of the Florida Association of Realtors (FAR) and the Florida Bar Association (BAR) contract – (FARBAR) Contract and such contract is hereby incorporated by reference. If there is a conflict between this lease option and the FARBAR contract, the FARBAR contract shall prevail.

    Reply
  9. Des Taylor says:
    February 19, 2012 at 2:52 am

    Clause 20 needs some editing too as this agreement is from ALberta it needs to be changed to USA English so the word solicitor needs to be replaced with Attorney, so it would read like this;

    (20) In the event this agreement is placed in the hands of an attorney for enforcement the prevailing party shall be entitled to recover party costs as well as legal fees on an attorney and his own client basis.

    Reply
  10. Des Taylor says:
    February 19, 2012 at 2:53 am

    It would be great if the editor of this site could read these comments and confirm them as correct

    Reply
    • Debbie says:
      March 28, 2012 at 4:30 pm

      Des, you are correct. This form is a general form and everyone should follow the lead of his/her attorney for your specific area.

      Thanks!

      Reply
  11. Des Taylor says:
    February 19, 2012 at 3:31 am

    Hi everyone, having gone over the course notes again I can see this is what we were told:

    You use Number 1 when you are assigning and you use number 2 when you are sandwich leasing.

    1) Has a table of Contents and is entitled REAL PROPERTY POSSESSION AND LEASE AGREEMENT (this page)
    2) No Table of Contents and is entitled LEASE AGREEMENT WITH OPTION TO PURCHASE REAL ESTATE (This page)

    My question to Ron’s team is: “How do you handle clause 19 about assignment and subletting if we are assigning it to the tenant buyer as it says it is not assignable?”

    Reply
    • Mr. Ross says:
      June 11, 2012 at 3:23 am

      good work brother. your one sharp cookie

      Reply
    • Fernando Calderon says:
      July 15, 2013 at 6:10 pm

      Hi Des or anyone that knows the answer to my question:

      Why does this agreement (LEASE AGREEMENT WITH OPTION TO PURCHASE REAL ESTATE) has an assignment clause (18)? Are we allowing the Tenant/Buyer to assign his/her contract?

      I though that we (as investors) would only get that clause, so we can place a tenant, but why would we allow the Tenant/Buyer to do the same?

      Reply
  12. Michael Shirley says:
    February 23, 2012 at 7:50 pm

    in paragraph 16. taxes, it refer to paragraph 14 not 15.

    Reply
  13. Vanetta Robinson says:
    March 1, 2012 at 11:37 pm

    Thanks for tips everyone… Looking more closely @ forms now!!!

    Reply
  14. Quentin/Kristina Freeman says:
    March 19, 2012 at 8:37 pm

    Just FYI, Ron uses the same lease option agreement on an ACTS deal as he does with a sandwich lease.

    Reply
    • Quentin & Kristina Freeman says:
      March 21, 2012 at 4:45 pm

      Even so, I don’t see how you can use this in an ACTS deal. It also doesn’t have a clause disclosing that the intention is to buy at the loan balance at the time of purchase. Has anyone bought the ACTS program?

      Reply
      • Debbie says:
        March 28, 2012 at 4:34 pm

        Quentin, you will not use the same forms. The Lease Agreement with Option to Purchase Real Estate is for a sandwich lease only, not an ACTS deal.

        Ron’s weekly lesson video this week will address all of these questions. Please be sure to tune in! Thanks!

        Reply
  15. Mike Organek says:
    March 26, 2012 at 2:43 am

    I have’nt seen an ACTs program anywhere on the website.

    Reply
  16. Debbie says:
    March 28, 2012 at 4:36 pm

    Hi Everyone,

    Please be sure to catch Ron’s Lesson 51 this week as he is specifically addressing these questions.

    Thanks!

    Reply
  17. Rance Barclay says:
    April 3, 2012 at 8:02 pm

    This is rediculas. Why don’t we have a resource file for all the ACTS forms in one place.
    It took me a hour to try and figure out what form to use because there are so many.
    Then I spent a hour editing it, and trying to figure out how to put page numbers on the bottom. Then when I tried to print, “the font was awfull so I spent another hour on that. I have 2 or 3 hours into this one Option to Purchase agreement and now I am being told this is the wrong form to have the seller use for my first ACTS deal.
    If I have to pay $59.00 a month I think it should be a easy user friendly format or it should be almost free until the kinks get worked out

    Reply
    • Max Lamriben says:
      June 25, 2017 at 4:10 pm

      I agree with you Rance. It would be nice if it were organized by ‘Buying’ or ‘Selling’, then maybe by the type of deal ‘Subject-To’, ‘Lease Option”, and ‘Seller Financing’.

      Reply
  18. Mr. Ross says:
    May 24, 2012 at 3:19 am

    I saw 3 of these at work today

    Reply
  19. Mr. Ross says:
    June 11, 2012 at 3:28 am

    The form is good (not perfect)but your attorney should still review it so why worry about it ..make the need correction and save a copy to your computer

    Reply
  20. Arthur Hardy says:
    August 10, 2012 at 6:14 pm

    Great stuff!

    Reply
  21. Cresencio Mandujano says:
    September 7, 2012 at 5:10 am

    Ron, Thank you for this form. It very complete

    Reply
  22. Cresencio Mandujano says:
    September 7, 2012 at 5:16 am

    Rance Barclay I READ FEW post where you are always complainig for the $ 59 you pay, you forget all the information the we have. go to a attorny and ask how much he charge you for one form you will be sorprice

    Reply
  23. Peggy Atwood says:
    October 9, 2012 at 5:11 pm

    Has anyone found the correct ACTS agreement with Table of Contents?

    Reply
  24. Sharon Collins says:
    October 11, 2012 at 12:15 pm

    Good Stuff Thanks

    Reply
  25. James Noullet says:
    October 25, 2012 at 5:02 pm

    thanks again Ron

    Reply
  26. Mike Minnihan says:
    October 28, 2012 at 2:14 pm

    Just to be perfectly clear this is the form to use if you are doing a sandwich lease and staying in the deal.

    You want to stay in the deal only of you’ve got a reasonable spread in equity and/or a reasonable spread in monthly payments.

    It’s better to have both free equity and a good monthly spread.

    Reply
  27. Michael Minnihan says:
    November 10, 2012 at 2:31 pm

    If the seller wants their attorney to review the agreement, make sure to give the seller a BLANK form.

    Also tell the seller ‘Have your attorney review the form to make sure everything is legal on it’.

    That puts in the mind of the seller that the seller’s attorney is going to review it just to make sure it is legal NOT as to whether or not it is a good deal.

    Reply
  28. Chris Harris says:
    December 15, 2012 at 12:26 am

    What if you are in a state where you can’t assign a lease contract and the property has not much equity or monthly payment spread? Is it by default going to be a sandwhich lease or does it become a dead deal?

    Reply
  29. Corey Wolff says:
    January 28, 2013 at 2:55 am

    I have no idea what to include for section # 18 of this agreement. Please provide some guidance. Thanks

    Reply
  30. Dwight Glasco says:
    February 27, 2013 at 11:20 am

    I just bought a house subject to. Is this the agreement I use to install my tenant-buyer?

    Reply
  31. Joseph Mendola says:
    March 20, 2013 at 1:03 am

    The in option agreement for ACTS, it has a space for a price.But it does not have any language about the purchase price being the balance of the mortgage when option is ecercised. Wgere do i put that language in the option contract?

    Reply
  32. Roger Young says:
    May 16, 2013 at 6:30 am

    If you’re going to option property you better have a good form.

    This Option to Purchase Real Estate Agreement is the best. All you need is in the form.

    Thanks Ron!

    Reply
  33. Wally Cook says:
    May 27, 2013 at 11:30 am

    Hi Ron, Thank you for this form. It very complete.

    Reply
  34. John Walton says:
    August 5, 2013 at 3:42 pm

    Dwight, I know it’s late, but since now one has replied to you I will. In the manual Ron uses the Lease Agreement with Option to Purchase Real Estate when buying, and the Real Property Possession and Lease Agreement when selling. So the second would be the one that I would use when selling since you are staying in, just like a sandwich lease. See page 77 in the manual.

    Reply
  35. Steven Stockmal says:
    August 6, 2013 at 11:30 pm

    Thanks Ron for these forms for us to use. I just used this one for a sandwich lease and it worked great.

    Reply
  36. James Freeman says:
    November 9, 2013 at 11:11 pm

    Hey Ron i am trying to print this form from my doc that is on my computer please let me know how. Thank you

    Reply
  37. James Alanis says:
    February 1, 2014 at 9:20 pm

    So excited have my 1st sandwich deal with a free and clear home. thanks Ron.

    Reply
    • Donnell Gardner says:
      February 11, 2018 at 4:47 pm

      did you give the seller a deposite/down payment, if so, where did you put that amount on the contract. And how did you word (14) of the lease option contract?

      Reply
  38. Pedro Prada says:
    July 26, 2014 at 1:04 pm

    Can anyone confirm WHY the agreement does not have the CREDIT FOR DOWNPAYMENT Exhibit D Available?

    Is it because its illegal under Dodd Frank?

    Please confirm

    Reply
  39. Ronald Forbes says:
    August 29, 2014 at 9:02 am

    Ron,

    Thanks for making these available. It is always great to have all of the forms available and easy to find when I need one.

    Working on 12th deal – having forms available is great.

    Thanks again for all you do for the Goal Club Member.

    Reply
  40. Shay Lance says:
    September 2, 2014 at 12:45 am

    Love being able to retrieve forms so easily. Tx!

    Reply
  41. Bruce McAdams says:
    September 8, 2014 at 7:27 pm

    Does anyone at Ron’s Gold Club proof these docs? There are so many holes in them that we have to redo many of the forms before they are usable. Try reading the very first paragraph of this document.

    Further there is no place for the option fee/deposit, nor does it allow for the mortgage paydown during the lease portion of the agreement.

    Reply
  42. Jason Williams says:
    October 10, 2014 at 8:28 pm

    I’m not quite sure about this form. It doesn’t have a place to allow for the ACTS buyer’s purchase price. Maybe combine this form with the Option agreement??

    Reply
  43. Elliott Days says:
    February 8, 2015 at 6:36 pm

    I am looking for the form that is ACTS but I am not staying in the deal. Is this the same one because I am having some challenges finding the short form for ACTS

    Reply
  44. Greg Morris says:
    February 12, 2015 at 7:43 pm

    Great information as always. I can’t wait until the next lesson.

    Reply
  45. Jeffrey Richman says:
    July 26, 2015 at 4:29 pm

    Short and to the point. No extended, long-winded Agreements, I like it!

    Reply
  46. Jeffrey Richman says:
    July 28, 2015 at 8:56 am

    Hi Ron,

    I am now emailing this to my attorney to see if it conforms with North Carolina law and if it doesn’t, what needs to be done so that it does.

    Thank you!

    Reply
  47. Carl Mullin says:
    July 30, 2015 at 9:19 am

    I haven’t made it to the actual class yet but after a little hunting around I finally put the pieces together for a L/O contract that I’ll stay in and sandwich. The resources are set up very well and with a little thought can make drawing up contracts a cinch.

    Reply
  48. Whiling Quan says:
    October 8, 2015 at 5:35 pm

    Hi Ron,
    This is Will Quan, I am having some diffiiculty locating the; Lease Option contracts. I have tried numerous time, with
    no avail… I am Gold Club Mem… Thank you.

    Reply
  49. Quang Vu says:
    November 1, 2015 at 5:12 pm

    This Short Form L/O Agreement with Sellers is not the same as an updated one passed out at Quick Start Real Estate Training early October 2015, last month. This form has no Title and some contents are slightly differs. Please advise. Thank you Ron and Team !!!

    Reply
  50. Ron Caruthers says:
    December 10, 2015 at 2:11 pm

    Hahaha……I keep getting confused cause they keep changing the names of the forms.

    sigh

    I’ll figure it out one of these days.

    Reply
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