Whenever a Landlord (owner of the house or residence) rents a residence to a Tenant and wishes to give the Tenant an option to purchase the rented premises, a written agreement should be used. Both Landlord and Tenant must sign it. The Agreement should set forth the terms of the lease and the option that is granted. Such a document is generally called a Lease or Rental Agreement with an "option to purchase". Such an option would allow the Tenant to purchase the property at a predetermined price within a predetermined time frame.

A written Lease Agreement is necessary when a Landlord rents out a property, because a Court will not enforce an agreement regarding property without a writing.

Some states require an inspection of the premises to be rented by the landlord and tenant either before the property is occupied by the tenant or before the lease is signed by either party. A joint inspection form, is useful to document the inspection and can help avoid problems or misunderstandings at the end of the lease term. Even if a state does not require a joint inspection, it is a good idea to complete one for your protection.

This Residential Lease Agreement with option to purchase can be used when you are renting property to someone and want to give them an option to purchase the property at a specified time for a pre-determined price. This agreement will also help to notify the Tenant of all of the terms and conditions of the rental, so that all parties knows of their respective responsibilities.

Some of the important provisions included in this Illinois Residential Lease Agreement with option to purchase are:

• Leased Premises and Term of Lease: Describes the property, the location, how it may be used and inspection of Premises;
• Lease Payments and Late Fees: States the amount of the rent, the manner and timing of rental payments, and penalties for late payments or insufficient funds;
• Security Deposit: Sets forth the amount of the security deposit, and conditions for the return of the deposit;
• Default: Explains the events of default and both physical and financial remedies;
• Covenant of Quiet Enjoyment: Explains that the tenant may peaceably and quietly enjoy the premises by fulfilling his or her obligations;
• Use of Premises: Sets forth how the premises may be used and how many occupants may reside there.
• Assignment and Subletting: Sets forth the conditions under which, if any, the tenant may assign or sublet the property;
• Possession of Property, Utilities, Pets and Treatment: Describes when Tenant may take possession of the property, who is responsible for utilities and whether pets are allowed. It also covers maintenance of, damage and alterations to the property;
• Abandonment and Absences: Sets forth when the property may be considered abandoned or what happens in the even of extended absences by the tenant;
• Insurance: Sets forth the insurance requirements;
• Option to purchase: Landlord gives Tenant and exclusive right to purchase the property at a specified time for a pre-determined price.

Protect your Rights and Property, by using our professionally prepared up-to-date forms.

This form packet prepared by lawyers includes:

1. Instructions and Checklist for Residential Lease Agreement
2. Information about Residential Lease Agreements
3. Illinois Residential Lease Agreement
4. Inspection Checklist
5. Lead Paint Disclosure

State Law Compliant: This form complies with the laws of Illinois