An equity residential lease is a lease agreement where the tenant leases a house from the lessor and pays a low monthly rent for a particular period of time, where the amount totals up to the cost of buying the house. Once that particular amount has been reached, the tenant has the right to property as he has paid the whole amount in installments. Equity residential lease is thus a lease agreement which has the provision for probable ownership in the future. Such rent-to-own agreements help the lessee as they don’t have to pay the entire amount of the house at once and can build credits over a period of time. The document must contain the names and address of all the parties and the amount to be paid every month.
Sample Equity Residential Lease:
This equity residential lease contract has been entered on March 13, 2012 by the lessor High Rise Real Estates and lessee Will Jones for a period of 2 years.
- Address: 302 Sunny Towers, Denver
- Rent p.m: $500
- Refundable security deposit: $1,000
- Notice period: 1 month
Terms and Conditions:
- The lessee shall pay the monthly amount as rent and shall have the right to use this property for residential purposes.
- Every month the lessee will receive credits of 2% which will added up and aid towards buying the house.
- The lessee has the option of not buying the property at the end of the term or if he fails to get enough credits
The undersigned hereby agree to the terms.
Signature (Lessor) Date
Signature (Lessee) Date