A lease purchase agreement is a contract where the lessee ultimately buys out the lease, by purchasing the object that has been leased. This is a convenient option for both lessor and lessee, as it allows them to profit by the lease and its eventual purchase. Through this process the lessee can also buy the property in much less price. Similarly, the lessor is assured of the sale of his property or item leased, and he can bargain for a good price as well. Thus, a lease purchase agreement must be written well so that the terms and conditions are clearly framed.
Sample Lease Purchase Agreement:
This is to notify all concerned that Mr. David Elias Pound [henceforth referred to as the lessee] shall buy out the car lease initiated between him and Mr. Sal Colroy [henceforth referred to as the lessor] on the 1st of June 2009 and supposed to terminate on 1st of June 2012. He shall purchase the item leased, a Volkswagen RS47, at a price of 1 million USD, calculated after the deduction of total monthly rents that will have been paid by the May 2012. The price thus calculated has taken into account the actual price of the leased car after considering inflation and other economic factors.
The terms and conditions of the lease purchase agreement must be read and understood well by both parties. All disputes arising out of the matter shall be referred to the civil court of New York.
Signature of lessor: _____________________________
Signature of lessee: ______________________________