Can we generate a rental agreement with an option to buy without an option fee and still have the purchase price locked in for a 24 month period?

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Can we generate a rental agreement with an option to buy without an option fee and still have the purchase price locked in for a 24 month period?

We are renting a property from the owner who wants to sell. She has verbally agreed to a set price for a 24 month period and not open it to the market. We have agreed verbally that no option payment will be required and none of our monthly rent will be applied to a down payment. We also have agreed that if we cannot obtain financing in that 24 month period the deal is done. If we have this in writing and the agreement is fully executed will this protect all parties and make the agreement binding? Should we speak with a real estate attorney? In Kansas City, KS.

Asked on October 26, 2011 under Real Estate Law, Kansas

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you have a willing seller for the property you are writing about to sign documentation (a contract) where you as the tenants can enter into an option to buy the rental you are occupying at a set price without any amount to be paid for the option, you can do so.

I suggest that you have an attorney experienced in real estate matters assist you and the landlord seller in drafting the necessary option purchase agreement to protect your interests.

Good luck.


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