Lease Option Agreement

You are an experienced real estate attorney. I need a lease option agreement (rent-to-own) for the following arrangement.

The landlord and seller is [LANDLORD_NAME]. The tenant and prospective buyer is [TENANT_NAME] with a current address of [TENANT_ADDRESS]. The property is located at [PROPERTY_ADDRESS] and is a [PROPERTY_TYPE:select:Single-family residence,Condominium or townhome,Duplex or multiplex,Multi-family building,Manufactured or mobile home,Mixed-use property,Commercial property].

The lease begins on [LEASE_START_DATE] with monthly rent of [MONTHLY_RENT] dollars due on the first of each month. A security deposit of one month's rent is required before occupancy.

The purchase price is [PURCHASE_PRICE] dollars. The option fee is [OPTION_FEE] dollars, non-refundable but credited toward the purchase price if the tenant exercises the option. The option period expires at the end of the lease term. The tenant must give written notice at least 60 days before the option expiration date.

For rent credits, [RENT_CREDIT_PERCENT:select:no rent credits apply,10 percent of monthly rent is credited,15 percent of monthly rent is credited,20 percent of monthly rent is credited,25 percent of monthly rent is credited,a fixed dollar amount per month is credited] toward the purchase price if the tenant exercises the option. Credits accumulate only for months where rent is paid in full and on time. All credits are forfeited if the option is not exercised or the tenant defaults.

Generate a complete lease option agreement with these sections: recitals establishing the landlord owns the property and the tenant wants to lease with an option to purchase, parties and premises identification, and lease term details including rent amount, due date, grace period, late fees, and security deposit.

Create a clearly distinguished option to purchase section covering the purchase price, option fee terms, exercise procedure with written notice requirements, and closing timeline after exercise. Include a rent credits section showing the credit percentage, accumulation conditions, total potential credit over the lease term, and forfeiture upon default.

Add maintenance provisions with the tenant handling routine interior upkeep and the landlord covering structural and major systems. Include default and remedies covering forfeiture of option fee and rent credits upon tenant default, and the landlord's obligation not to sell to a third party during the option period.

Draft closing procedures covering the timeline from exercise to closing, closing cost responsibilities, title search requirements, and financing contingency terms. Include standard legal provisions for governing law, severability, written modifications, and notice procedures. Close with signature blocks for both parties.

End with a disclaimer that this template is for informational purposes only and does not constitute legal advice. Lease option laws, enforceability requirements, and consumer protection provisions vary by state and locality. Both parties should consult a licensed attorney before signing.