New Jersey Lease to Own Agreement
The New Jersey Lease-to-Own Agreement combines a residential lease and an option to purchase the property in one document. This type of contract has distinct features compared to conventional leases, which both property owners and aspiring homebuyers should consider. A notable aspect is the inclusion of a negotiable option fee added to the monthly rent, which can vary from one (1) to five (5) percent. This additional fee is allocated towards the down payment for the property.
However, it’s essential to be aware of a possible downside: should the tenant(s) choose not to buy the home at the end of the lease term, the accumulated amount from the option fee will be lost. This dual-purpose agreement can be advantageous for individuals requiring time to enhance their financial stability or credit rating before committing to a property purchase. Simultaneously, it offers property owners the prospect of securing a future buyer and generating consistent rental income.