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Rent To Own Lease Agreement Template for Nigeria

A comprehensive legal document governed by Nigerian law that combines elements of both a lease agreement and a purchase agreement, enabling tenants to rent a property with the option to purchase it at a predetermined price within a specified period. The agreement details the rental terms, purchase option conditions, and how rental payments contribute to the eventual purchase price. It complies with Nigerian property law requirements, including the Land Use Act and relevant state-specific tenancy laws, while protecting both the landlord's and tenant's interests throughout the lease-to-own period.

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What is a Rent To Own Lease Agreement?

The Rent To Own Lease Agreement is a specialized contract used in Nigerian property transactions where traditional property purchase or standard lease arrangements don't meet the parties' needs. This hybrid document becomes relevant when property owners wish to offer tenants the opportunity to purchase the property while initially renting it, or when prospective buyers need time to arrange financing or assess the property's suitability for long-term ownership. The agreement, governed by Nigerian federal and state laws, includes specific provisions for rent payments, purchase option terms, maintenance responsibilities, and the eventual transfer of property ownership. It's particularly useful in Nigeria's dynamic real estate market where immediate property purchase may not be feasible for many prospective buyers, offering a structured path to ownership while providing security for both parties.

What sections should be included in a Rent To Own Lease Agreement?

1. Parties: Identifies and provides full details of the landlord/seller and tenant/buyer

2. Background: Outlines the context of the agreement, including property ownership and parties' intentions

3. Definitions: Defines key terms used throughout the agreement

4. Property Details: Comprehensive description of the property including address and registration details

5. Lease Terms: Specifies duration, rent amount, payment terms, and other lease conditions

6. Purchase Option Terms: Details the option to purchase, including purchase price and how rent payments contribute

7. Maintenance and Repairs: Outlines responsibilities for property maintenance and repairs

8. Insurance Requirements: Specifies required insurance coverage and responsibilities

9. Default and Remedies: Describes events of default and available remedies

10. Exercise of Purchase Option: Process and conditions for exercising the purchase option

11. Title Transfer Provisions: Requirements and process for transferring property title upon purchase

12. Governing Law: Specifies Nigerian law as governing law and relevant jurisdiction

13. Notices: Procedures for giving formal notices under the agreement

What sections are optional to include in a Rent To Own Lease Agreement?

1. Property Management: Include when a property manager is involved in administering the agreement

2. Utilities and Services: Include when there are specific arrangements for utilities or shared services

3. Subletting Provisions: Include if subletting might be permitted under certain conditions

4. Early Purchase Option: Include if early purchase is allowed before the standard option period

5. Property Development Rights: Include if tenant/buyer has rights to make improvements or modifications

6. Co-occupancy Rules: Include for properties where multiple occupants or shared spaces are involved

7. Special Conditions: Include when there are unique circumstances or requirements

What schedules should be included in a Rent To Own Lease Agreement?

1. Schedule 1 - Property Description: Detailed description of property, including boundaries and fixtures

2. Schedule 2 - Payment Schedule: Detailed breakdown of rent payments and purchase price calculations

3. Schedule 3 - Condition Report: Initial condition of property and inventory of included items

4. Schedule 4 - Purchase Option Calculations: Formula and examples of how rent credits apply to purchase price

5. Schedule 5 - Required Insurance: Detailed insurance requirements and minimum coverage amounts

6. Appendix A - Property Title Documents: Copies of relevant title documents and certificates

7. Appendix B - Floor Plans: Property floor plans and architectural drawings if applicable

8. Appendix C - Maintenance Schedule: Detailed maintenance responsibilities and schedules

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Nigeria

Document Type

Lease Agreement

Cost

Free to use

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