California Rent-to-Own Lease Agreement Template

A California rent-to-own lease agreement is a contract between a landlord and tenant that allows the tenant to rent a property with the option to buy it at a set price. If the tenant chooses to buy, the lease becomes a purchase contract.

Last updated February 16th, 2025

A California rent-to-own lease agreement is a contract between a landlord and tenant that allows the tenant to rent a property with the option to buy it at a set price. If the tenant chooses to buy, the lease becomes a purchase contract.

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CA Leasing Laws 📜

Landlord-Tenant Relationship Laws: Civil Code – Division 3, Part 4, Title 5, Chapter 2 (Hiring of Real Property)

Rent-to-Own / Purchase Agreement Laws: Civil Code – Division 2, Part 4 (Acquisition of Property)


Sample California Rent-to-Own Lease Agreement Template

PDF | Word

CALIFORNIA LEASE TO PURCHASE OPTION AGREEMENT

This agreement is between [Seller/Landlord] and [Buyer/Tenant], signed on [date], regarding the property at [address] in , [county, state]. It outlines the terms for renting with the option to buy.

Rent: Monthly rent: $ [amount], due on the [day] each month.

Security deposit: $ [amount] (refundable upon lease end if terms are met).

Utilities:

Tenant covers: [list utilities, e.g., water, electricity].
Landlord covers: [list utilities].
Interruptions to services are not grounds for tenant claims.

Tenant Responsibilities:
Return property in current condition (normal wear allowed).
No subleasing, alterations, or hazardous activities without approval. Comply with all laws.
No pets allowed.

Option to Purchase:

Starts: [date], Ends: [date].

Buyer must notify seller in writing and propose a closing date.

Option Fee: Non-refundable fee: $ [amount]. Credited toward purchase price at closing if terms are met.

Purchase Price: Total price: $ [amount]. Partial rent payments may be credited. Closing:

Buyer handles all closing costs except prorated property taxes. Financing:
Buyer is responsible for securing financing; the seller makes no guarantees. Defaults:
Breach of this agreement or the lease results in forfeiting option rights and fees.

Other Terms:

This option is exclusive and non-transferable. No commissions will be paid.
Agreement is governed by the laws of [state], disputes in [county, state].

Signatures:

All parties sign below to acknowledge and agree to these terms.

Seller/Landlord: ___________________________________

Date: ___________________________________

Buyer/Tenant: ___________________________________

Date: ___________________________________

Witness/Agent: ___________________________________

Date: ___________________________________