Lease-Purchase and Lease-Option Forms
Q: I represent a buyer who would like to enter into a lease-purchase agreement for a house. The buyer and the seller just want to keep it simple, but I can’t find an NCAR standard form for it. Does NCAR have a standard form for it? If not, can we combine the Offer to Purchase and Contract (Form 2) with the Residential Rental Agreement (Form 410) to create a lease-purchase agreement?
A: NCAR does not have a standard form lease-purchase agreement, nor does NCAR have a standard form lease-option agreement or installment land contract. In fact, the Guidelines For Completing the Offer To Purchase and Contract (Form 2-G) specifically state that the Offer to Purchase and Contract is not to be used as a substitute for a lease-purchase agreement, lease-option agreement or installment land contract. None of NCAR’s standard forms are designed to be simply combined to create any of the aforementioned agreements, either. Real estate licensees should not attempt to do so, lest they engage in the unauthorized practice of law. Article 13 of the REALTOR® Code of Ethics requires REALTORS® to recommend that legal counsel be obtained when the interest of any party to the transaction requires it, and this is exactly such a situation. Refer the buyer to an attorney to draft an appropriate agreement.
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