Legal Question in Real Estate Law in California

Re: Lease with option to buy!

The terms of any option would be based on whatever you and the owner are able to negotiate. Remember that an option to purchase real estate is one of the few contracts that must be in writing to be enforceable. All the terms should be set forth explicitly, including exactly how the option is to be exercised and the date or dates on or between which it can be exercised. The terms of the lease it is coupled with should be included, or incorporated by reference, and somewhere in the documents (lease or option) the parties should handle all questions as to the amount of rent, whether rent increases are permissible, the extent (if any) to which rentals apply to the option exercise price, and so on. You may benefit from retaining a real estate lawyer to help with negotiating and writing down the terms. You may want to have the documents recorded.