Can the agreement be signed electronically?

Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided intent, consent, attribution, and reliable record retention are met.

Is lender consent always required?

If the property is subject to an existing mortgage or deed of trust, obtain lender consent per loan documents; failing to do so can constitute default under the mortgage.

Do I need a notary or witnesses?

Deeds normally require notary acknowledgement for recording; witness requirements vary by state. Check county recorder rules and state law before execution to ensure recordability.

Should I record the lease or a memorandum?

Recording a lease memorandum protects tenant occupancy rights against subsequent purchasers; many parties record only a short memorandum to preserve privacy while providing notice.

How long should documents be retained?

Retain executed sale and lease documents for the full term plus statutory retention periods: IRS rules generally three years minimum and HIPAA six years where applicable.

What if parties disagree on post-closing repairs?

Include clear maintenance and repair allocation clauses and an inspection protocol tied to closing; if disputes arise, remedies and dispute resolution clauses define enforceable recovery paths.

Electronic Signature
Templates
Real estate
Lease Back Purchase Agreement

Lease Back Purchase Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

LEASE BACK PURCHASE AGREEMENT

This Lease Back Purchase Agreement ("Agreement") is entered into on by and between Buyer Name: ("Buyer") and Seller Name: ("Seller").

PARTIES AND CONTACT INFORMATION

Buyer - Full Legal Name Buyer - Mailing Address Buyer - Telephone Seller - Full Legal Name Seller - Mailing Address Seller - Telephone

PROPERTY IDENTIFICATION

Property Street Address Parcel / APN Number Legal Description

PURCHASE TERMS

Purchase Price: $ Earnest Money Deposit: $ Held By:

Financing Contingency: Buyer’s obligation is contingent upon obtaining financing under terms acceptable to Buyer. If contingency is not satisfied within days, Buyer may terminate and recover earnest money.

Inspection Period: Buyer shall have days from mutual acceptance to complete inspections and give written notice of any objection. Seller shall allow reasonable access for such inspections.

Closing Date: . Possession for the Buyer shall occur as set forth in the Lease-Back Terms unless otherwise agreed in writing.

LEASE-BACK TERMS

Seller shall lease the Property from Buyer pursuant to the following terms. Lease Term Commences: and terminates: .

Monthly Rent: $ payable in advance on the day of each month. Late fee: $ or of overdue amount.

Security Deposit

Use and Occupancy: Seller shall occupy the Property as Tenant under the lease-back. Seller shall not sublet or assign the lease without Buyer’s prior written consent. Holding over after termination shall constitute a month-to-month tenancy at a rate of and subject Tenant to liability for damages.

Utilities and Maintenance Responsibilities

Insurance: Tenant (Seller) shall maintain renter's insurance and name Buyer as an additional insured for liability arising from Tenant's occupancy where applicable. Buyer shall maintain property insurance for hazards to the structure. Parties shall exchange certificates evidencing required coverage within days.

DISCLOSURES

Lead-Based Paint Disclosure: Known lead-based paint hazards present: Yes No

Mold or Water Intrusion History: Yes No

Prior Structural Damage or Major Repairs: Yes No

If yes to any disclosure, describe below

DEFAULT, REMEDIES, AND INDEMNITY

Default by Tenant or Buyer shall entitle the non-defaulting party to pursue all remedies available at law or equity, including specific performance, termination, monetary damages, and recovery of reasonable attorney’s fees and costs incurred in enforcing this Agreement. Notice and cure periods required by law shall apply except as otherwise provided herein.

Indemnification: Each party shall indemnify and hold harmless the other party from and against claims, liabilities, losses, and expenses arising from that party’s breach of this Agreement, negligent acts, willful misconduct, or failure to maintain insurance as required.

NOTICES

All notices under this Agreement shall be in writing and sent to the addresses set forth below. Notice shall be effective upon personal delivery, nationally recognized overnight courier, or three (3) days after deposit in the U.S. mail, postage prepaid.

Buyer Notice Address Seller Notice Address

MISCELLANEOUS

Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to its conflicts of law principles.

Entire Agreement: This Agreement, including all attachments and written addenda executed by the parties, constitutes the entire agreement between Buyer and Seller and supersedes all prior negotiations and agreements concerning the Property.

Amendments: Any modification, amendment, or waiver of any provision of this Agreement must be in writing and signed by both parties.

ADDITIONAL TERMS

Additional Provisions / Addenda

Buyer Printed Name:

By:

Date:

Seller Printed Name:

By:

Date:

What a Lease Back Purchase Agreement Covers

A Lease Back Purchase Agreement is a combined real estate contract where an owner (seller) sells property to a purchaser and simultaneously leases the same property back from the buyer under defined terms. The document sets purchase price, closing mechanics, leaseback rent and term, security deposits, maintenance responsibilities, occupancy and delivery conditions, and remedies for default. It documents allocation of closing costs, prorations, and transfer of title while preserving short or long term occupancy by the seller. Parties commonly use this structure for liquidity, business continuity, or transitional occupancy needs.

Why this Agreement Matters for Sellers and Buyers

A Lease Back Purchase Agreement clarifies occupancy rights and financial terms while enabling sellers to access capital without vacating property. It reduces disruption, records obligations, and helps prevent disputes by establishing rent, term, insurance, and repair responsibilities in writing.

Who Typically Prepares and Signs This Agreement

Buyers, sellers, real estate brokers, title companies, and attorneys commonly prepare or review Lease Back Purchase Agreements before closing.

Owner-occupants converting equity to cash while retaining occupancy under agreed rent and term.
Investors acquiring property with immediate rent roll and leaseback income expectations.
Lenders or title companies requiring documented leaseback terms as closing conditions or escrow requirements.

Consult title and lending professionals early to identify required consents, recording steps, and escrow conditions before execution.

Step-by-step: Completing a Lease Back Purchase Agreement

Follow these steps to prepare, review, and close a sale with a concurrent leaseback, ensuring required consents and recordings are addressed.

01

Draft Agreement: Detail purchase price, lease rent, term, and obligations.
02

Lender Consent: Obtain mortgagee approval when property has existing financing.
03

Close and Fund: Execute deed and transfer funds through escrow or closing agent.
04

Record Documents: Record deed and any lease memorandum with county recorder.

Core elements to include in a professional agreement

A complete Lease Back Purchase Agreement balances transfer mechanics and the post-closing occupancy relationship; include specific clauses to reduce ambiguity and protect both parties.

Purchase Price

State the exact purchase amount, payment method, escrow instructions, and any adjustments or prorations at closing to avoid later disputes about funds due or credited.

Leaseback Rent

Define base rent, escalation method, payment schedule, late fees, and remedies for nonpayment to ensure predictable cash flow and enforceable tenant obligations.

Term and Possession

Specify lease start date, fixed term length, renewal options, early termination rights, and conditions for surrendering possession after the term expires.

Maintenance and Repairs

Allocate responsibility for routine maintenance, capital repairs, and compliance obligations such as code violations and environmental remediation to prevent cost-shifting disputes.

Insurance and Indemnity

Require property and liability insurance coverages, name parties as additional insured where appropriate, and spell out indemnity obligations for third-party claims.

Recording and Title

Describe deed recording, any lease memorandum to be recorded, title insurance commitments, and seller obligations to clear defects before or at closing.

Recommended digital workflow settings for online completion

Set up a clear signing order, authentication level, and recording notifications when using an eSignature workflow to close and deliver documents.

Field	Configuration
Signature Order	Seller \| Buyer \| Lender agent
Authentication	Email link plus SMS code optional
Notarization	RON enabled or in-person notary flag
Recording Flag	Notify title company after execution

Sharing, signing, and integration considerations

Decide how to distribute and sign documents, who must authenticate, and which systems need to receive copies.

File Formats: PDF, Word DOCX supported
Integrations: Salesforce, NetSuite, Google Workspace
Authentication: Email, SMS, or KBA

Confirm compatibility with your title company, escrow platform, and any county recording requirements before finalizing the signing process.

Where to send, file, or record executed documents

After execution, route copies to stakeholders, record required instruments with the county, and update escrow and lender files to complete the transfer.

Escrow / Closing Agent: Receives original funds and closing documents.
County Recorder: Records deed and lease memorandum.
Title Company: Issues title insurance and updates commitment.
Lender / Mortgagee: Receives consents and payoff instructions.

Security and compliance essentials for storing and signing

Encryption: TLS 1.2/1.3; AES-256 at rest

Access Controls: Role-based access and SSO

Audit Trail: Complete timestamped signing history

HIPAA BAA: BAA available for HIPAA workflows

Authentication: Email, SMS, KBA, or 2FA options

Retention: Immutable PDFs and exportable logs

Common legal and financial risks to avoid

Title Defect: May cloud ownership

Lease Ambiguity: Leads to disputes

No Lender Consent: Triggers mortgage default

Improper Notarization: Can invalidate recording

Late Recording: Creates priority risk

Tax Consequences: May affect basis

Frequent preparation errors and oversights

Using inconsistent party names between deed, lease, and closing statements can delay title insurance issuance and recording.
Failing to secure lender or mortgagee consent before closing risks triggering a loan default and potential acceleration of indebtedness.
Omitting a lease memorandum or failing to record the lease may complicate third-party notice and priority against future encumbrances.
Vague rent adjustment language or missing escalation formulas results in disagreements and potential litigation over payments.

Real-world examples of sale-leaseback arrangements

Below are two concise scenarios showing how parties structure lease back purchases and the outcomes they commonly achieve.

Retail Sale-Leaseback

A regional retailer sold a store to an investor to free capital while continuing store operations under a five-year leaseback with fixed annual rent increases.

The investor obtained immediate income and security.
Counsel prepared a lease memorandum recorded with the county, lender consent was secured, and the arrangement preserved retail operations while improving the seller's balance sheet.

Owner-Occupied Business

A manufacturing business sold its facility to an investor and signed a ten-year net leaseback to maintain production continuity.

The sale generated liquidity for equipment upgrades.
Detailed insurance and repair language prevented cost disputes, lender consent was obtained, and a rent escalation tied to CPI provided predictable cost planning for the operator.

eSignature vendor comparison for executing this agreement

Compare common vendor features and starting prices relevant to executing multi-party real estate agreements with electronic signatures and audit trails.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Frequently asked questions about execution and enforcement

Answers to common questions on enforceability, notarization, recording, and lender consent for Lease Back Purchase Agreements.

Need help? Contact support

Can the agreement be signed electronically?
Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided intent, consent, attribution, and reliable record retention are met.
Is lender consent always required?
If the property is subject to an existing mortgage or deed of trust, obtain lender consent per loan documents; failing to do so can constitute default under the mortgage.
Do I need a notary or witnesses?
Deeds normally require notary acknowledgement for recording; witness requirements vary by state. Check county recorder rules and state law before execution to ensure recordability.
Should I record the lease or a memorandum?
Recording a lease memorandum protects tenant occupancy rights against subsequent purchasers; many parties record only a short memorandum to preserve privacy while providing notice.
How long should documents be retained?
Retain executed sale and lease documents for the full term plus statutory retention periods: IRS rules generally three years minimum and HIPAA six years where applicable.
What if parties disagree on post-closing repairs?
Include clear maintenance and repair allocation clauses and an inspection protocol tied to closing; if disputes arise, remedies and dispute resolution clauses define enforceable recovery paths.

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