Is an electronic signature valid?

Yes. Under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA (adopted by most states), electronic signatures carry the same legal effect as handwritten ones provided intent, consent, attribution, and record retention requirements are met.

Do I need to notarize?

Not always. Many jurisdictions require notarization for deeds and certain conveyances; witness requirements vary. For remote notarization, check state RON rules. When present, notarization aids recording and title clearance; consult a title company or attorney for state-specific guidance.

Can I e-sign and notarize remotely?

Possibly: Remote Online Notarization (RON) is authorized in most states with identity-proofing and audio-video recording requirements. Confirm permanent RON status and retention rules with the state notary commission before relying on remote notarization for recording or closing documents.

What happens if party names mismatch?

Name mismatches between contracts, identification, or title records can delay closings, prevent mortgage approval, and create enforceability issues. Correct inconsistencies before signing, use legal entity names, and consider notarized affidavits or corrected exhibits to align records for title searches and lender review.

How do I cancel or revoke?

Cancellation depends on contract terms: exercise of termination clauses, written mutual release, or default remedies specified in the agreement. If an option fee was paid, review forfeiture clauses. For executed electronic agreements, follow amendment or rescission procedures and retain evidence of consent or withdrawal.

Are e-sign records admissible?

Yes; courts generally admit electronic records when they satisfy ESIGN/UETA criteria (intent, consent, attribution, retention). Maintain a complete audit trail—timestamps, IP, signer identity—and preserve the original signed file format to support admissibility in litigation or title disputes.

Electronic Signature
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Lease Purchase Agreement

Lease Purchase Agreement

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OPTION AGREEMENT TO PURCHASE PROPERTY

This Option Agreement (the “Agreement”) is dated . It is between , whose address is (referred to as “Seller”), and , whose address is (referred to as “Buyer”).

1. In consideration of (the “Option Payment”), the receipt of which is acknowledged, Seller grants to Buyer an option to purchase the property located in County, , described in Exhibit “A” (the “Property”) to the Purchase Agreement attached to this Option Agreement as Exhibit “B,” subject to the terms and conditions set forth in this Option Agreement (the “Option”).

2. The term of the Option (the “Option Term”) shall commence on the date of the Option Agreement and shall terminate on , subject to extensions described below. Buyer may extend the Option Term to by paying the sum of to Seller within the initial Option Term. That sum shall be added to and made a part of the Option Payment.

3. Buyer may exercise the Option by giving written notice of its intent to exercise the Option to Seller no later than the expiration of the Option Term, as it may be extended, and by concurrently paying to the Escrow Agent to be selected by Buyer, the Earnest Money as provided in the Purchase Agreement.

4. If Buyer exercises the Option within the Option Term, as it may be extended, the Option Payment, as well as the Earnest Money, shall be applied against the Purchase Price at the Closing, and Seller shall sell and Buyer shall purchase the Property in accordance with the provisions of the Purchase Agreement. It shall not be necessary for Buyer and Seller to execute the Purchase Agreement, which is incorporated into this Option Agreement by reference. The date of the Purchase Agreement shall be the date of Buyer’s notice of exercise of the Option. All defined terms in the Purchase Agreement are incorporated into this Option Agreement by reference, regardless of whether or not Buyer exercises the Option.

5. If Buyer does not exercise the Option within the Exercise Term, as it may be extended, this Option Agreement and the Option shall terminate and neither party shall have any further rights or obligations under the Option Agreement, except that Seller shall be entitled to retain the Option Payment as consideration for the grant of the Option.

6. This Option Agreement along with the attached Exhibit “A,” and the Purchase Agreement, supersedes all prior discussions and agreements, oral and/or written, between Seller and Buyer with respect to the Property and all other matters contained in this Agreement, and constitutes the sole and entire agreement between Seller and Buyer with respect to the Property. This Option Agreement may not be modified or amended unless the amendment is set forth in writing and signed by both Seller and Buyer.

7. All Notices must be in writing and be given or delivered as provided in the Purchase Agreement.

Seller and Buyer have executed the Option Agreement as of the date set forth above.

Seller

Buyer

(Acknowledgments)

Exhibit “A”: Description of Property

Exhibit “B”: Purchase Agreement

What a Lease Purchase Agreement Covers

A Lease Purchase Agreement is a legally binding contract that combines a lease of real property with an option or obligation to purchase the same property at a later date. It sets out the lease term, monthly payments, allocation of maintenance and taxes, the purchase price or formula for determining it, and the conditions and deadlines for exercising the purchase option. Lease purchase agreements are used to bridge financing gaps, provide buyer occupancy during qualification, and allocate responsibilities between tenant-buyer and seller during the option period.

Why parties use a Lease Purchase Agreement

Use a Lease Purchase Agreement to secure buyer occupancy while preserving the right to purchase, clarify payment and repair responsibilities, and document the option price and exercise timeline. It reduces uncertainty for both parties and creates enforceable expectations when properly executed under U.S. e-signature laws.

Who commonly completes this agreement

Typical users include tenant-buyers, sellers, real estate brokers, and attorneys involved in lease-to-own transactions and lenders.

Tenant-buyers: Individuals seeking home ownership who need time to qualify for a mortgage.
Sellers: Property owners who want rental income and a buyer committed to purchase later.
Real estate pros: Brokers and attorneys managing terms, disclosures, and compliance across jurisdictions.

Use professional review to confirm local requirements, ensure enforceable terms, and reduce post-closing disputes and liabilities.

Essential sections to include in a professional agreement

Core sections of a professional Lease Purchase Agreement define purchase option, lease terms, payment structure, contingencies, closing mechanics, and remedies.

Option Terms

Specify whether the purchase right is an option or an obligation, state the purchase price or calculation method, include any option fee, and set the deadline and exercise procedure.

Lease Provisions

Define lease term, rent amount, payment due dates, security deposit treatment, prorations, late fees, maintenance obligations, and which party covers utilities and property taxes and insurance.

Inspections & Repairs

Require pre-purchase inspections, allocate responsibility for repairs during lease, set cure periods for defects, and specify which repairs affect purchase price or option validity terms.

Financing Contingency

If buyer financing is required, detail the contingency, timelines for mortgage approval, cooperation on loan documentation, and remedies if financing is denied or delayed contractually.

Closing Mechanics

Describe closing location, who arranges title and escrow, allocation of closing costs, proration of taxes and utilities, required documents, and conditions precedent to transfer execution.

Default & Remedies

List events of default, notice and cure procedures, option forfeiture conditions, liquidated damages or rent credits, specific performance rights, and procedures for eviction or judicial remedies.

Step-by-step: completing the agreement

Complete a Lease Purchase Agreement by following these sequential steps to establish lease, option, and closing mechanics clearly.

01

Prepare Draft: Collect property details and purchase terms.
02

Negotiate Terms: Agree on option price, rent credits, and repairs.
03

Execute Agreement: All parties sign; notarize if required.
04

Record/Close: Complete closing steps, transfer title upon purchase.

Configuring an online signing workflow

Configure an online workflow to collect signatures, manage payments, and route documents for approval efficiently.

Field	Configuration
Signer Authentication	Email link, optional SMS code
Signature Type	Click-to-sign or drawn signature on mobile or desktop
Document Fields	Date, initial, signature, and conditional fields
Notifications	Email notifications and reminder scheduling

Typical execution and routing flow

Standard routing for Lease Purchase Agreements moves from draft to execution, then to escrow and final closing.

Upload Document: Add finalized draft to the signing platform.
Assign Signers: Enter signer names and set signing order.
Authenticate: Use email, SMS, or stronger KBA as needed.
Complete & Store: Capture audit trail and save executed copy.

Platform and compliance checklist

Validate platform integrations, file formats, and authentication available before sending documents to external parties at scale.

Supported Formats: PDF, DOCX, or editable templates
Integrations: Salesforce, NetSuite, Google Workspace
Auth Methods: Email, SMS code, KBA, SSO

Key security and compliance considerations

In-Transit Encryption: TLS 1.2 and 1.3

At-Rest Encryption: AES-256 encryption for stored data

Certifications: SOC 2 Type II and ISO 27001

Regulatory Compliance: ESIGN, UETA, HIPAA with BAA available

Audit Trail: Timestamps, IP, and action history

Access Controls: SSO, role-based permissions, and 2FA

Quick vendor pricing and feature comparison

Compare basic pricing and feature availability for eSignature vendors to support Lease Purchase Agreement workflows and compliance needs.

	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	No	No	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No envelope cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Common preparation mistakes to avoid

Failing to specify option exercise procedure or deadline leads to disputes and potential loss of rights if a notice is late or improperly delivered.
Using vague purchase price language or an unclear pricing formula invites litigation and complicates lender underwriting and appraisal processes at closing.
Omitting title and lien warranty details can expose buyer to unresolved encumbrances and increases closing delays and costs.
Incorrectly completed signatures, missing dates, or inconsistent party names may make the agreement unenforceable or trigger re-execution requirements.

Key risks and potential penalties

Option Forfeiture: Loss of option fee and purchase right

Unenforceable Clause: Ambiguous terms may void obligations

Title Defects: Buyer may face liens or clouds

Financing Failure: Buyer risk of losing deposit

Tax Implications: Capital gains and deduction issues

Regulatory Noncompliance: HIPAA or state law exposure when applicable

Frequently asked questions about Lease Purchase Agreements

Answers to frequent questions about drafting, signing, and enforcing Lease Purchase Agreements, including eSignature validity, notarization, and amendment procedures.

Need help? Contact support

Is an electronic signature valid?
Yes. Under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA (adopted by most states), electronic signatures carry the same legal effect as handwritten ones provided intent, consent, attribution, and record retention requirements are met.
Do I need to notarize?
Not always. Many jurisdictions require notarization for deeds and certain conveyances; witness requirements vary. For remote notarization, check state RON rules. When present, notarization aids recording and title clearance; consult a title company or attorney for state-specific guidance.
Can I e-sign and notarize remotely?
Possibly: Remote Online Notarization (RON) is authorized in most states with identity-proofing and audio-video recording requirements. Confirm permanent RON status and retention rules with the state notary commission before relying on remote notarization for recording or closing documents.
What happens if party names mismatch?
Name mismatches between contracts, identification, or title records can delay closings, prevent mortgage approval, and create enforceability issues. Correct inconsistencies before signing, use legal entity names, and consider notarized affidavits or corrected exhibits to align records for title searches and lender review.
How do I cancel or revoke?
Cancellation depends on contract terms: exercise of termination clauses, written mutual release, or default remedies specified in the agreement. If an option fee was paid, review forfeiture clauses. For executed electronic agreements, follow amendment or rescission procedures and retain evidence of consent or withdrawal.
Are e-sign records admissible?
Yes; courts generally admit electronic records when they satisfy ESIGN/UETA criteria (intent, consent, attribution, retention). Maintain a complete audit trail—timestamps, IP, signer identity—and preserve the original signed file format to support admissibility in litigation or title disputes.

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