Posted by David C. Cooper on May 29, 2007 at 18:27:09:
Basically, you write up two contracts. The first is a purchase option which you will pay her a non refundable down payment on the property for. The Option contract details the purchase price and time limit to exercise the option. The second is a lease/rental agreement that spells out your monthly rental payments and obligations such as maintenance, etc.
For more details you can use the search function on this site and reat through the “How-to” articles.
I would also recommend a book I just read by Wendy Patton about “Lease Options and Subject Tos.”