Lease Purchase Option Payment Language

[Crystal W.]

Hi, all.  Have home on the market to sell and was approached to do a Lease-Purchase.  I understand the legalities, doing a 6 month lease with option to purchase, so don't need to take the conversation down that path, but had some questions regarding the nonrefundable option payment size and contractual language.

(1) What is a reasonable percent of purchase price to set as the option (note that it is a greater than $500k home)?

(2) Any sample language that has worked for you regarding nonrefundable option payment, that would be transferred at closing if sale goes through (or refunded, depending on how the deal works out,cash v. financing, etc).  I realize that makes it technically "refundable", but what we are trying to achieve is a true incentive to follow through with purchase.  We would keep the money if they didn't follow through, but will allow them to use it to fund closing or refund it to them post close.  Make sense?

Thanks for any and all advice.  This is really a one off deal for us, so want to ensure we use solid language.  We are proposing some language, but are going to vet it with a real estate attorney before we finalize.  I just like to see how others handle their unique situations to fully educate myself.