This Lease to Purchase Option Agreement is used where a lease of real property offers the lessee an option of purchasing the premises at a specified time, for a pre-determined price. The agreement requires the lessee to provide the lessor with option consideration, similar to a down payment, which secures the property for purchase at a later date. The lessor is prohibited from listing the property for sale during the contract period. If the lessee wishes to exercise the option, he or she must notify the lessor, and a portion of the monthly lease payment is applied to the purchase price. This agreement is useful for property owners located in Pennsylvania to sell property to buyers with bad credit or who cannot obtain home financing.
Lease to Purchase Option Agreement ocstoc Legal Agreements This Lease to Purchase Option Agreement is intended to be used where a provision is included offering the Lessee an option of purchasing the Premises at a specified time, for a pre-determined price. ALL INFORMATION AND FORMS ARE PROVIDED “AS IS” WITHOUT ANY EXPRESS OR IMPLIED WARRANTY, INCLUDING AS TO LEGAL EFFECT OR COMPLETENESS. They are for guidance and should be modified by you or your attorney to meet your specific needs and the laws of your state. Use at your own risk. Docstoc, its employees or contractors who wrote or modified any form, are NOT providing legal or any other kind of advice and are not creating or entering into an Attorney-Client relationship. The information and forms ® are not a substitute for the advice of your own attorney. Subject to our Terms of Service (http://www.docstoc.com/popterm.aspx?page_id=15). See back cover page and read more here (http://www.docstoc.com/popterm.aspx?page_id=114) for additional disclaimers and more. This document is not approved, endorsed by, or affiliated with any State, or governmental or licensing entity. Entire document © Docstoc, Inc., 2010, 2011 © Copyright 2011 Docstoc Inc. registered document proprietary, copy not 1 Attorney Drafted LEASE TO PURCHASE OPTION AGREEMENT This Lease to Purchase Option Agreement (“Lease”) is made on ____ [Month] ____ [Date], 20____ by and between ________________________________ [Instruction: Insert the name of Lessor](hereinafter termed as the “Lessor”) and ________________________________ [Instruction: Insert the name of Lessee](hereinafter termed as the “Lessee”). The Lessor and the Lessee may individually be referred to as the “Party” and collectively be referred to as the “Parties”. WHEREAS, the Lessor is the sole owner of certain real property being, lying and situated at [Instructions: Insert address of Premises] ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ (hereinafter termed as the “Premises”) agreed upon the following terms and conditions: 1. Option to Purchase. In consideration of the Lessee meeting all obligations as stated herein under this Lease, the Lessor hereby grants the Lessee an “Option to Purchase”. 2. Lease Term. Lessee understands that time is of the essence in this Lease. The Lease will start on ____ [Month] ____ [Date], 20____ and will end on ____ [Month] ____ [Date], 20____. 3. Notice Required Exercising Option. To exercise the Option to Purchase, the Lessee must deliver to the Lessor written notice of Lessee’s intent to purchase. In addition, the written notice must specify a valid closing date. The closing date must occur before the original expiration date of the Lease Agreement, or the date of the expiration of the Lease designated in Paragraph 2, whichever occurs later. 4. Option Consideration. As consideration for this Lease, the Lessee shall pay the Lessor a non-refundable fee of ________ ($___) [Instruction: Insert the consideration amount, e.g., Fifty dollars ($50)], receipt of which is hereby acknowledged by the Lessor. This amount shall be credited to the purchase price at closing if the Lessee timely exercises the Option to Purchase. 5. Purchase Price. The total purchase price for the Premises is _______ ($______) [Instruction: Insert the consideration amount, e.g., Fifty thousand dollars ($50,000)]. Provided that the Lessee timely executes the Option to Purchase, is not in default of the Lease, and closes the conveyance of the Premises, Lessor shall credit towards the purchase price at closing the sum of _____ ($______) [Instruction: Insert the closing amount, e.g., Fifty dollars ($50)] from each monthly lease payment that the Lessee timely made. However, the Lessee shall receive no credit at closing for any monthly lease payment that the Lessor received after the due date specified in the Lease. © Copyright 2011 Docstoc Inc. registered document proprietary, copy not 2 6. Remedies upon Default. If the Lessee defaults under this Lease, then in addition to any other remedies available to the Lessee at law or in equity, the Lessor may terminate this Option to Purchase by giving written notice of the termination. If terminated, the Lessee shall lose entitlement to any refund of rent or option consideration. For this Lease to be enforceable and effective, the Lessor must comply with all terms and conditions of the Lease. 7. Lease Payment. Lessee agrees to pay to the Lessor as rent for the Premises the amount of ________ ($___) [Instruction: Insert the amount of rent, e.g., One Thousand dollars ($1,000.00)] (‘Rent’) each month in advance on the first day of each month to the Lessor or any other address designated by the Lessor. 8. Late Charges/Insufficient Fund. If any amount under this Lease is more than _______ (__) days late [Instruction: Insert number of days, e.g., fifteen (15) days], the Lessee agrees to pay a late fee of ________ ($___) [◊ Instruction: Insert the late fee amount, e.g., Fifty dollars ($50)]. Also the Lessee agrees to pay charges of ________ ($___) [◊ Instruction: Insert the late fee amount, e.g., Fifty dollars ($50)] for each check given by the Lessee to the Lessor that is returned back to the Lessor for lack of sufficient funds. 9. Quiet Enjoyment. The Lessee shall be entitled to quiet enjoyment of the Premises, and the Lessor will not interfere with that right, as long as the Lessee pays the rent in a timely manner and performs all other obligations under this Lease. Any assignment or sublease without the Lessor’s written prior consent shall, at the Lessor’s option, terminate this Lease. 10. Maintenance, Repairs or Alterations: The Lessee shall maintain the Premises in a clean and sanitary manner including all equipment, appliances, furniture and furnishings therein, in as good condition as received. The Lessee shall maintain any surrounding grounds, including lawns and shrubbery, and keep the same clear of rubbish and weeds, if such grounds are part of the Premises and are exclusively for use of the Lessee. The Lessee shall make no alterations to the buildings or improvements on the Premises or construct any building or make any other improvements on the Premises without the prior written consent of the Lessor. Any and all alterations, changes and/or improvements built, constructed or placed on the Premises by the Lessee shall, unless otherwise provided by written agreement between the Lessor and the Lessee, be and will become the Premises of the Lessor and remain on the Premises at the expiration or earlier termination of this Lease. 11. Entry and Inspection: The Lessee shall permit the Lessor or the Lessor’s agents to enter the Premises at reasonable times and upon reasonable notice for the purpose of inspecting the Premises or for making necessary repairs. 12. Security/Damage Deposit: The security deposit of ________ ($___) [◊ Instruction: Insert the security deposit, e.g., Fifty dollars ($50)] shall secure the performance of the Lessee’s obligations hereunder. The Lessor may apply all or portions of said deposit on account of the Lessee’s obligations hereunder. Upon exercise of the option, the Lessor shall credit said deposit towards the purchase price of the Premises. 13. Binding Effect. The conditions contained in the Lease shall apply to and bind the parties and the heirs, legal representatives, successors and permitted assigns of the parties. © Copyright 2011 Docstoc Inc. registered document proprietary, copy not 3 14. Governing Law and Venue. This Lease shall be governed, construed and interpreted by, through and under the Laws of the State of Pennsylvania. The Parties further agree that the venue for any and all disputes related to this Lease shall be Pennsylvania, ____________________________________ [Instruction: Insert the County]. 15. Attorney’s Fees. The prevailing Party shall be entitled to all costs incurred in connection with any legal action brought by either Party to enforce the terms hereof or relating to the Premises, including reasonable attorney’s fees. 16. Entire Agreement; Modification. This document sets forth the entire Lease and understanding between the Parties relating to the subject matter herein and supersedes all prior discussions between the Parties. No modification of or amendment to this Lease, nor any waiver of any rights under this Lease, will be effective unless in writing signed by the Party to be charged. 17. Acknowledgments. The Parties are executing this Lease voluntarily and without any duress or undue influence. The Parties have carefully read this Lease and have asked any questions needed to understand its terms, consequences and binding effect, and fully understand them and have been given an executed copy. The Parties have sought the advice of an attorney of their respective choice if so desired prior to signing this Lease. IN WITNESS WHEREOF, the Parties hereto have executed this agreement the day and year first above written. ___________________________________ [Instruction: Insert the signature of Lessor] _________________________________________ _________________________________________ _________________________________________ [Instruction: Insert the name and address of Lessor] ___________________________________ [Instruction: Insert the signature of Lessee] © Copyright 2011 Docstoc Inc. registered document proprietary, copy not 4 _________________________________________ _________________________________________ _________________________________________ [Instruction: Insert the name and address of Lessee] © Copyright 2011 Docstoc Inc. registered document proprietary, copy not 5 Note: Carefully read and follow the Instructions and Comments contained in this document for your customization to suit your specific circumstances and requirements. You will want to delete the Instructions and Comments from open bracket (“[“) to close bracket (“]”) after reading and following them. You (or your attorney) may want to make additional modifications to meet your specific needs and the laws of your state ◊Where within this document you see this symbol: ◊ or an instruction states “Insert any number you choose◊,” or something similar, or there is a blank for the user to complete, please note that although Docstoc believes the information or number may be any that the user chooses, and that there is no law governing what the information or number should be, you might want to verify this, including by consulting with your own attorney practicing in your state, and be reasonable. INFORMATION AND FORMS ARE PROVIDED "AS IS" WITHOUT ANY EXPRESS OR IMPLIED WARRANTY OF ANY KIND INCLUDING WARRANTIES OF MERCHANTABILITY, NONINFRINGEMENT OF INTELLECTUAL PROPERTY, OR FITNESS FOR ANY PARTICULAR PURPOSE. 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