Alberta landlords, give your tenant an option to buy their rental premises with this Residential Lease Agreement with Option to Purchase.
- The lease portion is a standard form residential lease, which includes a Premises Inspection Report and a set of Lease Rules and Regulations.
- Option Payments. The tenant can make option money payments (of a stated minimum amount) at any time during the term of the lease, which will be deducted from the purchase price.
- Exercise. The tenant can exercise the option to purchase at any time during the term, but the option can only be exercised if all rent payments are up to date and the lease is in good standing.
- Refund. The agreement provides for a refund of all option payments if the tenant decides not to exercise the option. If the tenant defaults under the lease or fails to complete the sale, the landlord retains a percentage of all moneys paid as liquidated damages.
This Alberta Residential Lease with Option to Purchase template is available as a downloadable and fully editable Microsoft Word form.
RESIDENTIAL LEASE AGREEMENT WITH OPTION TO PURCHASE THIS AGREEMENT (the “Lease”) made in duplicate this _____ day of ______________, _______. BETWEEN: _____________________________________________________ (name of landlord) _________________________________________________________ (address) (hereinafter referred to as the “Landlord”) - and - _____________________________________________________ (name of tenant) (hereinafter referred to as the “Tenant”) RECEIPT IS HEREBY ACKNOWLEDGED by the Landlord of a deposit in the sum of $____________________ from the Tenant, which upon acceptance of this Lease by the Landlord, shall be applied to the first (1st) month’s rent under this Lease. Notwithstanding the above, in the event that this Lease is not accepted by the Landlord or Landlord’s authorized agent within five (5) days following the date on which it is signed by the parties, the total deposit and any other amounts paid by the Tenant shall be refunded to the Tenant. Upon acceptance of this Lease by the Landlord, all amounts received by the Landlord from the Tenant shall be non- refundable. Part 1 - Terms and Conditions of Lease THE LANDLORD AND THE TENANT HEREBY AGREE AS FOLLOWS: 1. Premises The Landlord hereby leases to the Tenant the Premises municipally described as ___________________________________________, ________________ (city), Alberta and legally described as: (give legal description of the Premises) (hereinafter called the “Premises”), for use and occupation as a residential dwelling only, subject to the terms and conditions set forth in this Lease. In addition to the Premises, the Landlord also leases to the Tenant the following appliances and items, which the Tenant agrees to keep clean and in good condition, ordinary wear and tear excepted: Refrigerator, range and range hood, dishwasher, washer and dryer, _________________________ 2. Term and Renewal This Lease shall run for a fixed term (the “Term”) of _______ (___) year(s), commencing at 12:00 noon on the first day of __________________, 20___ (“Commencement Date”) and expiring at 12:00 noon on the last day of ________________, 20___ (“Expiration Date”), and no notice shall be required by either the Landlord nor the Tenant to terminate the tenancy at the end of the Term. There shall be no renewal of this Lease following the expiration of the Term. -2- 3. Other Occupants The Landlord and Tenant agree that, in addition to the Tenant, the Premises may from time to time be occupied only by the following other persons: Name: _____________________________________ Age: ____________ Relationship to Tenant: ______________________________ Name: _____________________________________ Age: ____________ Relationship to Tenant: ______________________________ The Tenant agrees to notify the Landlord in writing of any other person or persons residing in the Premises on a full or part time basis for a continuous period of more than 14 days, and the failure to provide such written notice shall constitute a Default on the part of the Tenant. 4. Rent (a) The base rent shall be ____________________________ DOLLARS ($__________) per month ( referred to as “the Base Rent”), to be paid on or before the first (1 st) day of each calendar month to the Landlord at the address below, or such other place(s) as may be designated in writing by the Landlord from time to time. (b) When two or more persons comprise the Tenant for the purposes of this Lease, the Landlord may collect the rent due to the Landlord pursuant to this Lease from one, some or all of them; and their obligations hereunder shall be joint as well as several. (c) In the event that the Tenant takes possession of the Premises prior to the Commencement Date of this Lease, the Tenant shall pay to the Landlord a pro rated per diem amount of $_____________ per day for the Tenant’s use and occupancy of the Premises until the Commencement Date, and all terms and conditions of this Lease shall apply during such period. (d) If any cheque for rent or any other charge hereunder is returned to the Landlord by the Tenant’s bank for any reason, an administrative charge of $______ shall be assessed and shall be added to the Base Rent for that month and be recoverable in the same manner. The Landlord shall have the right to request that the Tenant thereafter provide certified cheques for rent and other payments due under this Lease, and any failure by the Tenant to do so shall constitute a Default under this Lease. (e) In the event that the Base Rent, or any portion thereof, is not paid on time and in full: (i) the Tenant shall be in Default under this Lease; (ii) the Option (as hereinafter defined) shall immediately become null and void; and (iii) _________% of any Option Credits (as defined in Part 3 hereof) paid by the Tenant shall be automatically forfeited to the Landlord as liquidated damages and not as a penalty. 5. Security Deposit The Landlord acknowledges receipt of a security deposit from the Tenant in the amount of _______________________ DOLLARS ($___________). The Landlord shall deposit the security deposit in an interest-bearing account, and interest shall accrue in accordance with the provisions of the Residential Tenancies Act, S.A. 2004, c. R-17.1 or any successor or replacement legislation (“the Act”), and the total amount of the security deposit with interest (less any allowable deductions) will be either (i) paid to the Tenant when the Premises are vacated following the Expiration Date, or (ii) credited toward the purchase -3- price in the event that the Tenant is not in Default and has validly exercised the Option in accordance with Part 2 hereof. The Landlord may deduct from the security deposit any amounts that the Landlord deems necessary to provide for: (a) repairing any damage to or loss of all or part of the Premises, fixtures, furniture, appliances and any other items leased pursuant to this Lease, excluding normal wear and tear, which damages have been caused by the Tenant or any person or persons invited or permitted on the Premises by the Tenant; or by animals or things allowed in the Premises by the Tenant. For clarification, burns and other marks on carpets, furnishings and walls shall not be considered normal wear and tear; (b) cleaning the Premises and any property rented with it (including but not limited to professional cleaning of the carpets and/or draperies) if the Tenant gives up possession of the Premises in a condition necessitating such cleaning; (c) payment of rent or other charges owing to the Landlord by the Tenant upon the termination or expiration of this Lease; (d) the discharge of any other obligations or liabilities of the Tenant to the Landlord. The Tenant hereby expressly acknowledges that he is responsible for the amount of any damages or cleaning costs in excess of the security deposit. It is further agreed and understood that the Tenant cannot apply the security deposit against any rent owing to the Landlord during the Term. If the Tenant terminates this Lease or abandons the Premises within three (3) months of occupying the Premises, the security deposit shall be forfeited to the Landlord as liquidated damages to cover re-rental expenses and not as a penalty. 6. Utilities and Services The Tenant shall pay for all charges for sewer, water, electrical, natural gas, trash collection, and other utilities and service charges respecting the Tenant’s occupation and use of the Premises from the Commencement Date until the Expiration Date of this Lease, if the Tenant fails to exercise the Option hereunder. 7. Tenant’s Covenants The Tenant expressly covenants as follows: (a) to pay rent and other charges as and when the same are due; (b) at all times during his/her occupation of the Premises, to comply with all safety standards, provincial and municipal bylaws, fire, housing, sanitation and health regulations; and to not, through the Tenant’s action or inaction, do anything or cause any situation by which a safety, fire or health hazard is created; (c) to use the Premises only as a residential dwelling and not for any other purposes; (d) not to willfully or negligently damage the Premises, or permit any guest or invitee of the Tenant to do so; (e) not to create a nuisance or break any conditions or rules and regulations contained in this Lease; (f) not to sublet, assign or re-rent the Premises, nor leave guests in charge of the Premises without the written consent of the Landlord (which consent shall not be unreasonably withheld); -4- (g) not to interfere in any significant manner with the rights of either the Landlord, other tenants or occupants of properties near the Premises; (h) not to perform illegal acts or carry on any illegal trade, business or occupation in the Premises; (i) to maintain the Premises and any property leased with the Premises in a reasonably, clean, tidy and sanitary condition; (j) in the event that the Option is not exercised, to vacate and leave the Premises in clean condition and good repair on the Expiration Date; (k) during the term of this Lease, to pay the property taxes levied against the Premises. 8. Rules and Regulations In addition to the other obligations and covenants contained in this Lease, the Tenant covenants that the Rules and Regulations, attached to this Lease as Schedule “A” and forming part of this Lease, shall be adhered to by the Tenant and all other persons invited or permitted by the Tenant to be on the Premises. Contravention of any of such Rules and Regulations shall be sufficient cause for termination of this Lease by the Landlord, and shall constitute a Default of the Tenant. 9. Inspection of Premises (a) Within seven (7) days before or after Tenant takes possession of the Premises, the Tenant and the Landlord or Landlord’s agent shall jointly inspect the Premises and complete the Inspection Report attached as Schedule “B” hereto. The Landlord (or agent, as the case may be) shall immediately provide the Tenant with a signed copy of the completed Inspection Report. (b) In the event that the Option is not exercised, then within seven (7) days after the Tenant gives up possession of the Premises after the expiration or earlier termination of this Lease, the parties shall again jointly inspect the Premises and complete the move-out portion of the Inspection Report, and the Landlord (or agent, as the case may be) shall immediately provide the Tenant with a signed copy of the completed Inspection Report. 10. Maintenance and Repairs (a) The Tenant shall be responsible for the cost of repairing plugged toilets, sinks and drains, and for the cost of replacing all windows and screens broken by the Tenant or his guests. The Tenant shall be responsible for replacing light bulbs, fluorescent tubes, and stove fuses in the Premises, broken toilet seats, and any other damaged items. The Tenant shall be responsible for damages caused by windows and doors being left open in inclement weather, including costs of repairing frozen pipes as well as repair and cleaning costs for damages caused by broken pipes. The Tenant shall also be responsible for damages due to fire caused by the Tenant’s carelessness or negligence. The Tenant agrees to immediately report to the Landlord any and all damage that may occur to the Premises throughout the Term of this Lease. The failure to repair, replace and notify in accordance with this provision shall constitute a Default under this Lease. (b) The Tenant shall cooperate with the Landlord in the care and maintenance of the Premises, by promptly reporting to the Landlord any accident, break, or defect in the water, heating, or electrical systems or in any part of Premises. 11. Improvements and Alterations It is hereby acknowledged that, at any time prior to the exercise of the Option, the Landlord has not represented nor encouraged any belief on the part of the Tenant that improvements and alterations could -5- be made to the Premises by the Tenant under the belief that the Premises would ultimately be conveyed to the Tenant. The Tenant is expressly precluded from making any improvements or alterations to the Premises until the Option has been validly exercised in strict accordance with the provisions of this Lease. The Tenant expressly waives any right to claim compensation for improvements or alterations made to the Premises. 12. Insurance (a) It is the responsibility of the Tenant to insure the Tenant’s property on the Premises against damage or loss occasioned by fire, theft, and other perils. The Tenant agrees to obtain an insurance policy which contains an express waiver of all rights of subrogation against the Landlord and its servants, agents and contractors; and the Tenant shall on demand provide a copy of this insurance policy to the Landlord. (b) The Tenant hereby waives and releases the Landlord from any liability whatsoever for damage or loss to any persons or property whatsoever which occurs in, on, or in connection with the Premises, howsoever caused, including loss due to negligence or fault of the Landlord or its servants, agents or contractors; and the Tenant agrees to look to its own insurance and insurers for recovery of and protection against any such loss or damage. Without limiting the generality of the foregoing, the Landlord shall not be responsible for any loss of Tenant’s property. 13. Landlord’s Right of Entry The Landlord shall have the right to enter the Premises for the reasons and on the terms and conditions set out in the Act. 14. Termination (a) The Landlord may terminate this Lease at any time for substantial breach on the part of the Tenant as defined in the Act, and in the event of such a termination, the Tenant shall forfeit ______% of the Option Credits (as hereinafter defined) as liquidated damages and not as a penalty, and the Option becomes immediately null and void. (b) The Tenant may terminate this Lease at any time for substantial breach on the part of the Landlord as defined in the Act, in which event the Option Credits are to be returned to the Tenant; but the Tenant shall forfeit ________% of the Option Credits if he terminates this Lease for any other reason. 15. Overholding In the event the Tenant does not or cannot exercise the Option, and the Tenant remains in the Premises after the Expiration Date, this Lease shall not be deemed to be renewed and the Tenant shall be deemed to be unlawfully overholding on a day-to-day basis. In addition to any other remedy available to the Landlord, the Tenant shall pay damages for use and occupation of the Premises equal to double the Base Rent payable hereunder pro rated on a per diem basis. In addition to any costs incurred by the Landlord in forcibly evicting the Tenant after the Expiration Date or upon the earlier termination of this Lease, the Tenant will also be liable for any damage suffered by the Landlord in respect to an incoming tenant. 16. Default by Tenant (a) Without in any way limiting the generality of the foregoing or of any other provision in this Lease dealing with a Default on the part of the Tenant, the Tenant is in Default under this Lease upon the occurrence of any one or more of the following events: -6- (i) the Base Rent or any part thereof is not paid when due, or there is non-payment of any other sums which the Tenant is obligated to pay under the provisions of this Lease; or (ii) any goods, chattels or equipment of the Tenant situated on the Premises are taken or seized in execution or attachment or if a Writ of Enforcement is issued against the Tenant; or (iii) the Tenant becomes insolvent or commits an act of bankruptcy or becomes bankrupt or takes the benefit of any Act that may be in force for bankrupt or insolvent debtors, or becomes involved in voluntary winding up proceedings or if a receiver shall be appointed for the property or affairs of the Tenant; or (iv) the Tenant moves or commences, attempts or threatens to move all or substantially all of his goods, chattels, and equipment out of the Premises or abandons the Premises; or (v) the Tenant neglects or fails to observe, perform or keep each and every of the covenants, agreements, provisions, stipulations, conditions, rules or regulations contained in this Lease. (b) Time is of the essence of this Lease, and the failure by the Tenant to pay the Base Rent when due, or to pay the Second Installment of Option Money on or before ___________________, 20_______, or to perform any other term of this Lease, shall, at the option of the Landlord, terminate all rights of Tenant hereunder, including the Option. 17. Abandonment (a) In the event that the Tenant fails to take possession of the Premises on the Commencement Date, or abandons the Premises during the Term, the remaining amounts of Base Rent to the end of the Term (to a maximum of 3 months) shall become automatically due and payable to the Landlord. (b) Abandonment of the Premises shall constitute a Default on the part of the Tenant under this Lease, and such Default renders the Option immediately null and void. (c) In the event that Tenant shall be absent from the Premises for a period of five (5) consecutive days while in Default hereunder, the Tenant shall be deemed to have abandoned the Premises and all legal and equitable interests he may have in the Premises, and any furniture, contents or other property left in the Premises shall be considered abandoned and may be disposed of by the Landlord in any manner allowed by law, including sale by private or public auction without notice to the Tenant, and the Landlord shall apply the proceeds of such sale to any amounts owing to the Landlord under this Lease, and the Tenant shall be liable for any deficiency. In the event that the Landlord reasonable believes that such abandoned property has no value, it may be discarded. All property on the Premises is hereby subject to a lien in favour of the Landlord for payment of all sums of money due hereunder, to the maximum extent allowed by law. (d) Recovery of the Premises by the Landlord shall not relieve the Tenant of his obligations hereunder, and the Landlord may let the Premises to others upon such terms and conditions as the Landlord deems proper, and recover from the Tenant sums due hereunder, less any consideration received from others for the use of the Premises, for the remainder of the term of this Lease, after paying the Landlord’s reasonable expenses for recovery and reletting of the Premises. 18. Application of Act In the event of any conflict between this Lease and the Residential Tenancies Act, the Act shall prevail. -7- 19. No Waiver Acceptance by the Landlord of late rental payments shall not be deemed a waiver by the Landlord of its right to declare a Default hereunder and terminate the Option. Any indulgence granted by the Landlord or failure of the Landlord to enforce any of the provisions or restrictions contained in this Lease shall in no way be deemed a waiver of its right to do so thereafter or to insist upon strict compliance with the terms hereof. Part 2 - Option to Purchase In consideration of the sum of $1.00 and the mutual promises contained herein, and provided that no event of Default has occurred under this Lease, the Tenant shall have the option to purchase the Premises for a purchase price of _______________________________________________ DOLLARS ($_____________) (“the Option”), subje
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