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Sale and Leaseback Agreement

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Sale and Leaseback Agreement Powered By Docstoc
					A Sale and Leaseback Agreement is an instrument governing a transaction wherein the
owner of a property sells that property and then leases it back from the buyer. The
purpose of the leaseback is to free up the original owner's capital while allowing the
owner to retain possession and use of the property. The type of property involved can
be anything from residential or commercial real estate to equipment or vehicles. This
Agreement can be used by individuals or small businesses that want to receive
immediate capital for certain property while still retaining possession.
              SALE AND LEASEBACK AGREEMENT

                    AGREEMENT TO SELL PROPERTY

       This Agreement to Sell Property (this “Agreement”) is hereby made and entered
into on this ____ day of ____, 20___ (the “Effective Date”) by and between
__________________ (“Seller”) and _______________ (“Purchaser”).

                                       RECITALS

        WHEREAS, Seller is the legal owner of certain real property being, lying, and
situated in the County of _______________ in the State of _________________, such
real Property having an address of ___________________________ and more
particularly described in Exhibit “A” attached hereto (the “Property”); and

       WHEREAS, Seller and Purchaser desire that Seller convey the Property and
improvements thereon to Purchaser and, that thereupon, Purchaser shall lease Property
back to Seller, all in accordance with the terms and conditions set forth herein and below;

       NOW, THEREFORE, Seller and Purchaser hereby agree as follows:

                                         TERMS

1.     Sale of Property

        Seller agrees to sell and convey, and Purchaser agrees to purchase, the Property.
This sale shall include all of the Seller’s right, title, and interest in, to, and under all
fixtures attached or appurtenant to or used in connection with the Property.

2.     Purchase Price

       The Purchase Price for the Property shall be ________________ dollars ($__ ),
payable as follows:

        a.     _____________________ dollars (___$) as a deposit when Purchaser
signs this Agreement.

       b.     _____________________ dollars (___$) as an additional deposit within
____ (__) hours after Seller signs this Agreement.

      c.      With interest at the rate of _____ percent (__%) of the Purchase Price, and
payment of _____________________ dollars (___$) monthly for a term of leaseback, as
monthly lease payments.




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[This section may amended according the method of payment Seller and Purchaser
decide taking into account leaseback]

3.     Restrictions, Liens, Title Policy, and Insurance

       The Property is to be sold and conveyed subject to the following:

       a.    Zoning and building regulations, ordinances, and requirements adopted by
any government or municipal authority that relate to the Property;

        b.    Any state of facts as shown on an accurate survey of the Property provided
that same does not render title unmarketable;

       c.      Such state of facts as a personal inspection may disclose;

       d.      Public utility easements of record;

       e.      Recorded and enforceable building and use restrictions; and

       f.      ________________________ [Add additional restrictions, if any].

        g.       Apart from the foregoing, the Property is to be sold and conveyed free and
clear of all liens and encumbrances.

       Seller shall deliver to Purchaser at closing, at Seller’s expense, a title policy for
___________ dollars ($___) insuring the interest of Purchaser as fee owner of the
Property, subject, however, to the matters set forth herein above and the usual standard
exceptions of the title company issuing such policy.

4.     Outstanding Assessments; Taxe
				
DOCUMENT INFO
Description: A Sale and Leaseback Agreement is an instrument governing a transaction wherein the owner of a property sells that property and then leases it back from the buyer. The purpose of the leaseback is to free up the original owner's capital while allowing the owner to retain possession and use of the property. The type of property involved can be anything from residential or commercial real estate to equipment or vehicles. This Agreement can be used by individuals or small businesses that want to receive immediate capital for certain property while still retaining possession.
This document is also part of a package Buying and Selling Real Estate 22 Documents Included