Agreement to Lease Residential Property with Option to Purchase by pellcity27


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									        Agreement to Lease Residential Property with Option to Purchase

Agreement made on the (date), between (Name of Prospective Lessor) of (street
address, city, state, zip code), referred to herein as Prospective Lessor, and (Name of
Prospective Lessee), of (street address, city, state, zip code), referred to herein as
Prospective Lessee.

Whereas, Prospective Lessor is the owner of real property that will shortly be available
for lease.

Whereas, Prospective Lessee desires to lease residential property for his personal use.

Whereas, the parties desire to establish an agreement to insure a future lease of the
residential property described in this Agreement.

In consideration of the matters described above and of the mutual benefits and
obligations set forth in this Agreement, the parties agree as follows:

I.      Subject of Lease. Prospective Lessor shall enter into a written lease agreement
with Prospective Lessee on or before (date), by which Prospective Lessor shall lease to
Prospective Lessee the residential property owned by Prospective Lessor located at
(street address, city, state, zip code), for Prospective Lessee and his family to occupy
and use as their residence.

II.     Term of Lease. The premises shall be leased to Prospective Lessee for a period
of (number) years from (date). Prospective Lessee shall have the option to renew the
lease for (number) additional periods of equal duration, on giving (number) days' written
notice to Prospective Lessor of his intent to exercise that option at least (number) days
prior to the expiration of the Lease. Any additional extensions of the initial Lease
Agreement or any new Lease Agreement shall be at the option of Prospective Lessor.

III.   Monthly Rental. Prospective Lessee shall pay $___________ per month as the
monthly rental for the term of the Lease with the first payment due on or before (date),
and subsequent payments on the (number) day of each succeeding month. This rental
payment shall be subject to renegotiation by the parties at any time either of the parties
exercises the option to renew the Lease under the provisions of any subsequent lease

IV.    Taxes and Utilities.
       A.     Prospective Lessor shall be liable for the payment of all real property
       taxes assessed against the residential premises and shall pay the costs incurred
       for water and sewer services.
       B.    Prospective Lessee shall be liable for all personal property taxes and all
       remaining utility charges, including gas, electricity, sanitation, and telephone.

V.     Repairs.
       A.     Prospective Lessee shall make all repairs on the premises, except where
       repairs are necessitated by structural damage, after advising Prospective Lessor
       of the necessity for such repairs.

       B.    Prospective Lessor shall reimburse Prospective Lessee for the costs of all
       material required by the repairs made by Prospective Lessee.

       C.    Prospective Lessor shall be responsible for making all structural repairs at
       his own expense.

VI.    Liquidated Damages. Prospective Lessee shall pay Prospective Lessor
$__________ as liquidated damages for the refusal or failure by Prospective Lessee to
execute a subsequent lease agreement in accordance with the terms of this Agreement.
The parties acknowledge that a failure to execute that lease will result in damages being
suffered by Prospective Lessor, the extent of which cannot be estimated or determined.

VII.   Option to Purchase.
       A.     Prospective Lessee shall have an option to purchase the leased premises
       for a purchase price of $_____________, payable in cash at closing. This option
       to purchase shall be exercised by Prospective Lessee by giving (number) days
       notice in writing to Prospective Lessor. Landlord. Landlord may waive the writing
       requirement. Closing of the conveyance between Prospective Lessor. Landlord
       and Prospective Lessee shall take place within (number) days of such notice to
       purchase. All expenses of the sale, including survey, applicable recording fees,
       and any other costs generally incurred by a purchaser, shall be paid by
       Prospective Lessee. Taxes shall be prorated.

       B.     Prospective Lessee has deposited earnest money toward the purchase of
       the home with Prospective Lessor the amount of $_____________ each month,
       which amount represents a portion of the monthly rent paid to Prospective
       Lessor. Prospective Lessor which will be applied toward the purchase price at
       closing. Prospective Lessee shall exercise due diligence to obtain financing to
       purchase the home. If Prospective Lessee in good faith is unable to obtain
       financing then the earnest money shall be returned. If this lease is terminated by
       Prospective Lessor. Prospective Lessor for reasons other than failure of
       Prospective Lessee to exercise due diligence to obtain financing, then the
       earnest money shall be returned to Prospective Lessee.
       C.     Prospective Lessee agrees to purchase the premises by (date). Should
       Prospective Lessee be unable to close by this date, due to no fault of
       Prospective Lessee, Prospective Lessor shall exte
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