LEASE AGREEMENT WITH

Page 1 of 4 LEASE AGREEMENT WITH OPTION TO PURCHASE REAL ESTATE This LEASE AGREEMENT WITH OPTION TO PURCHASE REAL ESTATE (hereinafter referred to as the Lease/Option) is made this ________ day of ________________, 20____ by and between the following parties: ___________________________________________ whose phone number is: ______-______-_________ located at ___________________________________________________ (hereinafter referred to as the Tenant/Buyer); and ___________________________________________ whose phone number is: ______-______-_________ located at ___________________________________________________ (hereinafter referred to as the Landlord/Seller). In consideration of the mutual promises and covenants hereinafter stipulated, the parties hereby agree as follows: (1) DESCRIPTION: The Landlord/Seller agrees to lease, and the Tenant/Buyer agrees to rent the real property and improvements, hereinafter called property, located at: _________________________________________, as legally described as follows: ______________________________________________________________________________. (2) TERM: The term of this Lease/Option shall be for a period of _____ months commencing on ____________________ and ending on _____________________. The term of this Lease/Option may be extended by Tenant/Buyer for ______ additional renewal period(s) of 12 months, following the expiration of the initial term. The Tenant/Buyer shall give notice to the Landlord/Seller of its intent to extend the term of this Lease/Option as herein provided, by mailing a written notice to the last provided address of the Landlord/Seller at least ten (10) days in advance of the expiration of the then current term. Rent will be subject to a 15% increase at each renewal period. (3) RENT: Tenant/Buyer agrees to pay to the Landlord/Seller, the sum of $__________ per month, with the first payment beginning _________________ as rent for the property, for the term of this Lease/Option, and during any extensions thereof. All rental payments shall be due and payable in advance by the 1st day of each and every month. An amount equal of $ __________ for each month in which rent was paid on or before the 3rd day of each month shall be credited to the Tenant/Buyer and applied to the purchase price of the property in the event that the Tenant/Buyer exercises its option hereunder; otherwise, this credit shall be non-refundable and considered forfeited if the option is not exercised. If the rent has not been received by 9:00 AM on the 4th day of the month then a 7 day notice will be mailed. Tenant/Buyer hereby acknowledges that late payment will cause Landlord/Seller to incur costs not contemplated by this Lease/Option, the exact amount of which will be extremely difficult to ascertain. In the event rent is not received prior to 9:00 AM on the 4th of the month, regardless of cause including dishonored checks, Tenant/Buyer further agrees to pay a late charge to Landlord/Seller equal to three percent (3%) of such overdue amount. Neither ill health, loss of job, financial emergency or other excuses will be accepted for late payment. (4) POSSESSION: Possession shall be given to Tenant/Buyer on _________________________. Failure to begin rent or take possession when notified will result in a breech of agreement and render this Lease/Option null and utterly void. (5) OPTION TO PURCHASE: Prior to occupancy Tenant/Buyer, as part of the consideration herein, agrees to pay a nonrefundable fee of $_____________ for the exclusive right, option and privilege of purchasing property at any time during the term of this Lease/Option agreement or any extension thereof. An amount equal to $_____________ shall be credited to the Tenant/Buyer and applied to the purchase price of the property in the event that the Tenant/Buyer exercises its option. Otherwise this credit shall be nonrefundable and considered forfeited if the option is not exercised. The Tenant/Buyer shall notify the Landlord/Seller in writing of the exercise of this option at least thirty (30) days prior to the expiration of the initial term of this Lease/Option or the expiration of any extension thereof, by mail to the last-provided address of the Landlord/Seller. Landlord/Seller and Tenant/Buyer acknowledge and agree that the foregoing $____________ fee is a non-refundable option payment, not a security deposit. Initial ________ ________ ________ ________ L/S T/B T/B T/B Page 2 of 4 (6) COVENANTS OF TENANT/BUYER: Commencing with and during the term of this agreement, including extensions, the Tenant/Buyer hereby covenants and agrees as follows: a. That the Tenant/Buyer will pay all utility charges and bills, including but not limited to: water, sewer, gas, oil, electric, and trash removal, which may be assessed against the property; That the Tenant/Buyer will not use the property for any unlawful purpose and that the Tenant/Buyer will conform to and obey all laws, ordinances, rules, regulations, requirements, and orders of all Federal, State, and Local governmental authorities, agencies, departments, bureaus, boards or officials, respecting the use of the property; That the Tenant/Buyer will surrender and deliver up the property, at the end of the term or any extensions thereof, should the option herein not be exercised, in as good order and condition as the same now exists, reasonable use and natural wear and tear excepted. Tenant/Buyer will be held liable for ANY repairs needed. b. c. (7) BREACH BY TENANT/BUYER: If the Tenant/Buyer shall fail to keep and perform any of the covenants, agreements, or provisions of this Lease/Option, or if the Tenant/Buyer shall abandon, vacate or leave the property for any reason, such as eviction, it shall be lawful for the Landlord/Seller to ender into said property and again have, repossess, and enjoy the same as if this Lease/Option had not been made, and thereupon this Lease/Option and everything herein contained on the part of the Landlord/Seller to be done and performed shall cease, determine and be utterly void. In addition, all rent for the remainder of the term of this Lease/Option shall immediately be due and payable by Tenant/Buyer to the Landlord/Seller. If Landlord/Seller terminates this Lease/Option because of any default of Tenant/Buyer and accelerates the due date of the rental payments then unpaid during the term of this Lease/Option, Tenant/Buyer will not be liable for the total accelerated amount because of Landlord/Seller’s obligation to minimize damages. Either Landlord/Seller or Tenant/Buyer may ask a court to determine the actual amount owed, if any. If Landlord/Seller terminates this Lease/Option, Landlord/Seller shall be entitled to recover from Tenant/Buyer an amount equal to the expenses incurred by Landlord/Seller in enforcing Landlord/Seller’s rights under the Lease/Option and applicable law including, but not limited to, all court costs and reasonable attorney fees permitted by statute. The commencement of a proceeding or suit in forcible entry and detainer or in ejectment, or otherwise after any default by the Tenant/Buyer, shall be equivalent in every respect to actual entry by the Landlord/Seller. If Landlord/Seller terminates this Lease/Option pursuant to this Section, any option money paid under Section 5 of this Lease/Option will be nonrefundable. (8) MAINTENANCE AND REPAIRS: The Tenant/Buyer accepts the property “as is” on the date of possession of this Lease/Option. The Tenant/Buyer shall henceforth be responsible for all maintenance and repair upon said property, both interior and exterior. The Tenant/Buyer shall have the right to make such repairs, maintenance, and improvements as Tenant/Buyer shall deem necessary, proper or desirable. The Tenant/Buyer shall be solely liable for payment for said improvements and shall hold the Landlord/Seller harmless therefrom, except that any electric, plumbing, heating or cooling system that is out of order at the commencement of this lease or within specified warranty thereafter will be repaired by the Landlord/Seller at his/her expense. (9) BINDING AGREEMENTS: The parties hereto agree that this Lease/Option comprises the entire agreement of the parties and that no other representation or agreements have been made or relied upon, and that this Lease/Option agreement shall be binding upon the parties, their heirs, executors, administrators, personal representatives, successors or assigns. (10) SPECIAL PROVISIONS: ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ Initial ________ ________ ________ ________ L/S T/B T/B T/B Page 3 of 4 ______________________________________________________________________________________ ______________________________________________________________________________________ ______________________________________________________________________________________ a. A TITLE SEARCH will be ordered immediately by the Tenant/Buyer. This cost will be borne by the Tenant/Buyer unless it is discovered that the Landlord/Seller has unmarketable title in which case the Landlord/Seller will reimburse Tenant/Buyer the cost of the search up to the amount of $75. If the title is unmarketable the Tenant/Buyer will then have the option to void this agreement or proceed as agreed herewith. OPTION PURCHASE TERMS (11) PRICE AND TERMS: The Tenant/Buyer agrees to pay for said property the sum of: $_____________________ ($_____________________________________________________________________& 00/100) less any credits given to the Tenant/Buyer in this agreement; the net sum to be paid in cash, certified check, or cashiers check at closing. (12) INCLUDED IN THE PURCHASE: The property shall also include all land, together with all improvements thereon, all appurtenant rights, privileges and easements. The property shall also include the following items: ______________________________________________________________________________________ ______________________________________________________________________________________ _________________________________________________________________ (13) TITLE: The Landlord/Seller shall convey marketable title to the property with the above described inclusions, by good and sufficient General Warranty Deed in fee simple absolute, on or before closing; said title to be free, clear, and unencumbered except existing mortgages, restrictions and easements of record. Title to be conveyed to Tenant/Buyer. (14) CLOSING: The deed shall be delivered and the purchase money shall be paid at the lending institution’s, or other office, of Tenant/Buyer’s choice, no later than sixty (60) days after notification to the Landlord/Seller of the Tenant/Buyer’s exercise of the option. (15) COSTS AND PRORATIONS: There shall be prorated between the Landlord/Seller and the Tenant/Buyer, as of date of closing, the following items: (a) All real estate taxes and assessments; (b) Interest on encumbrances assumed or taken over by Tenant/Buyer with the Tenant/Buyer having responsibility for such items as follows: Landlord/Seller will pay: ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ Tenant/Buyer will pay: ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ (16) INSURANCE: While this option shall remain executory and up until the time of closing, the Landlord/Seller shall maintain fire and extended coverage upon the property. Upon closing, the Tenant/Byer shall be responsible for fire and extended coverage from that date forward. Landlord/Seller’s insurance will not cover any personal property of Tenant/Buyer. (17) In the event that this agreement is placed in the hands of an attorney for enforcement, the prevailing party shall be entitled to recover court costs and attorney fees. Initial ________ ________ ________ ________ L/S T/B T/B T/B Page 4 of 4 (18) FULL DISCLOSURE: The Tenant/Buyer(s) signing this Lease/Option (AGREEMENT) hereby state that all questions about this Lease/Option have been answered, that they fully understand all the provisions of the agreement and the obligations and responsibilities of each party as spelled out herein. They further state that they agree to fulfill their obligations in every respect or suffer the full legal and financial consequences of their actions or lack of action in violation of this agreement. Signature by the Tenant/Buyer on this Lease/Option is acknowledgement that he/she has received a signed copy of the Lease/Option. In Witness WHEREOF, the parties hereto, have set their hands to this Lease/Option Agreement on this _______ day of ______________________, 20_____. ________________________________________________ WITNESS ________________________________________________ Landlord/Seller (signature) ________________________________________________ Landlord/Seller (print) ________________________________________________ Tenant/Buyer (signature) ________________________________________________ Tenant/Buyer (print) __________-_______-__________ Tenant/Buyer Social Sec # ________________________________________________ Tenant/Buyer (signature) ________________________________________________ Tenant/Buyer (print) __________-_______-__________ Tenant/Buyer Social Sec # ________________________________________________ Tenant/Buyer (signature) ________________________________________________ Tenant/Buyer (print) __________-_______-__________ Tenant/Buyer Social Sec # Initial ________ ________ ________ ________ L/S T/B T/B T/B