LEASE AND OPTION TO PURCHASE AGREEMENT Received from_____________________, herein called Buyer, the sum of ___________ dollars $__________ evidenced by _______________________ payable to ______________________ as option consideration on account for the lease with option to purchase of property situated in _______________________, County of ___________________, State of_________________ described as follows: ______________________________________________________________________________ ______________________________________________________________________________ ____________________________________________________________ The price of the property shall be: ______________________________ as agreed upon by BUYER and SELLER. THIS LEASE AND OPTION TO PURCHASE SHALL BE GOOD FOR ONE YEAR UNDER THE FOLLOWING TERMS AND CONDITIONS: The owner agrees to the following Option To Purchase in consideration of the Resident’s faithful compliance with the terms of the attached rental contract and especially for the prompt monthly payment of rents when due prior to 5 P.M. on the first day of each month, time being of the essence; and for maintaining the premises and grounds in such a manner as to prevent their deterioration and neglect. The SELLER grants to the BUYER the right to purchase the premises at any time after _____________ and prior to ______________ upon at least ____ days prior written notice to the SELLER at the last address provided by the SELLER to the BUYER in writing. (Notice, if mailed, shall be certified mail and shall be deemed to have been given upon the day following postmark of certified mail receipt.) Upon expiration, the OWNER shall retain any consideration as full liquidated damages, and all obligations of each party shall terminate. An additional one year extension can be allowed to BUYER in making an additional option consideration payment of______________ Dollars $_______________. This Option to Purchase is not transferable to any other party, and can be exercised by the individuals signing this lease, acting in unison or individually with consent of partner. All covenants of the Rental/Lease Agreement must have been faithfully performed in every particular. The Owner’s judgment to be final in this regard, or this Option Agreement will be rendered void without notice. During the period of this lease, the Resident agrees to be responsible for the costs of all repairs and/or improvements and to refrain from any acts or lack of actions which might result in any jeopardy or loss of value to the property under lease, including painting, maintenance of mechanical, electrical, plumbing, heating, coding systems, law shrubbery, interior or exterior walls, doors, roof or painting. Failure to comply with his provision will result in automatic revocation of said option without notice. In the event the OPTION is exercised: The closing of the title shall be held at _________________ at______________. The purchase price for the premises shall be _________________________________ to be paid on closing as set forth in the following manner: ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ________________________________________________
_________% of the total rental payments shall be credited toward the purchase price. BUYER reserves the right to prepay all or any part of the principle sum remaining due to such payment shall be applied first to interest, then to principal balance; said payment can be made without penalty at any time. The SELLER will carry a note, secured by a first deed of trust in the amount of _____________________dollars in the event BUYER is unsuccessful in obtaining financing. Upon receipt of the consideration noted above, where it be earnest money, lease deposit, or goods and services accepted by the SELLER, all parties agree to execute and to place into escrow with a disinterested third party acceptable to both BUYER and SELLER, a fully executed contract to purchase together with all instruments required by law to convey all interest in the property to the BUYER provided that all items and conditions of this agreement have been met as heretofore agreed in this agreement. Upon delivery of a certified check in the amount of $______________ (minus rent credits accumulated, reference above paragraph) to the Escrow agent above, he/she shall be directed by the SELLER to convey title by delivery of a warranty deed evidence of free and clear title subject only to those encumbrances, covenants, and restrictions listed herein. Buyer agrees to procure and maintain in force during the term of this lease, fire, extended coverage, public liability, and any other insurance requested by Seller, adequate to protect against fire damage not less that _____________ Dollars ($____________). Such insurance amount to be particularly increased or decreased according to the Construction Cost Index provided by the insurance company. Buyer to also procure public liability insurance in a minimum amount of _____________________ ($_____________) for each person injured and ______________ ($_____________) maximum for one incident. Buyer may increase these minimum amounts if desired. Such insurance policy shall provide coverage for Buyer’s and Seller’s contingent liability of such claims or losses. The policies shall be subject to Buyer’s and Seller’s mutual inspection and approval. The insurance premium for such insurance procured by Seller are to be paid to Buyer within thirty (30) days after receipt of a bill therefore from the insurance company. If unpaid within such time Seller may procure the insurance, pay the premium therefore, and such premiums shall be added by the Seller as additional rent for the month following the date on which such premium is paid by the Seller. Failure to pay such insurance premium is a default by Buyer on this lease and OPTION to purchase which shall cause its termination.
Having read the foregoing and having had all questions answered completely to their satisfaction, the foregoing Rental/Lease agreement and option are hereby accepted as written.
ACCEPTED IN FULL AS WRITTEN THIS DATE: __________20 __________
___________________________ OWNER
______________________________ RESIDENT _____________________________ RESIDENT