RESIDENTIAL LEASE WITH OPTION TO PURCHASE AGREEMENT This agreement dated ______________, is by and between SELLER/LANDLORD, _______________________________________________ and BUYER/TENANT, _______________________________________________ for the dwelling located at ________________________________________________________________________ under the following terms and conditions: 1. Fixed-Term Agreement (Lease): Buyer/Tenant agree to lease this dwelling for a fixed term of _________________Months, beginning ________________ and ending ______________. Thereafter, this agreement shall become a month to month agreement. 2. Rent: Buyer/Tenant agree to rent this dwelling for the sum of $_____________ per month. The first months rent is $____________ and is due on or before the first day of every month. 3. Utilities/Services: Buyer/Tenant agree to pay all utilities and services with the exception of the following which Owner agrees to pay: home owner’s fees, insurance and taxes. 4. Buyer/Tenant Inspection: Buyer/Tenant have inspected the dwelling and its contents and agree that they are in satisfactory order, as are the electrical, plumbing and heating systems. 5. Notification of Serious Building Problems: Buyer/Tenant agree to notify the Seller/Landlord immediately upon first discovering any signs of serious building problems such as a crack in the foundation, a tilting porch, a crack in the plaster or stucco, moisture in the ceiling, buckling sheetrock or siding, a leaky roof, a spongy floor, a leaky water heater or termite activity. 6. Damage: Buyer/Tenant agree to pay for repairs of all damage which they or their guests have caused. 7. Lockouts: Should Buyer/Tenant lock themselves out of their dwelling and be unable to gain access through their own resources, they may call upon a professional locksmith or the Seller/Landlord to let them in. In either case, the Buyer/Tenant is responsible for payment of the charges and/or damages involved/incurred. 8. Access: The Tenant/Buyer shall be permitted access to the above dwelling for the purpose of showing the property to prospective Tenants and/or Assigns, Contractors, Partners and the like. The Tenant/Buyer shall also be permitted to place a sign on the property. Seller/Landlord also recognize that Buyer/Tenant have a right to privacy and wish to observe that right scrupulously. 9. Peace and Quiet: Buyer/Tenant are entitled to the quiet enjoyment of their own dwelling, and their neighbors are entitled to the same. Buyer/Tenant agree to refrain
from making loud noises and disturbances and to keep down the volume of their music and broadcast programs at all times so as not to disturb other people’s peace and quiet. 10. Lawful Use: Buyer/Tenant agree that they will not themselves engage in any illegal activities on the premises nor will they allow others to engage in any illegal activities on the premises insofar as they have the power to stop such activities.
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Lease Purchasing for the 21st Century©
11. Insurance Considerations: Buyer/Tenant agree that they will do nothing to the premises nor keep anything on the premises which will result in an increase in the Sellers’/Landlords’ insurance policy or an endangering of the premises. Neither will they allow anyone else to do so. 12. References in Wording: Plural references made to the parties involved in this Agreement may also be singular, and single references may be plural. These references may also apply to Owner’s and Tenant’s/Buyer’s heirs, executors, administrators, or successors, as the case may be. 13. Entire Agreement: As written, this Agreement constitutes the entire agreement between the Buyer/Tenant and Seller/Landlord. They have made no further promises of any kind to one another, nor have they reached any other understandings, either written or verbal. 14. Attorney’s Fees: If either party to this Agreement shall bring a cause of action against the other party for enforcement of the Agreement, the prevailing party shall recover reasonable attorney’s fees involved. 15. Option Purchase: (a) Seller/Landlord grants to Buyer/Tenant, the right to purchase the above property at any time during the term of this agreement. (b) Seller/Landlord agrees that upon exercise of the option Buyer/Tenant shall be credited in escrow with $ _____________ from each monthly rental payment of $___________ and applied to the purchase price. (c) The purchase price shall be $________________________ at the time the option is exercised less any designated option consideration and rent credit.
16. Option Consideration: Buyer/Tenant will deposit with Seller/Landlord the following funds $______________ as option consideration for the above residence. This option consideration will be fully credited toward the purchase price. 17. Assignment: The Buyer/Tenant shall have the unqualified right to sublet and/or assign, sell, transfer and convey any rights which the Buyer/Tenant or their heirs, executors, administrators and successors may have in this contract to a third party without written notice. Further, any assignment will release the original Buyer/Tenant from any liability and will substitute the assignee in his place. 18. Exercise of Option: To exercise the option, Buyer/Tenant should notify Seller/Landlord in writing as soon as possible. 19. Encumbrances: Seller/Landlord will convey a marketable title to the Buyer/Tenant. 20. Escrow: Escrow shall be opened with _____________________________________. Escrow instructions will be issued and a memorandum shall be recorded. 21. Prorations, Closing Costs, Assumption and Refinancing Costs: (a) Real property taxes on the property and general and special assessments if any, for the current fiscal year shall be prorated to the close of escrow and paid by the Seller/Landlord. (b) The “closing costs” shall be those costs incurred in conjunction with closing escrow and shall be paid at the close of escrow as follows: ________________________________________________________________________ _______________________________________________________________________. INITIAL _____ _____
22. Time: Time is of the Essence in this Agreement. 23. Right to Cancel Option: The Buyer/Tenant has ____ days to cancel this Lease Option Agreement. The purpose of this right to Cancel Option is to allow the Buyer/Tenant time to reasonable inspect the above property, both interior and exterior. In the event that the Buyer/Tenant decides to Cancel the contract within the allotted time all Option Consideration or deposit will be promptly refunded. 24. Right to Extend: Buyer/Tenant shall have the right to extend this agreement under the same terms for an additional 12 months by paying the Seller/Landlord $___________, which shall be credited to the Buyer/Tenant at closing. 25. Remedies upon Default: (a) In the event of any such default by Seller/Landlord, then in addition to any other remedies available to Buyer/Tenant at law or in equity, Buyer/Tenant shall have the
option to terminate this lease and all rights hereunder by giving written notice of intention to terminate. 26. Modification: Any modification of any portion of this agreement must be made in writing signed by both parties. 27. Default by Seller/Landlord (Payments): In the event Seller/Landlord is delinquent on any payments required under this agreement or pertinent to the above property; Buyer/Tenant shall have the right to make such payments as necessary to cure said default on behalf of the Seller/Landlord. Any payment made by Buyer/Tenant will be credited to Buyer/Tenant on a two to one basis (2 to 1). 28. Default by Seller/Landlord (Maintenance & Repairs): In the event Seller/Landlord fails to make the necessary repairs/maintenance on the above property within a reasonable time of being notified; Buyer/Tenant shall have the right to make such repairs or payment for said repairs in order to resolve the problem. Further, Tenant/Buyer will be credited on a two to one basis (2 to 1) for any monies expended. 29. Preparer’s Disclaimer: All of the undersigned parties in this agreement agree not to hold the preparer of this document liable for any errors, omissions, mistakes or negligence. 30. Acknowledgement: The undersigned Seller/Landlord hereby acknowledge that they have read this Agreement, understand it, agree to it and have been given a copy. They further have been advised to seek legal, tax, technical expertise and any other counsel of their choosing concerning this contract prior to signing.
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