NOTICE: THIS IS A LEGALLY BINDING CONTACT. IF THERE IS ANYTHING IN THIS DOCUMENT YOU DO NOT UNDERSTAND OR IF YOU HAVE CONCERNS, YOU SHOULD SEEK COMPETENT LEGAL ADVICE BEFORE SIGNING.
RESIDENTIAL LEASE AGREEMENT WITH PURCHASE OPTION (OREGON)
THIS AGREEMENT (the “Lease & Option Agreement”) made effective as of the _____ day of ______________, _______. BETWEEN: [NAME OF LANDLORD] [address] (the “Landlord”) - and [NAME OF TENANT] [address] (the “Tenant”) RECITALS: A. B. C. The Landlord is the owner of the property more particularly described below (the “Leased Premises”); The Landlord wishes to sell the Leased Premises within the next _____ years; The Tenant may wish to purchase the Leased Premises in the future and wishes to lease the Leased Premises during an option period as more particularly set out in this Agreement.
IN CONSIDERATION OF the mutual covenants and agreements contained in this Lease & Option Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, the Landlord desires to lease the Leased Premises to the Tenant during the option period and to grant the Tenant an option to purchase the Leased Premises on the terms and conditions set forth in that certain Real Estate Sale Agreement #______ between the parties (which is attached hereto and made a part hereof by reference), and by the provisions of this Lease & Option Agreement.
Part I - Residential Lease
1.1 Leased Premises
The Landlord hereby leases to the Tenant the following real property and improvements, appurtenances and fixtures thereon and thereto commonly known as: Municipal address: [street address], [city/town], Oregon Legal description: [legal description of property] all of which together comprise the Leased Premises. The personal property of the Landlord, if any, which shall remain on the Leased Premises during the term of the lease is listed on Exhibit “_____” attached hereto and forming a part of this Lease & Option Agreement. The Landlord’s personal property shall at all times remain the property of the Landlord be removed from the Leased Premises prior to either the termination of the lease or the closing of the sale of the Leased Premises, whichever is the earlier to occur.
-2-
1.2
Term
The term (“Term”) of the lease is for ___ year(s), commencing on the _____ day of ______________, _______ and expiring on the _____ day of ______________, _______. 1.3 Landlord’s Failure to Deliver Up Possession
If Landlord is unable to deliver up vacant possession of the Leased Premises to the Tenant on or before the commencement of the Term, Tenant may rescind the Lease by providing Landlord with written notice delivered to Landlord on or before the date on which possession is actually tendered. If Tenant rescinds the Lease, Tenant shall be deemed to have also rescinded the Option to Purchase portion of this Lease & Option Agreement. 1.4 Holding Over
Any holding over at the end of the Lease term shall create a month-to-month tenancy at a monthly rent of $####.##, payable in advance on the first (1st) day of each month. All applicable terms of the Lease set forth in this Lease & Option Agreement shall remain in full force and effect but the Option portion shall not be extended except by a separate instrument in writing, executed by both of the parties. 1.5 Rent
Tenant agrees to pay a monthly rental payment in the sum of [AMOUNT OF MONTHLY PAYMENT IN WORDS] DOLLARS ($####.##) per month. Rent shall be payable in advance on the first (1st) day of each month. Landlord will accept payment from the named Tenant only. Rent shall be paid to the Landlord at [landlord’s address, or such other address as the Landlord may designate by reasonable written notice to Tenant. Tenant will provide Landlord with checks for the first and last months’ rent upon execution of this Lease & Option Agreement. Rent for the first and last months of the Lease shall be prorated on a daily basis if this Lease & Option Agreement commences or terminates on a day other than the first day of the month. Landlord shall have no obligation to segregate advance rents during the Term of the Lease. 1.6 Utilities & Services
The cost of all utilities and other services to and for the Leased Premises shall be paid by Tenant. All such charges shall be paid directly to the utility or service provider as they become due, [except as follows:]
The following utilities or services, if any, to be paid directly by Tenant may benefit Landlord or other tenants:
1.7
Late Charges, Forfeiture of Option
Tenant specifically agrees to make all rental payments when due and acknowledges that any failure to do so may cause Landlord to incur costs, including but not limited to accounting and processing fees, late charges, costs of collection and attorney’s fees. Therefore, Tenant agrees to pay Landlord a late fee of $##.##, as additional rent, if any rent payment due under this Lease & Option Agreement is not received by Landlord within four (4) days following the date on which such rent payment is due. Any dishonored check shall be treated as unpaid rent subject to the same late charge plus $##.## as a special handling fee. Should Tenant fail to make rental payments on time more than three (3) times, during the Term of the Lease, the Option to Purchase contained in this Lease & Option Agreement shall be terminated. 1.8 Security Deposit
Tenant shall provide Landlord with a security deposit in the sum of [AMOUNT OF DEPOSIT IN WORDS] DOLLARS ($###.##) upon execution of this Lease & Option Agreement as a security deposit.
-3-
The security deposit may be applied to remedy any default by Tenant, except for failure to maintain tenancy for the term of this Lease & Option Agreement. The security deposit may also be used to repair any damage to the Leased Premises caused by the Tenant, except for ordinary wear and tear. Within thirty (30) days of termination of this Lease & Option Agreement, Landlord shall refund the security deposit or balance thereof (if any) or, alternatively, give Tenant a written statement setting out the details of the Landlord’s claim to all or part of the security deposit. If the cost of repairing damages exceeds the amount of the security deposit, Tenant shall be responsible for the excess. 1.9 Key Deposit Tenant shall provide Landlord with a key deposit in the sum of [AMOUNT OF DEPOSIT IN WORDS] DOLLARS ($###.##), which shall be refunded upon the return of all keys for the Leased Premises upon termination of the Lease. If all keys are not returned, the key deposit shall be retained by Landlord as compensation for lost keys and to cover the expense of changing the locks. Tenant acknowledges the receipt of the following keys:
THIS IS AN 11-PAGE DOCUMENT.