Lease With Option To Purchase Parties: Buyer _____________________________________ of _________________________________________
and
Seller, ___________________________________________ of__________________________________________
In consideration of the payments, covenants, agreements and conditions herein contained the above parties hereby agree to lease
With an option the following property:
Subject: Property Address: _________________________________________________________________________
Legal Description: _______________________________________________________________________________
_______________________________________________________________________________________________
Personal Property included_________________________________________________________________________
Personal property to be transferred at closing by bill of sale free of any encumbrances.
Existing Loans- At time of closing buyer may elect to take title subject to the existing loans to____________________
In the amount of $_____________________ bearing interest rate of _________% payable ________________ ( P & I )
Or the loan will be paid off by the seller.
Loan Number______________________________ Date last payment made__________________________________
Other Liens, back taxes, etc.________________________________________________________________________
Term of lease and option ___________________months beginning _________________________________________
Monthly Payment $______________due on the __________day of each month beginning________________ 20____
Monthly credit toward purchase price when rent paid on time $______________
Purchase Price $________________, additional option consideration ______________to apply towards purchase price.
TERMS: Seller agrees that upon the exercise of the option they will assist in financing by taking as part of the purchase price a note in the amount of $____________________ with payments of $_____________________ beginning __________________.
MAINTENANCE: The buyers shall pay for all repairs costing less than $ 100.00 each month. Repairs costing $100 or more will be paid by the owner. Should the owner fail to make repairs to maintain the house in its current condition, the buyer may have said repairs made and receive a credit equal to 200% of the cost of the repair toward the purchase price and a full credit toward the next payment due.
SELLER'S AGREEMENT NOT TO FURTHER ENCUMBER: Sellers agree not to refinance the property, nor to modify any existing loans, nor to transfer any interest in the property during the term of this agreement.
PAYMENTS ON EXISTING LOANS, TAXES AND INSURANCE: Seller shall be responsible for paying the taxes, loan payments and for keeping the property insured for its full replacement value during the term of this agreement. In the event seller fails to make payments when due of taxes, insurance, or loan payments, buyer may elect to make said pays due payments and receive 200% of their amount credited toward the purchase price and full credit toward the next payment due the seller.
PRORATIONS: Taxes and insurance and loan interest shall be prorated as of the date of closing of the purchase.
BUYER & SELLER: agree to fully execute and place in escrow with ______________________________ instruments needed to convey title. The seller shall deposit and executed warranty deed, and copies of existing mortgages, notes, title insurance policies, and surveys. Buyer shall deposit an executed quitclaim deed which will be delivered to the seller in the event of a default by the buyer under this contract. All agree to sign an escrow agreement that will empower the escrow agent to close the transaction if all terms of the contract are met, and that will hold the agent harmless.
TRANSFER OF TITLE: In the event buyer chooses to exercise their option to purchase, they will notify the seller during the term of this agreement. Within 15 days of receipt of such notice, sellers agree to convey good and marketable title, free from all encumbrances except those that buyers wishes to take title subject to. Sellers further agree to furnish an owner's title binder within 5 days after receiving notice, showing no exceptions other than as listed above, and furnish a policy of title insurance at closing.
DAMAGES: In the event seller fails to perform, buyer will be entitled to recover all monies paid on this agreement, and may pursue all other legal remedies available. Seller will be responsible for all costs including a reasonable attorney's fee. In the event buyer fails to exercise the option, all option consideration and rents paid will be forfeited as full-liquidated damages.
RECORDING: All parties agree that this agreement or a memorandum including any parts of their agreement acceptable to the buyer may be recorded.
Page 2 of 2 Lease with Option
SUCCESSORS AND ASSIGNS & SUBLETTING: The terms and conditions of this contract shall bind all successors, heirs, administrators, executors, assigns, and those subletting.
ACCESS AND ADVERTISING: Sellers agree that the buyer may advertise the property and shall immediately have access during reasonable hours to show the property to others.
TIME IS OF THE ESSENCE IN ALL MATTERS OF THE AGREEMENT
OTHER TERMS: ____________________________________________________________________________
______________________________________________________________________________________________
______________________________________________________________________________________________
______________________________________________________________________________________________
______________________________________________________________________________________________
______________________________________________________________________________________________
The undersigned agree to buy and sell on the above terms, have-read, fully understand and verify the above information as being correct. All parties acknowledge that this is a legally binding contract and are advised to seek the counsel of an attorney.
Sellers ___________________________________________________________________________
Sellers ___________________________________________________________________________
Buyers ___________________________________________________________________________
Buyers ___________________________________________________________________________
State of _____________________________________ County of _____________________________________
The foregoing instrument was acknowledged before me this day of
____________________________________________________
By _________________________________________________________________________________________ being
Personally known to me or whom presented driver's licenses as identification.
Witness my hand and official seal.
Notary Public___________________________________________________
My commission Expires___________________________________________ This document and accompanying materials are designed to provide authoritative information in regard to the subject matter covered in it. It is for illustration purposes only and presented with the understanding that the author and publisher are not engaged in rendering legal, accounting or other professional opinions. If legal advice or other expert assistance is required, the services of a competent professional should be sought. |
