Posted by John (Rome) on January 12, 2003 at 17:35:27:
you have to purchase only if that’s what is written on the contract…if not they both mean the same…both are leases with an option to purchase…
J
Lease/Option Agreement: Need a Copy? - Posted by Tyrone
Posted by Tyrone on January 12, 2003 at 11:35:27:
Can anyone email me a copy of a Lease/Option Agreement for CRE?
Re: Lease/Option Agreement: Need a Copy? - Posted by -Jimbo-
Posted by -Jimbo- on January 12, 2003 at 14:45:34:
I’ll do better than that…
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 on this _________ day of , 20, by and between the following parties: _______________________________________________________
located at_________________________________ (hereinafter referred to as the Tenant/Buyer); and _____________________________________________________________________ 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 more fully described as follows: _____________________________________________________
(2) TERM: The term of this Lease/Option shall be for a period of ___________ months commencing on ____________, 20, and ending on __________________________________. The term will be automatically extended for __________________ periods of ______________ months, unless the Tenant/Buyer gives notice to the Landlord/Seller of its intent to terminate this Lease/Option, by mailing a written notice to the last provided address of the Landlord/Seller. Liability for payment will not extend beyond notice to terminate this agreement. Possession shall be given to the Tenant/Buyer on ______________________.
(3) RENT: Tenant/Buyer agrees to pay 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 extension is thereof. All rental payments shall be due and payable in advance of the 10th day of each and every month. An amount equal to $__________________ for each month in which rent was paid, 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.
(4) OPTION TO PURCHASE: The Tenant/Buyer, as part of the consideration herein, is hereby granted the exclusive right, option, and privilege of purchasing property at any time during the term of this Lease/Option agreement or any extension thereof. The Tenant/Buyer shall notify the Landlord/Seller in writing of the exercise of this option at least 10 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.
(5) LIQUIDATED DAMAGES: Should Tenant/Buyer default on this agreement, Landlord/Seller shall keep all monies paid as liquidated damages.
(6) COVENANTS OF TENANT/BUYER: Commencing with entering 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, and electric, which may be assessed or charged against the property.
(B) 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; and
(C) 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.
(7) COVENANTS OF THE LANDLORD/SELLER: The Landlord/Seller hereby covenants and agrees as follows:
(A) That the Landlord/Seller shall pay for and maintain fire and extended coverage insurance on said property in minimum amount of $__________________________. The Tenant/Buyer shall be named as an additional insured or loss payee on the insurance policy and copy of which shall be provided to Tenant/Buyer.
(B) That the Tenant/Buyer shall peaceably and quietly hold, occupy, used in enjoy the property, without any let, hindrance, or molestation by Landlord/Seller or any person associated therewith.
(8) 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 the property, it shall be lawful for the Landlord/Seller to enter 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 perform shall cease, determine and be utterly void, except as set forth in paragraph 8, below. The commencement of a proceeding or suit in forcible entry detainer or in ejectment, or otherwise any after default by the Tenant/Buyer, shall be equivalent in every respect to actual entry by the Landlord/Seller.
(9) COSTS OF IMPROVEMENTS: In the event the Tenant/Buyer exercises the option to purchase set forth in paragraph 4, above, and through no fault of the Tenant/Buyer, the Landlord/Seller fails to convey said property to Tenant/Buyer in accordance with the terms of this Lease/Option, the Tenant/Buyer, in addition to any other rights which Tenant/Buyer may have in law or equity for the enforcement of Tenant/Buyer?s option to purchase, shall be entitled to reimbursement for the cost of all repairs, maintenance, and improvements.
(10) FURTHER ENCUMBRANCES: The Landlord/Seller hereby warrants the total of the leases, options, mortgages, liens, and any other encumbrances against the property, whether of public record or not, are as follows:
(A) A first mortgage in favor of___________________________________ in the approximate amount of $____________________________________.
(B) Current taxes for_____________________________________________________ in the amount of $___________________________ due on___________________________________.
(C)
The Landlord/Seller agrees not to lease to another third party, nor to assign, sell, option, transfer, pledge, or otherwise to convey any or all rights or interests had by Landlord/Seller in the property or in this Lease/Option agreement, nor to further encumber the property nor allow the same to occur. All third parties are hereby put on notice that any leases, assignments by the Landlord/Seller, liens, options, mortgages, or any other conveyances or transfers occurring subsequent to the date of this Lease/Option for hereby declared by the Landlord/Seller to be null and void and of no force and effect. The Landlord/ Seller further agrees to keep all mortgages, liens, taxes, or other encumbrances on the property, current any good standing, Tenant/Buyer shall have the right to make payment on same in the event that Landlord/Seller becomes non current or otherwise defaults thereon and said payments will be deducted from any equity due Seller or recovered from future rent due Landlord/Seller.
(11) RIGHT OF ASSIGNMENT: The Tenant/Buyer shall have the unqualified right to sublet the property, and/or to assign, sell, transfer, pledge, or otherwise convey any or all rights or interest which the Tenant/Buyer may have in the property or in this Lease/Option agreement. Any such assignments will release original Tenant/Buyer from liability and substitute assignee in his/her or its place.
(12) MAINTENANCE AND REPAIRS: The Tenant/Buyer accepts the property ?as is? on the date of execution of this Lease/Option except for items listed in paragraph 13. 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 30 days thereafter will be repaired by the Landlord/Seller at his/her expense. If the Landlord/Seller cannot or will not make the repairs necessary that Tenant/Buyer will have the option of either voiding this agreement by written notice to the Landlord/Seller or making such repairs and, (a) receiving a reimbursement from the next monthly payment or payments due the Landlord/Seller or, (b) receiving a credit against the purchase price plus interest at 10% per annum from date of payment.
(13) 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 endure to the benefit of and shall be binding upon the parties, their heirs, executors, administrators, personal representatives, successors, or assigns.
(14) SPECIAL PROVISIONS:
(A) The Landlord/Seller will complete the following by________________________ or this Lease/Option will become null and void and all monies dispersed by Tenant/Buyer will be immediately refunded by Landlord/Seller or, at Tenant/Buyer’s option, these items will be completed by Tenant/Buyer and the cost of same will be a recovered as provided for in paragraph 11 in which case is lease will continue in force. ___________________________________________________
(B) 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 Landlord/Seller has unmarketable title in which case the Landlord/Seller will reimburse Tenant/Buyer to cost of the search. 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
(15) PRICE AND TERMS: The Tenant/Buyer agrees to pay for said property the sum of $________________________________ less any sums for which the Tenant/Buyer is entitled to claim reimbursement or offset in accordance with this agreement; the net sum to be paid in cash, certified check, or cashier’s check at closing.
(16) INCLUDED IN THIS PURCHASE: The property shall also include all land, together with all improvements thereon, all appurtenant rights, privileges, easements, buildings, fixtures, heating, electrical, plumbing, air conditioning fixtures and facilities, window shades, venetian blinds, awnings, curtain rods, screens, storm windows and doors, affixed mirrors, wall-to-wall carpeting, stair carpeting, built-in kitchen appliances, bathroom fixtures, radio and television aerials, landscaping and shrubbery, water softeners, garage door openers and operating devices, and all utility or storage buildings or sheds, range and refrigerator. The property shall also include the following items: _________________________________
(17) 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 shown in paragraph 9. Title to be conveyed to the Tenant/Buyer and/or assigns.
(18) 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 60 days after notification to the Landlord/Seller of the Tenant/Buyer?s exercise of the option.
(19) 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 both parties having responsibility for such items as follows:
Landlord/Seller will pay: Tenant/Buyer will pay:
(20) 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, and immediately convert the owner occupied (if applicable) policy to a non-owner occupied policy. In the event of loss or destruction in whole or in part of said property, the Tenant/Buyer shall have the option to proceed with the closing and accept the insurance proceeds for said damage, or to declare this Lease/Option null and void, releasing both parties from any obligations hereunder, except for the return to reimbursable expenses previously paid by Tenant/Buyer which amounts shall become immediately due and payable from the insurance proceeds. Upon closing, the Tenant/Buyer shall be responsible for fire and extended coverage from that date forward.
(21) In the event this agreement is placed in the hands of an attorney for enforcement the prevailing party shall be entitled to recover court cost and attorney fees.
IN WITNESS THEREOF,
the parties hereto, have set their hands to this Lease/Option agreement on this ________________ day of ______________________, 20
WITNESS:
Landlord/Seller
Landlord/Seller
Tenant/Buyer
Tenant/Buyer
I have never actually used this one…much less read it, but I’m sure it covers most of what you need, if not all. I am not a RE atty. please consult one.
-Jimbo- There’s a dollar twenty worth.
Jim Thanks: But? - Posted by Tyrone
Posted by Tyrone on January 12, 2003 at 15:29:18:
Lease/Purchase means you’re going to PURCHASE right?
Lease/Option means that you will renew every year and have the OPTION to purchase right?
If so, do you have a copy of a Lease/Option?
Could you email me directly tt731@bellsouth.net?