LEASE-OPTION: YOU ARE THE BUYER

 

AGREEMENT made this              day of                           19    between

 

, LESSOR(S)/Seller(s),

who hereby state that they are the sole owners of this property and that it is encumbered only by the below mentioned loans, and

 

_________________________________________ , LESSEE/Buyer or assigns

 

 

The LESSOR agrees to lease to LESSEE the following described real property, located in                                            County,         (State)

The street address of this property is .

 

 

1)       The term of the lease shall be_______________ months, beginning on

2)       The monthly lease payment shall be $                            , to be paid on

the                 day of each month, the first payment to be paid on

3)      For good and valuable consideration, including but not limited to the leasing of this property, the LESSEE shall have an option to purchase the property at any time during the term of the lease.

4)      At such time the option is exercised, the purchase price for the property shall be determined as follows:

A)     Option consideration, in the amount of $_____ to be paid on or before______       200_

B)     LESSEE to take title subject to the following existing loan(s):

 

#1.    Loan payable to________ (Institution name)            with an approximate balance on this date of $________

bearing interest at___________ %, payable $____________ per __________

#2.    Loan payable to_______ (Institution/person name)____________ with an

approximate balance on this date of $_______________________________

bearing interest at___________ %, payable $__________________________

per __________

 

Other Liens:

 

 

C)      LESSOR agrees to hold purchase money loan, if option exercised, under the following terms:

D)      Additional terms:

5)       Each month that the lease payment in (2) is paid on time, the LESSEE shall receive a $           credit to the purchase price. The purchase price will be adjusted at the closing to reflect the credits for the lease payments and will be applied first to any payment due from LESSEE at closing.      The lease payment is late five days after it is due.      Additionally at closing, the following items will be pro rated: property taxes, lease payments, insurance premiums, interest on loans.

 

6)       The LESSOR agrees not to refinance or modify any existing loan(s), nor to further encumber the property, nor to transfer any interest in the property during the terms of this agreement.  If at any time during the term of this agreement LESSOR fails to make any loan payment or payment of taxes, insurance or assessment, LESSEE may make the payments due and shall receive credit of 150% of all funds paid against the next lease payment(s) due under this agreement.

 

7)       In the event the option is exercised, LESSOR agrees to convey good and marketable title and deliver a warranty deed, free of encumbrances (except as noted in 4(B) above) with all documentary stamps affixed. LESSOR will also provide title insurance or an updated abstract to LESSEE 10 days prior to closing at the LESSOR^'s expense. Taxes, insurance and any assessments are the responsibility of the LESSOR until the date of closing.  In the event the seller cannot deliver good and sufficient title as called for under this agreement then the LESSEE shall be entitled to a refund of all monies paid to LESSOR under this agreement, and shall not waive any further remedies available to him.

8)       The purchase price includes the following personal property which will be transferred to the buyers on the date of closing with a bill of sale, stating that said personal property is free and clear of any encumbrances:

9)    LESSOR agrees to keep the property insured for full market value during the term of the agreement.     In case the property is partially or wholly destroyed by fire or other casualty, or taken by condemnation, then LESSEE may elect to exercise this option according to the terms of this instrument, and claim the insurance funds or proceeds from condemnation.

 

10)  The maintenance and any repairs will be the responsibility as noted:

If any maintenance cost is not paid that is the responsibility of the LESSOR, the LESSEE may deduct said cost from the next lease payment(s) due under this agreement, and receive full credit for the lease payment being made on time.

 

11)  The terms and conditions of this agreement are to apply to and bind the heirs, executors, administrators, successors and assigns of the respective parties.

 

12)  In all matters in this agreement, time is of the essence.

 

13)  This agreement is fully assignable and the property, during the term of the lease may be sublet.

 

14)  The date of closing will be set upon written notice of the LESSEE to the LESSOR, at the address listed below, and upon mailing or delivery by the LESSEE will be held within 30 days.

 

15)  LESSOR agrees to sign a memorandum of option, which shall include any parts of this agreement, and shall be in recordable form. LESSOR also agrees to fully execute and place in trust with

as escrow agent, all instruments required to convey this property, with full instructions to the agent to authorized and instruct the agent to record those instruments in the event the LESSEE exercises the option on or before______

 

16)  Additional terms and conditions:

 

17)  LESSOR:                                                     LESSEE:

Address:                                          _NOTARY INFORMATION