LEASE TO PURCHASE OPTION AGREEMENT
This agreement
dated the _______ day of ________________, _________, is by and between ___________________________________________________________
(herein after referred to as “Seller/Landlord”) and ___________________________________________________________
(herein after referred to as “Buyer/Tenant).
For good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, Seller/Landlord hereby grants to Buyer/Tenant
an exclusive option to purchase the real property described as follows:
______________________________________________________________________
______________________________________________________________________
(herein
after referred to as the “Property”) strictly according to the terms and conditions contained herein (herein after
referred to as the “Option to Purchase Agreement”), which real property is the subject of that certain Residential
Lease Agreement by and between Seller/Landlord and Buyer/Tenant, of even date herewith (herein after the “Lease Agreement”).
1. TERM OF OPTION. This option to purchase shall commence on
the _______ day of ________________, _________ and shall expire at 12 o'clock midnight on the _______ day of ________________,
_________.
2. EXCLUSIVITY OF OPTION. This option to purchase is exclusive
and non-assignable. Any attempted assignment, delegation, transfer or conveyance of this option to purchase without
the Seller/Landlord’s express written permission is void.
3. NOTICE REQUIRED TO EXERCISE OPTION.
Buyer/Tenant may only exercise this option to purchase by delivering written notice of intent to purchase to Seller/Landlord.
Such notice must specify a closing date to occur prior to the original Termination Date set forth in the Lease Agreement or
the option expiration date set forth in paragraph 1 herein above, whichever is later in time.
4. OPTION CONSIDERATION. Buyer/Tenant shall remit option consideration
in the sum of $____________ to Seller/Landlord upon execution of this Option to Purchase Agreement, which amount is non-refundable.
In the event Buyer/Tenant timely exercises this option, is not in default of the Lease Agreement and actually closes the conveyance
of the Property, the option consideration shall be credited to the purchase price at closing. If Buyer/Tenant fail to
exercise this option, defaults in the Lease Agreement or fails to close the conveyance, the option fee shall not be refunded.
5. PURCHASE PRICE. The total purchase price for the Property
pursuant to this Option to Purchase Agreement is $________________. If Buyer/Tenant timely exercises this option, is
not in default of the Lease Agreement and actually closes the conveyance of the Property, the Buyer/Tenant shall be credited,
at closing, the sum of $_______ from each monthly lease payment if every monthly lease payment was timely remitted to Seller/Landlord
pursuant to the Lease Agreement. No credit shall be given at closing if any monthly lease payment was received by the
Seller/Landlord after the due date established in the Lease Agreement.
6. CLOSING AND SETTLEMENT. Closing and settlement shall be at
a title company designated by the Seller/Landlord. All closing costs and any points, fees and/or charges imposed by
the Buyer/Tenant’s lender shall be the sole responsibility of the Buyer/Lender. Seller/Landlord shall only be
responsible for its pro-rated share of the ad valorem taxes due as of the date of closing.
IT IS THE BUYER/TENANT’S SOLE RESPONSIBILITY TO ARRANGE FINANCING FOR THE TRANSACTIONS.
SELLER/LANDLORD HAS MADE NO REPRESENTATIONS TO BUYER/TENANT REGARDING THE AVAILABILITY OF FINANCING OF BUYER/TENANT’S
ABILITY TO QUALIFY FOR FINANCING.
7. REMEDIES UPON DEFAULT. (a) In the event of any such default
by Buyer/Tenant of this Option to Purchase Agreement or the Lease Agreement, then in addition to any other remedies available
to Seller/Landlord at law or in equity, Seller/Landlord shall have the option to terminate this Option to Purchase Agreement
and all rights hereunder by giving written notice of termination. Tenant/Buyer is not entitled to any refund of rent or option
consideration whatsoever. (b) All of the terms and conditions of the Lease Agreement must be complied with in order for this
option to be enforceable. In the event this Option to Purchase Agreement conflicts with any part of the corresponding Lease
Agreement, the terms and conditions of this Option to Purchase Agreement shall be superior and prevail.
8. COMMISSIONS. There will be no real estate commissions paid
as a result of this transaction.
9. MODIFICATION. Any modification of any portion of this Option to
Purchase Agreement must be made in writing signed by both parties.
10. REFERENCES IN WORDING. Plural references made to the parties involved in
this Option to Purchase Agreement may also be singular, and single references may be plural. These references may also apply
to Landlord/Seller and Buyer/Tenant heirs, executors, administrators, successors as the case may be.
11. TIME OF PERFORMANCE. Time is of the essence in this Option to Purchase
Agreement.
12. ENTIRE AGREEMENT. As written, this Option to Purchase Agreement constitutes
the final, 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 oral.
13. FINANCING DISCLAIMER. The parties to this Option to Purchase Agreement
acknowledge that speculation of availability of financing or assumption of existing loans towards the purchase of this property
is impossible to predict. Therefore the parties agree that these items shall not be a condition of performance of this
Option to Purchase Agreement, and the parties agree they have not relied upon any representation or warranties by either parties.
14. ACKNOWLEDGMENT. The undersigned Buyer/Tenant hereby acknowledge that they
have read this Option to Purchase Agreement, understand it, agree to it and have been given an executed copy. This Option
to Purchase Agreement is not to be recorded in the property records unless express permission is granted by the Seller/Landlord.
Buyer/Tenant were advised, and had opportunity to, seek advice of legal, tax, technical expertise professionals of their own
selection and any other counsel of their choosing concerning this contract prior to signing.
15. CHOICE OF LAW AND VENUE. This Option to Purchase Agreement shall be construed
according to the laws of the State of __________________ and is executed in __________________ County,
__________________. All parties agree that the venue for any dispute regarding this Option to Purchase Agreement shall
be __________________ County,
__________________.
As to Seller/Landlord this ______ day of ________________________, 20_____.
SELLER/LANDLORD:
Sign: ___________________________________
Print: __________________________________ Date: ______________
As to Buyer/Tenant, this ______ day of ________________________, 20_____.
BUYER/TENANT:
Sign: ___________________________________
Print: __________________________________ Date: ______________
BUYER/TENANT:
Sign: ___________________________________
Print: __________________________________ Date: ______________
TENANT'S NOTICE TO EXERCISE
PURCHASE OPTION
Date: _______________________
To: ____________________________
Dear
_______________________:
Notice is hereby provided that the undersigned as Lessee under a certain Lease dated ________________________,
20_____, does hereby exercise its purchase option under said lease to purchase the property described as ________________________________________________________
for the option price of $__________________________.
As contained within the lease agreement I enclose $_____________
as a deposit toward said purchase option.
_______________________________
Lessee
CERTIFIED
MAIL, Return Receipt Requested
REAL ESTATE PURCHASE CONTRACT (RESIDENTIAL)
STATE OF ___________________
COUNTY OF ___________________
1. PARTIES: _______________________________________________________________________
(Seller) agrees to sell and convey to __________________________________________________________________
____________________
(Purchaser), and Purchaser agrees to buy from Seller the Property described below.
2. PROPERTY: (a) Land:
Address: ____________________________________________________________ [insert full address] or more specifically described
as: ______________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________,
or as described in the attached exhibit. (b) Improvements: The house, garage and all other fixtures and improvements
attached to the above-described real property, including without limitation, the following permanently installed and built-in
items, if any: all equipment and appliances, valances, screens, shutters, awnings, wall-to-wall carpeting, mirrors, ceiling
fans, attic fans, mail boxes, television antennas and satellite dish system and equipment, heating and air-conditioning units,
security and fire detection equipment, wiring, plumbing and lighting fixtures, chandeliers, water softener system, kitchen
equipment, garage door openers, cleaning equipment, shrubbery, landscaping, outdoor cooking equipment, and all other property
owned by Seller and attached to the above described real property. (c) Accessories: The following described related
accessories, if any: window air conditioning units, stove, fireplace screens, curtains and rods, blinds, window shades, draperies
and rods, controls for satellite dish system, controls for garage door openers, entry gate controls, door keys, mailbox keys,
above ground pool, swimming pool equipment and maintenance accessories, and artificial fireplace logs. (d) Exclusions:
The following improvements and accessories will be retained by Seller and excluded:
_________________________________________________________________________________________
_________________________________________________________________________________________
The
land, improvements and accessories are collectively referred to as the "Property".
3. PURCHASE PRICE: The Total
Price shall be $___________________ payable as follows:
Earnest money: (Receipt
of which is hereby acknowledged) $___________________
Cash or certified funds due at closing: $___________________
4. FINANCING: The portion of
Sales Price not payable in cash will be paid as follows: [Check applicable items below.]
_____ (a) Third Party Financing: One or more
third party mortgage loans in the total amount of $___________________. If the Property does not satisfy the lenders' underwriting
requirements for the loan(s), this contract will terminate and the earnest money will be refunded to Purchaser. [Check
one item only:]
_____ (1) This contract is subject to Purchaser being approved for the financing described in
the attached Third Party Financing Condition Addendum.
_____ (2) This contract is
not subject to Purchaser being approved for financing and does not involve FHA or VA financing.
_____ (b) Assumption: The assumption of the unpaid
principal balance of one or more promissory notes described in the attached Loan Assumption Addendum.
_____ (c) Seller Financing: A promissory note
from Purchaser to Seller of $___________________ bearing _______% interest per annum, secured by [choose the appropriate
instrument authorized within the state:] _____ mortgage, or _____ vendor's and deed of trust liens, and containing the
terms and conditions described in the attached Seller Financing Addendum. If an owner policy of title insurance is
furnished, Purchaser shall furnish Seller with a mortgagee policy of title insurance.
5. TITLE INSURANCE: Seller
agrees to furnish to Purchaser a standard form title insurance commitment, issued by a company qualified to insure titles
in _________________________ [state], in the amount of the purchase price, insuring the mortgagee
against loss on account of any defect or encumbrance in the title, unless herein excepted; otherwise, the earnest money shall
be refunded. Said property is sold and is to be conveyed subject to any mineral and mining rights not owned by the undersigned
Seller and subject to present zoning classification.
6. PRORATIONS & HAZARD INSURANCE: The taxes, as determined on the date of closing, are to be prorated between Seller and Purchaser as of the date of
delivery of the deed. Seller shall keep in force sufficient hazard insurance on the property to protect all interests until
this sale is closed and the deed delivered. If the property is destroyed or materially damaged between the date hereof and
the closing and Seller is unable or unwilling to restore it to its previous condition prior to closing, Purchaser shall have
the option of canceling the contract and receiving back the earnest money, or accepting the property in its damaged
condition, any insurance proceeds otherwise payable to Seller by reason of such damage shall be applied to the balance of
the purchase price or otherwise be payable to Purchaser.
7. CLOSING COSTS & DATE:
The sale shall be closed and the deed delivered within sixty (60) days from the execution of this Agreement by all parties,
except Seller shall have a reasonable length of time within which to perfect title or cure defects in the title to the said
property. The Seller agrees to pay the cost of deed preparation and a mortgagee’s title insurance
policy, all other closing costs shall be paid by Purchaser. Purchaser agrees to allow Seller to remain
in possession of said property subject to separate terms of a month to month lease agreement to be executed at closing for
a lease period not to extend beyond _________________________ [insert month/day/year].
8. CONVEYANCE: Seller agrees
to convey a good merchantable title and General Warranty Deed of said property insuring that property is free of all encumbrances,
except as hereinabove set out and Seller and Purchaser agree that any encumbrances shall be paid in full at the time of closing
from sales proceeds.
9. CONDITION OF PROPERTY: (a)
General Provisions and Obligations of Parties: Seller agrees to deliver the heating, cooling, plumbing and electrical
systems and any built-in appliances in operable condition at the time of closing. It shall be the responsibility of Purchaser,
at Purchaser’s expense, to satisfy himself/herself that all conditions of this contract are
satisfied before closing. Said sale is contingent upon a satisfactory inspection of the property to be completed and reported
to Seller prior to or on _________________________, 20____. Said contract shall only be renegotiable upon a major defect with
an individual repair cost in excess of $500.00. After closing, all conditions of the property, as well as any aforementioned
items and systems, are the responsibility of Purchaser and shall be deemed purchased AS-IS. (b) Lender Required Repairs
and Treatments: Unless otherwise agreed in writing, neither party is obligated to pay for lender required repairs, which
includes treatment for wood destroying insects. If the parties do not agree to pay for the lender required repairs or treatments,
this contract will terminate and the earnest money will be refunded to Purchaser. If the cost of lender required repairs and
treatments exceeds 5% of the Sales Price, Purchaser may terminate this contract and the earnest money
will be refunded to Purchaser. (c) Completion of Repairs and Treatments: Unless otherwise agreed in writing, Seller
shall complete all agreed repairs and treatments prior to the Closing Date. All required permits must be obtained, and repairs
and treatments must be performed by persons who are licensed or otherwise authorized by law to provide such repairs or treatments.
At Purchaser's election, any transferable warranties received by Seller with respect to the repairs and treatments will be
transferred to Purchaser at Purchaser's expense. If Seller fails to complete any agreed repairs and treatments prior to the
Closing Date, Purchaser may do so and receive reimbursement from Seller at closing. The Closing Date will be extended up to
15 days, if necessary, to complete repairs and treatments. (d) Environmental Matters: Purchaser is advised that the
presence of wetlands, toxic substances, including asbestos and wastes or other environmental hazards, or the presence of a
threatened or endangered species or its habitat may affect Purchaser's intended use of the Property. If Purchaser is concerned
about these matters, an addendum required by the parties should be used.
10. SELLER’S WARRANTIES:
Seller warrants that Seller has not received notification from any lawful authority regarding any assessments, pending public
improvements, repairs, replacements or alterations to said premises that have not been satisfactorily made. These warranties
shall survive the delivery of the above deed.
11. EARNEST MONEY: The Earnest
Money as paid by Purchaser as set forth in Paragraph 3 hereof shall be deposited by Seller only upon the execution of this
contract. The Earnest Money shall be nonrefundable to Purchaser except for the occurrences of Paragraphs 5, 6, or 12.
12. DEFAULT: If Purchaser fails
to comply with this contract, Purchaser will be in default, and Seller may (a) enforce specific performance, seek such other
relief as may be provided by law, or both, or (b) terminate this contract and receive the earnest money as liquidated damages,
thereby releasing both parties from this contract. If, due to factors beyond Seller's control, Seller fails within the time
allowed to make any non-casualty repairs, Purchaser may (a) extend the time for performance up to 15 days and the Closing
Date will be extended as necessary or (b) terminate this contract as the sole remedy and receive the earnest money. If Seller
fails to comply with this contract for any other reason, Seller will be in default and Purchaser may (a) enforce specific
performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the earnest
money, thereby releasing both parties from this contract.
13. MEDIATION: Any dispute
between Purchaser and Seller related to this contract that is not resolved through informal discussion [choose one:] _____ will _____ will not be submitted to a mutually acceptable mediation service or
provider. The parties to the mediation shall bear the mediation costs equally. This paragraph does not preclude a party from
seeking equitable relief from a court of competent jurisdiction.
14. SURVIVAL OF CONTRACT: All
terms, conditions and warranties not performed at the time of delivery of the deed shall survive such delivery.
15. COMMISSION FEES: Purchaser
and Seller agree that said contract was negotiated at arms length without assistance of any real estate agents or brokers
and that no such fees shall be paid by either party in connection with this contract or sale.
16. ADDITIONAL PROVISIONS:
Any additional Provisions set forth on the reverse side, initialed by all parties, are hereby made a part of this contract
and this contract states the entire agreement between the parties and merges in this agreement all statements, representations,
and covenants heretofore made, and any agreements not incorporated herein are void and of no force and effect.
17. SUCCESSORS AND ASSIGNS:
This contract shall be binding upon any heirs, successors and assigns of Seller or Purchaser.
18. REVOCATION OF OFFER BY PURCHASER: This contract has been first executed by Purchaser and if not accepted by all parties by noon on _________________________,
20____, this offer shall be void.
19. DISCLOSURES: _______________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
[The Seller should note any
disclosures about the property that may be required under Federal or state law. Consult an attorney if uncertainty exists
as to which disclosures may be required.]
PURCHASER:
____________________ ____________________________________________
Date
[purchaser's signature above/printed name below]
____________________________________________
[purchaser's signature above/printed name below]
SELLER:
____________________ ____________________________________________
Date
[seller's signature above/printed name below]
____________________________________________
[seller's signature above/printed
