LEASE TO OWN AGREEMENT

 

This Lease to Own Agreement (the “Agreement”) is effective [DATE],

 

 

BETWEEN: [FIRST PARTY NAME] (the "Landlord/Seller"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at:

 

[COMPLETE ADDRESS]

 

 

AND: [SECOND PARTY NAME] (the "Tenant/Buyer"), a company organized and existing under the laws of the [State/Province] of [STATE/PROVINCE], with its head office located at:

 

[YOUR COMPLETE ADDRESS]

 

 

WHEREAS the Landlord wishes to lease its property to the Tenant and give an option to purchase as well;

 

WHEREAS the Tenant wishes to take the property on lease and have an option to purchase the same.

 

NOW THEREFORE, in consideration of the premises and of the mutual agreements contained in this Agreement, the Parties hereto agree as follows:

 

DESCRIPTION

 

The Landlord/Seller agrees to lease,

and

the Tenant/Buyer agrees to rent the property located at:

 

[ENTER PROPERTY ADDRESS]

 

TERM

 

The term of this Lease/Option shall be for a period of ________ months commencing on ____________

_ 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, 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

A

greement.

 

 

 

RENT AND RENT CREDIT

 

The

Tenant/Buyer agrees to pay to 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 extensions thereof. All rental payments shall be due and payable in advance on the 1st 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.

 

 

PURCHASE OPTION

 

4.1 The Tenant/Buyer, as part of the consideration herein, is hereby granted the exclusive right, option and privilege of purchasing said 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 ten (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.

 

 

PURCHASE OPTION PRICE AND TERMS

 

5.1 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 e-transfer. The Tenant/Buyer has given a non-refundable option consideration of $___________ for the purchase. Additional sums will be properly credited.

 

 

COVENANTS OF TENANT/BUYER

 

Commencing with and during the term of this

A

greement, including extensions, the Tenant/Buyer hereby covenants and agrees as follows:

 

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;

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

f

ederal,

s

tate, and

l

ocal governmental authorities, agencies, departments, bureaus, boards or officials, respecting the use of the property; and

 

That the Tenant/Buyer will surrender and deliver 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.

 

 

COVENANTS OF LANDLORD/SELLER

 

Commencing with and during the term of this

A

greement, including extensions, the Tenant/Buyer hereby covenants and agrees as follows:

 

That the Landlord/Seller shall pay for and maintain fire and extended coverage insurance on said property.

 

That the Tenant/Buyer shall peaceably and quietly hold, occupy, use and enjoy the property, without any let, hindrance by

the

Landlord/Seller or

any person associated therewith.

 

 

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

i

f 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 performed shall cease, determine and be utterly void. The commencement of a proceeding or suit in forcible entry and detainer or in ejectment, or otherwise after any default by the Tenant/Buyer, shall be equivalent in every respect to actual entry by the Landlord/Seller.

 

 

DEFAULT BY LANDLORD/SELLER (PAYMENTS)

 

In the event

the

Landlord/Seller is delinquent on any payments required under this

A

greement or pertinent to the above property

, the

Tenant/Buyer shall have the right to make such payments as necessary to cure said default on behalf of the Seller/Landlord.

 

 

COSTS OF IMPROVEMENTS

 

In the event the Tenant/Buyer exercises the option to purchase

, as

set forth in paragraph (4), above, and through no fault of the Tenant/Buyer, the Landlord/Seller fails to convey said property to

the

Tenant/Buyer

i

n accordance with the terms of this Lease/Option, the Tenant/Buyer, in addition to any other rights which

the

Tenant/Buyer may have in law or equity for the enforcement of

the

Tenant/Buyer's option to purchase, shall be entitled to reimbursement for the cost of all repairs, maintenance and improvements.

 

 

RIGHT OF ASSIGNMENT

 

The Tenant/Buyer shall have the right to sublet the property, and/or to assign all rights or interests which the Tenant/Buyer may have in this Lease/Option Agreement with

the

Landlord/Seller’s approval of assignee.

 

 

MAINTENANCE AND REPAIRS

 

The Tenant/Buyer accepts the property “as is" on the date of execution of this Lease/Option. 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

the

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

harm

less therefrom

, except that any electric, plumbing, heating or cooling system that is out of order or any repairs exceeding $_________________at the commencement of this lease or within

thirty

(

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

,

the Tenant/Buyer will have the option of either voiding this

A

greement 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.

 

 

INCLUDED IN THE PURCHASE

 

The property shall also include all land, together with all improvements thereon, all appurtenant rights, privileges, easements, buildings, fixtures, heating, electrical, plumbing and 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:

 

[LIST ITEMS]

 

 

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

for

existing mortgages restrictions and easements of record.

The

Title to

be conveyed to the Tenant/Buyer

and/or assigns.

 

 

CLOSING

 

The deed shall be delivered and the purchase money shall be paid at the lending

institution's

or other office of

the

Tenant/Buyer's choice, no later than sixty (60) days after notification to the Landlord/Seller of the Tenant/Buyer's exercise of the option.

 

 

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

, and

(b) Interest on encumbrances assumed or taken over by

the

Tenant/Buyer

,

with the Tenant/Buyer having responsibility for such items as follows:

 

Landlord/Seller will pay: ________________________________________________

 

Tenant/Buyer will pay: __________________________________________________

 

 

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.

 

 

NOTICE

 

All notices to be given or otherwise made to any

P

arty to this Agreement shall be deemed to be sufficient if contained in a written instrument, delivered by hand in person, or by express overnight courier service, or by electronic transmission (with a copy sent by first class mail, postage prepaid), or by registered or certified mail, return receipt requested, postage prepaid, addressed,

at the address of the respective

P

arty.

 

 

MODIFICATION

OF

ENTIRE AGREEMENT

 

This Agreement constitutes the entire agreement between the

P

arties relative to the subject matter hereof, and supersedes all proposals, written or oral, and all other communications between the

P

arties relating to the sub

ject matter of this Agreement.

This Agreement may be modified, amended or rescinded only by a written agreement executed by both

P

arties

.

 

 

WAIVERS

 

From time to time, the

P

arties

may waive

their

rights hereunder either generally or with respect to one or more specific transfers or actions that have been proposed, attempted or made. No waiver of any breach or default hereunder shall be considered valid unless in writing, and no such waiver shall be deemed a waiver of any subsequent breach or default of the same or similar nature.

 

 

SEVERABILITY

 

21.1 The invalidity, illegality or unenforceability of any provision of this Agreement shall in no way affect the validity, legality or enforceability of any other provision.

 

 

SUCCESSORS AND ASSIGNS

 

22.1 This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective successors and assigns, subject to the limitations set forth herein.

 

 

GOVERNING LAW

 

23.1 This Agreement shall be construed and enforced in accordance with the laws of the [State/Province] of [State/PROVINCE].

 

 

COUNTERPARTS

 

24.1 This Agreement may be executed in two or more counterparts, each one of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date above written.

 

 

LANDLORD TENANT

 

Authorized Signature Authorized Signature

 

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