Lease Purchase Agreement
This Lease Purchase Agreement dated ___________ is made on this _______ day of _______
XYZ, residing at __________, hereafter referred to as ‘the Seller/Landlord,
ABC, ____________________________, residing at ___________, hereafter referred to as ‘the Buyer/Tenant.
WHEREAS the Landlord is the owner of a real estate property situated in the state of ______ having a street address _________________________________________, hereafter referred to as ‘the Property’.
(A) As per lease purchase agreements the Landlord desires to lease and the buyer wishes to pay the sum of $______ per month inclusive of taxes and insurance to the lender of Landlord’s current mortgage. The first payment shall be made on _______ day of ______, which is rent for the Property. All payments as rent shall be payable on the __day of each month. An amount of $_____ shall be credited to the Tenant and applied to the purchase price of the said Property in the event that the Tenant exercises his/her purchase option.
(B) Form of Payment
Payment shall be made by the Tenant each month by cash/personal check/money order/ payable to ____________________ on the 1st day of each month.
(C) In the event of the rent not paid by the due date, the Tenant shall pay a fine of $___.
WHEREAS, the Tenant and the Landlord hereby agree to set forth the terms and conditions of this lease purchase agreement.
1. OPTION TERM
Provided that the Tenant does not default on the agreement, the Tenant has the option to purchase from the period which commences on __________ and expires on _______________________.
2. Notice for Purchase Option
If the Tenant desires to exercise the Option to Purchase, he/she/they shall provide written notice to the Landlord of their intent to purchase. The closing date shall be specified in the notice, which must occur prior to the expiry of this lease purchase agreement.
3. Option Consideration
As per lease purchase agreements the Tenant shall pay the Landlord the sum of _____________ as a non-refundable fee in consideration for this Option to Purchase. The amount shall be adjusted in the purchase price at the time of closing.
4. Purchase Price
4.1 Both parties hereby agree on the total purchase price of ____________ for the aforementioned Property. The Landlord shall credit the sum of ________ from each monthly lease payment towards the purchase price, provided the Tenant does not default on this lease purchase agreement.
4.2 Included in the purchase price is all land, buildings, together with improvements, fixtures, electrical fittings, plumbing, heating, window shades, storm windows, awnings, carpeting, in-built kitchen appliances, bathroom fixtures, landscaping, and garage.
The agreement is non-assignable and the Tenant has no right to assign, convey, or transfer the lease purchase agreement to any other party without express written permission of the Landlord.
6. Closing Costs
The Tenant agrees that any fees associated with closing costs shall be borne exclusively by the Tenant.
7.1 As per lease purchase agreements the Tenant is solely responsible for obtaining finance in order to exercise the option to purchase. The Landlord makes no warranties of the availability of finance regarding the option to purchase.
7.2 Both parties acknowledge that the availability of finance is unpredictable and this agreement is not entered into on any guarantee made by either party.
If the Tenant defaults on payments under the lease purchase agreement then the Landlord retains the right to terminate this agreement by giving written notice, and seek other remedies available to the Landlord according to law. Upon termination, the Tenant shall not be entitled to any refund of rent. It is expressly understood that the Tenant shall comply with all the terms and conditions of this lease purchase agreement in order for it to be enforceable and effective.
Both parties hereby agree that they are executing this lease purchase agreement voluntarily and not under any duress or undue influence. The parties have read and understood the terms and conditions of the agreement and its binding effect on them. Both parties have sought legal advice prior to setting forth their signature on this lease purchase agreement.
10. Governing Laws
The terms and conditions of this lease purchase agreement shall be governed, construed, and interpreted under the law of the State of ________. Any dispute arising out of this agreement shall be in the jurisdiction of the court of ___________.
No modification or waiver of rights can be made to this lease purchase agreement without the express written consent of both parties.
12. Maintenance and Repairs
The Property is delivered to the Tenant on an ‘as is’ basis on the date of execution of this agreement. The Tenant shall bear all the expenses for maintenance and repair of the said Property. The Tenant shall have the right to undertake improvements as may be deemed necessary, and bear the costs for such improvements.
13. Binding Agreements
Both parties hereby agree that this lease purchase agreement supersedes any other oral or written lease purchase agreements in relation to the Property. This agreement shall be binding on both parties, their heirs, assigns, administrators, representatives, or successors.
14. Covenants of the Landlord
The Landlord hereby agrees not to lease the Property to any other third party nor pledge, transfer, sell, option, or convey the said Property. Any violation of this paragraph shall be deemed as a breach of contract. The Landlord shall keep all liens, taxes, mortgages, or any other encumbrances on the Property in good standing. The Tenant shall retain the right to
15. Covenants of the Tenant
15.1 The Tenant shall pay all bills, utility charges including and not limited to water, gas, oil, electricity, taxes, and insurance for the said Property from the date of execution of this lease purchase option.
15.2 The Tenant shall use the Property exclusively for residential use and shall obey all laws, rules, regulations, and ordinances of all Federal, State, and Local governmental authorities.
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