|Lease Purchase Option|
TENANT’S PURCHASE OPTION
LANDLORD/ OPTIONOR: __________________________________________________
TENANT/ OPTIONEE: __________________________________________________
1. IN CONSIDERATION of the OPTIONEE meeting all obligations as stated herein, the OPTIONOR hereby grants the OPTIONEE and OPTION to purchase under the following terms:
This OPTION will expire without notice and shall be of no further effect if no exercised on or before __________________, 20_______.
2. THE OPTION PRICE is $ _______________. The terms of purchase will be: ______________
The following items will be prorated at closing: _______________________________________________
3. OPTIONEE has paid the sum of $ ____________ as non-refundable option consideration which will be applied toward the purchase price of the property if, and only if, OPTIONEE exercises this
OPTION to purchase. In the event OPTIONEE fails to exercise the OPTION or defaults under any terms of the attached lease, this OPTION will be void and all monies will be retained by OPTIONOR as liquidated damages and not as a penalty.
4. The recording of this OPTION or any memorandum thereof will result in the automatic revocation of this OPTION and all monies will be retained by OPTIONOR as liquidated damages and not as a penalty. IN addition, OPTIONEE will be liable to OPTIONOR for all incidental and consequential damages for slander of title, including but not limited to, attorney’s fees and court cost for correcting title.
5. THIS OPTION, OF ANY INTEREST THERIN, IN NOT TRANSFERABLE OR ASSIGNABLE and can only be exercised by the individuals signing this OPTION acting in unison for OPTIONEE’S principal residence.
6. In the event that OPTIONEE is in possession of the property described above under a valid lease agreement at the time of exercise of this OPTION, $ _______ of each monthly rent payment received
on or before the 1st of the month under said lease will be applied as additional option consideration to reduce the purchase price if, and only if, tenant exercises this option to purchase. NO payments received after the 1st of the month will be applied. All covenants of said lease agreement must have been faithfully performed in order for this OPTION to be valid and enforceable, including, but not limited to, the repairs, maintenance and upkeep of said property. In the event that the OPTIONEE substantially defaults on any payments or other obligations required under said lease, this purchase OPTION will be automatically void and any monies paid thereunder for rent or as option consideration will be retained by OPTIONOR as make liquidated damages and not as a penalty. “Substantial default” includes, but is not limited to, failure to any lease payment by the 15th of any month for which rent is due.
7. NOTICE must be delivered to the OPTIONOR in writing of OPTIONEE’S intention to exercise this OPTION at least SIXTY (60) days prior to exercise.
This PURCHASE OPTION is NOT contingent upon OPTIONEE’s ability to obtain financing from lender or any other reason. OPTIONEE understands that TIME IS OF THE ESSENCE for this agreement, and that OPTIONEE’s failure to purchase the property before the expiration of the OPTION, for any reason (or if OPTIONEE defaults any terms of a lease agreement for the above stated property), all monies paid by OPTIONEE will be retained by OPTIONOR. OPTIONOR and OPTIONEE further agree that this agreement is not an installment land contract, contract-for-deed or equitable mortgage, but merely OPTIONEE’s right to purchase the above-referenced property under the terms stated above.