Rent to Own Agreement - word to download
Extract of this Rent to Own Agreement
This
Rent-to-Own Agreement (this “Agreement”) is made and entered into as of this
____ day of ___________, 20__, by and [between/among] ___________________,
[name of landlord] located at _______________________ [address of landlord]
[option for 2 more] (collectively, “Landlord” or “Seller”) and
________________________, [name of tenant] located at _____________________
[address of tenant] [option for 2 more] (collectively, “Tenant” or “Buyer”).
Each Landlord or Seller and Tenant or Buyer may be referred to in this
Agreement individually as a “Party” and collectively as the “Parties.”
WHEREAS,
Landlord is the owner of certain real property located at
______________________________________ [address
of property] with the legal description: _______________________________ (the
"Premises"); and
WHEREAS,
Landlord desires to lease the Premises to Tenant upon the terms and conditions
as contained herein; and
WHEREAS,
Tenant desires to lease the Premises from Landlord on the terms and conditions
as contained herein; and
WHEREAS,
Tenant also desires to obtain an option to purchase the Premises at an agreed
upon purchase price (the “Option to Purchase”), and has agreed to certain
additional property maintenance conditions in consideration of the Option to
Purchase; and
WHEREAS,
Landlord desires to grant to Tenant the Option to Purchase pursuant to the
terms and conditions set forth herein.
NOW,
THEREFORE, for and in consideration of the covenants and obligations contained
herein and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the Parties hereto hereby agree as follows:
1.
Premises. The Premises is a __________ [with __________
bedroom(s) and __________ bathroom(s)] [and _____ parking space(s)].
[Parking is not included with the Premises]. [The Premises includes the
following storage space:________________].[The Premises is fully
furnished./_______________]. [Additional description of the premises]
2.
Term. Landlord agrees to lease to
Tenant, and Tenant agrees to lease from Landlord, the Premises for a term
beginning on ____________ [and ending on ______________/and continuing
month-to-month until either Landlord or Tenant terminate this Agreement by
providing the other Party with proper written notice of termination] (the
“Term”). The Term is subject to the Option To Purchase the Premises given to
Tenant by Landlord as more particularly herein.
3.
Rent. Tenant will pay to Landlord a monthly
rent of $_______ for the Term. Rent will be payable in advance and due on the
_____ day of each month during the Term. The first [and last] rent payment[s]
[is/are] due upon the execution of this Agreement. [Rent for
[the first month of the Term/the last month of the Term] will be a pro rata
portion of the monthly installment in the amount of $___________.] Rent will be paid to Landlord at [Landlord's address stated
above/_______________] (or to such other places as directed by Landlord) by
mail or in person by [personal check/cashier’s check/money order/cash/credit or
debit card/Paypal/other], and will be payable in U.S. Dollars. Tenant
shall pay to Landlord the amount of $___________ in the event that any rent
check or other payment made to Landlord hereunder is returned by the bank
unpaid due to insufficient funds or returned for any reason.
4. Guaranty. __________ located
at __________, __________, __________, __________ (“Guarantor”) promises
to unconditionally guarantee to Landlord, the full payment and performance by
Tenant of all financial duties and obligations arising out of this Agreement.
Guarantor agrees to joint and several liability with Tenant for Tenant’s
financial duties and obligations under this Agreement including rent, damages,
fees and costs. Guarantor further agrees that this guaranty shall remain in
full force and effect and be binding on Guarantor until this Agreement is
terminated.
5.
Late Fee. In the event that any
payment required to be paid by Tenant hereunder is not made within _____ days
of when due, Tenant shall pay to Landlord, in addition to such payment or other
charges due hereunder, a late charge [____ % of the balance due per day
for each day that rent is late /$____].
6. Additional Rent. There may
be instances under this Agreement where Tenant may be required to pay
additional charges to Landlord. All such charges are considered additional rent
under this Agreement and will be paid with the next regularly scheduled rent
payment. Landlord has the same rights and Tenant has the same obligations
with respect to additional rent as they do with rent.
7. Utilities. Tenant is
responsible for arrangement and payment of all utility and other services for
the Premises, [with the exception of ______________________, which will be
paid for by Landlord.]
8.
Security Deposit. Upon the execution
of this Agreement, Tenant will pay a security deposit to Landlord in the amount
of $__________ (the “Security Deposit”). The Security Deposit will be
retained by Landlord as security for Tenant’s performance of its obligations
under this Agreement, including for any damage caused to the
Premises during the Term. If
Tenant does not comply with any of the terms of this Agreement, Landlord may
apply any or all of the Security Deposit to remedy the breach, including to
cover any amount owed by Tenant and/or any damages or costs incurred by Landlord
due to Tenant’s failure to comply. Landlord will provide to Tenant written
notice of use of any or all of the Security Deposit. Tenant will,
within ___ days following receipt of such written notice, pay to Landlord
the amount needed to restore the Security Deposit to its full amount. The Security Deposit may not be used or
deducted by Tenant as the last month’s rent of the Term.
9.
Interest on Security Deposit. In
accordance with all applicable statutes, Landlord will pay Tenant interest on
Tenant's security deposit, less any service fee charged by the bank or
investment company.
10.
Return of Security Deposit. If
Tenant returns possession of the Premises to Landlord in the same condition as
accepted, ordinary wear and tear excepted, Landlord will return the Security
Deposit to Tenant, less any allowed deductions, within _____ days after the end
of the Term. Any
reason for retaining a portion of the security deposit will be itemized and
explained in writing. If Tenant exercises the Option to Purchase, the Security
Deposit [will be returned to Tenant in accordance with this Agreement/will be
credited towards the Purchase Price at the Closing (as defined herein)].
11. Landlord's Failure to Give
Possession. In the event Landlord is unable to give possession of the
Premises to Tenant on the start date of the Term, Landlord will not be subject
to any liability for such failure, the validity of this Agreement will not be
affected, and the Term will not be extended. Tenant will not be liable for rent
until Landlord gives possession of the Premises to Tenant; provided however,
that if Landlord does not give possession of the Premises to Tenant within ___
days from the start of the Term, Tenant may cancel this Agreement by notice in
writing to Landlord,.
12. Holdover Tenancy. [If
Landlord accepts a rent payment from Tenant, other than past due rent or
additional rent, after the Term expires, both parties understand that a
month-to-month holdover tenancy will be created at the agreed upon monthly
rent, unless proper notice has been served as required by applicable laws. If
either Tenant or Landlord wishes to end the month-to-month tenancy, such Party
must provide at least thirty (30) days’ written notice before the desired
termination date. /Unless this Agreement has been extended by mutual
written agreement of the Parties or Tenant has exercised the Option to Purchase,
there will be no holding over past the Term under the terms of this Agreement
under any circumstances. If it becomes necessary to commence legal action to
remove Tenant from the Premises, the prevailing Party will be entitled to
attorney’s fees and costs in addition to damages.]
13.
Use of Premises. The Premises shall
be used and occupied by Tenant and
Tenant’s immediate family and used only for residential purposes. [Guest
policy]. Tenant will not engage in any objectionable conduct, including behavior
which will make the Premises less fit to live in, will cause dangerous,
hazardous or unsanitary conditions or will interfere with the rights of others
to enjoy their property. Tenant will be liable for any damage occurring to the
Premises and any damage to or loss of the contents thereof which is done by
Tenant or Tenant’s guests or invitees.
14.
Condition of Premises. Tenant
represents and warrants that Tenant has examined the Premises, and that at the
time of the execution of this Agreement, the Premises is in good order and
repair, normal wear and tear excepted, and in a safe, clean and tenantable
condition. Tenant accepts the Premises in the current condition[,
except:_________________________].
15.
Inspection Checklist. In order to
avoid disagreements about the condition of the Premises, at the time of
accepting possession of the Premises, Tenant will complete the Inspection
Checklist incorporated herein by reference and attached hereto as Exhibit A and
record any damage or deficiencies that exist at the commencement of the
Term. Tenant will provide a copy of the
completed checklist to Landlord within ____ days after accepting possession of
the Premises. Landlord will be liable
for the cost of any cleaning or repair to correct damages found at the time of
the inspection. Tenant will be liable
for the cost of any cleaning and/or repair to correct damages found at the end
of the Term if not recorded on the inspection checklist, normal wear and tear
excepted.
16.
Maintenance and Repairs. Tenant
will, at its sole expense, keep and maintain the Premises, including the
grounds and all appliances and fixtures, in clean, sanitary and good condition
and repair during the Term. Tenant will not remove any appliances or fixtures
from the Premises for any purpose. [Tenant will also be responsible for the
payment of ___________________.] If
other repairs are required, Tenant will notify Landlord for such repairs.
17.
Alterations. Tenant will not make any alteration,
addition or improvement to the Premises without first obtaining Landlord’s
written consent. Any and all alterations, additions or improvements to the
Premises are without payment to Tenant and will become Landlord’s property
immediately on completion and remain on the Premises, unless Landlord requests
or permits removal, in which case Tenant will return that part of the Premises
to the same condition as existed prior to the alteration, addition or
improvement. Tenant will not change any existing locks or install any
additional locks on the Premises without first obtaining Landlord's written
consent and without providing Landlord a copy of all keys.
18. Compliance. Tenant agrees
to comply with all applicable laws, ordinances, requirements and regulations of
any federal, state, county, municipal or other authority.
19. Rules and Regulations. [Landlord has prescribed the rules and
regulations governing Tenant’s use and enjoyment of the Premises, attached
hereto as Exhibit A, and incorporated by reference herein. Tenant acknowledges
receipt of and agrees to adhere to such regulations./The
following rules and regulations shall govern Tenant’s use and enjoyment of the
Premises:
(a)
Tenant will not obstruct the driveways, sidewalks, courts, entry ways, stairs
and/or halls.
(b)
Tenant will keep all windows, glass, window coverings, doors, locks and
hardware in good, clean order and repair.
(c)
Tenant will not obstruct or cover the windows or doors.
(d)
Tenant will not leave windows or doors in an open position during any inclement
weather.
(e)
Tenant will not hang any laundry, clothing, sheets, etc. from any window, rail,
porch or balcony nor air or dry any of same within any yard area or space.
(f)
Tenant will not cause or permit any locks or hooks to be placed upon any door
or window without the prior written consent of Landlord.
(g)
Tenant will keep all air conditioning filters clean and free from dirt.
(h)
Tenant will keep all bathrooms, sinks, toilets, and other water and plumbing
supplies in good order and repair, and shall use same only for the purposes for
which they were constructed.
(i)
Tenant will not allow any sweepings, rubbish, sand, rags, ashes or other
substances to be thrown or deposited into any sinks or toilets.
(j)
Tenant's family and guests shall not make or permit any loud or improper
noises, or otherwise disturb other residents in the immediate area.
(k)
Tenant will deposit all trash, garbage, rubbish or refuse in the locations
provided therefore.
(l)
Tenant will abide by and be bound by any and all rules and regulations affecting
the Premises or the common areas of the Premises which may be adopted or
promulgated from time to time by Landlord.
(m)
[Other]
20. Smoking. Smoking
of any kind is strictly prohibited on any part of the Premises. This
prohibition applies to Tenant and any visitor, guest or other occupant on the
Premises.
21. Pets. Tenant is not
allowed to have or keep any pets, even temporarily, on any part of the
Premises[, except for the following: ______________]. If Tenant
does keep an authorized pet on the Premises, Tenant will pay to Landlord a pet
deposit in the amount of $_________. The unauthorized presence of any pet will
subject Tenant to penalties, damages, deductions and/or termination of this
Agreement. Properly trained service animals
that provide assistance to individuals with disabilities may be permitted on
the Premises with the prior written consent of Landlord, which shall not be
unreasonably withheld. Tenant will be
responsible for the costs of de-fleaing, deodorizing and/or shampooing all or any
portion of the Premises if a pet has been on the Premises at any time during
the Term (whether with or without written consent of Landlord).
22.
Right of Entry. Landlord or its agents may enter
the Premises at reasonable times to inspect the Premises, to make any
alternations, improvements or repairs or to show the Premises to a prospective
tenant, buyer or lender. In the event of an emergency, Landlord may enter the
Premises at any time.
23.
Assignment and Subletting. Tenant
shall not assign this Agreement, or sublease or grant any license to use the
Premises or any part thereof [without obtaining Landlord’s prior written
consent] / Tenant can assign this Agreement, or sublease or grant any license
to use the Premises or any part thereof without obtaining Landlord’s prior
written consent].
26.
Quiet Enjoyment. If Tenant pays the rent and performs
all other obligations under this Agreement, Tenant may peaceably and quietly
hold and enjoy the Premises during the Term.
27.
Hazardous Materials. Tenant shall
not keep on the Premises any item of a dangerous, flammable or explosive
character that might unreasonably increase the danger of fire or explosion on
the Premises or that might be considered hazardous or extra hazardous by any
responsible insurance company.
33. Insurance Requirements.
Tenant will not do or permit to be done any act or thing that will increase the
insurance risk under any policy of insurance covering the Premises. If the
premium for such policy of insurance increases due to a breach of Tenant’s
obligations under this Agreement, Tenant will pay the additional amount of
premium as additional rent under this Agreement.
34.
Subordination of Lease. This
Agreement and Tenant's rights hereunder will be subordinate, junior and
inferior to any and all mortgages, liens or encumbrances now or hereafter
placed on the Premises by Landlord, all advances made under any such mortgages,
liens or encumbrances (including, but not limited to, future advances), the
interest payable on such mortgages, liens or encumbrances and any and all renewals,
extensions or modifications of such mortgages, liens or encumbrances.
35.
Liability. Landlord is not responsible or
liable for, and Tenant hereby agrees to indemnify, defend
and hold Landlord harmless from,
any loss, claim, damage or expense as a result of any accident, injury or
damage to any person or property occurring anywhere on the Premises, unless
resulting from the negligence or willful misconduct of Landlord.
36.
Default. In the event of any default under
this Agreement, Landlord may provide Tenant a notice of default and an
opportunity to correct such default. If Tenant fails to correct the default,
other than a failure to pay rent or additional rent, Landlord may terminate
this Agreement by giving a __________ day written notice. If the default is
Tenant’s failure to timely pay rent or additional rent as specified in this
Agreement, Landlord may terminate this Agreement by giving a __________ day
written notice to Tenant. After termination of this Agreement, Tenant shall
forfeit the credit, if any, Tenant would have received if Tenant
exercised the Option To Purchase and closed on the Premises. In addition,
Tenant
remains liable for any rent, additional late, costs, including costs to remedy
any defaults, and damages under this Agreement.
37. Remedies If this
Agreement is terminated due to Tenant’s default, Landlord may, in addition to
any rights and remedies available under this Agreement and applicable law, use
any dispossession, eviction or other similar legal proceeding available in law
or equity.
38.
Damage to Premises. If the Premises are damaged by fire
or other serious disaster or accident and the Premises becomes uninhabitable as
a result, Tenant may immediately vacate the Premises and terminate this
Agreement upon notice to Landlord, including the Option to Purchase contained
herein. Tenant will be responsible for any unpaid rent or will receive any
prepaid rent up to the day of such fire, disaster or accident, but
shall then be entitled to a refund of a pro-rata portion of the credit, if any,
Tenant would have received if Tenant exercised the Option To Purchase and
closed on the Premises.
If the Premises are only partially damaged and inhabitable, Landlord may make
full repairs and will do so within a prompt and reasonable amount of time. At
the discretion of Landlord, the rent may be reduced while the repairs are being
made.
39.
Surrender of Premises. If Tenant
does not exercise the Option to Purchase, Tenant will deliver and surrender to
Landlord possession of the Premises immediately upon the expiration of the Term
or the termination of this Agreement, clean and in as good condition and repair
as the Premises was at the commencement of the Term, reasonable wear and tear
excepted. Tenant must return the keys to the Premises to
Landlord when Tenant vacates the Premises.
40.
Option to Purchase. Landlord hereby
grants Tenant the Option to Purchase the Premises “AS IS.” The total purchase
price for the Premises will be [$__________________/determined and agreed upon
by the Parties at the later time] (the “Purchase Price”), subject to the terms
and conditions set forth herein.
41.
Option Term. The Option to Purchase
period commences on ______________ and expires on ___________________.
42.
Option Consideration. [Option 1
___]. As consideration for the Option to Purchase, Tenant acknowledges that
Tenant is paying consideration to Landlord in the form of nonrefundable rent at
the agreed upon monthly amount set forth in this Agreement. [Provided that the Tenant timely exercises
the Option to Purchase, is not in default of this Agreement and closes the
conveyance of the Premises as set forth in this Agreement (the “Closing”),
$_________ from each monthly lease payment that Tenant timely made prior to the
Closing shall be credited towards the Purchase Price at the Closing.] Unless
otherwise stated in this Agreement, this amount is nonrefundable to Tenant.
42.
Option Consideration. [Option 2
___]. As consideration for the Option to Purchase, Tenant agrees to pay to
Landlord a nonrefundable fee of $__________ (the “Option Fee”) at the execution
of this Agreement. [Provided that the Tenant timely exercises the Option to
Purchase, is not in default of this Agreement and closes the conveyance of the
Premises as set forth in this Agreement (the “Closing”), [$____________ of] the
Option Fee shall be credited against the Purchase Price at the Closing.
/Provided that the Tenant timely exercises the Option to Purchase, is not in
default of this Agreement and closes the conveyance of the Premises as set
forth in this Agreement (the “Closing”), $_________ from each monthly lease
payment that Tenant timely made prior to the Closing shall be credited towards
the Purchase Price at the Closing./ Provided that the Tenant timely exercises
the Option to Purchase, is not in default of this Agreement and closes the
conveyance of the Premises as set forth in this Agreement (the “Closing”),
[$____________ of] the Option Fee and $______ from each monthly lease payment
that Tenant timely made prior to the Closing shall be credited against the
Purchase Price at the Closing.] Unless
otherwise stated in this Agreement, the option payment is nonrefundable to
Tenant.
42.
Notice of Exercising Option. To
exercise the Option to Purchase, Tenant must deliver to Landlord written notice
of Tenant’s intent to purchase the Premises prior to the expiration of the
Option to Purchase. [When exercising the Option to Purchase, Tenant shall also
deposit with Landlord the sum of $____________ as an earnest money deposit (the
“Deposit”) to be credited towards the purchase price of the Premises regardless
of any other credits due Tenant under this Agreement.] The written notice must
specify a valid closing date for the purchase, which must occur before the
original expiration date of this Agreement, or the date of the expiration of
the Option to Purchase, whichever occurs later.
43.
Exclusivity of Option. The Option to
Purchase is exclusive and non-assignable and exists solely for the benefit of
Tenant. Should Tenant attempt to assign, convey, delegate, or transfer the
Option to Purchase without Landlord’s express written permission, any such
attempt shall be deemed null and void, and the Option to Purchase may voided at
Landlord’s discretion, which shall subject all credits otherwise due to Tenant
at the Closing to be forfeited by Tenant.
44.
Personal Property. The
sale includes all of Seller’s right, title and interest, if any, to all real
estate, buildings, improvements, appurtenances and fixtures (except as
described below). Fixtures shall include all things that are embedded in the
land or attached to any buildings and cannot be removed without damage to the
Property. In addition, the following items shall be included in the sale:
