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This is the option agreement we use along
with our lease. Note that this is not actually an option. It is a contract to
purchase an option. The reason is to hopefully prevent the option giving the buyer an
equitable interest in the property from the first day. This can happen with the option
agreement you often see. Also note that we have given the buyer the alternative on
in-house owner financing. This section can be eliminated. Option Agreement Buyer: Jeanette xxxxx... Seller: Norman Linton, trustee Warning This is a very unusual agreement to help people to own their own home without a large down payment or perfect credit. Homeownership has many benefits to you. These include tax benefits that can reduce your yearly taxes, the pleasure of owning and improving your own home, the increase in home value goes to you, not the landlord and having something of value to leave to your next of kin. But it also means you have to take care of the home and fix everything that goes wrong rather than call your landlord. If you're not prepared to be responsible for your home, don't sign this agreement and don't move into this house. This agreement lets you prove to the seller that you are a responsible, trustworthy person by your actions. Only you will be to blame if you do not end up owning your own home. You prove this by first renting the home, taking care of it completely and paying your rent on time. If you do this a deed for your home will be put in your name. This is a contract for an option to purchase the property known as: xxxx xxxxxxx Ave N. St. Petersburg FL 33710-xxxx It is agreed that: the Buyer is currently renting the Property from the Seller under a lease dated...June 1, 1999 Provided all terms of the lease have been complied with, especially those referring to prompt payment and proper maintenance, on May 1, 2000, an option to purchase the property will be granted in writing and delivered to the Buyer. The option will be valid for 25 days unless extended by the Seller in writing. The Seller will provide the payment history and credit references for the Buyer in writing to assist in securing a mortgage for the purchase of the property. As an alternative to outside financing, the Seller guarantees to give the Buyer equitable interest in the property by way of a Contract for Deed. This is provided every rental and partial option payment has been made on time and qualified for the prompt payment discount. This Contract for Deed will be recordable and will, under present law, qualify the Buyer for homestead exemption for property taxes. Buyer will be responsible for documentary tax and/or intangible tax on the Contract for Deed. The fixed interest rate will be 6% p.a. above the U.S. Treasury 30 year bond rate applicable at the date of exercise of option. The interest rate will reduce by 1% p.a. for every extra $1,000 downpayment Buyer pays at closing to a minimum of 8% p.a.. The loan term shall be approximately 13 years and the payments shall increase at 5% p.a. in order to pay off the loan more quickly. Property taxes will be prorated at time of closing. Buyer shall be responsible for all maintenance, property taxes and insurance after they receive the Contract for Deed. Once the Contract for Deed is paid in full the Seller will provide the buyer with a Warranty Deed. Seller shall pay all costs of title insurance applicable to that Deed. The Purchase Price shall be ..$64,000. This option will terminate if the Buyer/Tenant is in default of the terms of the lease or otherwise terminates the lease. as part of the monthly lease payment, the Buyer will pay $..50.00... as a non-refundable partial payment per month for the right to be granted an option to purchase the property at the price stated above. the initial payment of $..400.00.. is a non refundable partial payment for the right to be granted a purchase option on May 1, 2000. At the time this option is exercised, full credit will be given for this initial payment and the monthly credit to the Purchase Price. During the term of the lease a Landlord/Tenant relationship shall exist and all rights of ownership shall remain with the Seller during the term of the lease and/or this agreement and any extension of it. THIS PROPERTY IS BEING SOLD IN "AS IS" CONDITION AND BUYERS/TENANTS ACKNOWLEDGE THEY HAVE INSPECTED IT AND ARE SATISFIED WITH IT'S CONDITION. This agreement is not to be recorded. Recording constitutes automatic default. Date........... Buyer...................................... Seller............................ Buyer.................................................. RADON GAS: Radon is a naturally occuring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county public health unit. |
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