LEASE-OPTION: YOU ARE THE
BUYER
AGREEMENT made this day
of 19 , between
, LESSOR(S)/Seller(s),
who hereby state that they are the sole owners of this
property and
that it is encumbered only by the below mentioned loans, and
_________________________________________ , LESSEE/Buyer or assigns
The LESSOR agrees to
lease to LESSEE the following described real property, located in County, (State)
The street address of
this property is .
1) The term of the lease
shall be_______________ months,
beginning on
2) 
The monthly lease payment
shall be $ ,
to be paid on
the day of each
month, the first payment to be paid on
3) 
For good and valuable consideration, including but not limited to the leasing of this
property, the LESSEE shall have an option to purchase the property at any time
during the term of the lease.
4)
At such time the option is
exercised, the purchase price for the property shall be determined as follows:
A)
Option consideration, in the amount of $_____ to be paid on or before______ 200_
B) LESSEE to take title
subject to the following existing loan(s):
#1. Loan
payable to________ (Institution name) with an approximate balance on this date of $________
bearing interest at___________ %, payable $____________ per __________
#2. Loan
payable to_______ (Institution/person
name)____________ with an
approximate balance on this
date of $_______________________________
bearing interest at___________ %, payable $__________________________
per __________
Other Liens:
C)
LESSOR agrees to hold purchase money loan, if option exercised, under
the following terms:
D)
Additional terms:
5)
Each month that the lease payment in (2) is paid on time, the LESSEE shall receive a $ credit to the purchase price. The purchase price
will be adjusted at the closing to reflect the credits for the lease payments and will be applied first to any payment due from LESSEE at closing. The lease payment is late five days after it
is due. Additionally at closing, the
following items will be pro rated: property
taxes, lease payments, insurance premiums, interest on loans.
6) The LESSOR agrees not to
refinance or modify any existing loan(s), nor to further encumber the property, nor to
transfer any interest in the property during the terms of this agreement. If at any time during the term of this
agreement LESSOR fails to make any loan payment or payment of taxes, insurance or
assessment, LESSEE may make the payments due and shall receive credit of 150% of all
funds paid against the next lease payment(s) due under this agreement.
7)
In the event the option is exercised, LESSOR agrees to convey good and marketable title and
deliver a warranty deed, free of encumbrances (except as noted in 4(B) above) with all documentary stamps affixed. LESSOR will
also provide title insurance or an updated abstract to LESSEE 10 days prior to
closing at the LESSOR's expense. Taxes,
insurance and any assessments are the responsibility of the LESSOR until the
date of closing. In the event the seller
cannot deliver good and sufficient title as called for under this agreement
then the LESSEE shall be entitled to a refund of all monies paid to LESSOR
under this agreement, and shall
not waive any further remedies available to him.
8) The purchase price
includes the following personal property which will be transferred to the buyers on the date of
closing with a bill of sale, stating that said personal property is free and clear of any
encumbrances:
