Lease of Stationary Manufactured Home with Option to Purchase

Lease of Stationary Manufactured Home with Option to Purchase

Agreement made on the ,

between of

, referred to herein as Lessee, and

, of

, referred to herein as Lessor.

For and in consideration of the mutual covenants contained in this agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. Description of Mobile Manufactured Home

Lessor hereby leases to Lessee and Lessee hereby leases from Lessor the following described mobile manufactured home (hereinafter called “Home"): bearing Serial Number and being more particularly described as

2. Rental

Lessee agrees to pay as rental for the use of the Home the sum of $ () per month, the first payment to made on , and each subsequent payment to be made in advance on .

3. Use of Home

Lessee will use the Home only as a residence and shall not use it in any manner which may vitiate the insurance or increase the rate of insurance on the Home.

4. Assignment and Subletting

Lessee shall not sublet the Home, or any part thereof, or assign this lease agreement without Lessor's prior written consent.

5. Indemnification

Lessee agrees to indemnify Lessor for any and all claims resulting from, or incidental to, the operation of the Home during the term of this Lease. Lessee assumes all risks and liabilities from the use and operation of the Home.

6. Warranties

Lessor is not the manufacturer of the Home and makes no warranty against patent or latent defects in material or workmanship of the Home.

7. Certain Specific Covenants of Lessee

Lessee agrees that:

A. All the usual electric, gas, and water fees shall be paid by Lessee.

B. Lessee shall maintain the Home in good condition during the continuance of this Agreement, and upon the termination or expiration of this Agreement Lessee shall redeliver the Home in as good condition as at the commencement of the term (reasonable wear and tear from use and obsolescence excepted).

C. Lessee is and shall be responsible and liable for making repairs and or replacements that may be required to prevent injury or damage to the Home.

D. Lessee shall not make or cause to be made any changes, alterations or additions, or attach any objects of permanence to portions of the Home or do anything that might cause injury or damage to the Home without the consent of Lessor.

E. Lessee must give Lessor days advance written notice of his intention to vacate the Home prior to the first day of the month in which the Lease will be terminated. Lessee understands that a termination may only be effective on the first day of a month. Lessee may not terminate on any day other than the first day of the month. Thus, partial monthly rental payments are not allowed and rent shall not be prorated. Lessor may waive the restrictions in this Paragraph.

9. Rights and Privileges of Landlord

Lessor shall have the following rights in addition to all other rights given by the law of ):

A. The right to enter the Home at all reasonable times for the purpose of inspecting the same or showing the same to prospective tenants or purchasers upon a minimum of hours notice to Lessee.

B. Lessor shall not be responsible for repairs to the Home, which shall be the responsibility of Lessee.

C. Lessor, his agents and employees shall not be liable to any person for any damages of any nature which may occur at any time on account of any defect in the Home.

D. The failure of Lessor to insist upon the strict performance of the terms, covenants, and agreements in this Lease shall not be construed as a waiver or relinquishment of Lessor's right subsequently to enforce any such term, covenant, or condition, but the same shall continue in full force and effect.

E. Real estate taxes and insurance on the House shall be paid by Lessee.

10. Insurance and Indemnification

A. Lessee will acquire, pay for, and maintain insurance for the Home, including public liability and property damage insurance, issued by a responsible company or companies, protecting the interests of both Lessee and Lessor against liability for damage, personal injury or death to the extent of not less than $ per accident and not less than $ per person; and the sum of $ per accident against liability for damage to property. Lessee agrees that the policy will include Lessor as a "named insured" and shall not be cancelled until after days notice to Lessor of Lessee's intention to cancel.

B. Should any claim be made or any action be commenced against Lessor arising from any of the causes covered by the insurance referred to in Sub-Paragraph A above, Lessor will promptly notify Lessee and Lessee will conduct the defense of any such claim or action at Lessee's expense, including all costs and attorneys' fees.

C. Lessor shall purchase and maintain hazard and fire insurance, the proceeds of which shall be payable to Lessor. If the Home shall be destroyed or rendered totally uninhabitable by fire, windstorm, or other cause beyond the control of Lessor, then this Agreement shall cease and terminate as of the date of such destruction, and the rental shall then be accounted for and prorated between Lessor and Lessee up to the time of such damage or destruction of the Home. If the Home is damaged by fire, windstorm or other cause beyond the control of Lessor so as to render the same partially uninhabitable, but repairable within a reasonable time, then this Lease shall remain in force and effect and Lessor shall, within a reasonable time, restore the Home to substantially the condition the Home was in prior to the damage, and there shall be an abatement in rent in proportion to the relationship the damaged portion of the Home bears to the whole of the Home.

11. Lessee's Default and Lessor's Remedies

Lessor may give written notice to Lessee to correct any of the following defaults:

A. Failure to pay rent or added rent on time.

B. Improper conduct by Lessee or other occupant of the House.

C. Failure to fully perform any other term in this Lease.

If Tenant fails to correct the above defaults within days of any such written notice, Lessor may cancel the Lease by giving Lessee a written -day notice stating the date the term will end. On that date the term and Lessee rights in this Lease shall automatically end and Lessee must leave the House and return

the keys to Lessor. Lessee shall continue to be responsible for rent, expenses, damages, and losses.

12. Option to Purchase

Lessor hereby grants to Lessee the option to purchase the Home in its then-current condition at any time during this Agreement for the sum of $ () less % of rent that has been paid pursuant to this Lease Agreement or any renewal thereof. If Lessee desires to exercise the option to purchase, Lessee shall do so by giving Lessor written notice of that intent no less than days prior to the date for the next scheduled lease payment under this Agreement. Lessor and Lessee agree that Lessor will be selling Home in its “as is” condition on the date of any such sale and makes no warranty as to the condition of the Home and waives any implied warranty of fitness for a particular purpose or merchantability. Closing of the conveyance between Lessor and Lessee shall take place within days of such notice to purchase. All expenses of the sale generally incurred by a purchaser shall be paid by Lessee. Any property taxes shall be prorated.

13. Mandatory Arbitration

Notwithstanding the foregoing, and anything herein to the contrary notwithstanding, any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

14. This Lease Agreement represents the entire agreement between the parties and no provision may be waived or modified, except by an instrument in writing signed by both of the parties.

WITNESS our signatures the day and year first written above.