Fill and Sign the Model Lease Agreement This Document Must Be Form

LEASE WITH OPTION TO PURCHASE AGREEMENT OPTION AGREEMENT THIS AGREEMENT made and entered into by and between Lessor, and Lessee. Lessor___________________________________ and Lessee___________________________________ Address___________________________________ Address_____________________________________________________________________________ __________________________________________ City/County/State/Zip City/County/State/Zip 1. Lease. Lessee hereby leases from the Lessor the premises situated in the City of ________________, County of _____________________, State of _____________________, described as:______________________________________________________________________________________ To effectuate the lease, the parties to this Agreement have executed a Lease Agreement which is attached hereto and made a part hereof. The Lease Agreement sets forth the terms and conditions of the lease. 2. Option. So long as Lessee is not in substantial default in the performance of any term of this Lease Agreement, Lessee shall have the option to purchase the real property described herein for a purchase price of ______ Dollars $ ___________________, upon the following TERMS and CONDITIONS: 3. Disclaimer. The parties acknowledge that speculation of availability of financing, purchase costs, and lender's prepayment penalties is impossible. Therefore, the parties agree that these items shall not be conditions of performance of this Agreement and the parties agree they have not relied upon any othe r representations or warranties by brokers, sellers, or other parties. 4. Fixtures. All improvements, fixtures, attached floor coverings, draperies including hardw are, shades, blinds, window and door screens, storm sash, combination doors, awnings, outdoor plants potted or otherwi se, trees, and items permanently attached to the real property shall be included, free of liens, unless specifica lly excluded. 5. Encumbrances. In addition to any encumbrances referred to above, Lessee shall take title to the property subject to: (1) real estate taxes not yet due and (2) covenants, conditions, restrictions , reservations, rights, rights of way and easements of record, if any, which do not materially affect the value or intended use of the property. 6. Conveyance of Title. Lessor shall convey the demised premises by warranty dee d, free and clear of all liens and encumbrances, except those that Lessee may have created or suffered, and except ing any taxes, assessments, rates, duties, imposts, or charges that may have become a lien against the premis es since the date of this lease. The deed shall be accompanied by an abstract of title, showing a good and unencumbered titl e, passing under and by the resulting conveyance. On the delivery of the above-described deed and abstract of titl e the Lease Agreement shall become void. 7. Escrow. Within _________ days from exercise of the option, both parties shall deposit wi th an authorized escrow holder, to be selected by Lessee, all funds and instruments necessary to complete the sale in accordance with the terms and conditions hereof. The representations and warranties herein s hall not be terminated by conveyance of the property. 8. Prorations. Rents, taxes, premiums on insurance acceptable to Lessee, inte rest and other expenses of the property shall be prorated as of recordation of deed. Security deposits, advance rentals or considerations involving future lease credits shall be credited to Lessee. 9. Expiration of Option. This option may be exercised at any time after ____________________, and sha ll expire at midnight _____________________, unless exercised prior thereto. Upon expiration Lessor shall be rele ased from all obligations hereunder and all of Lessee's rights hereunder, legal or equitable, shall cease . 10. Exercise of Option. The option shall be exercised by mailing or delivering writt en notice to Lessor prior to the expiration of this option and by an additional payment, on account of the purchase price, i n the amount of $____________________ for account of Lessor to the authorized escrow holder referred to above, prior to the expiration of this option. Notice, if mailed, shall be certified mail, postage prepaid, to Lessor at the address set forth below, and shall be deemed to have been given upon the day following the day shown on the postmark of the envelope in which notice is mailed. 11. Rental Credit. In the event the option is exercised, the consideration paid for the option and __________% from the rent paid hereunder prior to the exercise of the option shall be credited upon the purchase price.12. LEAD-BASED PAINT DISCLOSURE (Rental). HOUSING BUILT BEFORE 1978 MAY CONTAIN LEAD-BASED PAINT. LEAD FROM PAINT, PAINT CHIPS, AND DUST CAN POSE HEALTH HAZARDS IF NOT MANAGED PROPERLY. LEAD EXPOSURE IS ESPECIALLY HARMFUL TO YOUNG CHILDREN AND PREGNANT WOMEN. BEFORE RENTING PRE-1978 HOUSING, LESSORS MUST DISCLOSE THE PRESENCE OF KNOWN LEAD-BASED PAINT AND/OR LEAD-BASED PAINT HAZARDS IN THE DWELLING. LEASES MUST ALSO RECEIVED A FEDERALLY APPROVED PAMPHLET ON LEAD POISONING PREVENTION. Landlord states as follows: [Landlord check one] The leased premises was constructed in 1978 or later. The leased premises was constructed prior to 1978. Landlord has conformed with all federal requirements regarding lead-based paint disclosure including the completion and mutual signi ng with Tenant and any agents, of the Lead-Based Paint Disclosure Form (for Rentals) attached hereto and incorporated into this lease as a part hereof. All associated information required by the Disclosure form (if any) was furnished to Tenant, and Tenant received the EPA pamphlet “ Protect Your Family from Lead in Your Home. ” 13. LEAD-BASED PAINT DISCLOSURE (Sale). EVERY PURCHASER OF ANY INTEREST IN RESIDENTIAL REAL PROPERTY ON WHICH A RESIDENTIAL DWELLING WAS BUILT PRIOR TO 1978 IS NOTIFIED THAT SUCH PROPERTY MAY PRESENT EXPOSURE TO LEAD FROM LEAD-BASED PAINT THAT MAY PLACE YOUNG CHILDREN AT RISK OF DEVELOPING LEAD POISONING. LEAD POISONING IN YOUNG CHILDREN MAY PRODUCE PERMANENT NEUROLOGICAL DAMAGE, INCLUDING LEARNING DISABILITIES, REDUCED INTELLIGENCE QUOTIENT, BEHAVIORAL PROBLEMS, AND IMPAIRED MEMORY. LEAD POISONING ALSO POSES A PARTICULAR RISK TO PREGNANT WOMEN. THE SELLER OF ANY INTEREST IN RESIDENTIAL REAL PROPERTY IS REQUIRED TO PROVIDE THE BUYER WITH ANY INFORMATION ON LEAD-BASED PAINT HAZARDS FROM RISK ASSESSMENTS OR INSPECTIONS IN THE SELLER’S POSSESSION AND NOTIFY THE BUYER OF ANY KNOWN LEAD-BASED PAINT HAZARDS. A RISK ASSESSMENT OR INSPECTION FOR POSSIBLE LEAD-BASED PAINT HAZARDS IS RECOMMENDED PRIOR TO PURCHASE. Seller states as follows: [Seller check one] The premises was constructed in 1978 or later. The premises was constructed prior to 1978. Seller has conformed with all federal requirements regarding lead-based paint disclosure including the completion and mutual signing with Tenant and any agents, of the Lead-Based Paint Disclosure Form (for Sales) attached hereto and incorporated into this lease as a part hereof. All associated information required by the Disclosure form (if any) was furnished to Tenant, and Tenant received the EPA pamphlet “ Protect Your Family from Lead in Your Home.” OPPORTUNITY TO CONDUCT EVALUATION: Prior to the purchaser’s being bound to the purchase contract upon exercising the option, seller shall permit purchaser a 10-day period (or a shorter per iod, mutually agreed in writing) within which to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards, OR the purchaser may elect to waive such inspection period in writing. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on this ________ day of _______________________________, 20___. __________________________________________ __________________________________________ Lessor Lessee __________________________________________ __________________________________________ Witness Witness THIS IS A SEPARATE INSTRUCTION PAGE REGARDING LEAD-BASED PAINT DISCLOSURE THIS PAGE IS NOT PART OF THE CONTRACT! IT IS PROVIDED BY USLF TO AID THE LANDLORD/SELLER IN COMPLYING WITH FEDERAL LEAD-BASED PAINT DISCLOSURE LAW, FOR DWELLINGS BUILT PRIOR TO 1978. IMPORTANT!!! NOTES CONCERNING LEAD-PAINT DISCLOSURE REQUIREMENTS Introduction: If the dwelling unit was constructed PRIOR TO 1978, federal law REQUIRES a Lead-Based Paint Disclosure Form to be attached to the lease/contract for sale, complete d and signed by the lessor/seller and lessee/purchaser. If the rental dwelling was constructed in 1978 or later, this form is not required. If in doubt about the timing of construction, use the disclosure forms. Whenever the forms are used, the l andlord/seller must also give the tenant/purchaser the EPA lead-based paint pamphlet discussed below. Landlord/seller must retain a copy of the signed disclosure form for no less than three years from the date the l ease begins. A SEPARATE FORM IS REQUIRED FOR RENTING AND SELLING. BECAUSE THIS IS A “LEASE WITH OPTION TO PURCHASE” CONTRACT, BOTH FORMS ARE REFERENCED IN THE CONTRACT TEXT. IN THE INTEREST OF CAUTION, BOTH FORMS SHOULD BE ATTACHED FOR A PRE-1978 STRUCTURE. Background: To protect families from exposure to lead from paint, dust, and soil, Congress passed the Residential Lead-Based Paint Hazard Reduction Act of 1992. HUD and EPA require the disclosure of known information on lead-based paint and related hazards before the lease of most housing built before 1978. Requirements: Before the lease/purchase contract is signed and agreed to, landlords must fully comply with lead-paint disc losure law. Compliance is accomplished by: (1) Fully completing and delivering to the tenant/purchaser, as an attachment to the lease, the LEAD-B ASED PAINT DISCLOSURE forms for both lessees and purchasers (the lessees/purchasers also initial and sign these forms), and (2) Giving the tenant/purchaser the EPA pamphlet entitled "Protect Your Family From Lead In Your Home." (See the download link for the pamphlet, below), and (3) Complying with the “10-day period/agreed period/waiver-by-purchaser regulation” for purchaser inspection for lead paint hazards (see, in Section 6b, “Opportunity To Conduct Inspection” in the contract, above). Purchase the Disclosure Forms: If you need to purchase Lead-Based Paint Disclosure Forms, you can easily do so using USLF. http://www.uslegalforms.com/lead-paint-disclosure-forms.htm Click this link (or copy it into the address window of you internet browser) and select your state. Two forms will be accessed. You want both the “LEAD2” form, for rental transactions, AND the “LEAD1” form for sales. Click the “Information and Preview” link for more info on the forms, and then order the forms. The Free EPA Pamphlet: The landlord/seller must give the tenant/purchaser the EPA-approved information pamphlet on identifying and controlling lead-based paint hazards entitled "Protect Your Family From Lead In Your Home." There is only one pamphl et, and you need only give one to the tenant/purchaser. You may obtain and print this pamphlet free by clicking the following download link (or copying the link into the address window of your internet browser): http://www.hud.gov/offices/lead/outreach/leapame.pdf The form is in .pdf format and you will need the free Adobe Acrobat Reader to view the form. In the unlikely circumstanc e that the Adobe Acrobat Reader is not installed on your computer, you can download it free from http://www.adobe.com/products/acrobat/readstep2.html . The download is quick and easy. * * * ~ Thank you for using USLF ~