Oregon Residential Lease Agreement with Option to Purchase

Oregon Residential Lease Agreement with Option to Purchase

This Residential Lease Agreement and Option to Purchase is entered into by and between , hereinafter referred to as Lessor, and , hereinafter referred to as Lessee.

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. Grant of Lease: Lessor does hereby lease unto Lessee and Lessee does hereby rent from Lessor the personal residence and land located at , with the legal description of said personal residence and land being attached hereto as Exhibit A and made a part hereof by reference. Said residence and land are hereinafter referred to as the Property.

2. Term of Lease: This Lease shall commence on the day of , 20, and extend for months until the day of , 20, or the date Lessee exercises his Option to purchase the Property, whichever comes first.

3. Rental Payments: Lessee agrees to pay unto Lessor as the rent the sum of $ per month for the first month of this Lease and for each month thereafter during the term of this Lease, said sum being due on or before the day of each month. Each monthly rental payment shall be prepaid at the beginning of each month.

4. Lessee’s Covenants: Lessee agrees to and understands the following:

A. That the Property shall be used only as a private dwelling and for no other purposes whatsoever.

B. That all the usual electric, gas and water fees shall be paid by Lessee.

C. That Lessee shall maintain the Property in good condition during the continuance of this Agreement and shall neither cause nor allow any abuse of the facilities within the Residence. Upon the termination or expiration of this Lease, Lessee shall redeliver the property in as good condition as at the commencement of the term or as may be put in during the term, reasonable wear and tear from use and obsolescence accepted.

D. That Lessee is and shall be responsible and liable for making repairs and or replacements that may be required for injury or damage to the Property, equipment, facilities or kitchen appliances therein.

E. That Lessee shall not make or cause to be made any changes or alterations to the Property or attach any objects of permanence to any portion of the Residence or do anything that might cause injury or damage to the Property without the written consent of Lessor.

F. That all personal property placed in or upon the Property by Lessee, shall be at the sole risk of the Lessee, or the parties owning same, and Lessor shall in no event be liable for the loss of or damage to any such property.

G. That Lessor retains a landlord’s lien on all personal property placed upon the Property to secure the payment of rent and any damages to the Property.

H. That Lessee understands that the termination of this Lease 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.

5. Rights and Privileges of Lessor: Lessor shall have the following rights in addition to all other rights given by the statutory or common law of the State of Oregon:

A. The right to enter the Property at all reasonable times for the purpose of inspecting the same and/or showing the same to prospective tenants or purchasers.

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

C. Lessor 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 Property, which includes both the Land and Residence, whether said defect exists at the time of execution of this Lease or arises subsequent hereto and whether such defect was known or unknown at the time of such injury or damage.

D. Lessor shall not be liable for injuries or for damages from fire, wind, rain or any other cause whatsoever, all claims for such damages being specifically waived by Lessee.

E. Lessor shall not be responsible or liable for any accident or damage to automobiles, persons, or any other equipment or persons utilizing any portion of the Property for any reason.

F. Real estate taxes and insurance on the Leased Property shall be paid by Lessor.

6. Insurance and Destruction of Property: Hazard and fire insurance shall be acquired and maintained by Lessor, the proceeds of which shall be payable to Lessor. In the event that any portion of the Property be destroyed or rendered totally untenantable 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 between Lessor and Lessee up to the time of such damage or destruction of said Property is the same as being prorated as of that date. In the event the Property is damaged by fire, windstorm or other cause beyond the control of Lessor so as to render the same partially untenantable, but repairable within a reasonable time, then this Lease shall remain in force and effect and the Lessor shall, within a reasonable time, restore said Property to substantially the condition the same were in prior to said damage, and there shall be an abatement in rent in proportion to the relationship the damaged portion of the Property bears to the whole of said Property.

7. Termination of Lease: If Lessee fails to comply with any of the terms, conditions, or covenants contained in this Agreement, including the payment of rent and amounts due by Lessee for damages or injuries to the Property, then upon giving Lessee days written notice, Lessor may terminate this Lease and re-enter and retake possession of the Leased Property, but no such termination of this Lease or recovering possession shall deprive Lessor of any other action or remedy for possession, for rent, or for damages. Notice of termination shall be delivered to Lessee at the address of the Leased Property, by United States Mail, postage prepaid. In the event that Lessor employees an attorney to collect any rents or other charges due hereunder by Lessee or to enforce any of Lessee's covenants herein or to protect the interest of the Lessor hereunder, Lessee agrees to pay a reasonable attorney's fee and all expenses and costs incurred thereby.

8. Option to Purchase: For and in consideration of the payment of Thousand Dollars ($,000.00), by Lessee to Lessor, the receipt of which is hereby acknowledged and is nonrefundable, Lessee is hereby given an option to purchase the Property at any time on or before the day of , 20 (the Closing Date). Said Purchase Price shall be $ with the earnest money to count toward said Price, but no rent previously paid will count toward said Price. This option to purchase shall be exercised by Lessee by giving days notice in writing to Lessor. Within days after Lessee has exercised this option as herein above provided, the Lessor shall deliver to Lessee a Certificate of Title or abstract covering the Leased Property, acceptable to Lessee. Said Certificate or abstract shall reflect that market will fee simple title to the subject property is vested in Lessor and shall be subject only to taxes for the current year, easement, rights-of-way of record, and mineral reservations. All expenses of the sale including survey, attorney's fees, recording fee and any other cost shall be paid by Buyer. Taxes shall be prorated. Lessee shall exercise due diligence to obtain financing to purchase the home. In no event shall the earnest money be returned since it was the cost of the Option, but it will apply toward the Purchase Price. The Contract for the Sale and Purchase of Real Property shall be substantially in the form of Exhibit B attached hereto.

9. Severability

The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision. If any provision of this Agreement is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision.

10. No Waiver

The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

11. Governing Law

This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of .

12. Notices

Unless provided herein to the contrary, any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement.

13. Mandatory Arbitration

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. Entire Agreement

This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

15. Modification of Agreement

Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party.

16. Assignment of Rights

The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party.

17. Counterparts

This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument.

18. Compliance with Laws

In performing under this Agreement, all applicable governmental laws, regulations, orders, and other rules of duly-constituted authority will be followed and complied with in all respects by both parties.

19. In this Agreement, any reference to a party includes that party's heirs, executors, administrators, successors and assigns, singular includes plural and masculine includes feminine.

WITNESS our signatures as of the day and date first above stated.

EXHIBIT B - Contract for the Sale and Purchase of Real Property without a Real Estate Broker

WARNING: THIS CONTRACT HAS SUBSTANTIAL LEGAL CONSEQUENCES AND THE PARTIES ARE ADVISED TO CONSULT LEGAL AND TAX COUNSEL.

For and consideration of Ten Dollars, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, , hereinafter called Seller, whether one or more, and , hereinafter called Buyer, whether one or more, do hereby covenant, contract and agree as follows:

1. Agreement to Sale and Purchase: Seller agrees to sell, and Buyer agrees to buy from Seller the personal residence and land located at , with the legal description of said personal residence and land being attached hereto as Exhibit A and made a part hereof by reference. Said residence and land is hereinafter called the Property.

2. The term Property shall also be deemed to cover the following items, if any: curtains and rods, draperies and rods, valances, blinds, window shades, screens, shutters, awnings, wall-to-wall carpeting, mirrors fixed in place, ceiling fans, attic fans, mail boxes, television antennas and satellite dish system with controls and equipment, permanently installed heating and air-conditioning units, window air-conditioning units, built-in security and fire detection equipment, plumbing and lighting fixtures including chandeliers, water softener, stove, built-in kitchen equipment, garage door openers with controls, built-in cleaning equipment, all swimming pool equipment and maintenance accessories, shrubbery, landscaping, permanently installed outdoor cooking equipment, built-in fireplace screens, artificial fireplace logs and all other property owned by Seller and attached to the Property, except the following property not included:

3. Sales Price: The parties agree to the following sales price: $ cash at the Closing Date, which shall be on or before the day of , 20. This contract is not contingent on financing.

4. Buyer has deposited with Seller the sum of $ as earnest money. Said amount will bear no interest and will be applied to the purchase price at closing.

5. PROPERTY CONDITION:

OREGON REVISED STATUTES §93.040(1) REQUIRED STATEMENT FOR LAND TRANSFER CONTRACTS:

BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON’S RIGHTS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007. THIS INSTRUMENT DOES NOT ALLOW USE OF THE PROPERTY DESCRIBED IN THIS INSTRUMENT IN VIOLATION OF APPLICABLE LAND USE LAWS AND REGULATIONS. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY THAT THE UNIT OF LAND BEING TRANSFERRED IS A LAWFULLY ESTABLISHED LOT OR PARCEL, AS DEFINED IN ORS 92.010 OR 215.010, TO VERIFY THE APPROVED USES OF THE LOT OR PARCEL, TO DETERMINE ANY LIMITS ON LAWSUITS AGAINST FARMING OR FOREST PRACTICES, AS DEFINED IN ORS 30.930, AND TO INQUIRE ABOUT THE RIGHTS OF NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007.

OREGON REVISED STATUTES §93.040(2) REQUIRED STATEMENT FOR OWNER’S SALE AGREEMENT:

THE PROPERTY DESCRIBED IN THIS INSTRUMENT MAY NOT BE WITHIN A FIRE PROTECTION DISTRICT PROTECTING STRUCTURES. THE PROPERTY IS SUBJECT TO LAND USE LAWS AND REGULATIONS THAT, IN FARM OR FOREST ZONES, MAY NOT AUTHORIZE CONSTRUCTION OR SITING OF A RESIDENCE AND THAT LIMIT LAWSUITS AGAINST FARMING OR FOREST PRACTICES, AS DEFINED IN ORS 30.930, IN ALL ZONES. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE SHOULD INQUIRE ABOUT THE PERSON’S RIGHTS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY THAT THE UNIT OF LAND BEING TRANSFERRED IS A LAWFULLY ESTABLISHED LOT OR PARCEL, AS DEFINED IN ORS 92.010 OR 215.010, TO VERIFY THE APPROVED USES OF THE LOT OR PARCEL, TO VERIFY THE EXISTENCE OF FIRE PROTECTION FOR STRUCTURES AND TO INQUIRE ABOUT THE RIGHTS OF NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424, OREGON LAWS 2007.

OREGON REVISED STATES §93.040(3) REQUIRED STATEMENT FOR OWNER’S SALE AGREEMENT:

IF THE PROPERTY DESCRIBED IN THE INSTRUMENT IS SUBJECT TO SPECIAL ASSESSMENT UNDER ORS 358.505, ORS 358.515 REQUIRES NOTIFICATION TO THE STATE HISTORIC PRESERVATION OFFICER OF SALE OR TRANSFER OF THIS PROPERTY.

The property described in this instrument:

IS IS NOT subject to special assessment under ORS 358.505 (regarding ‘Historic Property’).

SELLER’S DISCLOSURE STATEMENT: In compliance with Oregon law, ORS §105.462 through §105.490:

Seller has furnished, and Buyer has received and reviewed, a Seller’s Property Disclosure Statement

Seller is not required to furnish a Property Disclosure, because:

SELLER’S DISCLOSURE OF LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS is required by Federal law for a residential dwelling constructed prior to 1978. An addendum providing such disclosure IS attached; is not applicable.

Buyer hereby represents that he has personally inspected and examined the above-mentioned Property and all improvements thereon. Buyer hereby acknowledges that unless otherwise set forth in writing elsewhere in this Agreement neither Seller nor Seller's representatives, if any, have made any representations concerning the present or past structural condition of the improvements. Buyer and Seller agree to the following concerning the condition of the Property:

Buyer accepts the property in it’s as-is and present condition.

Buyer may have the property inspected by persons of Buyer's choosing and at Buyer's expense. If the inspection report reveals defects in the Property, Buyer shall notify Seller within 5 days of receipt of the report and may cancel this Agreement; however, Buyer will not receive a refund of his earnest money since such payment was in payment for the Option to purchase the Property. Buyer, at his option may also close this Agreement notwithstanding the defects, or Buyer and Seller may renegotiate this Agreement, in the discretion of Seller. All inspections and notices to Seller shall be complete within days after execution of this Agreement.

Buyer accepts the Property in its present condition; provided Seller, at Seller’s expense, shall complete the following repairs and treatment:

Buyer agrees that he will not hold Seller or its representatives responsible or liable for any present or future structural problems or damage to the foundation or slab of said property. If the subject residential dwelling was constructed prior to 1978, Buyer may conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards, to be completed within days after execution of this Agreement. In the alternative, Buyer may waive the opportunity to conduct an assessment/inspection by indicating said waiver on the attached Lead-Based Paint Disclosure form.

MECHANICAL EQUIPMENT AND BUILT IN APPLIANCES: All such equipment is sold as-is without warranty, or shall be in good working order on the date of closing. Any repairs needed to mechanical equipment or appliances, if any, shall be the responsibility of Seller Buyer.

UTILITIES: Water is provided to the property by . Sewer is provided by . Gas is provided by . Electricity is provided by . The present condition of all utilities is accepted by Buyer.

Other:

6. Closing: The closing of the sale will be on or before the day of , 20 (the Closing Date), unless extended pursuant to the terms hereof. Closing may be extended to within 7 days after objections to matters disclosed in the title abstract, certificate or Commitment or by the survey have been cured.

7. Title and Conveyance: Seller is to convey title to Buyer by Warranty Deed or and provide Buyer with a Certificate of Title prepared by an attorney, title or abstract company upon whose Certificate or report title insurance may be obtained from a title insurance company qualified to do and doing business in the state of Oregon. Seller will also execute a Bill of Sale, if necessary, for the transfer of any personal property. Seller shall, prior to or at closing, satisfy all outstanding mortgages, deeds of trust and special liens affecting the subject property. Title shall be good and marketable, subject only to (a) covenants, conditions and restrictions of record, (b) public, private utility easements and roads and rights-of-way, (c) applicable zoning ordinances, protective covenants and prior mineral reservations, (d) special and other assessments on the property, if any, (e) general taxes for the year and subsequent years and (e) other: . A title report shall be provided to Buyer at least 5 days prior to closing. If there are title defects, Seller shall notify Buyer within 5 days of closing and Buyer, at Buyer's option, may either (a) if defects cannot be cured by designated closing date, cancel this contract, (b) accept title as is, or (c) if the defects are of such character that they can be remedied by legal action within a reasonable time, permit Seller such reasonable time to perform curative work at Seller's expense. In the event that the curative work is performed by Seller, the time specified herein for closing of this sale shall be extended for a reasonable period necessary for such action. Seller represents that the property may be legally used as zoned and that no government agency has served any notice to Seller requiring repairs, alterations or corrections of any existing condition except as stated herein.

APPRAISAL, SURVEY AND TERMITE INSPECTION: Any appraisal of the property shall be the responsibility of Buyer Seller. A survey is: not required required, the cost of which shall be paid by Seller Buyer. A termite inspection is not required required, the cost of which shall be paid by Seller Buyer. If a survey is required it shall be obtained within 5 days of closing.

8. Possession and Title: Seller shall deliver possession of the Property to Buyer at closing. Title shall be conveyed to Buyer, if more than one as Joint tenants with rights of survivorship or tenants in common. Prior to closing the property shall remain in the possession of Seller and Seller shall deliver the property to Buyer in substantially the same condition at closing, as on the date of this contract, reasonable wear and tear excepted.

9. Closing Costs and Expenses: The following closing costs shall be paid as provided. (Leave blank if the closing cost does not apply.)

Closing Costs Buyer Seller Both*

Attorney Fees

Title Insurance

Title Abstract or Certificate

Property Insurance

Recording Fees

Appraisal

Survey

Termite Inspection

Origination fees

Discount Points

If contingent on rezoning, cost and expenses of rezoning

Other:

All other closing costs

Prorations: Taxes for the current year, interest, maintenance fees, assessments, dues and rents, if any, will be prorated through the Closing Date. If taxes for the current year vary from the amount prorated at closing, the parties shall adjust the prorations when tax statements for the current year are available. If a loan is assumed and the lender maintains an escrow account, the escrow account must be transferred to Buyer without any deficiency. Buyer shall reimburse Seller for the amount in the transferred account. Buyer shall pay the premium for a new insurance policy. If taxes are not paid at or prior to closing, Buyer will be obligated to pay taxes for the current year.

Casualty Loss: If any part of the Property is damaged or destroyed by fire or other casualty loss after the effective date of the contract, Seller shall restore the Property to its previous condition as soon as reasonably possible. If Seller fails to do so due to factors beyond Seller’s control, Buyer may either (a) terminate this contract, (b) extend the time for performance and the Closing Date will be extended as necessary, or (c) accept the Property in its damaged condition and accept an assignment of insurance proceeds.

Default: If Buyer fails to comply with this contract, Buyer will be in default, and all earnest money paid or agreed to be paid shall be paid to the Seller either as liquidated damages or as otherwise allowed under Oregon law, and the contract shall be terminated and of no further binding effect. It is the intention of the parties that under no circumstances shall Buyer be liable to Seller under this Contract beyond the amount of earnest money provided for herein. If Seller fails to comply with this contract, Seller will be in default and Buyer shall be promptly refunded any earnest money. However, acceptance of this refund shall not constitute a waiver of other legal remedies available to Buyer.

Attorney’s Fees: The prevailing party in any legal proceeding brought under or with respect to the transaction described in this contract is entitled to recover from the non-prevailing party all costs of such proceeding and reasonable attorney’s fees.

Representations: Seller represents that as of the Closing Date (a) there will be no liens, assessments, or security interests against the Property which will not be satisfied out of the sales proceeds unless securing payment of any loans assumed by Buyer and (b) assumed loans will not be in default. If any representation in this contract is untrue on the Closing Date, this contract may be terminated by Buyer and the earnest money will be refunded to Buyer. All representations contained in this contract will survive closing.

Federal Tax Requirement: If Seller is a "foreign person", as defined by applicable law, or if Seller fails to deliver an affidavit that Seller is not a "foreign person", then Buyer shall withhold from the sales proceeds an amount sufficient to comply with applicable tax law and deliver the same to the Internal Revenue Service together with appropriate tax forms. IRS regulations require filing written reports if cash in excess of specified amounts is received in the transaction.

10. Severability

The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision. If any provision of this Agreement is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision.

11. No Waiver

The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

12. Governing Law

This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Oregon.

13. Notices

Unless provided herein to the contrary, any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement.

14. Mandatory Arbitration

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.

15. Entire Agreement

This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

16. Modification of Agreement

Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party.

17. Assignment of Rights

The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party.

18. Counterparts

This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument.

19. Compliance with Laws

In performing under this Agreement, all applicable governmental laws, regulations, orders, and other rules of duly-constituted authority will be followed and complied with in all respects by both parties.

20. In this Agreement, any reference to a party includes that party's heirs, executors, administrators, successors and assigns, singular includes plural and masculine includes feminine.

WITNESS our signatures as of the day and date first above stated.