Real Estate OTL Agreement

REAL ESTATE OTL AGREEMENT

Parties

This Option to Lease Agreement ("Agreement") is entered into on this date by and between:

Property Identification

Option Grant and Consideration

Owner hereby grants Optionee the exclusive, irrevocable option to lease the Property upon the terms set forth herein for the Option Period described below. The option is granted in consideration of an option fee in the amount of: payable as follows:

Option Fee Credit: If Optionee timely exercises this option and executes the Lease, Owner will credit of the option fee against sums due under the Lease.

Option Period and Exercise

Option Period Commences: and expires on (the "Option Period").

Exercise Procedure: To exercise the option, Optionee must deliver written notice of exercise to Owner at the address for notice below prior to expiration of the Option Period. Notice is effective upon receipt. Notice must state Optionee's intent to enter into the Lease and be signed by Optionee.

Lease Terms Upon Exercise

If Optionee timely exercises the option, the parties will execute a Lease containing the following material terms unless otherwise agreed in writing:

Inspections, Condition, and Repairs

During the Option Period, Optionee may conduct inspections of the Property subject to reasonable scheduling and Owner approval. Optionee shall provide at least hours' advance notice. Any defects discovered shall be handled as set forth in the Lease. Owner represents that, to Owner's actual knowledge, the Property is in materially the same condition as of the Effective Date.

Insurance; Indemnity

Optionee, and later Tenant under the Lease, shall maintain liability insurance naming Owner as additional insured to the extent specified in the Lease. Optionee shall indemnify Owner for claims arising from Optionee's acts or omissions during inspections or other activities under this Agreement, except to the extent caused by Owner's gross negligence or willful misconduct.

Disclosures

The parties acknowledge the following representations and disclosures as of the date of this Agreement:

Lead-Based Paint (if applicable): Yes No

Known Mold or Moisture Issues: Yes No

Prior Structural or Foundation Damage: Yes No

Default and Remedies

Owner's Remedies: If Optionee fails to timely exercise the option prior to expiration, Owner retains the Option Fee and may pursue any other remedies available at law or equity. If Owner wrongfully prevents exercise, Optionee may seek specific performance or damages, including return of the Option Fee and costs.

Tenant Remedies Under Lease: If the option is exercised and a Lease is executed, the Lease will set forth default and cure periods, with remedies including termination, damages, and attorneys' fees as provided in that Lease.

Assignment; Transfer; Recording

This Agreement binds and inures to the benefit of the parties and their permitted successors and assigns. Owner may not transfer the Property in a manner that materially impairs Optionee's rights hereunder without delivering written notice and providing an assignee subject to this Agreement.

Governing Law; Entire Agreement

Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the state in which the Property is located. Venue for any dispute shall lie in the appropriate state or federal court of that jurisdiction.

Entire Agreement: This Agreement, together with any exhibits or written amendments signed by the parties, constitutes the entire agreement between the parties relating to the Option and supersedes all prior agreements and understandings, whether oral or written.

Miscellaneous Provisions

Severability: If any provision of this Agreement is held invalid, the remainder shall continue in full force and effect. Waiver: No waiver of any breach shall constitute a waiver of any subsequent breach.

Sign Now