Fill and Sign the Sample Residential Lease with Option to Purchase Annotated Form

Lease Agreement of Store with an Option to Purchase at the End a Certain Period of TimeAgreement made on the ______________________ (date), between ______________________________ (Name of Lessee/Buyer) of _______________________ _____________________________________ (street address, city, county, state, zip code) , referred to herein as Buyer and _______________________ (Name of Lessee/Seller), of ____________________________________________________________________________ (street address, city, county, state, zip code) , referred to herein as Seller. Whereas, Lessor is the owner of a business and property described below, and desires to lease the business and property for use as a (describe type) _________________________ ___________________________________________ store; and Whereas, Lessee desires to lease said business and property for the purposes of operating a (describe type) ________________________________________________ store; Now, therefore, 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 Premises Lessor hereby leases to Lessee the Business and Premises located in the County of ____________________ (name), State of ___________________ (name), described in Exhibit A attached hereto and made a part hereof and located at ________________________ ___________________________________________________ (street address, city, county, state, zip code) , including the business, the building and other improvements, which business, property and improvements are hereafter referred to as the Premises. 2. Purpose A.Lessee shall use the Premises for the exclusive purpose of conducting a (describe type) _________________________________________________ business on the Premises and shall conduct the business during all usual working hours for related business activities, except for periods when prevented by acts of God or other causes beyond the control of Lessee. B. Lessee shall comply with all governmental regulations affecting the operation of the Premises. 3. Restrictions on Use A. Lessee shall not conduct any activity that is unlawful, ultra hazardous, or that would increase the premiums for liability insurance on the Premises. B. All advertising material that is to be affixed to the exterior portions of the building by Lessee shall be submitted to Lessor for approval prior to installation, and all material installed shall be removed by Lessee on surrender of the Premises. 4. Reservations by Lessor Lessor shall have the right to enter the Premises to inspect the Premises and make repairs, alterations, or modifications as may be required. 5. Initial Term of Lease The initial term of the Lease shall begin on ______________________ (date), and end _______________________ (date), unless renewed under the provisions of Section 18 of this Agreement. 6. RentLessee agrees to pay as rent in the amount of $______________ (Dollars) per month, the first payment to made on ___________________ (date), and each subsequent payment to be made in advance on ______________________ (date). A late fee of $10.00 per days shall be charged and paid for any rental payment more than 14 days past due. 7. Damages A. Lessee shall give notice to Lessor of damages caused by natural disasters (e.g., tornado) _______________________, and Lessor shall repair the damages within _________ (number) days, during which time Lessee shall be entitled to an abatement on the rental. If more than ______________ (percentage of Premises destroyed by natural disaster) of the Premises is destroyed by a natural disaster, Lessor shall have the option of refusing to repair or replace the Premises, and Lessee's duty to pay rental under this Agreement shall terminate as of the date of the disaster. B. Lessee shall be liable for the costs of all damages caused by the negligence of Lessee, and there will be no abatement of rent or termination of this Agreement for these damages. 8. Utilities Lessee shall contract for all utility services required on the Premises in the name of Lessee and shall be liable for payment for all utility services received. 9. Taxes A. Lessor shall pay all _____________ (current year) real property taxes and assessments levied on the Premises. Beginning in ___________ (following year), Lessee shall pay all real property taxes and assessments levied on the Premises. B. Lessee shall pay all personal property taxes and assessments and all business taxes and license fees. 10. Assignment and Sublease Lessee shall not assign Agreement or sublet the Premises to another party without the express written approval of Lessor. 11. Repairs, Alterations and Modifications A. Lessee shall be responsible for all repairs to the common areas, accesses, service entrances, parking areas, and the exterior of the building, all repairs necessitated by faulty quality of work in the construction of the building, and all repairs necessitated by casualty losses covered by casualty insurance provided in this Agreement. Lessee shall also be responsible for all repairs required as a result of the negligent acts of Lessee or its agents and all repairs not required of Lessor. B. All normal maintenance of the Premises will be carried out by Lessee. C. Lessee may, at its expense, alter or modify the Premises to suit its needs, provided that written consent of Lessor has first been obtained. 12. Insurance Lessee shall carry fire and any other casualty insurance generally carried on a business of this nature on the Premises during the term of this Agreement in an amount equal to 80% of the appraised value of the insured property, written by a reliable insurer in the name of Lessor and Lessee in proportion to their respective interests in the Premises. Lessee shall furnish liability insurance in the amounts of $1,000,000.00 for each injury to either employees or invitees on the business Premises, $3,000,000.00 for each accident or occurrence, and $100,000.00 for property damage. Lessor may purchase these policies and charge Lessee for the policies if Lessee fails to comply with this requirement. Lessor and Lessee , together and separately, waive any right of subrogation or any right in tort against the other party, its agents or assigns, for damages to the Premises or to persons in excess of the insurance policy provisions in this Agreement. 13. Bankruptcy Lessor shall have the option on thirty (30) days' notice to Lessee to terminate this Agreement if Lessee files for voluntary bankruptcy, is placed in receivership, or has involuntary bankruptcy proceedings instituted against it by creditors. 14. Examination of Premises A. Lessee s shall examine the Premises prior to execution of this Agreement and shall acknowledge that the Premises are in satisfactory condition at the time Lessee enters into possession. B. Lessor has made no representations to Lessee relating to the condition of the Premises except as specifically provided in this Agreement. 15. Default and Forfeiture Lessor shall, on default with respect to any of the provisions of this Agreement by Lessee , provide Lessee with written notice of any breach of the Agreement terms or conditions. Lessee shall then have Ten (10) days to either correct the condition or commence corrective action if the condition cannot be corrected in Ten (10) days. If the condition cannot be corrected in Ten (10) days, Lessee shall have a reasonable time to complete the correction. Notwithstanding the foregoing, Lessor may elect to enforce the terms and conditions of this Agreement by any other method available under the law, or Lessor may declare a forfeiture of this Agreement by providing Ten (10) days' notice to Lessee of Lessor 's intent to do so. 16. Holding Over A. Lessee shall pay to Lessor a monthly sum equal to the rent specified in this Agreement plus 50% of such amount for each month that Lessee holds the Premises after expiration or termination of this Agreement without authorization by Lessor. This sum shall be liquidated damages for the wrongful holding over. B. Lessee shall acquire no additional rights, title, or interest to the Premises by holding the Premises after termination or expiration of this Agreement. Lessee shall be subject to legal action by Lessor to obtain the removal of Lessee in the event of any such holding over. 17. Remedies for Lessor A. Any and all remedies provided to Lessor for the enforcement of the provisions of this Agreement are cumulative and not exclusive, and Lessor shall be entitled to pursue either the rights enumerated in this Agreement or remedies authorized by law, or both. B.Lessee shall be liable for any costs or expenses incurred by Lessor in enforcing any terms of this Agreement or in pursuing any legal action for the enforcement of Lessor's rights. 18. Lessee’s Option to Extend or Renew Provided that Lessee is not in default under this Agreement during the original term of this Agreement, Lessee shall have the option to extend this Agreement for _____ additional terms of _______ (number) years by providing Lessor with thirty (30) days' prior written notice. The extended term shall be on the same terms and conditions of this Agreement, except for the provisions regarding basic monthly rent. Basic monthly rent applicable to the extended term shall be at the then established market rate for similar facilities in the area, but in no event less than $__________ per month. 19. Option of Lessee to Purchase A. Lessor grants to Lessee the option to purchase the Premises on or before the end of the _____________________ (date). The purchase price shall be $___________ due at closing. Closing shall take place within sixty (60) days of the exercise of this Option by Lessee. In order to exercise this Option, Lessee must give Lessor sixty (60) days written notice of his intent to exercise the Option. Lessor shall convey the Premises by (e.g., warranty deed or assignment of lease and bill of sale) ________________________________ free and clear of all liens and encumbrances, except those that Lessee may have created or suffered and excepting any taxes, assessments, or charges that may have become a lien against the Premises since the date of this Agreement. (If real property is to be purchased, add: The deed shall be accompanied by a certificate of title showing good and marketable title). On the delivery of the above-described (e.g. deed and certificate of title, or assignment of lease and bill of sale) ___________________________________ this Agreement shall become void. B. The bill of sale as to inventory and equipment shall be in the form attached hereto as Exhibit A. 20. Waivers Waiver by Lessor of any breach of any covenant or duty of Lessee under this Agreement is not a waiver of a breach of any other covenant or duty of Lessee, or of any subsequent breach of the same covenant or duty. 21. Governing Law This Agreement shall be governed by, construed, and enforced in accordance with the laws of _________________ (name of state). 22. Entire Agreement This Agreement shall constitute the entire agreement between the parties. 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. 23. 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 evidenced in a writing signed by each party or an authorized representative of each party. 24. Binding Effect This Agreement shall bind and inure to the benefit of the respective heirs, personal representatives, successors, and assigns of the parties. WITNESS our signatures as of the day and date first above stated. ___________________________ ___________________________ (Name of Lessor/Buyer) (Name of Lessee/Seller) By:________________________ By:_________________________ (Printed or typed name) (Printed or typed name) ________________________ _________________________ D/B/A (Name of Business) D/B/A (Name of Business) ACKNOWLEDGEMENTS Before Notary Public