Buyout Agreement Template (Page 3 of 4) in pdf

Buyout Agreement Template Page 3

CONSIDERATION

INVESTOR shall be paid the sum of $_____________ in cash (hereinafter

“CONSIDERATION”) from the SELLER’s proceeds as consideration for the termination of

LEASE/PURCHASE AGREEMENT and assignment of LEASE and OPTION agreements to

OWNER. In the event that BUYER does not complete his loan or otherwise does not complete

the exercise of the OPTION agreement on or before ______________, 20_____, this

BUYOUT AGREEMENT, the cancellation of the LEASE/PURCHASE AGREEMENT and

the assignments of the LEASE and OPTION agreements shall become null and void, and all

parties will be in the same position as they started before the commencement of this BUYOUT

AGREEMENT.

DEFAULT BY OWNER

In the event OWNER fails to comply with the terms of this agreement, including, but not

limited to the cooperation with BUYER, his lender, mortgage broker, appraiser or other parties

in connection with BUYER’s loan, or if OWNER fails to deliver marketable title as required by

the OPTION agreement, OWNER shall be in default of this agreement. At such time,

INVESTOR may, at his option, cancel this BUYOUT AGREEMENT, placing all parties in the

same position as they started before the commencement of this BUYOUT AGREEMENT,

which shall nullify the cancellation of the LEASE/PURCHASE AGREEMENT and the

assignments of the LEASE and OPTION agreements. INVESTOR may also seek damages

against OWNER, including, but not limited to, lost profits, courts costs, attorney’s fees, and

consequential damages. At a minimum, OWNER agrees that INVESTOR’s loss in the event of

OWNER’s default will be the CONSIDERATION as stated above.

SECURITY AGREEMENT

As security for OWNER’s performance under this BUYOUT agreement, OWNER

agrees to execute a Performance Mortgage, Deed of Trust or other customary security

instrument, which will recorded as a lien against the Property in an amount equal to the

CONSIDERATION as stated above.

________________________________

_________________________________

OWNER

BUYER

________________________________

INVESTOR

Buyout Agreement Template Page 3