Lease With Option To Purchase Addendum Template
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2LEASE WITH OPTION TO PURCHASE ADDENDUM
THIS ADDENDUM IS MADE PART OF THE RESIDENTIAL REAL ESTATE PURCHASE AGREEMENT REFERENCED BELOW, AND IS A LEGAL
AGREEMENT. PRIOR TO SIGNING, BOTH PURCHASER AND SELLER ARE ADVISED TO HAVE THIS ADDENDUM REVIEWED BY AN
.
ATTORNEY
This addendum is made part of the Residential Real Estate Purchase Agreement (“Agreement”) dated
_________________,20___, or the property located at_________________________________________ (“Property”). In the
event the terms of this addendum conflict with any of the terms of the Residential Real Estate Purchase Agreement, then the
terms of this Addendum shall take precedence over the other agreements. The Agreement and Purchaser’s obligation to
purchase the Property are conditioned upon Seller’s granting and executing a Lease containing the following terms:
1.
TERM. The lease term shall commence __________________,20______, and shall continue until
_______________,20______.
2.
RENT. The purchaser will pay as and for rent the sum of $______________which shall be paid $_______________
per month for _________ months, payable in advance upon the first day of each and every month.
3.
LEASE. The lease shall be prepared by Seller/Lessor, approved by Purchaser/Lessee and signed by both parties
prior to possession. Purchaser/Lessee shall have the possession of the premises on ___________20_____ provided
there is a fully executed Lease.
4.
OPTION TO PURCHASE. At any time prior to the expiration of the lease, provided prior to the time of such election,
rent shall have been paid promptly when due according to the terms of the lease, Purchaser shall have the option to
purchase the Property in accordance with the terms of the Residential Real Estate Purchase Agreement.
5.
TAXES AND INSURANCE. All real estate taxes and assessments shall be paid by Seller. Seller will provide hazard
insurance providing fire and extended coverage in an amount determined by Seller but not less than the amount of the
Agreement’s sales price. Purchaser shall maintain Tenant’s insurance, at Purchaser’s cost.
6.
CREDIT. Purchaser hereby authorizes Seller to fully investigate the credit of Purchaser for purposes of analyzing the
credit risk of the Agreement. Purchaser shall provide Seller a current credit report to assist in such investigation.
Seller’s obligations under the Agreement are subject to Seller approving the credit of Purchaser.
7.
SELLER’S MORTGAGE(S). Seller represents the following mortgages and encumbrances are on the Property: (If
none, state “none”________________________________________________________________________________
______________________________________________________________________________________________
Seller represents the existing mortgages and encumbrances have unpaid principal balance(s) of
approximately
$__________________ as of the time of acceptance. Seller agrees to promptly pay all mortgage payments as they
become due and to prevent such mortgages from becoming in default. Seller will provide to Purchaser at least
annually, evidence that all payments have been made and that the underlying mortgage is not in default. Seller
represents that there are no other mortgages on the Property and agrees that during the term of the Lease, Seller will
not grant additional mortgages or will not refinance or otherwise increase the amount of the underlying mortgage(s)
without Purchaser’s written consent.
8.
Seller represents that there are no pending orders of any public agency against the property
PENDING ORDERS.
except: If none, state “none”________________________________________________________________
9.
PROPERTY CONDITION. Purchaser shall keep the property in as good condition as at time of possession, ordinary
wear and tear excepted. Purchaser shall make no changes or alterations to the property without the written consent of
Seller, which consent shall not be unreasonably withheld.
10.
LEASE COMMISSION. At the time of the execution of the Lease and possession of the Property, the Seller/Lessor or
Brokerage agrees to pay The Danberry Company a Lease Commission of $______________. In the event two Real
Estate brokers are involved in the transaction, the Lease Commission shall be spit 50/50 between the two Brokers.
11.
REAL ESTATE COMMISSION. The Real Estate Commission owed by Seller to the listing real estate broker shall be
paid at the time of closing of real estate purchase and will be split between the listing and selling brokers based on
their agreed upon split per MLS.
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