Lease option agreement sample
Any purchase of such premises shall be effective as of the date of Bank Closing and such purchase shall be consummated as soon as practicable thereafter, and in no event later than the Settlement Date. If the Assuming Institution gives notice of its election not to purchase one or more of the owned Bank Premises within seven 7 days of Bank Closing, then, not withstanding any other provision of this Agreement to the contrary, the Assuming Institution shall not be liable for any of the costs or fees associated with appraisals for such Bank Premises and associated Fixtures, Furniture and Equipment.
Upon termination of this Agreement, the Bank shall not sell, surrender, or transfer ownership of the Policy without first giving the Executive or the Executives transferee the option to purchase the Policy for a period of 60 days from written notice of such intention. The purchase price shall be an amount equal to the cash surrender value of the Policy. The number of Optioned Shares which may be acquired pursuant to the Options shall be those which vest in accordance with Section 2.
Provided that the Tenant is not then in default under the terms of this Lease, then the Landlord grants Tenant the Option to Purchase the Premises at Fair Market Value, without accounting for the valuation of the lease between Landlord and Tenant, the value of the Premise based upon the fact that it possesses all permits necessary to operate an adult entertainment nightclub in the City of Hialeah, Florida, or the value of the property described on Exhibit A In order to exercise this Option, Tenant shall notify the Landlord, in writing, of its desire to exercise the Option which shall contain a proposed purchase price supported by a Real Estate Appraisal.
If the Landlord agrees to the Purchase Price proposed by Tenant, then the closing shall occur within 60 days of the date that the Offer is received by the Landlord.
Within 14 days of the Offer date, the Landlord shall notify Tenant whether it agrees to the Offer Price. If the Landlord does not agree to the Offer Price, then the Landlord shall, within 45 days of the receipt of the Offer, send a counter-proposal to Tenant, setting forth its proposed sale price, which sale price shall be supported by a Real Estate Appraisal. Counter-Offer If the Tenant agrees to the Purchase Price proposed by Landlord, then the closing shall occur within 60 days of the date that the Counter-Offer is received by the Tenant.
If the Tenant does not accept the Counter-Offer, then the parties agree that the Purchase Price will be set by a third party real estate appraiser.
This appraiser shall be selected by agreement of the Tenants Real Estate Appraiser and the Landlords Real Estate Appraiser, who shall independently appraise the Premise and set the purchase price. Such real estate appraisal shall be completed within 45 days of the date that the Real Estate Appraiser is selected by the Appraiser, who shall select an appraiser within 14 days of being notified that the Tenant has rejected the Landlords Counter-Offer.
The Closing of the transaction shall occur within 30 days of the date that the Appraiser issues his Appraisal of the Premise. This option may be exercised by Tenant during the first 37 months of the lease.
Should the option not be exercised within the first KULI shall have the option, for a period of fifteen 15 business days following receipt of the Notice, to acquire all but not less than all of the Offered Shares at the same price per share and upon the same terms and conditions as specified in the Notice.
Such option shall be exercised by delivery of written notice of the exercise of the option to Bennett. In the event that KULI does not exercise such option to acquire all of the Offered Shares within such fifteen 15 business day period, then the Company shall have the right for a period of five 5 business days after the expiration of the fifteen 15 business day period to acquire all but not less than all of the Offered Shares at the same price per share and upon the same terms and conditions as specified in the Notice.
In the event that KULI and the Company do not exercise the options described above within the periods described above or exercise the option but fail to close as provided in Section 2. Traditional lenders have tightened underwriting guidelines and raised minimum credit standards, and there are lots of first-time buyers who have been pushed out of today's buying market. A lease containing an option to purchase may give the buyer enough time to get qualified and make the purchase he or she wants.
In today's market, some sellers are willing to compromise on a quick sale in order to get some revenue coming in to help cover the mortgage payment. This can be the same rental agreement that you might use if you were simply renting for a specific term, then intending to vacate. In this contract, a non-refundable "down payment" is often made from buyer to seller. This down payment is usually applied toward the purchase price. As an alternative, the lease-option agreement may specify a more traditional and refundable security deposit.
This clause specifies that some portion of each rental payment shall accrue toward a reduction in the purchase price of the property, even if that price has yet to be determined. I have even heard of sellers so highly motivated to cause a sale of their home that they offered a credit of percent of all rents paid as a credit against the purchase price.
Obviously, a seller in this category would need sufficient equity in the property to cover such a generous offset. But it would have the further effect of almost guaranteeing an eventual sale. This is to prevent the renter from damaging the house, then asking the seller to make repairs prior to the sale. The idea here is that since the buyer is going to buy the house, he can take on the responsibility for upkeep now.
However, this provision may not be enforceable under Georgia law, which prevents the owner of residential rentals from transferring the responsibility to repair. I'd better leave that one to the attorneys to sort out.