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"Tenant Buyer Information:"
"Name(s):"                
"Phone:"                
"Current Address:"                
"Email:"                
"How long have you been at your present address?"    "year(s)"    "months(s)"        
"When does your present lease expire (if renting)?"                
"Have you ever owned a house before?"    "yes"    "no"        
"When do you have to move?"                
"Why are you moving?"                
"Do you currently rent or own?"    "rent"    "own"        
"How much is your current rent / mortgage?"                
"What does it include?"                
"What is the maximum monthly payment you could afford towards your new home?"                
"What is your combined gross household income (before any deductions)?"    "Per Month"    "Per Year"        
"How much do you have for a down payment on your new home?"                
"If no down payment, do you have anything else of value?"    "yes"    "no"        
"How is your credit?"    "good"    "bad"    "don’t know"    
"What is your credit score now (if known)?"                
"Have you ever been through a:             (check all that applies)"    "bankruptcy"    "foreclosure"    "proposal"    
"What area are you looking to own in?"                
"How many bedrooms/bathrooms do you need?"    "bedrooms"    "bathrooms"        
"How many people will be living in your home?"    "adults"    "teens"        
   "children"    "pets"        
"What else may be important to you in your home? (For example: garage, deck, etc.)"                
"Lease Option Financials"
"Logo"    "Highlights"    "Type:"        "Rent to Own"
       "Term (years):"    
       "Total Profit: Return on Inv Total Option
Total Option"    "estment (per Annum): Consideration Consideration (%)"    "$0.00 #DIV/0!
$0.00
#DIV/0!"
"Property Information
Property Type Property Address"                "Single Family Home Address, City, State, ZIP"
"Tenant Buyers"    
"Fair Market Value of Home
Purchase Price"            "Purchase price"    
"Financing Information
1st Mortgage 2nd Mortgage"        "80%
0%"        "$0.00
$0.00"
"Total Mortgage"                0.00
"Investment
Downpayment"        0.200000        0.00
"Legal Fees"    
"Appraisal Inspection
Other closing costs
Placement Fee"            "tax 5%"    "$0.00
$0.00
$0.00
$0.00"
"Less: Initial Option Consideration"    
"Total Initial Investment"                0.00
"Profit from Sale/Transfer"
"Sale/Transfer Price"    0.040000    "per Annum"        0.00
"Less: Balance 1st Mortgage"    "Rate"        0.050000    "Amortization"    "30 Years"    
"Less: Balance 2nd Mortgage"    "Rate"    "10.00% Interest Only"        0.00
"Less: Legal Cost at Closing"    
"Less: Initial Investment Less: Joint Venture/Mgmt Less: Mortgage Penalty
Less: Initial Option Consideration"        0.500000        "$0.00
$0.00
$0.00
$0.00"
"Less: Option Consideration"        "per Month for"    "0 months"    0.00
"Total Profit from Sale/Transfer"                0.00
"Gain from Monthly Cash Flow
Lease Payments
Less: 1st Mortgage (PI) Less: 2nd Mortgage Less: Property Tax (T) Less: Insurance (I)
Less: Joint Venture/Mgmt
Less: Condo Fees"    "Type"    "Average Fair Market Rent
Interest Only"    "$0.00
10.00%      $0.00
$0.00
$0.00"    "$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00"
"Total Profit from Cash Flow"            0.00    0.00
"f29 the balance owing on your mortgage at end of deal this number comes from amortization table or your lender. See LO ondemand class sections 17 and 18 for more details"
"e40 principal and interest from amortization table. See LO ondemand class sections 17 and 18 for more details"

"Lease Option Financials"
"Logo"    "Highlights"
"Property Information Property Type Property Address Tenant Buyers
Fair Market Value of Home
Purchase Price"
"Financing Information"        
"1st Mortgage"        0.800000
"2nd Mortgage"        0.000000
"Total Mortgage"
"Investment Downpayment Legal Fees Appraisal Inspection
other closing costs Placement Fee
Less: Initial Option Consideration"        "20%
$0.00"
"Total Initial Investment"
"Profit from Sale/Transfer"            
"Sale/Transfer Price"            0.040000
"Less: Balance 1st Mortgage"    "Rate"        0.045000
"Less: Balance 2nd Mortgage"    "Rate"        0.100000
"Less: Legal Cost at Closing"            
"Less: Initial Investment"            
"Less: Joint Venture/Mgmt"            0.500000
"Less: Mortgage Penalty"            
"Less: Initial Option Consideration"            
"Less: Option Consideration"    350.00    "per Month for"    
"Total Profit from Sale/Transfer"
"Gain from Monthly Cash Flow
Lease Payments
Less: 1st Mortgage (PI) Less: 2nd Mortgage Less: Property Tax (T) Less: Insurance (I)
Less: Joint Venture/Mgmt
Less: Condo Fees"    "Type"    "Average Fair Market Rent Interest Only"
"Total Profit from Cash Flow"

"Type:"        "Rent to Own"    
"Term (years):"        3    
"Total Profit:"        39378.77    
"Return on Investment (per Annum):"        0.213300    
"Total Option Consideration"        22600.00    
"Total Option Consideration (%)"        0.067000    
           "Single Family Home"
           "Address, City, State, ZIP"
           300000.00
   "Purchase price"        300000.00
"$240,000.00
$0.00"
240000.00
           60000.00
           2140.00
           0.00
           0.00
           3053.00
"tax 5%"            6350.00
           10000.00
61543.00
"per Annum"            337459.20
"Amortization"    30        227842.99
"Interest Only"            0.00
           2500.00
           61543.00
           0.00
           0.00
           10000.00
"36 months"            12600.00
22973.21
1850.00    2200.00        79200.00
   1216.04        43777.44
0.100000    0.00        0.00
   304.00        10944.00
   74.25        2673.00
   150.00        5400.00
   0.00        0.00
"$455.71                    $16,405.56"
"US- Tenant Lease Agreement (For a purchase LO TB or a JV LO TB)"
"THIS LEASE AGREEMENT is made and entered into this    day of    , 20    by and between    , hereafter referred to as “Landlord”, and    , hereafter referred to as “Tenant”.
PROPERTY ADDRESS: Landlord leases to Tenant and Tenant leases from Landlord, upon the terms and conditions contained herein, the dwelling located at     in the city of
, State of     .
LEASE TERM:     months for the period commencing on the:     day of
,and thereafter until the     day of     20    at which time this lease agreement shall terminate.
RENT: Tenant shall pay as rent the sum of $    per month, due and Payable monthly on the first day of the month. Rent may be mailed through the Post Office at the Tenant’s risk. Any rents that are late or lost in the mail are treated as if unpaid until received by Landlord. Tenant further agrees to pay a late charge of $25.00, plus $5.00 a day, for each day the entire rent is not received by the Landlord by the first day of the month regardless of the cause, including insufficient checks, time being of the essence. If rent is received after the first of the month and late fees as defined herein are not included with such payment, rent is considered unpaid. Any payment received by Landlord is applied firstly toward collection costs, including costs of a lawyer and his own client full indemnity basis, secondly towards rental arrears and then towards rent.
An additional Service Charge of $50.00 will be paid to Landlord for all insufficient checks. If Tenant checks are insufficient, Landlord shall have the right to demand certified check or money orders on all future payments. If any State rent control laws do not allow the above procedure or any procedure contained in this lease, then the State law(s) shall
prevail."

"OCCUPANTS: Tenant agrees to use said dwelling as occupancy only for adults and children whose names are as follows:
And to pay an additional $50.00 each month for each additional person who shall occupy the premises in any capacity and is not listed above.
PETS: Any pets kept on the property without the permission of the Landlord in writing shall be a breach of this lease. The following pet(s) shall be kept on the premises:
Landlord requires a picture of the pet(s) and copy of Rabies and Distemper Vaccination.
NO ASSIGNMENT: Tenant agrees not to assign this lease, nor to sublet any portion or the property, nor to allow any other person to live therein other than persons named above without first obtaining written permission from Landlord. Tenant will be responsible for all administrative costs incurred by Landlord.
Further, it is agreed that covenants contained in this lease, once breached, cannot afterward be performed and that legal proceedings may be commenced at once, without notice to the Tenant, (other than any notice required by State laws).
Landlord’s Initials Tenant’s Initials
ENFORCEABILITY: Should any provisions of this lease be found to be invalid or unenforceable, the remainder of the lease shall not be affected thereby, and each term and provision herein shall be valid and enforceable to the fullest extent permitted by law.
NO WAIVER: All rights given to the Landlord by this lease shall be cumulative to any other laws, which might exist or come into being. Any failure of the Landlord to enforce any of the provisions or restrictions herein contained shall in no way be deemed a waiver of the right to do so thereafter or insist upon strict compliance of the terms
hereof. No statement or promise of the Landlord, servants or his agent as to tenancy,"

"repairs, alterations, or other terms and conditions shall be binding unless reduced to writing and signed by Landlord."
"UTILITIES: Tenants are responsible for the payment of the following utilities:"
   "Heat"    "Electricity"    "Garbage"    "Water/Sewer"    
   "Taxes    Telephone
Snow Removal"    "Gas/Oil
Lawn Care"    "Association Fees"    
"and any other bills incurred during the term of this lease."
"INSURANCE: Tenant agrees it is the responsibility of the Tenant to insure the Tenant’s property on the premises against damage or loss of such property occasioned by fire, theft and any other perils. The Tenant’s policy shall waive all rights of subrogation against the Landlord and its servants, agents and contractors. The Tenant hereby waives and releases the Landlord from any liability whatsoever for damage or loss to any persons or property whatsoever which occurs in or in connection with the Premises and any improvements, building or property thereon or from the Tenant’s use of the premises however caused, including loss due to negligence or fault of the Landlord and its servants, agents or contractors (Tenant to look to its own insurance and insurers for recovery of and protection against any such loss or damage). Without limiting the generality of the foregoing, the Landlord shall not be responsible for any loss of Tenant’s property in the premises or stored in, at or near the building due to any cause
whatsoever."
"Tenant shall on demand provide a copy of insurance to the Landlord. Tenant is hereby notified to obtain insurance to cover loss on his/her personal belongings located in the Premises or on the grounds where Premises are situated.
Initial:"
"EMERGENCY ACCESS: Landlord has the right of emergency access to the leased premises at any time and access during reasonable hours to inspect the property or show it to prospective tenants with a 24-hour notice to Tenant. Landlord shall retain a key at all times. If the Tenant wishes to change the locks, s/he must notify the Landlord
in writing and provide a new key immediately."
"CONDITION OF PREMISES: Landlord and Tenant hereby agree to inspect the Premises at the commencement of the tenancy and upon termination or expiration of this Agreement, and that the condition of the premises at the aforesaid times will be noted on the Inspection Report which forms part of this agreement. The Inspection Report will be signed by both the Landlord and the Tenant. The Inspection Report may be used and relied upon by the Landlord as proof of the condition of the Premises at the time of Inspection and for determining damages and or seeking appropriate deductions or compensation from the Tenant. Landlord reserves the right to take photographs at both aforesaid times for further documentation to the condition of the Premises.
MAINTENANCE COSTS: The Tenant shall be responsible for the cost of repairing plugged toilets, sinks, and drains, and for the cost of replacing all windows and screens broken by the Tenant, employees, contractors, invitees or guests. The Tenant shall be responsible for replacing light bulbs, fluorescent tubes, stove fuses, broken toilet seats and any other damaged items. The tenant shall be responsible for damages caused by windows and doors being left open including cost of repairing and cleaning. The Tenant shall also be responsible for damage due to fire caused by the Tenant negligence i.e.: careless smoking, cooking, etc. The Tenant agrees to immediately report to the Landlord any and all damage that may occur to the Premises and or Property by way of, but not limited to, accident, breakage or defect throughout the continuance of this tenancy. In the event Tenant fails to complete maintenance/ repairs, that are the responsibility of the Tenant, the Tenant agrees to immediately reimburse Landlord for all monies expended to complete said repairs.
AID IN MAINTENANCE: The Tenant shall cooperate with the Landlord in the care and maintenance of the Premises and or Property including any improvements.
Landlord’s Initials Tenant’s Initials
DEFAULT: To further clarify the terms of this lease, the Tenant shall make certain that rent is received by the Landlord by the first of the month or the Landlord shall consider this lease to be breached and terminated if the rent has not been received before midnight on the first day of the month that the rent was due. The acceptance by Landlord of partial payments of rent due shall not, under any circumstances, constitute
a waiver of Landlord, nor affect any notice or legal proceedings therefore given or"

"commenced under state law. If Tenant defaults on any other provisions of the lease, including but not limited, to any misrepresentations on Tenant’s application, Landlord, at his/her option, can elect to continue the lease or terminate the lease and take possession of the property by any legal means available to him/her. Landlord is not required to give any notice to cure a violation of the lease, other than what is required by law.
ORDINANCES & STATUTES: Tenants shall comply with all municipal, state, and federal laws, statutes, and ordinances now in effect, or which shall be enacted in the future, and any violation of such shall be a complete and material breach of the lease.
LEGAL ACTION: Tenant agrees without protest, to reimburse Landlord for all actual and reasonable expenses incurred by way of Tenant’s violation of any term or provisions of this lease, including but not limited to a $50.00 fee for each notice, Notice to Quit, or other notices mailed or delivered by Landlord to Tenant due to Tenant’s non-payment of rent or other breach of lease, all court costs and including costs of a lawyer and his own client full indemnity basis , and all collection costs. Any such costs are due immediately as additional rent. Any payments received by Landlord will be applied first towards late fees and/or other additional charges, then toward rent. Both Landlord and tenant waive trial by jury and agree to submit to the personal jurisdiction and venue of a court of subject matter whose jurisdiction is located in the area in which the property is located. In such event, no action shall be entertained by said court or any other court of competent jurisdiction, if filed more than one (1) year subsequent to the date the cause(s) of action accrued.
WAIVER OF CLAIMS: Tenant hereby waives any and all rights to assert affirmative
defenses or counterclaims in any eviction action instituted by Landlord with the exception of an affirmative defence based upon payment of all amounts claimed by the Landlord not to have been paid by the Tenant. Other matters may be only advanced by Tenant in a separate lawsuit.
DAMAGE BY FIRE: In the event that the building(s) is damaged by fire and through no fault of the Tenant and cannot be restored within a reasonable time in the sole and unfettered discretion of the Landlord, this lease shall terminate with no further liability
of either party."

"MERGER CLAUSE: This agreement shall constitute the full and complete understanding of the parties and supersedes all prior written or oral agreements. There shall be no further additions or changes to this agreement unless the same is reduced to writing
and signed by both parties."
"Landlord                             Date"
"Tenant Signature                        Date"
"Tenant Signature                        Date"
"Purchase Option Contract"
"THIS PURCHASE OPTION CONTRACT is made and entered into this    day of by and between:
OPTIONOR: (Your Management Co.)    (referred to herein as Optionor) OPTIONEE: (Tenant Buyer)     (referred to herein as Optionee).
1. IN CONSIDERATION of the Optionee's promises herein AND of other valuable consideration AND the sum of One Dollar ($1.00) now paid by each party to the other(s), the receipt and sufficiency of which is hereby acknowledged by each party AND subject to the terms and conditions set out in this agreement, the parties agree as follows:
2. Provided that the Optionee has never been in default pursuant to the Optionee’s Tenant Lease Agreement (“Lease”) nor this Purchase Option Contract, OPTIONEE SHALL HAVE THE OPTION TO PURCHASE (the “Option to Purchase”) the property located at    (the ""Property"").
3. THIS OPTION WILL EXPIRE WITHOUT NOTICE AND SHALL BE OF NO FURTHER EFFECT IF NOT EXERCISED ON OR BEFORE     (“Option Expiry Date”):
4. The Optionee, desiring to exercise the Option to Purchase on the Option Expiration Date, must give the Optionor written notice (“Notice”) at least 90 days prior to the Option Expiration. The Optionee understands that the exercise of the Option is not to be conditional on the Optionee obtaining satisfactory financing; and the Optionee shall, before exercising the Option to Purchase, first satisfy itself that it has an appropriate mortgage commitment. Optionee understands that TIME IS OF THE ESSENCE for this agreement, and that the Optionee’s failure to exercise the Option to Purchase in the manner prescribed herein, or the failure to purchase the property by the specified Option Expiration Date, for any reason, will result in the immediate Termination of this Agreement and the Option to Purchase shall be deemed null and void by 5:01 p.m. on the specified closing date. ALL MONIES paid by the Optionee will be retained by the Optionor as liquidated damages.
5. OPTIONOR AND OPTIONEE AGREE THAT THIS CONTRACT IS NOT an installment
contract, nor a contract for deed, nor a contract for sale (or like document) nor"

"equitable mortgage (or like document), but merely Optionee’s Option to Purchase the above referenced property under the terms stated in this agreement.
6. PURCHASE PRICE OF THE PROPERTY: The purchase price of the Property is
The purchase price shall be paid by credit for the initial Option Consideration as described below plus the amount of any Additional Option Consideration amount and any other Option Consideration as accumulated over the term of the Option Agreement plus the remaining purchase amount due on closing of the purchase as follows:
7. The Optionee to obtain new unconditional financing on or before “date” (30 days before closing)
8. The applicable Purchase Price shall be subject to adjustments. Real Estate taxes, including local improvement rates; mortgage interest; rentals; unmetered public or private utilities and fuel where billed to the Unit and not the Condominium Corporation; are to be apportioned and allowed to the day of completion, the day of completion itself to be apportioned to the Optionee. If this is a condominium, the following also applies; Common Expenses and there shall be no adjustment for the Optionor's share of any assets or liabilities of the Condominium Corporation including any reserve or contingency fund to which Seller may have contributed prior to the date of completion.
9. THE OPTION CONSIDERATION: The Optionee agrees to pay the Optionor the sum of $    for this Option to Purchase and the Option Consideration shall be paid as follows:
10.   The entire Option Consideration is non-refundable. The Option Consideration amount shall be applied toward the down payment on the property if and only if Optionee exercises the Option to Purchase.
11.   MONTHLY PAYMENTS - Additional Option Consideration: The Optionee agrees to pay the Optionor, in addition to the terms set out in the Tenant Lease Agreement, the sum of $    on the first day of each month (""Additional Option Consideration"").Subject to Paragraph 9 hereof, the Optionor shall have no
obligation to repay to the Optionee the Additional Option Consideration if the"

"Optionee defaults pursuant to the Lease, does not exercise the Option as herein provided, and/or does not complete the purchase of the Property. The Optionee acknowledges that rent paid pursuant to the Lease shall NOT be applied to the Purchase Price.
12.   DEFAULT: Optionee agrees and understands that a fundamental condition of this Purchase Option Contract is that all terms and conditions of both the Optionee’s Lease and/or this Purchase Option Contract must not be in default, or expired, or this Purchase Option Contract will be null and void. To further clarify, all covenants of said Lease and this Purchase Option Contract must have been fully performed by the Optionee in order for this Option To Purchase to be valid and enforceable. This includes, but is not limited to, the repairs, maintenance and upkeep of said property, payment or other obligations required under such Lease and or Option to Purchase. Default of any of the terms and conditions of said Lease and or Option to Purchase by the Optionee will result in this Option To Purchase being automatically null and void and any monies paid hereunder as option consideration will be retained by Optionor as liquidated damages and not as a penalty. Default includes, but is not limited to, failure to make any lease or monthly option consideration payments by midnight on the 1st day of the month.
The Optionee agrees that the Optionee’s rights herein are subject to the Optionee complying with all of the terms and conditions of the Lease and of this Purchase Option Contract. If the Optionee defaults pursuant to the Lease, that default shall be deemed to be default pursuant to this Purchase Option Agreement. The Optionee acknowledges that this term is fundamental to this agreement without which the
Optionor would not have entered into this agreement."

"Optionee’s Initials:
REGISTRATION OF THIS PURCHASE OPTION CONTRACT ON TITLE:
13.   A filing of a caveat against the subject legal title by the Optionee, referring to potential rights under this Option of Purchase, will result in the automatic revocation and cancellation of this Option To Purchase and all monies will be retained by the Optionor as liquidated damages and not as a penalty. In addition,
Optionee will be liable to Optionor for all incidental and consequential damages"
"for slander of title or the wrongful filing of a caveat, including but not limited to a lawyer and his own client costs on a full indemnity basis.
14.   OPTION CREDIT: Upon the closing of the Purchase following the exercise of the Option, the Optionor shall give the Optionee a credit in the amount of $ (“Option Credit”) for each month the Additional Option Consideration was paid in full and on time.
15.   THIS OPTION TO PURCHASE CONTRACT, OR ANY INTERESTS ARISING FROM OR CONTAINED HEREIN, ARE NOT TRANSFERABLE OR ASSIGNABLE and the
Options To Purchase can only be exercised by the individual(s) signing this Purchase Option Contract.
16.   REPAIRS, MAINTENANCE AND INSURANCE: The Optionee shall be responsible for all repairs, maintenance, costs, service charges, painting improvements, and additions to the property up to    on a per-occasion basis. All repairs that have the potential of exceeding     per occasion must be approved in writing by the Optionor prior to the commencement of any work or purchase of materials related thereto. The Optionor agrees that it is responsible for all amounts over    on a per occasion basis.
17.   The Optionor has disclosed all relevant facts about the property. The Optionor makes no representation about any aspect of neighborhood or other facts or knowledge that are in the public domain of which the Optionor may or may not have knowledge.
18.   Optionee shall take an active role to ensure that the property stays in excellent condition. Optionee agrees that s/he has had adequate opportunity to inspect the condition of the property, the improvements, utilities, electrical, plumbing, appliances or any defects of the property or the neighborhood. Optionee has the right to paint and decorate the property at his/her discretion within tasteful guidelines. Optionee agrees to get written acceptance from the Optionor to accept the color of the paint to be used either inside or outside or before making any alterations or additions to the property. Optionee further
agrees that all work that requires a permit from the city is at the Optionee’s"

"expense and responsibility. All work performed on the building either by Optionee or other Contractors or any other parties shall be as an independent contractor or agent of the Optionee and not as an agent or employee of the Optionor. Optionor has no right of supervision of the work performed. Optionee further warrants that s/he will be accountable for any mishaps and/or accidents resulting from such work, and will defend, indemnify and hold the Optionor or his/her agent free from any claims from any other person, corporation, or entity. Optionee further acknowledges and agrees that all improvements, of any kind, to the property belong to the Optionor until such time that the Optionee actually becomes owner of the property pursuant to this Agreement.
19.   ORDINANCES & STATUTES: The Optionee and the Optionor shall comply with all municipal, state/provincial, and federal laws, statutes, and ordinances now in effect, or which shall be enacted in the future, and any violation of such by the Optionee shall be default pursuant to this Purchase Option Contract.
Furthermore, the Optionee and the Optionor shall abide by any and all restrictive covenants and caveats on title.
20.   Optionee has no right to, and shall not cause any lien to be placed against the subject legal title. Optionee will be liable to Optionor for all incidental and consequential damages for slander of title or the wrongful filing of a caveat, including but not limited to solicitor and his own client costs on a full indemnity basis.
21.   ACKOWLEDGEMENTS: The Optionees acknowledge that they have read and understood this Purchase Option Contract, have been given an executed copy of same. The Optionees to this contract further have been advised to seek legal, tax, technical expertise and any other counsel of their choosing concerning this contract prior to signing. This supersedes all prior written or oral agreements. There shall be no further additions or changes to this agreement unless the same is reduced to writing and signed by both parties.
22.    SUBJECT TO OTHER AGREEMENTS: The parties to this contract specifically
acknowledge and agree that this Purchase Option Contract is subject to and shall be interpreted in accordance with the Lease Agreement executed by the Optionee"

   "on the"    "day of"        "20     and the Lease entered into by the parties on"    
   "the"    "day of"    ", 20"    "."    
"23.   BINDING EFFECT: This Purchase Option Contract and the agreements referred to herein shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors and assigns."
"24.   THIS OPTION is subject to the Optionor becoming the registered owner of said property by    , 20    ."
"1. “I understand that if I am behind on my rent payments, I will be evicted as permitted by state/provincial law, and I forfeit all option considerations and any
rental credits that may have built up.”"
"2. “I understand that I am responsible for repairs up to $     per repair.”
3. “I understand that if I am late, which is after midnight on the 1st day of the month, on any rent payment or monthly option consideration, my Option to Purchase the property is null and void.”"
"4. “I understand that if I do not close, refinance, and cash you out of the property on or before the expiration of my option I lose all of my option consideration and built-up funds.”"
"5. “I understand that I must give     my intent to exercise my option in writing at
least 90 days prior to the expiration date of the option.”"
"Optionor                             Date"
"Optionee                             Date"
"Optionee                             Date"










"US- Lease with Owner Agreement (When you are doing a Sandwich LO)"
"THIS LEASE AGREEMENT is made and entered into this    day of , 20    by and between    , hereafter referred to as “Landlord”,
and     , hereafter referred to as “Tenant”.
THIS LEASE AGREEMENT is conditional upon the Tenant’s approval within business days of the signing of this lease by the Tenant.
PROPERTY ADDRESS: Landlord leases to Tenant and Tenant leases from Landlord, upon the terms and conditions contained herein, the dwelling located at     in the city of
, State of     .
LEASE TERM: The said premises, as described above, with all appurtenances, are hereby leased to the Tenant for the period commencing on the:     day of    , 20
and thereafter until the    day of    , 20    at which time this lease agreement shall terminate.
RENEWAL OF LEASE: For and in consideration of $    per/month the Landlord hereby grants the Tenant, at the Tenant’s sole and absolute unfettered discretion, the right to extend this lease for    month(s).
RENT: Tenant shall pay as rent the sum of $    , per month, due and payable monthly on or before the fifth (5th) day of the month for which the rent is due. Payments to commence upon the Tenant procuring a suitable sub-tenant or assignee.
For and in consideration of the mutual promise made by the parties, each to the other, the Landlord and Tenant hereby agree that $    of each rent payments made by the Tenant shall be applied toward reducing the purchase price if, and only if the Tenant exercises his/her option to purchase the above property, failing which all rent payments shall be kept by the Landlord as rent.
ASSIGNMENT: Tenant shall be permitted the right of sub-letting or assignment. If this agreement is assigned with the approval of the Landlord, whose consent shall not be unreasonably withheld, Tenant shall be released from any further liability hereunder.
ACCESS: Tenant shall have immediate access to the property and a key to show the property to all prospective sub-tenants."

"INSURANCE: Landlord shall protect Tenant’s interest by maintaining property insurance upon the property naming Tenant as additional insured. In the event of destruction in whole or in part of the property, Tenant shall have the option to proceed with the Option to Purchase Agreement and accept the insurance proceeds for said damages, or to declare this agreement null and void, releasing both parties from any obligations hereunder, except for the return of all monies paid by the Tenant which shall become immediately due and payable from the insurance proceeds.
Landlord’s Initial
Tenant’s Initials "
"DAMAGE BY FIRE: In the event that the building(s) is damaged by fire and through no fault of the Tenant and cannot be restored within a reasonable time in the opinion of the Tenant, this lease shall terminate with no further liability of either party, except for the return of all monies paid by the Tenant which shall become immediately due and payable from the insurance proceeds.
THE TENANT, in consideration of the leasing of said premises as aforesaid, covenants and agrees to the following:
● to pay the rent for said premises as herein above provided
● to keep the premises in good condition and state of repair and at the expiration of this lease to deliver up the same in as good condition as when entered upon, less normal wear and tear, except for loss by fire, inevitable accidents, or an act of God.
UTILITIES/SERVICES: Tenant agrees to pay all utilities and services with the exception of the following, which the Landlord agrees to pay: homeowner’s fees, insurance, and taxes.
MERGER CLAUSE: This agreement shall constitute the full and complete understanding of the parties and supersedes all prior written or oral agreements. There shall be no further additions or changes to this agreement unless the same is reduced to writing
and signed by both parties."

"ALL STATE LAWS OF    APPLY and Landlord guarantees rents are in accordance to State laws."
"Landlord Signature                       Date"
"Tenant Signature                        Date"
"US- Option With Owner Agreement (When you are doing a Sandwich LO)"
"THIS PURCHASE OPTION AGREEMENT is made and entered into this     day of
20     by and between OPTIONOR:     and OPTIONEE:     .
PROPERTY ADDRESS: The dwelling is located at     in the city of     , State of
.
The Optionor and the Optionee mutually agree subject to terms and conditions hereof, and subject to the Optionee exercising their option in the manner provided for in this agreement, the Optionor and the Optionee shall close on the terms outlined in the Offer To Purchase Agreement attached to this Option With Owner Agreement.
THE OPTIONOR AND THE OPTIONEE MUTUALLY AGREE that TIME IS OF THE ESSENCE
for this agreement.
• IN CONSIDERATION of $    representing the option consideration or purchase deposit (which shall be credited to the purchase price of the property if the Optionee exercises his Option to purchase said property as outlined in attached Offer To Purchase Agreement), the receipt of which is acknowledged by    , the Optionor, and the Optionee meeting all obligations as stated herein, the Optionor hereby grants the Optionee an Option to Purchase the above stated property under the following terms:
• OPTIONOR GRANTS to Optionee, the right to purchase the above property or purchase and resell at any time so long as it is done within the terms of this agreement and the attached Offer To Purchase contract.
• Optionor agrees not to indebt the property for any more than the agreed purchase price during the term of this option.
• Optionor further agrees to supply proof of tax payments within 15 days following the due date.
•  ·Optionor further agrees to make all mortgage payments in a timely manner.
• OPTIONOR AGREES that upon exercise of the option the Optionee shall be credited with $    from each monthly rental payment of $    ."

"• THE PURCHASE PRICE shall be $   at the time the option is exercised less any Rent Credit.
•  OPTIONOR UPON PAYMENT OF SAID PURCHASE MONEY, SHALL CONVEY the said
premises to the Optionee by way of a Deed free of all encumbrances except: any encroachments and zoning infractions, and any overriding or superseding provisions at Land Titles already registered on title.
• OPTIONOR SHALL PROVIDE to the Optionee a real property report at closing or shall furnish a policy of title from a reputable title insurance company at his/her expense.
•  OPTIONOR SHALL at his/her expense make all repairs over $ per repair.
• OPTIONOR SHALL PROTECT Optionee’s equitable interest by maintaining hazard insurance upon the property, naming the Optionee as additional insured. Optionee, at his/her sole and unfettered discretion, may proceed with the closing and accept the insurance proceeds for said damage, or declare this agreement null and void, releasing both parties from any obligations hereunder, except for the return of monies paid by Optionee which shall become immediately due and payable from the insurance proceeds.
• OPTIONOR GUARANTEES that the building meets all fire codes, city codes, and zoning bylaws, or will make the necessary repairs to meet these by-laws before closing. Optionor further guarantees that the present use of the property may be lawfully continued and if within the time period of this Option To Purchase any valid objection is made in writing to title or nonconformity with municipal or other governmental enactments, which the Optionor shall be unable or unwilling to remove, remedy or satisfy, and which the Optionee will not waive, this agreement shall be null and void notwithstanding any intermediate acts or negotiations in respect of the objection, the Optionor shall refund to the Optionee all monies paid by the Optionee to the Optionor.
• OPTIONOR AGREES that if there are any outstanding work orders or deficiency notices which the Optionor does not repair or rectify before the date of"

 

"US- SAMPLE ASSIGNMENT OF OPTION TO PURCHASE REAL ESTATE"
"For value received,    (Seller), assignor, assigns to    (Buyer) assignee, all rights and interest of assignor in an agreement, dated    , 20    whereby assignor was given the option from    (Seller), the following described real estate at a price and under the terms and conditions therein contained:
Address City State Zip Code
Legal Description: (To be attached.)
Assignor, by virtue of this assignment, grants to assignee the right to exercise or reject the option in good faith and the right to recover any moneys deposited by assignor to receive said option.
Dated     , 20    .
Seller:  Date  Buyer:  Date "
"State of  County of  "
"The foregoing instrument was acknowledged before me this  day
of , 20 by who is/are personally known to me or who has/have produced as identification.
Notary:
My Commission Expires:                 (Seal)"
"Background, Credit, and Reference Investigation Authorization
I/we    ,
are the     Rental Applicant(s)      Co-signer, to the Rental Agreement for the property located at and
do hereby authorize and permit    , Owner/Manager,
to perform background checks in order to obtain information about me from credit reporting sources, current and previous landlords, personal and professional references, employers, banks, and law enforcement agencies.
I also authorize and give permission for all parties listed in the previous paragraph to disclose any information requested about me to the rental owner or manager.
Should it be deemed necessary by the Owner/Manager, I further authorize and permit them to obtain updated information annually or on future occasions for rental renewal consideration or for collection purposes.
Rental Applicant(s)/Co-signer’s signature(s):
Date:
Phone Number of Applicant(s)/Co-signer’s."
   "How Do You Qualify
✓ Complete Questionnaire & proof of a down payment
✓ Meet with our lending specialist to discuss purchase strategies
What are You Responsible For
✓ Make your monthly payment on time
✓ Provide insurance on your possessions (content insurance)
✓  Pay the utility bills
✓  Keep up the maintenance of your new home
Enjoy your new home! Call 816-343-8079"                "What We Do
✓ Help you move into a permanent home of your choice in 2-3 months once you join the Program
✓ Require an initial deposit towards your new home to get you started
✓ Customize a program and home that best suit your financial/personal needs
✓ Work with you to build your final deposit
✓ Flexible deposit building options to ensure your home
ownership at the end"                "Benefits to Rent to Own
✓ Build equity while living in your own home
✓ Say good-bye to paying rent
✓  Pride in home ownership – you are
essentially the owner NOW!
✓  Pet-friendly!
✓ Options at the end of your Program
816-343-8079"
                                   
"Step by Step into your New Home No
•  Complete the “Rent to Own Questionnaire” & return it to jrkrenttoown@gmail.com or fax i
•  Prepare for an initial face-to-face consultation where:
o We take the time to understand your needs & goals to tailor a solution for you
o A financing application is completed together with you
o A non-refundable commitment fee of $1,000 deposit is made to join the program
•  Assess & create a mutually agreeable Rent to Own term based on the information provided financing application
o Lock in the purchase price of your new home NOW
o Discuss the amounts for: rent, rent credit, and option deposit
•  Start shopping for your new home with our real estate specialists
o Access to every available listing on MLS, etc.
o Access to a private pool of listings
o Once an offer is made, Pay ½ of your option deposit
•  Purchase of your new home
o Waiting period for inspection, appraisal & financing
o Upon removal of purchase conditions, pay the remaining balance of option deposit
o Finalize the amounts for: rent, rent credit, and option deposit
o Sign your new lease
o Sign your Option contract
•  Solidify possession date & Get ready to move!
o Refer to our complementary “Step by Step Moving Guide” (available upon request)
o Post-dated checks required
•  Welcome Home!
o Thorough walk-through inspection of your property together
o Key handover"    
   "w
t to 1-888-223-0223
in the"
   
   
"Certificate Of Independent Legal Advice Confirmation and Acknowledgement
DATE:     day of    , 20
PROPERTY ADDRESS:
I/WE     (Tenant/Optionee)
DESIRE TO EXECUTE THE FOLLOWING DOCUMENTS:
TENANT LEASE AGREEMENT (    ) (    ) (initials)
TENANT PURCHASE OPTION CONTRACT (    ) (    ) (initials)
ALL DOCUMENTS IN “NEW HOME MANUAL” (    ) (    ) (initials)
I/WE HAVE BEEN ADVISED by   that I/We should seek independent legal advice and counsel as to my rights, obligations and remedies, if any, that I may have to be subject to, regarding the aforementioned documents and that I have been given the opportunity to seek such legal advice.
I/WE AGREE AND UNDERSTAND that this arrangement is essentially a landlord- lessee relationship, and that I/We have an option to purchase the property under the terms stated in the Purchase Option Contract. I/We agree and understand that should I/We default on any of the terms and conditions of either the Tenant Lease Agreement and or the Purchase Option Contract then my Option To Purchase the above stated property will be null and void and I/We will no longer have the Option To Purchase the property, nor will I/We have any rights, interests, or claims to it.
I/WE HAVE READ the above initialled agreements and they have been thoroughly explained to us. I/We agree and understand that should I/We fail to purchase the property for any reason we are not entitled to any Option Consideration and or
Credit(s) money back."

"Page 2 of 2                                        Tenant/Optionee’s
Initials "
"I/WE AGREE THAT the Optionor and or his agent have not made any representations not contained in this disclosure or the aforementioned documents as to the property, its ownership, the condition, the neighbourhood, or the value of the property.
I/WE HEREBY CONFIRM AND ACKNOWLEDGE that I/We exercise the aforementioned documents freely and voluntarily of my own free will, free of any coercion or undue influence on the part of    or any of its agents or principals as the case may be, and I/We am not under duress of any kind.
I/WE CONFIRM AND ACKNOWLEDGE ALL OF THIS AS EVIDENCED BY MY SIGNATURE SIGNED ON THE DATE SHOWN."
"Tenant/Optionee Signature                     Date"
"Witness Signature                          Date"
"Print witness name"
"Tenant/Optionee Signature                     Date"
"Witness Signature                          Date"
"Print witness name"
"Page 2 of 2                                        Tenant/Optionee’s
Initials "
"Page 2 of 2                                        Tenant/Optionee’s
Initials "

"RESIDENTIAL LEASE"
"EFFECTIVE DATE:
LANDLORD:
LANDLORD'S ADDRESS:
TENANT:
ADDRESS OF LEASED PREMISES (TENANT'S ADDRESS): MONTHLY RENTAL:
COMMENCEMENT DATE OF INITIAL TERM:
DATE OF FIRST PAYMENT UNDER LEASE:
ENDING DATE OF INITIAL TERM:
PRO RATE RENTAL AMOUNT:
DATE OF PRO RATE RENTAL:
SECURITY DEPOSIT: $NA PET DEPOSIT: $NA
EQUIPMENT & APPLIANCES (IF CHECKED) FURNISHED BY LANDLORD:"
"( ) DISHWASHER
( ) GARBAGE DISPOSER (x ) AUTOMATIC RANGE & OVENS ("    "CONDITIONING EQUIPMENT ( ) AUTOMATIC CLOTHES WASHER & DRYER
( ) ICE MAKER"    "EQUIPMENT
( ) AUTOMATIC LAWN SPRINKLING EQUIPMENT ( ) [OTHER]:        "
   ") REFRIGERATORS & FREEZING
UNITS ( ) ATTIC FANS ( ) HEATING & AIR"    "( ) GARAGE DOOR OPENER ( )   INTRUSION ALARM   
( ) SWIMMING POOL &"
"Landlord and Tenant hereby agree as follows:
1. PREMISES: Landlord leases to Tenant, and Tenant leases from Landlord, the Leased Premises, together with all improvements thereon.
2. OCCUPANTS: The Leased Premises will be occupied by Tenant and [list all other adults and minors]:"
"No other Occupants are permitted. Persons not listed above may not stay at the Leased Premises more than seven (7) days in any month without Landlord's written consent.
3. TERM: After the Ending Date of the Initial Term, this lease will be automatically renewed on a month to month basis unless written notice of termination is given by either party at least thirty (30) days prior to the expiration of the initial term hereof or prior to the expiration of any renewal term hereof, if applicable. If the initial term hereof commences on a date other
1"
"than the first day of a calendar month, rental for the first and last months shall be prorated.
4. RENTAL: Tenant shall promptly pay the monthly rental hereunder in advance without demand, offset, or deduction to Landlord. The monthly rental is due on the 1st day of each calendar month during the term of this lease. If all rent due is not paid on or before the 3rd day of the month, Tenant agrees to pay a late charge of $25.00 plus an additional late charge of $5.00 per day thereafter until paid in full. All partial payments of rental shall be credited first to late charges and the balance, if any, to accrued rental due. Tenant agrees to pay a $25.00 charge for each returned check, plus late payment charges, if applicable. If any check from Tenant is dishonored for any reason by Tenant's bank, thereafter Landlord may, at Landlord's option, require all payments due hereunder to be paid by cashier's check, bank certified check, or money order.
5. SECURITY DEPOSIT AND PETS:
(a) Receipt is hereby acknowledged by Landlord of the Security Deposit set forth above as a security deposit for the faithful performance by Tenant of all the terms and conditions of this lease required to be performed by Tenant. UNDER NO CIRCUMSTANCES SHALL THE SECURITY DEPOSIT BE CONSTRUED AS RENT. TENANT SHALL NOT BE ENTITLED TO INTEREST ON THE SECURITY DEPOSIT.
(b) THE SECURITY DEPOSIT WILL BE RETURNED TO TENANT ONLY UPON THE OCCURRENCE
OF EACH AND ALL OF THE FOLLOWING CONDITIONS: (i) Tenant shall pay all rent due and payable under this lease together with the payment of all other sums due and payable by Tenant to Landlord hereunder; (ii) Tenant shall vacate the Leased Premises in clean condition; (iii) Tenant shall return all keys to Landlord; (iv) Tenant shall remove all of Tenant's personal property; (v) Tenant shall surrender possession of the Leased Premises on or before the expiration date of this lease; (vi) Tenant shall furnish, in writing, a forwarding address to Landlord; (vii) TENANT SHALL GIVE LANDLORD AT LEAST THIRTY (30) DAYS ADVANCE WRITTEN NOTICE OF VACATING THE LEASED PREMISES. TENANT'S FAILURE TO COMPLY WITH EACH OF THE FOREGOING CONDITIONS SHALL
ENTITLE LANDLORD TO RETAIN THE SECURITY DEPOSIT HEREIN AS LIQUIDATED DAMAGES."
"(c) Deductions from the security deposit shall be made for any damage done to the Leased Premises including, but not limited to, insufficient light bulbs, scratches, burns, stains, holes in walls, as well as damages to personal property, if any. No deduction from the security deposit shall be made for ordinary wear and usage of the Leased Premises; however, Landlord may deduct the cost of any repainting or carpet cleaning if Landlord, in Landlord's sole discretion, deems same to be appropriate. After the above conditions have been complied with by Tenant, Landlord shall forward the balance of the security deposit remaining, after all of the aforesaid deductions, to Tenant's forwarding address, along with an itemized accounting of any charges or damages or other sums owed by Tenant, no later the thirty (30) days after the Tenant surrenders possession of the Leased Premises. Notwithstanding the foregoing, Landlord shall not be obligated to provide an itemized accounting if Tenant owes rent to Landlord when Tenant surrenders possession of the Leased Premises if there is no controversy concerning the amount of rent owed. TENANT SHALL NOT WITHHOLD PAYMENT OF THE LAST MONTH'S RENTAL, OR ANY PORTION THEREOF, ON GROUNDS THAT THE SECURITY DEPOSIT SERVES AS SECURITY FOR OR SHOULD BE APPLIED TO THE UNPAID RENTAL.
(d) No pets shall be brought in or around the Leased Premises without the prior written consent of the Landlord. If such consent is obtained by Tenant, Tenant shall deposit with Landlord the Pet Deposit set forth above as additional security deposit prior to allowing the pet in or around the Leased Premises. Such additional security deposit shall be held by Landlord subject to the provisions of this Section 5. The additional security deposit shall not be refundable, notwithstanding the removal of the pet during the term hereof, until the time for refunding the security deposit, upon satisfaction of the conditions described in this Section 5. In addition to the other deductions from the security deposit set forth above, Landlord may deduct from the security deposit all expenses incurred in having the Leased Premises professionally cleaned, free of flea infestation and deodorized as well as the expense of cleaning, deodorizing and exterminating any and all other portions of the Leased Premises which Landlord, in Landlord's sole discretion, deems necessary. Landlord expressly reserves the right to revoke and rescind any consent to Tenant to maintain a pet in or on the Leased Premises if Landlord receives complaints about the pet from neighbors, in the event such pet causes damage to the Leased Premises which Landlord deems excessive in Landlord's sole judgement and discretion, if Tenant fails to maintain such pet in good health in conformity with all health codes, or for any other cause or reason which Landlord, in Landlord's sole discretion, deems appropriate. Pet charges for violating the pet restrictions of this lease shall be $10.00 per day.
6. UTILITIES: Tenant shall pay for all services and utilities, including all related deposits and all charges for such utilities. Landlord shall have the option, but not the obligation, to deduct from the security deposit any unpaid utility bills incurred at the Leased Premises prior to the expiration or other termination of this lease."
"7. USE OF LEASED PREMISES:
(a) The Leased Premises shall be used only as a private residence and as a single family dwelling unit and for no other purpose.
2"
"(b) Neither the whole of the Leased Premises nor any portion thereof shall be assigned or sublet by Tenant to any other person without the prior written consent of Landlord. Notwithstanding any such assignment or subletting of the Leased Premises, Tenant shall remain fully and primarily liable hereunder for all rental and other sums payable to Landlord pursuant to this lease.
(c) Tenant accepts existing locks as safe and acceptable. In the event Tenant changes or adds locks or security devices, keys or access shall be furnished to Landlord. If Tenant requests that Landlord install, change or re-key a security device, Tenant shall provide written notice thereof to Landlord, and as a condition precedent to Landlord's compliance with such request, Landlord may require that all tenants of the Leased Premises approve the request. Tenant shall pay for the total cost of Landlord's compliance with Tenant's request to install, change or re-key a security device, except as provided to the contrary and subject to the limitations specified by Texas laws. Tenant shall not remove any security devices at the Leased Premises without the prior written consent of Landlord, and each of such security devices shall be deemed to be fixtures permanently attached to the Leased Premises.
(d) Tenant, and the family and guests of Tenant, shall fully comply with all federal, state, municipal, and other laws and ordinances, and shall not commit any illegal acts or other acts which are a nuisance or annoyance to the neighborhood. Tenant further covenants not to commit or permit any act affording any of the federal, state or local governments the right of forfeiture of the Leased Premises. Tenant expressly covenants and agrees that the Leased Premises shall at all times be used and occupied in a manner which will not disturb, interfere, with, or affect the comfort, and quiet enjoyment of any other occupants of the condominium or multi-tenant complex of which the Leased Premises is a part. Tenant expressly agrees to abide by any applicable homeowners' association rules and regulations and other restrictive covenants contained in the deed records which may be applicable to the Leased Premises. If the Leased Premises is part of a condominium regime or a multi-tenant complex, Tenant expressly agrees and covenants to observe and comply with all of the applicable bylaws and declarations of the condominium regime, including the rules and regulations adopted by the board of directors or the owners' association of the condominium regime. If the Leased Premises is part of a condominium regime, Tenant releases Landlord from any obligations of Landlord to repair or maintain the Leased Premises that are the obligation of the regime or condominium association.
8. FAILURE TO OCCUPY: If Tenant fails to take possession and continuously occupy the Leased Premises for the term of this lease, all security deposits hereunder may be automatically retained by Landlord as liquidated damages without prejudice to Landlord's rights to pursue any other claim or remedy permitted hereunder or by law. Tenant shall notify Landlord if the Leased Premises will be unoccupied for more than three (3) consecutive days at any time during the term of this lease.
9. MOVE OUT PROCEDURES: Tenant shall furnish Landlord with at least thirty (30) days prior written notice before Tenant vacates the Leased Premises. Tenant's move-out notice may not terminate this lease earlier than the end of the lease term or renewal period. Tenant's move-out notice must terminate this lease [check one]: ( ) on the last day of the month following the next rental due date; or ( ) on the exact date designated in the move-out notice but no sooner than thirty (30) days after the notice. [If neither box is checked, the second option shall control.] When Tenant moves out, Tenant shall surrender the Leased Premises in the same or better condition as when the term of this lease commenced, ordinary use and wear excepted. ORAL NOTICE OF TENANT'S INTENT TO VACATE THE LEASED PREMISES SHALL NOT BE CONSIDERED COMPLIANCE WITH
THE PROVISIONS OF THIS PARAGRAPH. The mandatory requirement of at least thirty (30) days prior written notice may not be waived by Landlord or Landlord's agents or representatives.
10. HOLDOVER: If Tenant fails to surrender possession to the Leased Premises on or before the expiration of the term hereof and Landlord has given written notice of termination to Tenant pursuant to Paragraph 1 above, then in such event, at Landlord's option, such holding over shall either (a) constitute a tenancy-at-will at a daily rental equal to twice the stated lease rate computed daily, payable upon demand, or (b) constitute a tenancy from month to month at a monthly rental equal to twice the stated lease rate, payable monthly in advance. In addition to the rental payable during such holdover term, Tenant shall indemnify Landlord for all damages and expenses incurred by Landlord, including loss of rentals, lodging incurred by Landlord for prospective tenants, storage expenses for personal property of prospective tenants, and reasonable attorneys' fees incurred by Landlord.
11. MAINTENANCE OF LEASED PREMISES:
(a) TENANT ACCEPTS THE LEASED PREMISES IN ITS PRESENT CONDITION, AND AGREES TO TAKE GOOD CARE OF THE LEASED PREMISES. TENANT AGREES TO MAKE NO ALTERATIONS, ADDITIONS, REPAIRS, OR IMPROVEMENTS WITHOUT THE PRIOR WRITTEN CONSENT OF LANDLORD. BASED UPON THE NEGOTIATED TERMS OF THIS LEASE, Tenant KNOWINGLY AND VOLUNTARILY AGREES THAT TENANT SHALL BE RESPONSIBLE FOR MAINTAINING, AT TENANT'S SOLE EXPENSE, ALL PORTIONS OF THE LEASED PREMISES AND IMPROVEMENTS, INCLUDING WINDOW AND DOORS, OTHER THAN THE ROOF, FOUNDATION, AND STRUCTURAL SOUNDNESS OF
THE EXTERIOR WALLS AND EXCEPT FOR THOSE CONDITIONS THAT MATERIALLY AFFECT THE PHYSICAL HEALTH OR SAFETY OF AN ORDINARY TENANT AND EXCEPT AS PROVIDED IN THIS"

3
"LEASE TO THE CONTRARY. TENANT SHALL BE RESPONSIBLE FOR, AT TENANT'S EXPENSE, DAMAGES FROM WASTE WATER AND PLUMBING STOPPAGES CAUSED BY FOREIGN OR IMPROPER OBJECTS IN LINES THAT EXCLUSIVELY SERVE THE LEASED PREMISES, DAMAGES TO DOORS, WINDOWS AND SCREENS, DAMAGES FROM WINDOWS OR DOORS LEFT OPEN, AND DAMAGES TO AND FROM BROKEN WATER PIPES DUE TO FREEZING IF A WATER CUT-OFF HAS BEEN PROVIDED. TENANT ALSO AGREES TO BE RESPONSIBLE FOR ORDINARY MAINTENANCE, SUCH AS FIXING LEAKING FAUCETS, TIMELY CHANGING OF AIR CONDITIONER FILTERS,  REPAIRING AIR CONDITIONERS AND HEATING AND VENTILATING SYSTEMS THAT ARE DAMAGED DUE TO LACK OF FILTERS OR CLOGGED FILTERS, WATERING, MOWING, AND MAINTAINING THE  LAWN, SHRUBS, AND OTHER LANDSCAPING, AND KEEPING SAME IN COMPARABLE CONDITION  AND APPEARANCE TO OTHER LAWNS IN THE NEIGHBORHOOD (UNLESS SUCH SERVICES ARE EXPRESSLY PROVIDED BY LANDLORD OR THE CONDOMINIUM ASSOCIATION)."
   "(b) TENANT SHALL NOTIFY LANDLORD PROMPTLY, IN WRITING, IF ANY PORTION OF THE LEASED PREMISES REQUIRES REPAIR AND TENANT SHALL REIMBURSE LANDLORD PROMPTLY FOR ANY DAMAGE TO THE LEASED PREMISES OR FURNISHINGS OF LANDLORD CAUSED BY THE NEGLIGENCE OR MISUSE OF TENANT, TENANT'S AGENTS, FAMILY, OR GUESTS, OR ANY OTHER
OCCURRENCE ATTRIBUTABLE TO TENANT, TENANT'S AGENT, FAMILY, OR GUESTS."
"(c) TENANT WILL NOT KEEP OR PERMIT ANY HAZARDOUS MATERIALS AT OR AROUND THE LEASED PREMISES INCLUDING, WITHOUT LIMITATION, INFLAMMABLE, EXPLOSIVE, OR VOLATILE MATERIALS OR EQUIPMENT WHICH WOULD CAUSE SUSPENSION OR CANCELLATION OF ANY OF ANY FIRE AND EXTENDED INSURANCE COVERAGE OR CAUSE AN INCREASE IN THE
PREMIUMS THEREFOR."
"(d) LANDLORD'S REPAIR OBLIGATIONS PROVIDED IN THIS LEASE ARE SUBJECT TO TENANT'S DELIVERY OF WRITTEN NOTICE TO LANDLORD SPECIFYING THE CONDITION REQUIRING REPAIR. LANDLORD SHALL HAVE A REASONABLE AMOUNT OF TIME TO COMMENCE AND COMPLETE LANDLORD'S REPAIR OF THE LEASED PREMISES, WHICH TIME SHALL BEGIN UPON LANDLORD'S RECEIPT OF TENANT'S WRITTEN NOTICE REQUESTING SUCH REPAIRS. LANDLORD SHALL HAVE NO REPAIR OBLIGATIONS WHATSOEVER IF TENANT IS DELINQUENT IN THE PAYMENT OF RENT AT THE TIME THAT NOTICE IS GIVEN. FURTHERMORE, UNLESS THE CONDITION WAS CAUSED BY NORMAL WEAR AND TEAR, LANDLORD DOES NOT HAVE A DUTY DURING THE LEASE TERM OR RENEWAL OR EXTENSION TERMS TO REPAIR OR REMEDY A CONDITION CAUSED BY TENANT, A LAWFUL OCCUPANT IN THE LEASED PREMISES, A MEMBER OF TENANT'S FAMILY OR A GUEST OF TENANT."
   "(e) LANDLORD HAS NO OBLIGATION WHATSOEVER TO FURNISH SECURITY GUARDS, AND LANDLORD HAS NO DUTY TO PROVIDE UTILITIES FROM A UTILITY COMPANY IF AS A PRACTICAL MATTER THE UTILITY LINES OF THE COMPANY ARE NOT REASONABLY AVAILABLE. LANDLORD SHALL HAVE NO DUTY TO FURNISH SMOKE DETECTORS EXCEPT AS REQUIRED BY STATUTE. WHEN SMOKE DETECTORS ARE FURNISHED, LANDLORD SHALL TEST SAME AND PROVIDE INITIAL BATTERIES AT THE COMMENCEMENT OF THE TERM HEREOF; THEREAFTER, TENANT SHALL INSPECT AND REPAIR ALL SMOKE DETECTORS AND TENANT SHALL PAY FOR AND REPLACE SMOKE DETECTOR BATTERIES, IF ANY, AS NEEDED. IF TENANT REQUESTS THAT LANDLORD INSTALL SMOKE DETECTORS AT THE LEASED PREMISES, SUCH REQUEST SHALL BE
IN WRITING."
"12. EQUIPMENT: ANY ELECTRICAL OR MECHANICAL EQUIPMENT WHICH IS PART OF THE LEASED PREMISES WILL BE DELIVERED BY THE LANDLORD IN GOOD OPERATING ORDER. IT IS EXPRESSLY UNDERSTOOD THAT TENANT WILL PROPERLY OPERATE, SERVICE AND MAINTAIN ALL SUCH EQUIPMENT AND SURRENDER SAME IN GOOD OPERATING ORDER AT THE TERMINATION OF THIS LEASE. ANY SERVICE, MAINTENANCE, OR REPAIR WILL BE AT THE TENANT'S EXPENSE, EXCEPT FOR THOSE REPAIRS THAT ARE CAUSED BY NORMAL USAGE, WHICH SHALL BE COMPLETED AT
LANDLORD'S EXPENSE SUBJECT TO THE PROVISIONS OF SECTIONS 7 AND 11."
"13. ACCESS TO LEASED PREMISES: Landlord shall have the right to enter the Leased Premises at all reasonable hours to inspect same or to make repairs or to show the Leased Premises to prospective tenants or purchasers.
14. LIABILITY: The Landlord shall not be liable to Tenant or Tenant's invitees, guests, family, employees, agents, servants, or other occupants of the Leased Premises for any injuries or damage to property caused by defects, disrepair, or faulty"
4
"construction of the Leased Premises. Tenant shall indemnify and hold the Landlord harmless from and against any and all claims for damages to the Leased Premises or other property or personal injury arising from Tenant's use or occupancy of the Leased Premises or from any activity, work, or thing done, permitted or suffered by Tenant in or about the Leased Premises. The Landlord shall not be liable for personal injuries, property damage, or loss from theft, vandalism, fire, water, hurricane, rain, explosion, or other causes whatsoever unless the same is caused solely by the gross negligence or willful act or omission of Landlord.
15. TENANT'S INSURANCE: Tenant acknowledges notification that Landlord's insurance does not insure Tenant against loss of personal property on the Leased Premises due to fire, theft, vandalism, or other casualties or causes. Tenant is responsible for obtaining insurance in such amounts as Tenant may desire on Tenant's own property covering fire and casualty loss and for Tenant's family for liability insurance coverage.
16. CONTRACTUAL LIEN: TENANT DOES, BY THE EXECUTION OF THIS LEASE, GRANT TO LANDLORD AN EXPRESS CONTRACTUAL LIEN AND SECURITY INTEREST UPON ALL FIXTURES, GOODS, AND PROPERTY OF THE TENANT NOW OR HEREAFTER PLACED IN OR UPON THE LEASED PREMISES, OTHER THAN PROPERTY OF TENANT EXEMPT BY LAW, IN ORDER TO SECURE THE PROMPT PAYMENT OF RENT HEREIN PROVIDED AND THE FULL COMPLIANCE BY TENANT OF ALL AGREEMENTS AND COVENANTS HEREUNDER. THIS CONTRACTUAL LIEN SHALL BE IN ADDITION TO SUCH STATUTORY LIENS AS LANDLORD MAY BE ENTITLED TO UNDER AND BY VIRTUE OF THE LAWS OF THE STATE OF TEXAS AS PRESENTLY EXISTING OR AS MAY BE AMENDED. IN ORDER TO EXERCISE CONTRACTUAL OR STATUTORY LIEN RIGHTS WHEN TENANT IS IN DEFAULT HEREUNDER, LANDLORD MAY PEACEABLY ENTER THE LEASED PREMISES AND REMOVE AND STORE ALL NON-EXEMPT PROPERTY THEREIN; PROVIDED, HOWEVER, WRITTEN NOTICE OF ENTRY AND AN ITEMIZED LIST OF REMOVED ITEMS WILL BE LEFT IN A CONSPICUOUS PLACE AT THE LEASED PREMISES. LANDLORD MAY COLLECT CHARGES FOR PACKING, REMOVING AND STORING PROPERTY SEIZED UNDER THIS SECTION. SEIZED PROPERTY MAY BE SOLD OR DISPOSITION MADE AFTER 30 DAYS WRITTEN NOTICE THEREOF TO TENANT. PROCEEDS FROM THE SALE OR DISPOSITION SHALL BE APPLIED FIRST TO DELINQUENT RENTS AND THEREAFTER, TO REASONABLE PACKING, MOVING, STORAGE AND SALE COSTS. TENANT MAY REDEEM THE PROPERTY AT ANY TIME BEFORE THE PROPERTY IS SOLD BY PAYING LANDLORD ALL DELINQUENT RENT AND ALL OTHER FEES, ALL REASONABLE PACKING,
MOVING, STORAGE AND SALE COSTS."
"17. DEFAULT: In the event the Tenant shall fail to pay the rent or other obligation contained herein when same is due, or fail to perform any of the provisions, terms, or covenants of this lease, or in the event the Tenant shall abandon the Leased Premises, or leave the Leased Premises vacant, Landlord, without further notice, unless specific provision is made therefor by statute, may re-enter the Leased Premises by summary proceedings or by force without being liable for prosecution therefor; or Landlord may take possession of said Leased Premises, and remove all persons or property therefrom, and may elect either to terminate this lease, or to relet the Leased Premises and receive the rent therefor. Such rent shall be applied first to the expenses incurred by Landlord in entering, restoring and reletting and then to the payment due under this lease. Tenant shall remain liable for any deficiency in the total amount due under this lease. Tenant's absence from the Leased Premises for three (3) consecutive days while all or any portion of rent is delinquent shall be deemed an abandonment of the Leased Premises. If Tenant otherwise breaches the term of this lease, Landlord may terminate Tenant's right of occupancy by giving one (1) day notice in writing without terminating Tenant's joint and several liability for payment of rent and the other joint and several obligations of Tenant hereunder. Upon one (1) day written notice to Tenant to vacate the Leased Premises, Landlord shall expressly have the right to institute and maintain a statutory eviction suit of forcible entry and detainer in the proper court and obtain a writ for possession thereby. In addition to all other remedies provided herein, Tenant agrees (jointly and severally) to reimburse Landlord for all reasonable expenses incurred by Landlord to enforce this lease and to collect the rental due hereunder and to recover damages for Tenant's breach hereof including, but not limited to, all court costs and reasonable attorney's fees incurred in connection therewith.
18. CUMULATIVE REMEDIES: The rights and remedies provided by this lease are cumulative, and the exercise of any one or more rights or remedies contained herein by either party shall not preclude or waive such party's right to use any and all other legal rights and remedies provided by law or in equity. The rights and remedies set forth herein are in addition to any other rights and remedies the parties hereto may have by law, statute, ordinance, or otherwise.
19. ABANDONED ARTICLES: All personal property left in or upon the Leased Premises by the Tenant upon termination of the lease for any reason shall be conclusively deemed to be abandoned by Tenant. Tenant hereby authorizes Landlord to dispose of such personal property as Landlord, in Landlord's sole discretion, deems necessary and in a manner as Landlord deems fit and proper, and without recourse by the Tenant. The Landlord is further given the right to use the Tenant's security deposit to cover the Landlord's expenses in disposing of the Tenant's abandoned personal property.
20. NOTICES: Any notice required or permitted hereunder SHALL BE IN WRITING and may be delivered in person or, if addressed to Tenant, such notice may be deposited inside the Leased Premises in a conspicuous place. If notice is not"
5
"delivered in accordance with either of the foregoing, then notice shall be delivered and deemed received, whether actually received or not, when deposited in the United States Mail, postage prepaid, addressed to the parties as follows: (a) if to Landlord, at the address where the rent is paid; (b) if to Tenant, at the address of the Leased Premises; or at such other address as either Landlord or Tenant may have theretofore specified by written notice delivered in accordance herewith.
21. FAIR HOUSING: TENANT ACKNOWLEDGES THAT THE LANDLORD HAS OFFERED THE LEASED PREMISES TO ALL PROSPECTIVE TENANTS ON A NON-DISCRIMINATORY BASIS, WITHOUT REGARD TO RACE, COLOR, RELIGION, SEX, FAMILIAL STATUS, HANDICAP, OR NATIONAL ORIGIN IN ACCORDANCE WITH APPLICABLE LAW.
22. ATTORNEYS' FEES: In the event it is necessary for Landlord to retain an attorney to enforce any of the terms, provisions, or covenants contained herein, in addition to all of the other sums payable by Tenant hereunder, Tenant agrees to pay Landlord's reasonable attorney's fees and other costs of collection.
23. TIME OF THE ESSENCE: Time is of the essence in the performance of each and every term, provision, and covenant contained herein.
24. LANDLORD'S REPRESENTATIVE: Tenant acknowledges that all references in this lease to Landlord shall include and refer to any representative of Landlord designated by Landlord, in writing.
25. DISCLOSURE OF OWNERSHIP AND MANAGEMENT: If Tenant requests that Landlord disclose to Tenant the name and/or address of the record owner of the Leased Premises or the name and/or address of the management company, such request shall be in writing.
26. MISCELLANEOUS: THIS LEASE CONSTITUTES THE ENTIRE AGREEMENT AND UNDERSTANDING BETWEEN THE PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER  CONTAINED HEREIN. THERE ARE NO ORAL AGREEMENTS OR REPRESENTATIONS. ALL PRIOR  DISCUSSIONS AND
NEGOTIATIONS ARE MERGED INTO AND SUPERSEDED BY THIS LEASE. This lease may not be amended, modified, terminated, or canceled except by written agreement executed by Landlord and Tenant. Any term, provision, or covenant contained herein which is declared to be invalid or void by a court of competent jurisdiction shall be deemed to be severed from this lease; and the remainder of this lease shall remain in full force and effect without terminating or otherwise invalidating the remainder of this lease.
27. BINDING EFFECT: This lease agreement is binding upon the parties hereto, their respective heirs, legal representatives, successors, and permitted assigns.
28. ATTACHMENTS: Attached to this lease are the following addenda which are a part of this lease and control all conflicts between this lease and the addenda:"

"Addendum A
THIS LEASE IS A VALID, BINDING LEGAL DOCUMENT. IF YOU DO NOT UNDERSTAND THE EFFECT OF THIS LEASE OR ANY PROVISION HEREOF, SEEK COMPETENT LEGAL ADVISE FROM AN ATTORNEY OF YOUR CHOICE.
Tenant acknowledges receipt of a copy of this lease. TENANT              LANDLORD"
   "By:
Its: Manager"
6
"ADDENDUM A
Tenant hereby acknowledges and approves a as needed/quarterly walk through by Landlord Tenant acknowledges the property is non smoking residence
Any home improvements exceeding $1000 in cost shall be approved by landlord in writing prior to the start of any repairs, if any.
Acknowledged"
"TENANT               LANDLORD
              , LLC"
   "By:
Its: Manager"
7
"Exercise of Option"
"Date:
To:
This is to inform you that pursuant to the option agreement executed by us on the day of     , 20     , I hereby signify my intention to proceed with the
purchase of the property therein described.
I am ready, willing, and able to perform all of the terms and conditions of the agreement.
The total purchase price is  $
which includes    1) Option deposit in the amount of $
2) Total monthly credits in the amount of $ Upon payment of the balance owing of $
To     on    , 20
will provide to me a duly executed transfer of Title."
"Optionee                    Date"
"Optionee                    Date"
"Financial Acknowledgement Form Address of New Property"
"Date:
Tenant Name:
Tenant Present Address:
City/Town, etc:
I, Tenant Names, have reviewed my personal finances and believe the Rent to Own numbers provided below by Company Name to be within my budget and financial means.
Option consideration:
Monthly Payment:
Monthly Credit:
Purchase Price Year 1:
Purchase Price Year 2:
Purchase Price Year 3:
I am ready to proceed with an offer on Address of New Property and I understand that Your
Company Name must receive my Option Consideration of $    at least 24 hours prior to waiving the final conditions to purchase the house."
"Client Signature                       Date"
"Client Signature                       Date"
"Witness Signature                      Date"
"* Credit will be given towards the down payment at time of purchase if option to purchase is exercised. Credit will only be applied if monthly payments have been made on time and in full.
This document is for information purposes only and does not constitute a binding agreement. All numbers above are approximate and are subject to change without notice. Full terms and conditions will be provided in the Purchase Option Contract."
"* Credit will be given towards the down payment at time of purchase if option to purchase is exercised. Credit will only be applied if monthly payments have been made on time and in full.
This document is for information purposes only and does not constitute a binding agreement. All numbers above are approximate and are subject to change without notice. Full terms and conditions will be provided in the Purchase Option Contract."

"Kitchener, ON"
36
"Location
Lease Term (Months)
Upfront Option Consideration
Option Consideration (Tenant)                    ="
15000.00
"Monthly Rent"        
"Monthly Income (Tenant)"    2250.00    
"Our Expenses (PITI)
Purchase/Sale"    1901.75    "="
"Sale Price"    405000.00    
"Percent Increase per Year
PITI"    0.049900    
"Taxes (Yearly)"    4000.00    
"Principle & Interest (Monthly)
1st Mortgage"    1401.75    
"LTV"    0.800000    
"Value"    280000.00    
"Value based on Appraisal"    280000.00    
"Value w/ CMHC Fee"    280000.00    
"Interest"        
"Amortization (Years)"        
"Remaining Balance
Tenant Credits"    257825.65    
"Monthly Option Credit"    250.00    
"Total Credits Returned
Closing Costs on Purchase
Total Expenses"    "$       24,000.00
$        5,825.00"    
"Finders Fee"    "$           -"    
"Lender's Fee"    "$           -"    
"Fix Up Costs"    "$           -"    
"Closing Costs at Sale
Legal at Sale
RESULTS - STRAIGHT DEAL"
1000.00
"Net to You"    73886.49    
"Cash Required"    60825.00    
"Cash flow (Monthly)"    348.25    
"Second Mortgage Details"
"LTV"    0.100000
"Value"    35000.00
"Interest"    
"Amortization (Years)"    
"Monthly"    "$           -"
"Cost of Second Mortgage"    2000.00
"RESULTS - WITH SECOND MORTGAGE"
   "Net to You"    61386.49        
   "Cash Required"    27825.00        
   "Cash flow (Monthly)"    348.25        
"Investor Details
Investor Cash Flow Req. JV Setup Costs"                
       "$           -"        
       1000.00        
"RESULTS - WITH INVESTOR BUT NO SECOND MORTGAGE"
   "Net for Project"    72886.49        
               
   "Net to Investor"    36443.25        
   "Cash Required from Investor"    61825.00        
   "Cash flow for Investor"    "$           -"        
               
   "Net to Us"    36443.25        
   "Cash flow (Monthly)"    348.25        
"RESULTS - WITH INVESTOR AND A SECOND MORTGAGE"
   "Net for Project"    60386.49        
               
   "Net to Investor"    30193.25        
   "Cash Required from Investor"    28825.00        
   "Cash flow for Investor"    "$           -"        
               
   "Net to Us"    30193.25        
   "Cash flow (Monthly)"    348.25        
"Percent of Purchase Price"    0.037000
"Net Monthly Income"    348.25
"Total Net Income"    12537.14
"Purchase Price"    350000.00
"Equity at Sale"    147174.35
"Insurance (Yearly)"    
"Misc (Yearly - Acct, Legal, etc)"    
   
"Type"    
"Payment"    
"Appraised Value (if less)"    350000.00
"CMHC Premium"    "$           -"
"Effective Monthly Interest"    0.002917
"Periods"    300
"DownPayment"    70000.00
"Percent of Sale Price"    0.059300
"Land Transfer"    3725.00
"Legal"    1700.00
"Appraisal"    400.00
"Other"    "$           -"
   
"Cost to break mortgage"    "$           -"
   
"ROI"    0.404900
   
"Cash at End"    61349.35
   
"Type"    
"Payment"    
"Effective Monthly Interest"    0.008165
"Periods"    300
"Remaining Balance"    45500.00
"ROI"    0.735400    
       
"Cash at End"    48849.35    
           
       0.500000    
"Investor Deal Percentage"            
"Our Deal Percentage                    50.00%"
       
       
"ROI for Investor"    0.196500    
       
"Cash at End"    36443.25    
       
       
"Cash at End"    23906.10    
           
       
       
"ROI for Investor"    0.349200    
       
"Cash at End"    30193.25    
       
       
"Cash at End"    17656.10    
"Rent to Own Particulars"
"Location"        "Kitchener, ON"
"Term (Months)"        36
"Purchase Price"        350000.00
"1st Mortgage (Including premiums, etc.)"    0.800000    280000.00
"Assumed Interest Rate of :     3.50%"    "Ammortized over"    "25 yrs"
       
"Required Investment"
"Mortgage Down Payment"    70000.00
"Land Transfer Tax"    3725.00
"Estimated Legal Fees & Dispursements"    1700.00
"Appraisal"    400.00
"Finders Fee"    0.00
"Lenders Fee, Fix-up Costs, and Other"    0.00
"Less Upfront Option from Tenant"    -15000.00
"Total Investment"    60825.00
       
"Profit from Sale"
"Sale Price to Tenant Buyer"    405000.00
"Less"    
"Remaning Mortgage"    -257825.65
"Estimated Mortgage Discharge Cost"    0.00
"Estimated Legal Fees & Dispursements"    -1000.00
"Return Upfront Option to Tenant"    -15000.00
"Return Monthly Option to Tenant"    -9000.00
"Less Initial Investment"    -60825.00
"Total Profit from Sale"    61349.35
       
"Profit from Cashflow"
   "Monthly"    "Total"
"Income"    2250.00    81000.00
"Less"        
"Debt Service"    -1401.75    -50462.86
"Property Tax"    -333.33    -12000.00
"Insurance"    -83.33    -3000.00
"Miscellaneous (Condo, Acct., Legal, etc."    -83.33    -3000.00
"Total Profit from Cashflow"    348.25    12537.14
       
"Total Profit                                    $73,886.49
Return on Investment (Per Year)                            40.5%"
"Rent to Own Particulars"
"Location"        "Kitchener, ON"
"Term (Months)"        36
"Purchase Price"        350000.00
"1st Mortgage (Including premiums, etc.)"    0.800000    280000.00
"Assumed Interest Rate of :     3.50%"    "Ammortized over"    "25 yrs"
"2nd Mortgage
Assumed Interest Rate of :     10.00%"    0.100000    35000.00
       
"Required Investment"
"Mortgage Down Payment"    35000.00
"Land Transfer Tax"    3725.00
"Estimated Legal Fees & Dispursements"    1700.00
"Estimated Cost to Setup 2nd Mortgage"    2000.00
"Appraisal"    400.00
"Finders Fee"    0.00
"Lenders Fee, Fix-up Costs, and Other"    0.00
"Less Upfront Option from Tenant"    -15000.00
"Total Investment"    27825.00
       
"Profit from Sale"
"Sale Price to Tenant Buyer"    405000.00
"Less"    
"Remaning 1st Mortgage"    -257825.65
"Remaining 2nd Mortgage"    -45500.00
"Estimated Mortgage Discharge Cost"    0.00
"Estimated Legal Fees & Dispursements"    -1000.00
"Return Upfront Option to Tenant"    -15000.00
"Return Monthly Option to Tenant"    -9000.00
"Less Initial Investment"    -27825.00
"Total Profit from Sale"    48849.35
       
"Profit from Cashflow"
   "Monthly"    "Total"
"Income"    2250.00    81000.00
"Less"        
"Debt Service 1st Mortgage"    -1401.75    -50462.86
"Debt Service 2nd Mortgage"    0.00    0.00
"Property Tax"    -333.33    -12000.00
"Insurance"    -83.33    -3000.00
"Miscellaneous (Condo, Acct., Legal, etc."    -83.33    -3000.00
"Total Profit from Cashflow"    348.25    12537.14
       
"Total Profit                                    $61,386.49
Return on Investment (Per Year)                            73.5%"
"Rent to Own Particulars"
"Location"        "Kitchener, ON"
"Term (Months)"        36
"Purchase Price"        350000.00
"1st Mortgage (Including premiums, etc.)"    0.800000    280000.00
"Assumed Interest Rate of :     3.50%"    "Ammortized over"    "25 yrs"
       
"Required Investment"
"Mortgage Down Payment"    70000.00
"Land Transfer Tax"    3725.00
"Estimated Legal Fees & Dispursements"    1700.00
"Estimated Joint Venture Setup Cost"    1000.00
"Appraisal"    400.00
"Finders Fee"    0.00
"Lenders Fee, Fix-up Costs, and Other"    0.00
"Less Upfront Option from Tenant"    -15000.00
"Total Investment"    61825.00
       
"Profit from Sale"
"Sale Price to Tenant Buyer"    405000.00
"Less"    
"Remaning Mortgage"    -257825.65
"Estimated Mortgage Discharge Cost"    0.00
"Estimated Legal Fees & Dispursements"    -1000.00
"Return Upfront Option to Tenant"    -15000.00
"Return Monthly Option to Tenant"    -9000.00
"Less Initial Investment"    -61825.00
"Total Profit from Sale"    60349.35
       
"Profit from Cashflow"
   "Monthly"    "Total"
"Income"    2250.00    81000.00
"Less"        
"Debt Service"    -1401.75    -50462.86
"Property Tax"    -333.33    -12000.00
"Insurance"    -83.33    -3000.00
"Miscellaneous (Condo, Acct., Legal, etc."    -83.33    -3000.00
"Total Profit from Cashflow"    348.25    12537.14
       
"Total Profit                                    $72,886.49
Investor's Profit                   Percentage 50%    $36,443.25 Investor's Monthly Cashflow $0.00
Return on Investment (Per Year)                            19.6%"
"Rent to Own Particulars"
"Location"        "Kitchener, ON"
"Term (Months)"        36
"Purchase Price"        350000.00
"1st Mortgage (Including premiums, etc.)"    0.800000    280000.00
"Assumed Interest Rate of :     3.50%"    "Ammortized over"    "25 yrs"
"2nd Mortgage
Assumed Interest Rate of :     10.00%"    0.100000    35000.00
       
"Required Investment"
"Mortgage Down Payment"    35000.00
"Land Transfer Tax"    3725.00
"Estimated Legal Fees & Dispursements"    1700.00
"Estimated Cost to Setup 2nd Mortgage"    2000.00
"Estimated Joint Venture Setup Cost"    1000.00
"Appraisal"    400.00
"Finders Fee"    0.00
"Lenders Fee, Fix-up Costs, and Other"    0.00
"Less Upfront Option from Tenant"    -15000.00
"Total Investment"    28825.00
       
"Profit from Sale"
"Sale Price to Tenant Buyer"    405000.00
"Less"    
"Remaning 1st Mortgage"    -257825.65
"Remaining 2nd Mortgage"    -45500.00
"Estimated Mortgage Discharge Cost"    0.00
"Estimated Legal Fees & Dispursements"    -1000.00
"Return Upfront Option to Tenant"    -15000.00
"Return Monthly Option to Tenant"    -9000.00
"Less Initial Investment"    -28825.00
"Total Profit from Sale"    47849.35
       
"Profit from Cashflow"
   "Monthly"    "Total"
"Income"    2250.00    81000.00
"Less"        
"Debt Service 1st Mortgage"    -1401.75    -50462.86
"Debt Service 2nd Mortgage"    0.00    0.00
"Property Tax"    -333.33    -12000.00
"Insurance"    -83.33    -3000.00
"Miscellaneous (Condo, Acct., Legal, etc."    -83.33    -3000.00
"Total Profit from Cashflow"    348.25    12537.14
       
"Total Profit                                    $60,386.49
Investor's Profit                     Percentage 50%    $30,193.25"

"Investor's Monthly Cashflow                              $0.00
Return on Investment (Per Year)                            34.9%"
"$230,000
Valrico, FL
$2300/mth
Initial Investment
$54,900
Future Sale Price $268,000 Rents Profit     $23,325
EST. Profits: $57,500"        "$140,000
Augusta, GA
$1500/mth
Initial Investment
$34,900
Future Sale Price $158,100 Rents Profit     $14,788
EST. Profits: $21,100"        "$227,000
Lakeland, FL
$1950/mth
Initial Investment
$58,360
Future Sale Price $263,000 Rents Profit     $20,500
EST. Profits: $48,400"        "$280,000
Evans, GA
$2200/mth
Initial Investment
$68,900
Future Sale Price $324,100 Rents Profit     $10,300
EST. Profits: $42,000"    
"*Total Est. ROI 104%"        "*Total Est. ROI 60%"        "*Total Est. ROI 82%"            
                       "*Total Est. ROI 60%"    
                           
"*Total Estimated ROI is based on 3 year term"
"Making home ownership accessible for Hometown Heroes
Investor presentation
Brian Elliot & Gabe Kveton Managing Partners, Home Accelerators LLC"

"Home Accelerators: Executive Summary
•  Home Accelerators is an impact investment program that creates rent-to-own home ownership opportunities for teachers and first responders (aka Hometown Heroes)
•  This program will help Hometown Heroes in fast growing housing markets such as FL, TX, NV, GA, NC, and SC, via a partnership with the Heroes Housing Foundation
•  Impact investors have an opportunity to participate in the upside of the real estate market and make a difference for Hometown Heroes and their families
•  Investments in Home Accelerators provide passive income to investors and have
estimated annual returns of 13.1% over 2-5 years, with no landlord responsibilities"

"Why we love this impact investment project
Home Accelerators allows “Hometown Heroes” to help communities flourish. These are teachers, firefighters, military/veterans, police, nurses, and first responders.
Many of these Heroes have solid jobs and would love to buy home, but cannot qualify for a mortgage because of unfortunate, often temporary, life circumstances"
"Home Accelerators helps…"    
                               
"Nurses"        "EMTs"                        
                               
"Teachers"        "Police"                        
               "Stable homes"        "Thriving communities"        
                               
"Firefighters"        "Military"                        
"Hometown Heroes face everyday challenges
A firefighter with debt from family medical bills after a complicated childbirth can’t qualify for
a mortgage…"
"A military veteran now serving as a police officer had his credit score plummet during a difficult divorce and needs time to repair it…
A nurse who was furloughed during the pandemic is now a traveling nurse and makes a great living, but needs 2 years of tax returns of being self employed
before she can buy a house…"
"Sample rent-to-own Home Accelerators real estate"
   "Home Accelerators criteria"    
"Target markets and criteria"
"High growth markets"        "Hometown Hero criteria"    
"•  Annual avg. home appreciation >3%
•  Annual Population growth >3%
•  Established communities
•  Near attractive amenities"                "•  Stable employment as a ”hometown hero” (teacher, nurse, first responder, etc.)
•  Able to qualify for a mortgage in 1-3 years
and buy a Home
•  Can pay 3-5% of home value immediately towards down payment
•  Can afford rent and ongoing maintenance"
               
"How Home Accelerators works"
"A Hometown Hero applies and is selected to choose their dream home. They can afford it but cannot currently qualify for a mortgage
2
Home Accelerators partners with an Investor to purchase that home
for the Hero"    "3
The Hero rents the home for 1-3 years with the option to buy it. The Hero pays for all maintenance & repairs. Investor has no landlord responsibilities."    "The Hero works with our mortgage partners to qualify as a buyer. After renting for 1-3 years, the Hero buys the house from Home Accelerators and the Investor."
       
"Sample investment and returns timeline"
"Illustration of projected returns: Investment to buy a $300,000 home to rent to a Hometown Hero, who plans to purchase
it in 3 years
Anticipated investor returns:"    "13.1%
estimated annual return on investment for investor
($22,687 total
estimated profit)"
               "$15,671
Quarterly cashflow payouts (from Hero’s rent)
Hero pays rent checks to Investor/Home Accelerators"    "$7,017
Proceeds at sale of house to Hero
Hero buys home from Investor/Home Accelerators"
       "$12,500
immediately
returned to Investor at closing (from Hero)"        
"$70,089
Investment acquires the house"                
                   
                   
"Home placed in LLC as joint venture with Home Accelerators"            
"Note: Based on sample property with similar criteria to target investment."

"Investment analysis"
   "BANK RISK METRICS"        "RETURNS"    
   "Metric"    "Bank Guideline"    "Fail"    "Meet/ Exceed"            
                       "Initial Investment
$60K - $150K
Total Estimated Annual Return (3 years)
13.1%"    
   "Debt Coverage Ratio (DCR)"    ">=1.2"        1.6            
   "Break-Even Ratio (BER)"    "<=85%"        0.670000            
   "Loan-to-Value (LTV)"    "<=80%"        0.800000            
   "Reserves in months"    ">= 3"        3            
   "We meet or exceed all bank guidelines"            
                           
"Note: Based on sample property ($300,000) with similar criteria to target investment."

"Risk management plan"
           "EXPERIENCED POWER TEAM & ADVISORS"        
"INVESTMENT BACKED BY HARD ASSET"    "RISK MANAGEMENT PLAN*"    "MULTIPLE EXIT STRATEGIES FOR VARIOUS MARKET CYCLES"
   "TRANSPARENCY PLAN"    "MEET/ EXCEED BANK RISK
METRICS"
"*RISK MANAGEMENT PLAN AVAILABLE UPON REQUEST"


"Home Accelerator investments"
   "Investment lifecycle"        "Investor qualifications"    
"•  Desire to help a Hometown Hero
•  2-5 year investment horizon
•  Credit of 700 or higher
•  Can qualify and hold a mortgage
•  $60K - $150K cash available
•  Can close in 15-90 days"
"Change lives and apply to become a
Home Accelerator Investor today"    
"To apply, contact Home Accelerator Founders and Managing Partners:
Brian Elliot (brian@brianelliot.me) or Gabe Kveton (gkveton80@gmail.com)"
"Niagara Falls Investment Opportunity (Example)
Property Description: This is a beautiful 4 level side split home for sale in the Morrison District, Niagara Falls. The home offers 3 huge bedrooms a 4 piece bathroom and a 3 piece bathroom. The open concept dining room and kitchen have a patio door that walks out to a beautiful deck complete with a hot tub. Hardwood floors, gas stove hook up, and alarm system is some of the features included with many more updates.
Beautiful large backyard! Close to all levels of school minutes from all amenities.
Tenant Buyers: Kinney is the tenant buyer lined up for this property. She has already been pre-qualified by our mortgage broker. They are interested in doing a two year lease option as she has some small credit issues she needs to resolve in that time. She is currently employed with the Niagara Health System. Kinney filed $84,000.00 for income for her taxes which does not include her husband’s wages. Kinney is very eager to own a home and will be putting $10,000, which is just over 3.5% down as non-refundable option consideration.
Investment:       $56,761"


"Comparable Properties"
   "Address"    "Bedrms"    "Bathrooms"    " List Price"    " Sale Price"    
   "6343 Balmoral Av."    4    3    269900.00    254500.00    
   "5258 Marcel Cr."    3    3    259000.00    252000.00    
   "6601 Harper Dr."    3    3    259900.00    251000.00    
   "4900 Portage Dr."    3    2    269900.00    260000.00    
"Average                           $264,675.00     $254,375.00"
"Estimated Value                       $250,000 - $260,000"
"How It Works"
"YOU"
"YOU"
"Investor and"    "become Joint Venture (JV) partners."        "find tenant buyer, prequalifies the"    
"tenants, finds them a property, negotiates the purchase, moves the tenants in, and manages the property for the remainder of the term. Investor puts in the capital. Both parties split the profit.
Note that these numbers are estimated and may change before the project is finalized."
"The "
"Basics
Term"    "24 Months"
"Upfront Option Consideration"    10000.00
"Monthly Rent"    1800.00
"Monthly Option Credits"    150.00
"Purchase Price"    247000.00
"Sale Price"    272000.00
"Details"    
"Purchase Price"    247000.00
"1st Mortgage @80% Loan to Value (LTV)"    185250.00
"Investment
Downpayment"    61750.00
"Purchase Credit"    "$-"
"Land Transfer Tax"    2195.00
"Legal Fees"    2416.00
"Other Upfront Costs"    400.00
"Upfront Option Consideration from Tenant"    -10000.00
"Total"    56761.00
"The "
"Profit Calculation
Sale Price"    272000.00
"Mortgage Owing at End of Term"    -175641.40
"Legal Fees"    -1500.00
"Mortgage Early Termination Fee"    -2782.22
"Upfront Option Consideration Returned to Tenant"    -10000.00
"Initial Investment"    -56761.00
"Rents"    43200.00
"Principle, Interest, Taxes, Insurance (PITI)"    -30257.72
"Monthly Option Consideration Returned to Tenant"    -3600.00
"Total Profit"    34657.66
"Profit for Investor"    17328.83
"Return on Investment (ROI per year)"    0.152600
"EXAMPLE
YOUR COMPANY LOGO HERE!!!
Investment Opportunity
Property Description: This is a beautiful 4 bedroom 3 bath home in Anytown USA. The home offers 4 bedrooms all with walk in closets and 3 full bathrooms. The master bath has an over-sized Jacuzzi tub. Built in 2000 with only one owner. A nice sized two-car garage with a shed in the backyard. The features a walkout basement with a large backyard and no neighbors behind and a well-kept yard in a family friendly suburb located in an award winning school district.
Tenant Buyers: Tina and David are the tenant buyers lined up for this property. They have been pre- qualified by our mortgage broker. They are interested in doing a one-year lease option as they have some small credit issues they need to resolve in that time. They are both currently employed (David 5 years and Tina 3+ years) with Government Employees Health Association. Their combined income is $64,000. They are very eager to own a home and will be putting $3,000 down and paying $1,350 per month.
Investment: $35,000"


"Comparable Properties"
   "Address"    "Bedrms"    "Bathrooms"    " List Price"    " Sale Price"    
   "1128 SE Skyview Dr."    4    3    215000    209000    
   "634 NW Rosacae Dr."    4    3    185000    177100    
   "3004 S. Hill Ave."    4    3    199500    194000    
   "3006 SW 10th St."    4    3    210000    204000    
"Average                            $202,375      $196,025"
"Estimated Value                       $$185,000-210,000"
"How It Works
Investor and JRK Investments become Joint Venture (JV) partners. JRK Investments finds tenant buyer, prequalifies the tenants, finds them a property, negotiates the purchase, moves the tenants in, and manages the property for the remainder of the term. Investor puts in the capital and gets a mortgage so they have title of the property. Investor is paid 20% on their investment.
The benefit for the investor is a return on their investment without the property management headaches and we use nice houses in nice neighborhoods. This is a good return without the traditional issues normally associated with rental property. Pull your money out in one year and do it again.
If the tenant buyer doesn’t follow through we can sell the house as we have purchased at a discount and are much lower than comparable properties in the area. Our belief is to buy at a discount and sell at a discount so everyone wins.
Note that these numbers are estimated and may change before the project is finalized."
"YEAR 3 - Lease Option Analysis (Investor Returns)
(These number are estimates, actuals will be received before closing day)
Closing Day on Purchase for Tenant Buyer"
   "Purchase Price :"    430000.00            
   "Mortgage :"    344000.00    0.800000        
   "Downpayment :"    86000.00    0.200000    "Investor"    
   "Closing costs :"    15000.00        "Proceeds 50%"    
   "Capital Investment :"    101000.00        -101000    
   "Tenant Buyer Pays NROC for keyes"                
   "Initial Option Consideration :"    21500.00        10750    0.500000    
   "Profit at Buy :
Monthly"    21500.00        10750    0.500000    
   "Tenant Buyer pays monthly
Rent : $   4,500.00
Monthly Option Consideration :  $ 100.00
Total : $  4,600.00 PITI :  $ (3,543.39)"                
   "Monthly CashFlow : $"    1056.61        528    0.500000    
   "Annual Cashflow : $"    12679.27        6340    0.500000    
   "Closing Day on Selling to Tenant Buyer"    
   "Year 3
Tenant Buyer Purchase Price : $ 458,591.52 Loan Repayment : $ 334,869.94
Cosing Costs :  $ 1,500.00 "                
   "$"    122221.58                
   "Investment Capital Return : $"    101000.00        101000        
   "Profit at Sale : $"    21221.58        10611    0.500000    

"Our"                                
           "3 YEARS             Profit at Buy : $ 21,500.00
Annual Cashflow : $ 38,037.80 Profit at Sale : $ 21,221.58"        
                               
               "Total Deal Profit :"        80759.37
                               
"Proceeds 50%"    "3 YEAR PROJECTIONS"    
       "Capital Investment :"    101000    
       "Capital Gains :"    40380    
       "Cash-on-Cash Return :"    0.399800    
10750    0.500000    "Return on Investment (per Annum) :"    0.169300    
10750    0.500000            
528    0.500000    
6340    0.500000    
                           
"$10,611 50%"
"Joint Venture Agreement"
"This agreement entered into this     day of     , 20    , by and between
, party of the first part, and    , party of the second part.
Witnesseth: In consideration of the agreements hereinafter expressed, the parties have become associated with each other as joint venturers, agreeing to purchase the following described real property located at:
(Legal description to be attached)
Whereas, under date of    , 20    , a contract for the purchase of said land was entered into by    , as nominee for the parties hereto.
Whereas, the parties have made equal contributions to a fund for such purpose in the total amount of $   .
Therefore, in consideration of the sum of One Dollar ($1.00) each to the other in hand paid, and the mutual covenants herein contained, it is agreed as follows:
PURPOSE: The parties hereto have acquired said property for the purpose of investment and to share equally in all the operating and maintenance expenses and subsequent sale of the land.
BANK ACCOUNT: All funds of the said joint venture shall be kept in a joint account at the     (Bank), located in    (City, State). Withdrawals from said account must bear the signatures of both the parties of the first and second part.
PAYMENTS: All payments for taxes, principal and interest, improvements and any other necessary expenses are to be paid in equal amounts by parties of the first and second part.
PROFITS: Any profits arising from the sale of all or part of said land are to be divided equally, between parties of the first and second part after deducting from the proceeds of such sale all cash advances of the first and second parties."

"LOSSES: Any losses arising from the sale of the said land are likewise to be shared equally between parties of the first and second part.
DISSENTING REMEDY: In the event either party desires to sell and the other party dissents, the dissenting party agrees to buy out the other party for half of the resulting net profit from such sale and to assume title. The party selling agrees to forthwith convey his interest in said land.
DEATH OF EITHER PARTY: The death of either party shall not act to terminate the joint venture. The estate of the deceased joint venturer shall continue as a member thereof and shall share in any future profits or loss as hereabove provided.
In witness whereof, the party of the first part has hereunto set his hand and seal and the party of the second part has set his hand and seal, the day and year first above written.
Witnesses:"
"Party of the First Part      Date"
"Party of the Second Part     Date"

Joint Venture Agreement
THIS AGREEMENT made the day of , 20 . BETWEEN: (YOUR
COMPANY NAME) and (INVESTOR) hereinafter referred to collectively as the
“Parties”
RECITALS
(YOUR COMPANY) purchased property located at (the “Property”); (YOUR
COMPANY) intends to rent the Property; The purchase of the Property closed on
or about (Date); The purchase price of the Property was $ .
1. The purpose of this Agreement is to provide:
a. for the acquisition, financing, management, maintaining, altering,
improving, mortgaging, re-mortgaging, ownership, operation, leasing
and sale of the Property or any part thereof;
b. or the holding of title to the Property by (YOUR COMPANY) as trustee
for the Parties; and
c. to define the respective rights and obligations of the Parties between
themselves and in the Property.
2. Now therefore in consideration of the mutual covenants contained in this
Agreement, THE PARTIES AGREE AS FOLLOWS:
a. The Parties acknowledge that the mortgage was only in (YOUR
COMPANY)'s name and therefore legal title is only registered in
(YOUR COMPANY)'s name.
b. The parties further acknowledge that this joint venture trust
Agreement (hereto referred to as the "Agreement") is non
registerable and that only (YOUR COMPANY) appears on legal title as
the owner of the Property and that only (YOUR COMPANY) has the
benefits, responsibilities, and obligations of a legal owner of title.
3. (YOUR COMPANY) acknowledges that it is holding the Property in trust as
follows:
a. A one hundred percent (100%) interest in legal title in the Property to
(YOUR COMPANY);
b. A fifty percent (50%) equity interest in ownership in the Property to
Investor (hereinafter referred to as the “Non-Title Interest”); and
c. A fifty percent (50%) equity interest in ownership in the Property to
(YOUR COMPANY).
d. (YOUR COMPANY) acknowledges that it remains fully responsible for
all obligations of an owner of a property and will arrange and see to
it that all mortgage, insurance, landscaping, utility accounts, and
property taxes of the said Property are kept current and in good
standing.
e. (YOUR COMPANY) shall hire a management company, at its sole
discretion, to deal with all daily management items of the Property,
specifically but not limited to, all those items mentioned above in
section 4. (YOUR COMPANY) acknowledges that it will be fully
responsible for all property management fees incurred.
4. Cost of any and all repairs, maintenance, and the like will be split equally
between (YOUR COMPANY) and the Investor.
5. (YOUR COMPANY) agrees to provide the investor with monthly financial
statements.
6. Investor acknowledges that in consideration of receiving the Non-Title
Interest the Investor is providing (YOUR COMPANY) with dollars
($ ).
7. The Parties acknowledge that the intent of use and timeline of the Property
are as follows:
a. Rent the Property for three years to a tenant-buyer using (YOUR
COMPANY)’s “Rent to Own” program.
b. After three years the property is to be sold to the tenant buyer.
c. If, for whatever reason, the intent of the property cannot be
followed, (YOUR COMPANY) will determine a new intent for use and
timeline of the Property. While making this decision, (YOUR
COMPANY) will strongly consider opinions and recommendations
made by the Investor.
8. If the Property is sold the net sale proceeds of the property are to be paid
out as follows:
a. Investors Deposit of dollars ($ ) paid back to Investor;
and
b. Balance of net sale proceeds to (YOUR COMPANY) and Investor
equally.
9. The Parties acknowledge that any monthly revenue shall be held in trust by
(YOUR COMPANY) until the property is transferred or sold and divided
amongst the Parties as follows:
a. Fifty percent (50%) of monthly revenues to Investor;
b. Fifty percent (50%) of monthly revenues to (YOUR COMPANY).
10. The Parties acknowledge the Agreement is effective from .
11. It is agreed that, unless the context of this Agreement requires otherwise,
the singular number shall include the plural and vice versa, the number of
the verb shall be construed as agreeing with the word so substituted, words
importing the masculine gender shall include the feminine and neuter
genders, and words importing persons shall include firms and corporations
and vice versa.
12. Descriptive headings are inserted solely for convenience of reference, do
not form part of this Agreement, and are not to be used as an aid in the
interpretation of this Agreement.
13. It is intended that all provisions of this Agreement shall be fully binding and
effective between the parties but, in the event that any particular provision
or provisions or a part of one is found to be void, voidable or unenforceable
for any reason whatever, then the particular provision or provisions of part
of the provision shall be deemed severed from the remainder of this
Agreement and all other provisions shall remain in full force.
14. This Agreement shall be governed and construed in accordance with the
laws of the State of .
15. The sole asset to which this Agreement relates is, and shall hereafter be,
the Property and any benefits, monies or other advantages to be derived
therefrom or connected therewith, or in the case of the sale of the Parties
interest in the Property or any part thereof, the proceeds of sale thereof
and any security received by reason of such sale. The Parties relationship
evidenced by this Agreement shall subsist for the limited purposes and
scope referred to above in accordance with the terms of this Agreement
and shall commence as at the date hereof and shall continue thereafter,
save as aforesaid, so long as the interest in the Property is not vested in one
person, firm or corporation.
16. The Parties are not partners and neither this Agreement, the conduct of the
Parties or anything done by them pursuant to this Agreement shall make
them partners or constitute them agents for the other or impose any
fiduciary duty, liability or obligations upon any of them except as herein
expressly set forth. Any Party may engage in and conduct any business or
activity whatsoever without incurring any liability or obligation or fiduciary
duty or accountability to the other Party.
17. A Party shall not have the right to partition and shall not make any
application for partition to any court or authority having jurisdiction over
the matter nor commence nor prosecute any action for partition and/or
sale; and, upon any breach of the provisions of this Agreement by a Party,
the other Party shall, in addition to all rights and remedies in law and in
equity, be entitled to a decree or order restraining and enjoining such
application, petition, action or proceeding, and the offending Party shall
not plead in defense thereto that there would be an adequate remedy at
law, it being recognized and agreed that the injury and damage resulting
from such a breach would be impossible to measure monetarily. The
intention is that (YOUR COMPANY) shall hold title to the Property at all
times as a bare trustee pursuant to the provisions of this Agreement.
18. All matters in difference between the parties in relation to this Agreement
shall be referred to the arbitration of a single arbitrator, if the parties agree
upon one, otherwise to three arbitrators, one to be appointed by each
party. The award and determination of the arbitrator or arbitrators or any
two of the three arbitrators shall be binding upon the parties and their
respective successors and assigns.
19. The remedies provided by the provisions of this Agreement upon the
default of a Party are in addition to any other remedies which the other
Party may have against such Party in default.
20. This Agreement contains the entire understanding between the Parties and
supersedes any prior understandings and/or written or oral Agreements
between them respecting the within subject matter. There are no
representations, Agreements, arrangements or undertakings, oral or
written, between and among the Parties relating to the subject matter of
this Agreement which are not fully expressed herein.
21. This Agreement may be amended or altered in any provision and such
change shall become effective when reduced to writing and signed by the
Parties.
22. This Agreement may be executed in counterparts, each of which so
executed shall be deemed to be an original, and such counterparts together
shall constitute one and the same instrument.
23. This Agreement shall be binding upon the Parties and their respective
successors and assigns, and the Parties hereto agree for themselves and
their heirs, executors, administrators, successors and assigns to execute
any instruments which may be necessary or proper to carry out the
purposes and intent of this Agreement.
24. Each of the parties acknowledges that he, she, and it:
a. has been advised that they should obtain independent legal advice,
and they have declined;
b. understands the nature and consequences of this Agreement; and
c. is signing this Agreement voluntarily.
25. This Agreement may be amended only by written Agreement between the
parties witnessed by at least one other person.
IN WITNESS WHEREOF the parties have set their hands and seals on the day first
above written.
Signature of (Name, Title) Date
Signature of (Name, Title) Date
The foregoing instrument was acknowledged before me this ______day of
________________, 20______ by _______________________________________
___________________________________________________________________
who is/are personally known to me or who has/have produced _______________
as identification.
_______________________ (Seal)
Notary
My Commission Expires:
Landlord's Initials______ Tenant's Initials______
LEASE AGREEMENT
THIS LEASE AGREEMENT (this "Lease"), is made and entered into this ____ day of
__________________ by and between WONDER ESTATES LLC, a Wyoming limited
liability company, qualified to transact business within the State of Florida ("Landlord" and
"Optionor"), and [TENANT-BUYER NAME] ("Tenant" and "Optionee").
In consideration of the promises and other valuable consideration herein, and the sum of
Ten and 00/100 Dollars ($10.00), now paid by each party to the other, the receipt and sufficiency
of which is hereby acknowledged, and subject to the terms and conditions set out in this Lease,
and that certain Purchase Option Contract of even date herewith executed by the parties (the
"Option Contract"), and other agreements executed in connection with the agreements contained
herein, the parties agree as follows:
PROPERTY ADDRESS: Landlord leases to Tenant and Tenant leases from Landlord, upon the
terms and conditions contained herein, the dwelling located at ____________________ (the
"Premises").
LEASE TERM: The Lease Term shall be for a period of _____ months, commencing on
_________________ (the "Commencement Date"), and shall terminate on either
_____________________, or when Optionee exercises its Option to Purchase and closes on the
Premises, whichever shall occur first (the "Termination Date"). This Lease can be renewed or
extended only by a written agreement signed by both Landlord and Tenant.
If a notice to terminate this Lease is not delivered by either party in writing at least One (1) Month
before lease expiration, the Lease will automatically convert to a month-to-month tenancy at a
monthly rent rate that is Ten Percent (10%) above the rent rate of the most current payable under
this Lease. The requirement of such notice also applies to the termination of any respective monthto-
month tenancy. Tenancy may not be terminated in the same month that notice is delivered;
Tenancy will conclude on the last day of the following month.
Upon providing Landlord notice of intent to vacate at the end of the Lease Term, the Tenant will
make all reasonable efforts to ensure that the Premises is in show ready condition throughout the
final month of occupancy prior to move-out. Tenant must grant Landlord access for showings, as
long as notice is given the prior day. Landlord may request that the Tenant temporarily vacates the
Premises during these showings for a timeframe not to exceed Two (2) Hours. If Tenant refuses
access to Landlord during this timeframe for any reason, Landlord may charge additional rent in
the amount of Fifty Dollars ($50.00) per day.
RENT: Tenant shall pay as rent the sum of $___________ per month ("Rent") during the Lease
Term, due and payable monthly on the first day of the month. Rent may be mailed through the
Post Office at Tenant's risk. Any Rent payments that are late or lost in the mail are treated as if
unpaid until received by Landlord. Tenant further agrees to pay a late charge of $25.00, plus $5.00
a day, for each day the entire rent is not received by the Landlord by the first day of the month
regardless of the cause, including insufficient checks, time being of the essence. If Rent is received
after the first of the month and late fees as defined herein are not included with such payment, Rent
Landlord's Initials______ Tenant's Initials______
is considered unpaid. Any payment received by Landlord is applied first toward collection costs,
including costs of a lawyer and his own client full indemnity basis, and second towards unpaid
Rent in arrears, and finally towards the current month's Rent.
An additional Service Charge of $50.00 will be paid to Landlord for all insufficient checks. If
Tenant's checks are insufficient, Landlord shall have the right to demand certified check or money
orders on all future payments. If any State rent control laws do not allow the above procedure or
any procedure contained in this Lease, then the State law shall prevail.
OCCUPANTS: The Premises will be used and occupied by Tenant and Tenant's family as their
private residence and for no other purpose. Tenant's family consist of ____ adult(s) and ____
children, whose names are as follows:
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
Tenant acknowledges and agrees to pay an additional $50.00 per month for each additional person
who shall occupy the Premises in any capacity that is not listed above.
PETS: Any pets kept on the property without the permission of the Landlord in writing shall be a
breach of this Lease. The following pet(s), identified by type, breed and weight are permitted to
be kept on the Premises:
Type: Breed: Weight:
_______________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________
Landlord requires a picture of the pet(s) and copy of Rabies and Distemper Vaccination.
NO ASSIGNMENT AND SUBLETTING: Tenant shall not assign or in any manner transfer this
Lease or any estate or interest therein, in whole or part, without prior written consent of Landlord,
nor sublet the Premises or any part or parts thereof or permit the use or occupancy of the Premises
or any part thereof by anyone other than Tenant without like consent. The acceptance of rental
payments by Landlord from a proposed assignee, sublessee, or occupant of the Premises shall not
constitute consent to such Assignment or Sublease by Landlord. Consent by Landlord to one or
more assignments of this Lease or to one or more subletting of said Premises shall not operate to
exhaust Landlord's rights under this Article. In the event of an assignment or subletting, Tenant
and Guarantor shall remain primarily liable for the performance of the covenants herein contained
Landlord's Initials______ Tenant's Initials______
binding upon Tenant and the assignee or sublessee shall assume all obligations of Tenant in
writing..
Further, it is agreed that covenants contained in this Lease, once breached, cannot afterward be
performed and that legal proceedings may be commenced at once, without notice to the Tenant,
(other than any notice required by State laws).
Landlord's Initials ______
Tenant's Initials ______
ALTERATIONS: Tenant will make no changes, alterations, or additions in or about the Premises
without first obtaining Landlord’s written consent.
ENFORCEABILITY: Should any provisions of this Lease be found to be invalid or
unenforceable, the remainder of this Lease shall not be affected thereby, and each term and
provision herein shall be valid and enforceable to the fullest extent permitted by law.
NO WAIVER: All rights given to the Landlord by this Lease shall be cumulative to any other
laws, which might exist or come into being. Any failure of the Landlord to enforce any of the
provisions or restrictions herein contained shall in no way be deemed a waiver of the right to do
so thereafter or insist upon strict compliance of the terms hereof. No statement or promise of the
Landlord, or its agents and representatives as to tenancy, repairs, alterations, or other terms and
conditions shall be binding unless reduced to writing and signed by Landlord.
UTILITIES: Tenants are responsible for the payment of the following utilities:
Heat Electricity Garbage Water/Sewer
Insurance Telephone Gas/Oil Association Fees
Snow Removal Lawn Care Cable/Internet Property Taxes
Sales Tax
and any other bills incurred during the term of this Lease.
INSURANCE: Tenant agrees it is the responsibility of the Tenant to insure the Tenant's property
on the Premises against damage or loss of such property occasioned by fire, theft and any other
perils. The Tenant's policy shall waive all rights of subrogation against the Landlord and its
representatives, agents and contractors. The Tenant hereby waives and releases the Landlord from
any liability whatsoever for damage or loss to any persons or property whatsoever which occurs
in or in connection with the Premises and any improvements, building or property thereon or from
the Tenant's use of the premises however caused, including loss due to negligence or fault of the
Landlord and its servants, agents or contractors (Tenant to look to its own insurance and insurers
for recovery of and protection against any such loss or damage). Without limiting the generality
of the foregoing, the Landlord shall not be responsible for any loss of Tenant's property in the
Premises or stored in, at or near the building due to any cause whatsoever.
Landlord's Initials______ Tenant's Initials______
Tenant shall on demand provide a copy of insurance to the Landlord. Tenant is hereby notified to
obtain insurance to cover loss on his/her personal belongings located in the Premises or on the
grounds where Premises are situated.
Tenant's Initials: ________
EMERGENCY ACCESS: Landlord has the right of emergency access to the Premises at any
time and access during reasonable hours to inspect the property or show it to prospective tenants
with a 24-hour notice to Tenant. Landlord shall retain a key at all times. If the Tenant wishes to
change the locks, s/he must notify the Landlord in writing and provide a new key immediately.
CONDITION OF PREMISES: Landlord and Tenant hereby agree to inspect the Premises at the
commencement of the tenancy and upon termination or expiration of this Lease, and that the
condition of the Premises at the aforesaid times will be noted on an inspection report which forms
part of this Lease. Any such inspection report will be signed by both the Landlord and the Tenant.
An inspection report may be used and relied upon by the Landlord as proof of the condition of the
Premises at the time of inspection and for determining damages and or seeking appropriate
deductions or compensation from the Tenant. Landlord reserves the right to take photographs at
both aforesaid times for further documentation to the condition of the Premises.
MAINTENANCE COSTS: Tenant shall be responsible for all maintenance, repair and
replacements costs under $1,000.00, subject to Landlord's consent and direction, which shall be
performed by a licensed contractor. Landlord shall be responsible for maintenance and repair of
the Premises over $1,000.00 unless otherwise stated below. The Tenant shall be responsible for
the cost of repairing plugged toilets, sinks, and drains, and for the cost of replacing all windows
and screens broken by the Tenant, employees, contractors, invitees or guests. The Tenant shall be
responsible for replacing light bulbs, fluorescent tubes, stove fuses, broken toilet seats and any
other damaged items. The tenant shall be responsible for damages caused by windows and doors
being left open including cost of repairing and cleaning. The Tenant shall also be responsible for
damage due to fire caused by the Tenant negligence i.e.: careless smoking, cooking, etc. The
Tenant agrees to immediately report to the Landlord any and all damage that may occur to the
Premises and or Property by way of, but not limited to, accident, breakage or defect throughout
the continuance of this tenancy. In the event Tenant fails to complete maintenance/ repairs, that
are the responsibility of the Tenant, the Tenant agrees to immediately reimburse Landlord for all
monies expended to complete said repairs.
AID IN MAINTENANCE: The Tenant shall cooperate with the Landlord in the care and
maintenance of the Premises and or Property including any improvements.
Landlord's Initials ______
Tenant's Initials ______
DEFAULT: Should a party to this Lease fail to fulfill their responsibilities under this Lease or
need to determine whether there has been a default of this Lease, refer to Part II, Chapter 83,
entitled Florida Residential Landlord and Tenant Act, which contains information on defaults and
Landlord's Initials______ Tenant's Initials______
remedies. However, to further clarify the terms of this Lease, the Tenant shall make certain that
Rent is received by the Landlord by the first of the month or the Landlord shall consider this Lease
to be breached and terminated if the Rent has not been received before midnight on the first day
of the month that the Rent was due. The acceptance by Landlord of partial payments of Rent due
shall not, under any circumstances, constitute a waiver of Landlord, nor affect any notice or legal
proceedings therefore given or commenced under state law. If Tenant defaults on any other
provisions of this Lease, including but not limited, to any misrepresentations on Tenant's
application, Landlord, at his/her option, can elect to continue this Lease or terminate this Lease
and take possession of the Premises by any legal means available. Landlord is not required to give
any notice to cure a violation of this Lease, other than what is required by law.
PROHIBITED ACTS BY LANDLORD: Landlord is prohibited from taking certain actions as
described in Section 83.67, Florida Statutes, the provisions of which can be found in the attachment
to this Lease.
RIGHT OF ENTRY: Landlord may enter the Premises in the following circumstances:
A. At any time for the protection or preservation of the Premises.
B. After reasonable notice to Tenant at reasonable times for the purpose of repairing
the Premises.
C. To inspect the Premises; make necessary or agreed-upon repairs, decorations,
alterations, or improvements; supply agreed services; or exhibit the Premises to
prospective or actual purchasers, mortgagees, tenants, workers, or contractors
under any of the following circumstances: (1) with Tenant's consent; (2) in case of
emergency; (3) when Tenant unreasonably withholds consent; or (4) if Tenant is
absent from the Premises for a period of at least one-half a rental installment period.
(If the Rent is current and Tenant notifies Landlord of an intended absence, then
Landlord may enter only with Tenant's consent or for the protection or preservation
of the Premises).
LEAD BASED PAINT: Check and complete Exhibit "A" attached hereto if the dwelling was
built before January 1, 1978.
SERVICEMEMBER: If Tenant is a member of the United States Armed Forces on active duty
or state active duty or a member of the Florida National Guard or United States Reserve Forces,
the Tenant has rights to terminate the Lease as provided in Section 83.682, Florida Statutes, the
provisions of which can be found in the attachment to this Lease.
USE OF THE PREMISES: Tenant shall use the Premises for residential purposes. Tenant shall
have exclusive use and right of possession to the dwelling. The Premises shall be used so as to
comply with all state, county, municipal laws and ordinances, and all covenants and restrictions
affecting the Premises and all rules and regulations of homeowners' associations affecting the
Premises. Tenant may not paint or make any alterations or improvements to the Premises without
first obtaining the Landlord's written consent to the alteration or improvement. However, unless
Landlord's Initials______ Tenant's Initials______
this box is checked, Tenant may hang pictures and install window treatments in the Premises
without Landlord's consent, provided Tenant removes all such items before the end of the Lease
Term and repairs all damage resulting from the removal. Any improvements or alterations to the
Premises made by the Tenant shall become Landlord's property. Tenant agrees not to use, keep, or
store on the Premises any dangerous, explosive, toxic material which would increase the
probability of fire or which would increase the cost of insuring the Premises.
ORDINANCES & STATUTES: Tenant shall comply with all municipal, state, and federal laws,
statutes, and ordinances now in effect, or which shall be enacted in the future, that apply to tenants
of dwelling units, and any violation of such shall be a complete and material breach of this Lease.
LEGAL ACTION: Tenant agrees without protest, to reimburse Landlord for all actual and
reasonable expenses incurred by way of Tenant's violation of any term or provisions of this Lease,
including but not limited to a $50.00 fee for each notice, Notice to Quit, or other notices mailed or
delivered by Landlord to Tenant due to Tenant's non-payment of Rent or other breach of this Lease,
all court costs and including costs of a lawyer and his own client full indemnity basis, and all
collection costs. Any such costs are due immediately as additional rent. Both Landlord and Tenant
waive trial by jury and agree to submit to the personal jurisdiction and venue of a court of subject
matter whose jurisdiction is located in the area in which the Premises is located. In such event, no
action shall be entertained by said court or any other court of competent jurisdiction, if filed more
than one (1) year subsequent to the date the cause(s) of action accrued.
WAIVER OF CLAIMS: Tenant hereby waives any and all rights to assert affirmative defenses
or counterclaims in any eviction action instituted by Landlord with the exception of an affirmative
defence based upon payment of all amounts claimed by the Landlord not to have been paid by the
Tenant. Other matters may be only advanced by Tenant in a separate lawsuit.
DAMAGE BY FIRE: In the event that the building(s) is damaged by fire and through no fault of
the Tenant and cannot be restored within a reasonable time in the sole and unfettered discretion of
the Landlord, this Lease shall terminate with no further liability of either party.
SUBORDINATION: The Lease is automatically subordinate to the lien of any mortgage
encumbering the fee title to the Premises from time to time.
LIENS: THE INTEREST OF THE LANDLORD SHALL NOT BE SUBJECT TO LIENS
FOR IMPROVEMENTS MADE BY THE TENANT AS PROVIDED IN SECTION 713.10,
FLORIDA STATUTES. Tenant shall notify all parties performing work on the Premises at
Tenant's request that the Lease does not allow any liens to attach to Landlord's interest.
MERGER CLAUSE: This Lease shall constitute the full and complete understanding of the
parties and supersedes all prior written or oral agreements. There shall be no further additions or
changes to this Lease unless the same is reduced to writing and signed by both parties.
Landlord's Initials______ Tenant's Initials______
EARLY TERMINATION FEE (initial one below):
_________ TENANT AGREES TO PAY $ _________________ (AN AMOUNT THAT
DOES NOT EXCEED TWO MONTHS' RENT) AS LIQUIDATED
DAMAGES OR AN EARLY TERMINATION FEE IF I ELECT TO
TERMINATE THE RENTAL AGREEMENT AND THE LANDLORD
WAIVES THE RIGHT TO SEEK ADDITIONAL RENT BEYOND THE
MONTH IN WHICH THE LANDLORD RETAKES POSSESSION.
_________ TENANT DOES NOT AGREE TO LIQUIDATED DAMAGES OR AN
EARLY TERMINATION FEE, AND TENANT ACKNOWLEDGE THAT
THE LANDLORD MAY SEEK DAMAGES AS PROVIDED BY LAW.
MISCELLANEOUS:
A. Time is of the essence of the performance of each party's obligations under the
Lease.
B. The Lease shall be binding upon and for the benefit of the heirs, personal
representatives, successors, and permitted assigns of Landlord and Tenant, subject
to the requirements specifically mentioned in the Lease. Whenever used, the
singular number shall include the plural or singular and the use of any gender shall
include all appropriate genders.
C. The agreements contained in the Lease set forth the complete understanding of the
parties and may not be changed or terminated orally.
D. No agreement to accept surrender of the Premises from Tenant will be valid unless
in writing and signed by Landlord.
E. All questions concerning the meaning, execution, construction, effect, validity, and
enforcement of the Lease shall be determined pursuant to the laws of Florida.
_____________________________________ __________
Landlord Date
_____________________________________ __________
Tenant Signature Date
_____________________________________ __________
Tenant Signature Date
Landlord's Initials______ Tenant's Initials______
EXHIBIT "A"
Lead Warning Statement
The term Lessor refers to Landlord and the term Lessee refers to Tenant.
Housing built before 1978 may contain lead-based paint. Lead from paint, paint chips, and dust can pose
health hazards if not managed properly. Lead exposure is especially harmful to young children and pregnant
women. Before renting pre-1978 housing, Lessors must disclose the presence of known lead-based paint
and/or lead-based paint hazards in the dwelling. Lessees must also receive a federally approved pamphlet
on lead poisoning prevention.
Lessor's Disclosure (initial)
_________ (a) Presence of lead-based paint or lead-based paint hazards (check (i) or (ii) below):
(i) Known lead-based paint and/or lead-based paint hazards are present in the housing (explain).
______________________________________________________________________________
______________________________________________________________________________
(ii) Lessor has no knowledge of lead-based paint and/or lead-based paint hazards in the housing.
_________ (b) Records and reports available to the Lessor (check (i) or (ii) below):
(i) Lessor has provided the Lessee with all available records and reports pertaining to lead-based
paint and/or lead-based paint hazards in the housing (list documents below).
______________________________________________________________________________
______________________________________________________________________________
(ii) Lessor has no reports or records pertaining to lead-based paint and/or lead-based paint
hazards in the housing.
Lessee's Acknowledgment (initial)
_________ (c) Lessee has received copies of all information listed above.
_________ (d) Lessee has received the pamphlet Protect Your Family From Lead in Your Home.
Agent's Acknowledgment (initial)
_________ (e) Agent has informed the Lessor of the Lessor's obligations under 42 U.S.C. 4852d and
is aware of his/her responsibility to ensure compliance.
[CONTINUED ON FOLLOWING PAGE]
Landlord's Initials______ Tenant's Initials______
Certification of Accuracy
The following parties have reviewed the information above and certify, to the best of their knowledge, that
the information provided by the signatory is true and accurate.
_____________________________________ __________
Landlord Date
_____________________________________ __________
Tenant Signature Date
_____________________________________ __________
Tenant Signature Date
Landlord's Initials______ Tenant's Initials______
LEASE AGREEMENT
THIS LEASE AGREEMENT (this "Lease"), is made and entered into this ____ day of
__________________ by and between WONDER ESTATES LLC, a Wyoming limited
liability company, qualified to transact business within the State of Florida ("Landlord" and
"Optionor"), and [TENANT-BUYER NAME] ("Tenant" and "Optionee").
In consideration of the promises and other valuable consideration herein, and the sum of
Ten and 00/100 Dollars ($10.00), now paid by each party to the other, the receipt and sufficiency
of which is hereby acknowledged, and subject to the terms and conditions set out in this Lease,
and that certain Purchase Option Contract of even date herewith executed by the parties (the
"Option Contract"), and other agreements executed in connection with the agreements contained
herein, the parties agree as follows:
PROPERTY ADDRESS: Landlord leases to Tenant and Tenant leases from Landlord, upon the
terms and conditions contained herein, the dwelling located at ____________________ (the
"Premises").
LEASE TERM: The Lease Term shall be for a period of _____ months, commencing on
_________________ (the "Commencement Date"), and shall terminate on either
_____________________, or when Optionee exercises its Option to Purchase and closes on the
Premises, whichever shall occur first (the "Termination Date"). This Lease can be renewed or
extended only by a written agreement signed by both Landlord and Tenant.
If a notice to terminate this Lease is not delivered by either party in writing at least One (1) Month
before lease expiration, the Lease will automatically convert to a month-to-month tenancy at a
monthly rent rate that is Ten Percent (10%) above the rent rate of the most current payable under
this Lease. The requirement of such notice also applies to the termination of any respective monthto-
month tenancy. Tenancy may not be terminated in the same month that notice is delivered;
Tenancy will conclude on the last day of the following month.
Upon providing Landlord notice of intent to vacate at the end of the Lease Term, the Tenant will
make all reasonable efforts to ensure that the Premises is in show ready condition throughout the
final month of occupancy prior to move-out. Tenant must grant Landlord access for showings, as
long as notice is given the prior day. Landlord may request that the Tenant temporarily vacates the
Premises during these showings for a timeframe not to exceed Two (2) Hours. If Tenant refuses
access to Landlord during this timeframe for any reason, Landlord may charge additional rent in
the amount of Fifty Dollars ($50.00) per day.
RENT: Tenant shall pay as rent the sum of $___________ per month ("Rent") during the Lease
Term, due and payable monthly on the first day of the month. Rent may be mailed through the
Post Office at Tenant's risk. Any Rent payments that are late or lost in the mail are treated as if
unpaid until received by Landlord. Tenant further agrees to pay a late charge of $25.00, plus $5.00
a day, for each day the entire rent is not received by the Landlord by the first day of the month
regardless of the cause, including insufficient checks, time being of the essence. If Rent is received
after the first of the month and late fees as defined herein are not included with such payment, Rent
Landlord's Initials______ Tenant's Initials______
is considered unpaid. Any payment received by Landlord is applied first toward collection costs,
including costs of a lawyer and his own client full indemnity basis, and second towards unpaid
Rent in arrears, and finally towards the current month's Rent.
An additional Service Charge of $50.00 will be paid to Landlord for all insufficient checks. If
Tenant's checks are insufficient, Landlord shall have the right to demand certified check or money
orders on all future payments. If any State rent control laws do not allow the above procedure or
any procedure contained in this Lease, then the State law shall prevail.
OCCUPANTS: The Premises will be used and occupied by Tenant and Tenant's family as their
private residence and for no other purpose. Tenant's family consist of ____ adult(s) and ____
children, whose names are as follows:
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
_______________________________________
Tenant acknowledges and agrees to pay an additional $50.00 per month for each additional person
who shall occupy the Premises in any capacity that is not listed above.
PETS: Any pets kept on the property without the permission of the Landlord in writing shall be a
breach of this Lease. The following pet(s), identified by type, breed and weight are permitted to
be kept on the Premises:
Type: Breed: Weight:
_______________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________
Landlord requires a picture of the pet(s) and copy of Rabies and Distemper Vaccination.
NO ASSIGNMENT AND SUBLETTING: Tenant shall not assign or in any manner transfer this
Lease or any estate or interest therein, in whole or part, without prior written consent of Landlord,
nor sublet the Premises or any part or parts thereof or permit the use or occupancy of the Premises
or any part thereof by anyone other than Tenant without like consent. The acceptance of rental
payments by Landlord from a proposed assignee, sublessee, or occupant of the Premises shall not
constitute consent to such Assignment or Sublease by Landlord. Consent by Landlord to one or
more assignments of this Lease or to one or more subletting of said Premises shall not operate to
exhaust Landlord's rights under this Article. In the event of an assignment or subletting, Tenant
and Guarantor shall remain primarily liable for the performance of the covenants herein contained
Landlord's Initials______ Tenant's Initials______
binding upon Tenant and the assignee or sublessee shall assume all obligations of Tenant in
writing..
Further, it is agreed that covenants contained in this Lease, once breached, cannot afterward be
performed and that legal proceedings may be commenced at once, without notice to the Tenant,
(other than any notice required by State laws).
Landlord's Initials ______
Tenant's Initials ______
ALTERATIONS: Tenant will make no changes, alterations, or additions in or about the Premises
without first obtaining Landlord’s written consent.
ENFORCEABILITY: Should any provisions of this Lease be found to be invalid or
unenforceable, the remainder of this Lease shall not be affected thereby, and each term and
provision herein shall be valid and enforceable to the fullest extent permitted by law.
NO WAIVER: All rights given to the Landlord by this Lease shall be cumulative to any other
laws, which might exist or come into being. Any failure of the Landlord to enforce any of the
provisions or restrictions herein contained shall in no way be deemed a waiver of the right to do
so thereafter or insist upon strict compliance of the terms hereof. No statement or promise of the
Landlord, or its agents and representatives as to tenancy, repairs, alterations, or other terms and
conditions shall be binding unless reduced to writing and signed by Landlord.
UTILITIES: Tenants are responsible for the payment of the following utilities:
Heat Electricity Garbage Water/Sewer
Insurance Telephone Gas/Oil Association Fees
Snow Removal Lawn Care Cable/Internet Property Taxes
Sales Tax
and any other bills incurred during the term of this Lease.
INSURANCE: Tenant agrees it is the responsibility of the Tenant to insure the Tenant's property
on the Premises against damage or loss of such property occasioned by fire, theft and any other
perils. The Tenant's policy shall waive all rights of subrogation against the Landlord and its
representatives, agents and contractors. The Tenant hereby waives and releases the Landlord from
any liability whatsoever for damage or loss to any persons or property whatsoever which occurs
in or in connection with the Premises and any improvements, building or property thereon or from
the Tenant's use of the premises however caused, including loss due to negligence or fault of the
Landlord and its servants, agents or contractors (Tenant to look to its own insurance and insurers
for recovery of and protection against any such loss or damage). Without limiting the generality
of the foregoing, the Landlord shall not be responsible for any loss of Tenant's property in the
Premises or stored in, at or near the building due to any cause whatsoever.
Landlord's Initials______ Tenant's Initials______
Tenant shall on demand provide a copy of insurance to the Landlord. Tenant is hereby notified to
obtain insurance to cover loss on his/her personal belongings located in the Premises or on the
grounds where Premises are situated.
Tenant's Initials: ________
EMERGENCY ACCESS: Landlord has the right of emergency access to the Premises at any
time and access during reasonable hours to inspect the property or show it to prospective tenants
with a 24-hour notice to Tenant. Landlord shall retain a key at all times. If the Tenant wishes to
change the locks, s/he must notify the Landlord in writing and provide a new key immediately.
CONDITION OF PREMISES: Landlord and Tenant hereby agree to inspect the Premises at the
commencement of the tenancy and upon termination or expiration of this Lease, and that the
condition of the Premises at the aforesaid times will be noted on an inspection report which forms
part of this Lease. Any such inspection report will be signed by both the Landlord and the Tenant.
An inspection report may be used and relied upon by the Landlord as proof of the condition of the
Premises at the time of inspection and for determining damages and or seeking appropriate
deductions or compensation from the Tenant. Landlord reserves the right to take photographs at
both aforesaid times for further documentation to the condition of the Premises.
MAINTENANCE COSTS: Tenant shall be responsible for all maintenance, repair and
replacements costs under $1,000.00, subject to Landlord's consent and direction, which shall be
performed by a licensed contractor. Landlord shall be responsible for maintenance and repair of
the Premises over $1,000.00 unless otherwise stated below. The Tenant shall be responsible for
the cost of repairing plugged toilets, sinks, and drains, and for the cost of replacing all windows
and screens broken by the Tenant, employees, contractors, invitees or guests. The Tenant shall be
responsible for replacing light bulbs, fluorescent tubes, stove fuses, broken toilet seats and any
other damaged items. The tenant shall be responsible for damages caused by windows and doors
being left open including cost of repairing and cleaning. The Tenant shall also be responsible for
damage due to fire caused by the Tenant negligence i.e.: careless smoking, cooking, etc. The
Tenant agrees to immediately report to the Landlord any and all damage that may occur to the
Premises and or Property by way of, but not limited to, accident, breakage or defect throughout
the continuance of this tenancy. In the event Tenant fails to complete maintenance/ repairs, that
are the responsibility of the Tenant, the Tenant agrees to immediately reimburse Landlord for all
monies expended to complete said repairs.
AID IN MAINTENANCE: The Tenant shall cooperate with the Landlord in the care and
maintenance of the Premises and or Property including any improvements.
Landlord's Initials ______
Tenant's Initials ______
DEFAULT: Should a party to this Lease fail to fulfill their responsibilities under this Lease or
need to determine whether there has been a default of this Lease, refer to Part II, Chapter 83,
entitled Florida Residential Landlord and Tenant Act, which contains information on defaults and
Landlord's Initials______ Tenant's Initials______
remedies. However, to further clarify the terms of this Lease, the Tenant shall make certain that
Rent is received by the Landlord by the first of the month or the Landlord shall consider this Lease
to be breached and terminated if the Rent has not been received before midnight on the first day
of the month that the Rent was due. The acceptance by Landlord of partial payments of Rent due
shall not, under any circumstances, constitute a waiver of Landlord, nor affect any notice or legal
proceedings therefore given or commenced under state law. If Tenant defaults on any other
provisions of this Lease, including but not limited, to any misrepresentations on Tenant's
application, Landlord, at his/her option, can elect to continue this Lease or terminate this Lease
and take possession of the Premises by any legal means available. Landlord is not required to give
any notice to cure a violation of this Lease, other than what is required by law.
PROHIBITED ACTS BY LANDLORD: Landlord is prohibited from taking certain actions as
described in Section 83.67, Florida Statutes, the provisions of which can be found in the attachment
to this Lease.
RIGHT OF ENTRY: Landlord may enter the Premises in the following circumstances:
A. At any time for the protection or preservation of the Premises.
B. After reasonable notice to Tenant at reasonable times for the purpose of repairing
the Premises.
C. To inspect the Premises; make necessary or agreed-upon repairs, decorations,
alterations, or improvements; supply agreed services; or exhibit the Premises to
prospective or actual purchasers, mortgagees, tenants, workers, or contractors
under any of the following circumstances: (1) with Tenant's consent; (2) in case of
emergency; (3) when Tenant unreasonably withholds consent; or (4) if Tenant is
absent from the Premises for a period of at least one-half a rental installment period.
(If the Rent is current and Tenant notifies Landlord of an intended absence, then
Landlord may enter only with Tenant's consent or for the protection or preservation
of the Premises).
LEAD BASED PAINT: Check and complete Exhibit "A" attached hereto if the dwelling was
built before January 1, 1978.
SERVICEMEMBER: If Tenant is a member of the United States Armed Forces on active duty
or state active duty or a member of the Florida National Guard or United States Reserve Forces,
the Tenant has rights to terminate the Lease as provided in Section 83.682, Florida Statutes, the
provisions of which can be found in the attachment to this Lease.
USE OF THE PREMISES: Tenant shall use the Premises for residential purposes. Tenant shall
have exclusive use and right of possession to the dwelling. The Premises shall be used so as to
comply with all state, county, municipal laws and ordinances, and all covenants and restrictions
affecting the Premises and all rules and regulations of homeowners' associations affecting the
Premises. Tenant may not paint or make any alterations or improvements to the Premises without
first obtaining the Landlord's written consent to the alteration or improvement. However, unless
Landlord's Initials______ Tenant's Initials______
this box is checked, Tenant may hang pictures and install window treatments in the Premises
without Landlord's consent, provided Tenant removes all such items before the end of the Lease
Term and repairs all damage resulting from the removal. Any improvements or alterations to the
Premises made by the Tenant shall become Landlord's property. Tenant agrees not to use, keep, or
store on the Premises any dangerous, explosive, toxic material which would increase the
probability of fire or which would increase the cost of insuring the Premises.
ORDINANCES & STATUTES: Tenant shall comply with all municipal, state, and federal laws,
statutes, and ordinances now in effect, or which shall be enacted in the future, that apply to tenants
of dwelling units, and any violation of such shall be a complete and material breach of this Lease.
LEGAL ACTION: Tenant agrees without protest, to reimburse Landlord for all actual and
reasonable expenses incurred by way of Tenant's violation of any term or provisions of this Lease,
including but not limited to a $50.00 fee for each notice, Notice to Quit, or other notices mailed or
delivered by Landlord to Tenant due to Tenant's non-payment of Rent or other breach of this Lease,
all court costs and including costs of a lawyer and his own client full indemnity basis, and all
collection costs. Any such costs are due immediately as additional rent. Both Landlord and Tenant
waive trial by jury and agree to submit to the personal jurisdiction and venue of a court of subject
matter whose jurisdiction is located in the area in which the Premises is located. In such event, no
action shall be entertained by said court or any other court of competent jurisdiction, if filed more
than one (1) year subsequent to the date the cause(s) of action accrued.
WAIVER OF CLAIMS: Tenant hereby waives any and all rights to assert affirmative defenses
or counterclaims in any eviction action instituted by Landlord with the exception of an affirmative
defence based upon payment of all amounts claimed by the Landlord not to have been paid by the
Tenant. Other matters may be only advanced by Tenant in a separate lawsuit.
DAMAGE BY FIRE: In the event that the building(s) is damaged by fire and through no fault of
the Tenant and cannot be restored within a reasonable time in the sole and unfettered discretion of
the Landlord, this Lease shall terminate with no further liability of either party.
SUBORDINATION: The Lease is automatically subordinate to the lien of any mortgage
encumbering the fee title to the Premises from time to time.
LIENS: THE INTEREST OF THE LANDLORD SHALL NOT BE SUBJECT TO LIENS
FOR IMPROVEMENTS MADE BY THE TENANT AS PROVIDED IN SECTION 713.10,
FLORIDA STATUTES. Tenant shall notify all parties performing work on the Premises at
Tenant's request that the Lease does not allow any liens to attach to Landlord's interest.
MERGER CLAUSE: This Lease shall constitute the full and complete understanding of the
parties and supersedes all prior written or oral agreements. There shall be no further additions or
changes to this Lease unless the same is reduced to writing and signed by both parties.
Landlord's Initials______ Tenant's Initials______
EARLY TERMINATION FEE (initial one below):
_________ TENANT AGREES TO PAY $ _________________ (AN AMOUNT THAT
DOES NOT EXCEED TWO MONTHS' RENT) AS LIQUIDATED
DAMAGES OR AN EARLY TERMINATION FEE IF I ELECT TO
TERMINATE THE RENTAL AGREEMENT AND THE LANDLORD
WAIVES THE RIGHT TO SEEK ADDITIONAL RENT BEYOND THE
MONTH IN WHICH THE LANDLORD RETAKES POSSESSION.
_________ TENANT DOES NOT AGREE TO LIQUIDATED DAMAGES OR AN
EARLY TERMINATION FEE, AND TENANT ACKNOWLEDGE THAT
THE LANDLORD MAY SEEK DAMAGES AS PROVIDED BY LAW.
MISCELLANEOUS:
A. Time is of the essence of the performance of each party's obligations under the
Lease.
B. The Lease shall be binding upon and for the benefit of the heirs, personal
representatives, successors, and permitted assigns of Landlord and Tenant, subject
to the requirements specifically mentioned in the Lease. Whenever used, the
singular number shall include the plural or singular and the use of any gender shall
include all appropriate genders.
C. The agreements contained in the Lease set forth the complete understanding of the
parties and may not be changed or terminated orally.
D. No agreement to accept surrender of the Premises from Tenant will be valid unless
in writing and signed by Landlord.
E. All questions concerning the meaning, execution, construction, effect, validity, and
enforcement of the Lease shall be determined pursuant to the laws of Florida.
_____________________________________ __________
Landlord Date
_____________________________________ __________
Tenant Signature Date
_____________________________________ __________
Tenant Signature Date
Landlord's Initials______ Tenant's Initials______
EXHIBIT "A"
Lead Warning Statement
The term Lessor refers to Landlord and the term Lessee refers to Tenant.
Housing built before 1978 may contain lead-based paint. Lead from paint, paint chips, and dust can pose
health hazards if not managed properly. Lead exposure is especially harmful to young children and pregnant
women. Before renting pre-1978 housing, Lessors must disclose the presence of known lead-based paint
and/or lead-based paint hazards in the dwelling. Lessees must also receive a federally approved pamphlet
on lead poisoning prevention.
Lessor's Disclosure (initial)
_________ (a) Presence of lead-based paint or lead-based paint hazards (check (i) or (ii) below):
(i) Known lead-based paint and/or lead-based paint hazards are present in the housing (explain).
______________________________________________________________________________
______________________________________________________________________________
(ii) Lessor has no knowledge of lead-based paint and/or lead-based paint hazards in the housing.
_________ (b) Records and reports available to the Lessor (check (i) or (ii) below):
(i) Lessor has provided the Lessee with all available records and reports pertaining to lead-based
paint and/or lead-based paint hazards in the housing (list documents below).
______________________________________________________________________________
______________________________________________________________________________
(ii) Lessor has no reports or records pertaining to lead-based paint and/or lead-based paint
hazards in the housing.
Lessee's Acknowledgment (initial)
_________ (c) Lessee has received copies of all information listed above.
_________ (d) Lessee has received the pamphlet Protect Your Family From Lead in Your Home.
Agent's Acknowledgment (initial)
_________ (e) Agent has informed the Lessor of the Lessor's obligations under 42 U.S.C. 4852d and
is aware of his/her responsibility to ensure compliance.
[CONTINUED ON FOLLOWING PAGE]
Landlord's Initials______ Tenant's Initials______
Certification of Accuracy
The following parties have reviewed the information above and certify, to the best of their knowledge, that
the information provided by the signatory is true and accurate.
_____________________________________ __________
Landlord Date
_____________________________________ __________
Tenant Signature Date
_____________________________________ __________
Tenant Signature Date
1
LEASE OPTION/RENT TO OWN
Profiting from Property
Without Owning It

"Course Description"
"Real estate investors buy one of two ways: either cash or terms.
In the Lease Option/Rent to Own training you will learn how to both buy and sell properties via lease options. When using lease options to buy properties, you can engineer the deal so that you do not need to use any of your personal cash and credit. Also, you will discover how lease options maximize your selling profits on the properties you control.
This dynamic training will teach you:
1. How to create wealth using the seven forms of options
2.How to buy properties by attracting and interacting with flexible propertyowners.
3. How to quickly set up streams of income that are fun and easy to manage
4. How to maximize your profit when you sell by setting up a network of hungry buyers.
5. How to calculate and realize profits in ever-changing conditionsof any local market.
6. The nuances of the proper paperwork of a profitable lease option deal
7. The secrets of making money on properties you control, but do not own"
"CHAPTER 1
ADVANTAGES OF LEASE OPTIONS
Getting the Control Without the Ownership
•  No obligation, just the right to buy
•  Using Joint venture partners to control the deal without your own money or credit
The Pathway to Profit Is Problem Owners/Buyers
•  The deal is created by circumstances
•  Find the problem owners
•  Find problem buyers
Needy People, Nice Homes, Nice Neighborhoods
•  Desirable areas create demand
•  Match: “Need to get out” with “Want to get in”
•  Match: “People wanting properties” with “Investors wanting returns”
The Determining Factor Is Debt Relief
•  Not people who want to sell, but need or have to sell
Not Buying Property, Solving Problems
•  Little or no money out-of-pocket
•  Focus on solving the problem, not buying the property
•  Using investor joint ventures to control without owning
There Is A Pipeline of Motivated Buyers
•  People that are starting out or just starting over
•  People who have issues or challenges with traditional credit
TYPES OF OPTION PURCHASES
Lease Option to Buy Personal Residence
•  Smaller down payment
•  Locked in price"

"•  Depreciation protection
•  Easier to qualify
Purchase Lease Option
•  Buy a property then lease option to a tenant buyer
•  Tenant buyer pays down principal
•  You benefit and profit from appreciation
•  Avoid the landlord trap
•  Nonrefundable Option consideration:
•  If option isn’t exercised, you aren’t hurt
Sandwich Lease Option
•  Profit from controlling without owning
•  Minimal risk
•  Minimal management
•  No fix up or repairs
•  Multiple exit strategies
•  Help seller out of a bad situation.
•  Win/Win/Win
Fixer-Upper Lease Option
•  Alternative exit strategy for distressed property
•  Can sell to an investor or homeowner
•  Profit without doing the work yourself
•  Allows you the ability to improve the home without qualifying
Fixer-Upper Purchase Lease Option
•  Increase value before you option the property
•  Increases the pool of potential tenant buyers
•  Increases value if you have to sell outright
Option Without a Lease
•  Gain control
•  Take advantage of appreciating markets
•  Secure properties to prevent someone else from buyingit while you obtain financing or find a buyer"

"•  Commonly used for Land Development
•  Profit from “specialized” knowledge
Assignment of Option
•  Get paid for negotiating a great deal
•  Profit with knowledge, without qualifying
Joint venture Lease option
•  Profit by controlling not owning
•  Get investors a good return without the headaches of property management"
"CHAPTER 2
Finding Lease Option/Rent to Own Deals
The Lease model is an acronym that stands for:
• Locating lease option opportunities
• Evaluating profit potential
• Attract sellers and buyers
• Secure the deal
• Exiting the transaction"
"As you can see, the first step is to locate the types of properties that will be good fits for your lease option program. As you move through the course material, you’ll come back to this model periodically, to review where you’re at in the process.
Look for motivation.
Look to help someone out of a bad situation
Sellers who would consider a lease option as a way to alleviate a circumstance for their properties are going to have motivation as a common linking feature. However, the general source of the motivation is also important for you to properly determine the suitability of a lease option deal.
Motivation generally can be characterized in two ways:
Distressed property or Distressed people. Some situations will have both."
"You should find in thinking this through that lease option (or most any other type of creative financing) is not the best fit for property-based motivation. Never forget that when you offer “cash or terms”, the cash offer still has its place and may be more
appropriate in some instances."
"When seller distress (due to any number of life circumstances) is the cause of motivation, you have a much broader array of exit strategies to choose from, including a lease option. The key is to find out as early as you can what is causing the motivation in a seller, so you can plan to handle the deal in the best way.
CHARACTERISTICS OF TENANT BUYERS
Prospective tenant buyers (and buyers in general) will fall into one of five purchase categories, which are listed below. Take some time to define these types of buyers and make a recommendation as to what kinds of real estate purchases, they are best suited.
•  The All-Cash Buyer:
•  The Good-Credit (with cash) Buyer
•  The Good-Credit (with no cash) Buyer
•  The Poor-Credit/No-Credit (with cash) Buyer
•  The Poor-Credit/No-Credit (with no cash) Buyer
EVALUATING AND TARGETING NEIGHBORHOODS
One of the important things you need to be able to do when looking for lease option deals is to properly segment your market. This means being able to identify different types of income brackets or characteristics of different parts of your area, then matching the right investment strategy to each area. Examples are shown below.
Low Income
Low-income areas are a great starting point for beginning investors as well as a profitable area for the experienced. The lower-price points and the favorable price-to- rent ratios provide a number of excellent opportunities for the savvy investor. Based on the increased ratio of renters to owners, wholesaling is a great primary strategy in low- income areas. Be sure to learn other strategies to learn how to create quick cash by dealing with problem properties in low-income and moderate-income areas.
Moderate/Working Class
Moderate-income areas are similar to low-income areas because the price points are still reasonable, and the price-to-rent ratios still provide for positive cash flow. The"

"difference between low-and moderate-income areas is that the ratio of homeowners is greater in moderate-income areas. Having more homeowners than renters will stabilize the area and provide for lower-risk wealth building investment opportunities. Your primary strategy will be based on your investment goals. Wholesaling is still a great strategy because it requires no money, no credit, and no qualifying. Holding properties for long-term wealth building is a profitable strategy based on the stabilization and the improved tenant profile. Terms purchases, such as lease options, are also a great strategy because of the desire for homeowners to live in the area as well as the affordability.
Middle Income
The higher price points of the middle-income areas completely change your investment strategies. You will start to see that your price-to-rent ratios will be upside down, making it difficult to hold a traditional rental property. Middle-income areas will be predominately occupied by higher-end, blue-collar and white-collar workers, which results in an increase in home ownership. Retailing is a strategy used by many investors in this area because they can fix up properties to sell to homeowners rather than renters. Homeowners buy based on emotions, thus providing larger profit margins.
Middle-income areas are also a great place to use the Lease Option strategies taught in this training because of the desirability and stability of the area and its occupants. Most people want to live in middle-income areas, but they just can’t afford it. Lease option strategies will give your hungry buyers the ability to live where they thought they couldn’t.
Upper Middle-Income
Great area for the joint venture lease option. These are nice houses in very desirable neighborhoods that have a higher price-to-rent ratio and thus don’t do well as traditional rentals. However, the desirability and above average appreciation rates
make this a unique strategy and a great area with little to no competition."

"FINDING LEASE OPTION DEALS
Once you’ve identified the characteristics of your ideal sellers and buyers, then picked the right area of your target market, it’s time to actually find the deals. We will spend a little more time on the final one listed, marketing, which will prove to be critical to your business success.
•  On-line
•  Real estate websites
•  FSBO/ Newspaper Ads
•  Foreclosure Services
•  Churches
•  Real Estate Agents or Brokers
•  Attorneys
•  “For Rent” Ads
•  Title Companies
•  Tax Liens
•  New Construction Developments
•  Pre-foreclosure
•  MARKETING"

"CHAPTER 3
MARKETING YOUR LEASE OPTION BUSINESS
When it comes to your lease option business, the role of marketing is not just essential; it’s much more important than that! Your marketing is the life blood of your business and is all the more important when you are just getting started and have no prior credibility. Your clients must come to learn who you are, as they won’t come to you out of the blue. Furthermore, marketing is the key to expanding beyond the scope of what your competition is offering.
First and foremost, one of the most effective marketing tools you can implement is not on-line, printed, stamped, or buried in the Sunday classified section. This simple but powerful tool is word of mouth. Motivated sellers are everywhere. You’ve heard the stats on how rampant foreclosures are in this country, how many employers are downsizing jobs and how many people are finding costs of living more and more burdensome. They are in your area, your town or city and even your neighborhood. The more you promote what it is you do via word of mouth, the sooner and more likely it will be that someone you are speaking to either fits into the motivated category or at least knows someone who does.
These types of deals can be the proverbial “diamonds in the rough” and are often devoid of any attention by your competitors. Promote yourself and your business; the results will follow. Ask yourself: “How many lease options deals would it take to justify being an active self-promoter of my business?”
Question: How much better than your competition does your marketing need to be?
Answer:  As much as you want it to be. You can elect to be head and shoulders above the competition, or you can elect to stay a step ahead of them. Being a step ahead of your competition when it comes to marketing has two-key elements:
1. Outshine your competition by implementing a more diverse array of marketing tools. Use at least three different concurrent forms of marketing, although there"

"are more that you can choose from. The more you use, the more successful you will be.
2. Outwork your competition by being more persistent with your marketing. As an example, the more postcards sent, the better the response rate you will get. Apply this concept to your other marketing tools as well and the results will follow.
Three-step marketing model:
MESSAGE/MISSION
What is the most important thing your marketing must convey to those who receive it? What is it about your business that makes you unique, sets you apart from the crowd, or simply makes you a more appealing option for potential sellers? What catch words or phrases might you use to best convey your message and induce action?
MEDIA
Given the nature of your target market and the message you want to deliver, what would be the most effective use of media (specific forms of marketing) to get your message across and best relate to your target market? As you might expect, this may vary, depending on the focus of your business.
MARKETING MISSION/MESSAGE WITH SELLERS
The mission you convey when marketing to sellers should reflect what overall approaches to the business you want to communicate directly to clients. Any basic approach or philosophy you really believe in is often helpful to build into your marketing.
Examples include the following:
1. Crafting a plan that has the seller’s needs in mind
2. Emphasis on flexibility
3. Emphasis on empathy
4. Emphasis on family (or at least a personal touch)"

"5. Emphasis on customer service
These underlying topics are easy to build into your marketing program, are often very compelling, and yet have little to do with the specific services you provide.
The marketing message with sellers is a little different, in that you actually get more into the specific attributes or features of your services as a real estate investor. Examples of your specific message might include:
1. Emphasis on how quickly you can close deals
2. List of circumstances your services cater to (e.g., foreclosure, job loss)
3. Comparisons to competitive services (i.e., a Realtor)
4. Emphasis on types of offers you make (e.g., cash or terms)
5. Emphasis on other key offer features (e.g., lack of contingencies)
Both a mission and a message can be effectively communicated in a simple marketing piece, but there are clearly types of media that afford you more information to offer. Look for verbiage in the sample pieces below that specifically addresses the needs of sellers, as this will help you formulate your own marketing mission/message.
MARKETING MISSION/ MESSAGE WITH TENANT BUYERS
Let’s revisit the 3M Formula for Marketing, this time in the context of working with tenant buyers. The mission you convey when marketing to tenant buyers should reflect what overall approaches to the business you want to communicate. It does not have to be extensive but any basic approach or philosophy you really believe in is often helpful to build into your marketing. You’ll likely find that the mission you use with tenant buyers is very similar to that for sellers.
•  Examples include the following:
•  Crafting a plan that has the buyer’s needs in mind
•  Emphasis on flexibility
•  Emphasis on empathy
•  Emphasis on family (or at least a personal touch)
•  Emphasis on customer service"

"These underlying topics are easy to build into your marketing program, are often very compelling, and yet have little to do with the specific services you provide. This is Step One in building rapport with a client. If they like your business philosophy, you’re already a step ahead of the game. The marketing message with tenant buyers is a little different, in that you actually get more into the specific attributes or features of your services as a real estate investor. Examples of your tenant buyer-specific message might include:
•  Emphasis on payment flexibility (creative financing)
•  Emphasis on having properties available for immediate occupancy
•  Comparisons to traditional loans (i.e., offering better terms than the bank)
•  Emphasis on quality schools and neighborhoods
•  Emphasis on other key offer features (e.g., credit assistance, help with closing costs)
Ultimately, the kicker with tenant buyers will be a combination of the property’s attributes and a sales plan that matches them. This means hitting the right target market with your tenant buyers and having properties suited for their needs. When you are out there working your business, you should know what this ideal combination entails.
WAYS TO MARKET TO TENANT BUYERS
Both a mission and a message can be effectively communicated in a simple marketing piece but there are clearly types of media that afford you more information to offer to a prospective tenant buyer. Look to include verbiage that specifically addresses the needs of tenant buyers, as this will help you formulate your own marketing mission/ message. An example of a piece that could be used to attract tenant buyers is shown below.
Why RENT when you can OWN? Your job is your credit
Call Today for a FREE EVALUATION 1-800-XXX-XXXX
www.yourwebsite.com"

"One of the best ways to market to tenant buyers is to showcase a specific property and really pay attention to the things your prospects desire. The attributes of the property itself are important, however so are the terms of purchase for the tenant buyer you seek. When you can press the right buttons and also show the property to be of value,
sales are on your horizon."
"CHAPTER 4
OVERVIEW OF THE SANDWICH LEASE OPTION PROCESS
Steps in the Process:
1. Market Your Business to have sellers calling you.
2. Determine if There is a Lease Option Deal Finalize Agreement with Seller:
a.  Price: Our option to purchase needs to be at or below current-market value.
b.   Period: 36 – 60 months
c.   Payments
Market Property to Motivated Buyer
Install Motivated Buyer and Finalize Paperwork
As you can see, the sandwich lease option process is one that involves working with both sellers and buyers, so it is important to understand the kinds of people you’ll be working with as you put your deals together.
You have now seen how and where to find lease option deals, and it is now time to learn how to run the numbers for your prospective deals. Real estate is a numbers-based business, when it comes down to it. Knowing how to do this is critical in a successful sandwich lease option. With that in mind, let’s see where you are in the Model that accompanies the course:
The course content centers on the LEASE Model, an acronym that stands for:
Locating Lease Option Deals Evaluating Profit Potential Attract Sellers and Buyers Secure the Deal
Exiting the Transaction
LEASE OPTIONS HAVE MULTIPLE PROFIT CENTERS
There are many different profit centers that exist in a quality sandwich lease option"

"deal. These five multiple profit centers can be easily summarized below.
1. Delayed payment with the Seller
2. Nonrefundable option consideration
3. Positive monthly cash flow from tenant buyer
4. Back end profit: difference of our purchase price from seller and sell price to tenant buyer
5. Discount
1. DELAYED PAYMENT WITH SELLER
The delayed-payment profit center is one that is commonly overlooked by many investors and can provide a nice shot in the arm by providing some early revenue in a lease option deal. Here’s how it works: When you negotiate terms with a lease option seller, one of the things you need to determine is when the first payment to them needs to be made. Naturally, this is ideally on or after a date when you already have a tenant buyer in place, making this first payment to the seller a non-out-of-pocket expense.
Despite the desire from many sellers for you to start making their payments immediately, you need to stick to your guns and always make sure you leave yourself some time to get a tenant buyer screened, qualified, and in place before ever making a payment to a Seller. Once you are more familiar with attracting Tenant Buyers, you will often find that you can find one before you ever are due to make a payment to your Seller.
What does this mean? Yes, you guessed it! You will be collecting rent from a Tenant Buyer that briefly has no Seller obligation to offset it, which improves your cash flow significantly! This sort of cash flow “bonus” is a delayed payment profit center and one that you should try to incorporate into your deals as often as possible.
2. NONREFUNDABLE OPTION CONSIDERATION FROM TENANT BUYER
One of the earliest and most substantial profit centers in a sandwich lease option is the down payment from a tenant buyer. Also sometimes referred to as a deposit, you need to think of this in a manner that is comfortable to you, but get used to the idea of
referring to it as:"

"NON-REFUNDABLE OPTION CONSIDERATION"
"This term is one that is critical to understand when setting up agreements with tenant buyers. A deposit or down payment suggests that the tenant buyer is putting money toward the property’s purchase, which can legally disadvantage you in the event of any disputes. By contrast, a nonrefundable option consideration suggests that the funds are simply to secure the option (or right of first refusal) and have no direct relation to the property’s purchase. This is smart investing, and an easy thing to do, when setting up your agreements with tenant buyers.
From a basic financial point of view, the option consideration is usually three to five percent (minimum) of the agreed purchase price. It is collected in verifiable funds prior to a tenant buyer ever being allowed to move into the property and is clearly identified to be nonrefundable.
The size of the typical option consideration, along with its no refundability, makes this an attractive profit center for your deals. That said, never secure a lease option with a tenant buyer without an option consideration! This may be a temptation, since many tenant-buyer prospects will lack sufficient funds to offer an acceptable option consideration. However, if you don’t collect it, your tenant buyer will basically be a tenant, and their likelihood of ever closing with you will drop substantially. You can also give the NROC back or credit it at closing if the deal warrants it.
3. CASH FLOW
Along with the profitability of lease options, a great secondary benefit is that they can and should provide you with monthly cash flow during the span of your deals, making them additionally beneficial. Because you will not be taking on all the responsibilities of a typical landlord, cash flow is usually more consistent with a lease option.
Because lease options can command more rent than a traditional rental, cash flow for them should also be greater than with rental properties. There are two ways to go about setting the rental bar for lease options.
One is to take normal market rents for your area and to add a premium (10-40 percent) for a lease option rental payment. An example is shown below."

"Market Rent (average for a 3-bedroom house):"    1000    
"Lease Option Premium (20 percent):"    200    
"Lease Option Rent:"    1200    
"Agreed Payment to Seller:"    850    
"Net Cash Flow:"    "$350/month"    
"In the example above, your cash flow moves from $150 to $350/ month, just by offering a lease option to a tenant buyer. This may rule out some buyer prospects, but it usually eliminates those who aren’t that serious about buying, which is not a bad thing at all."
"The questions that usually arise is why would a tenant pay more than fair market rent?"
"Multiple reasons:"
"The tenant buyer has the option but not the obligation to buy the property. The tenant buyer can pick the house before buying it.
The tenant buyer can work on their credit score during this time. The tenant buyer can save money for a down payment.
The tenant buyer can apply money (non-refundable option consideration) towards their down payment.
The tenant buyer can live in the house before buying it. The tenant buyer can have time to make a decision to buy."
"Option A"        
"Market Value (3-bedroom house):"    250000    
"Seller Payment:"    2000    
"Market Rent:"    1500    
"Market Rent with Lease Option Premium:"    1800    
"Cash Flow: ($1,500 + 20%)"    "-$200/month"    
"Option B (same property)"        
"Market Value (3-bedroom house):"    250000    
"Seller Payment:"    2000    
"Sales Price to Tenant Buyer:"    280000    
"Likely Buyer Payment (1 % of price):"    2800    
"“Adjusted” Market Rent:"    2500    
"Cash Flow:"    "$500/month"    
"Do you see the difference? Even though what you are charging monthly to a tenant buyer is well in excess of market rents, it is also much closer to what they will be paying, once they close with you and obtain a mortgage. Setting the bar higher in this case will not only attract better caliber tenant buyers to your properties but will also greatly increase the likelihood that they close later.
The bottom line is that when you deal with tenant buyers as if they are “soon-to-be homeowners,” rather than renters, the differences in both the ease of your deals and in your cash flow, will be substantial. We want to set the tenant buyer up for success."
"4. BACK-END PROFIT"
"Your biggest profit center in a sandwich lease option is at the delivery stage, when the final closing takes place. It is here that you are able to profit from both any profit you negotiate with the seller up front and the appreciation that takes place during the option period with your tenant buyer."
"Some sample numbers for this profit center are as follows:"
"(3 years at 5%/year, 15% total)"
"When you see these kinds of numbers, it makes it all the more important to not only find tenant buyers for your deals, but also to help them fulfill their option and close, to recognize your biggest payday as an investor."
"Too often, you might hear (in REIA clubs or from other investors) that it doesn’t matter if your tenant buyers don’t close; they can just be replaced by someone else. When you consider the profit potential that is lost (or at least delayed another year or two) by following this philosophy, you too will hopefully see that this is flawed thinking. This is also against a basic rule of setting the tenant buyer up for success. One satisfied
customer will lead to another and another and another."
"Even though statistics show that less than half of all tenant buyers actually complete their purchases, you can improve these odds, something that you will learn how to do later in the course.
5. DISCOUNT
In addition to the delayed payment profit center, one of the other most often overlooked profit centers in a sandwich lease option is discounting. While this may never show up as a separate line item on a closing statement, this is still a separate profit center, since it is not a source of revenue at the onset of the deal.
Here’s an example of how it works:
You agree to a purchase price with a seller of $120,000, with an option to purchase at that price for the next 48 months. The property is worth $130,000 at the time you make the agreement, but the seller only owes $110,000 on their mortgage.
Two years into the four-year option with the seller, you have secured a tenant buyer who is now ready to close. Because you are essentially closing “early” with your seller, closing the book for them on the property for good, you decide to ask for an additional purchase price discount with the seller, asking if they will sell to you for $115,000 instead of the originally agreed upon
$120,000. They still are getting enough to satisfy their mortgage, and, after some consideration, the seller agrees.
While this is not in any way a given, it is worth asking for consistently, especially if you are completing your end of the bargain ahead of schedule. Your deal’s profitability should not depend upon this profit center but, when you are to negotiate it, it is extra money in your pocket, $5,000 in this example.
FMV:                                $130,000
Agreed Sell Price from Seller: 48 Month Term      $120,000 24 Month Term go to close Ask for Discount"

"New Agreed Price:                       $115,000
Discount Profit Just by Asking:                $5,000
INTRODUCTION TO LEASE OPTION PROFIT ANALYSIS
The different profit centers in a lease option are important to understand, but you also need to be able to put it all together and run numbers for an entire deal, to make sure that properties you analyze for your program are sufficiently profitable. The scenario below walks you through some of the basics of this process.
Scenario
Seller is moving out of state and needs a quick resolution with their current home:"
"Worth:"    100000    
"Asking:"    90000    
"Balance:"    72000    
"Payment: Appreciation Rate: 5% Deal with Seller"    "$710/mo."    
"Lease Option 60 months Option Price:"    85000    
"Payments:"    710    
"(First payment due in 30 market days) Option Money:     (Moving money)"    1000    
"Deal with Tenant/Buyer"        
"After 30 days of marketing,
you install your tenant buyer Option to purchase:"    105000    
"Nonrefundable Option Consideration Money:"    5000    
"Monthly Payment:"    995    
"The Numbers:"        
"Cash flow ($285/mo. x 24 months)"    6840    
"Back-end profit"    20000    
"Total profit"    26840    
"“How many deals would you want to do if you averaged $26,840 per deal?”"
"As you can see in the sample above, all profit centers but the “early closing” discount are present, showing just how valuable a typical lease option can be to an investor."
"HYPOTHETICAL SCENARIO #1"
"Scenario"
"A seller recently lost his job of 15 years, and based upon his savings, thought he had about a year to live comfortably before selling the home became a necessity. A recently declining market accelerated this time frame and, even though the market has rebounded, he needs to get out ASAP to stabilize his situation."
"Basic Numbers:"        
"Property Value:"    100000    
"Mortgage Balance:"    79000    
"Payment:"    "$780/month"    
"Asking Price:"    90000    
"Appreciation Rate (estimated): 5% Market Rents:"    950    
"EVALUATION WORKSHEET"        
"Property (Address)"        
"Value:"    100000    
"Mortgage Balance:"    79000    
"Monthly payment P.I.T.I. Appreciation Rate: 5%"    780    
"Asking Price:
3 Area Comps."    90000    
"1. $105,000
2. $ 95,000
3. $100,000"
"Market rents:
Deal with the Seller"    950    
"Purchase Price:"    80000    
"Term: 3 yrs. (3-5 years) Monthly Pmt.:"    780.00    
"Purchase Deposit:"    1000.00    
"Property Appreciation
5 % (Appreciation rate) x $ 100,000 (Market value) ="    "105,000 yr. 1"    
"5 % (Appreciation rate) x $ 105,000 (year 1 value) ="    "110,250 yr. 2"    
"5 % (Appreciation rate) x $ 110,250 (year 2 value) ="    "115,762 yr. 3"    
"5 % (Appreciation rate) x $ 115,762 (year 3 value) ="    "121,551 yr. 4"    
"5 % (Appreciation rate) x $ 121,551 (year 4 value) ="    "127,628 yr. 5"    
"Deal with the Tenant Buyer Purchase Price:"    "$104,500 *"    
"Term: 2 yrs. (2-3 years) Monthly Pmt.:"    1100    
"Option Consideration:
(3-5% of Purchase Price w/TB)"    5000    
"*Purchase price with the Tenant Buyer is determined by taking the appreciated value x
95%. (yr. 2 value of 110k x 95%= $104,500)"
"PROFIT AMOUNTS
Purchase price with the tenant buyer:"        "$104,500 Net Option"    
"Consideration  (PC)"        4000    
"Purchase price with the seller owner:
$ 20,500 (PC)"    "-"    80000    
"Tenant buyer monthly payment:"    1100    
"Owner seller monthly payment:"    -780.00    
"24 x $ 320"    "$7,680 (PC)"    
"Total Profit:"    32180    
"Option consideration can also be given back as a credit to the tenant buyer. So, you would take $4,000 of profit off this deal. The reason would be to give your tenant buyer more reasons to recommend you to another possible tenant buyer. The more you give them back the more they would recommend you to other people that are just
like them. This ensures that your business is going to keep profiting in future deals."
"** Note: Profit centers are highlighted with (PC)"
"Chapter 5
COMMUNICATIONS WITH LEASE OPTION SELLERS
LEARNING OBJECTIVES
□ Appreciate the role of motivation analysis when attracting possible lease option sellers
□ Practice communicating lease option terms to and handling objections from a seller
□ Recognize the specific due diligence that is necessary before finalizing an agreement with a lease option seller
THE LEASE MODEL REVISITED
You have now seen how and where to find lease option deals, and also learned how to run the numbers for your prospective deals. The next step is to learn how to work with the buyers and sellers that are each critical in a successful sandwich lease option. With that in mind, let’s see where you are at in the Model that accompanies the course:
The course content centers on the LEASE Model, an acronym that stands for:
□ Locating Lease Option Deals
□ Evaluating Profit Potential
□ Attract Sellers and Buyers
□ Secure the Deal
□ Exiting the Transaction
INTERACTING WITH SELLERS: OVERVIEW
Your ability to interact with potential sellers will be one of the most important aspects to your success in the Lease Option business. People skills RULE in a business that is based on the seller’s NEED to sell vs. just WANTING to sell. Your seller’s decision to sell to you will be based on your ability to build rapport, trust, and establish an emotional
connection with him/her."

"If your seller feels that your motivation for buying his home is strictly for financial gain, then you will not meet with a whole lot of success. Based on the way you will be advertising your business; you will be attracting sellers who have a CIRCUMSTANCE. Your job is to find out what their CIRCUMSTANCE is and how it relates to their NEED to sell.
Most beginning Investors make the mistake of making potential sellers feel they have no other choice but to give their home away to them. This combative approach builds roadblocks and creates a wall between you and your seller. A more successful approach is to create an environment that will allow you to discuss several different types of solutions to a seller who may feel he had no choices. Being able to provide a situation where everyone truly wins will separate you from your competition and will be the key to you finding deals on a consistent and repeated basis.
Over the next several pages, we will discuss how to perform a motivation analysis with your seller, how to interact and negotiate, make offers, structure your deal, and overcome any objections.
Rule to Live By: Sellers are more motivated by the fear of making a mistake than the hope of making a profit.
MARKETING TO LEASE OPTION SELLERS: THE PERFECT TENANT PROGRAM
A good platform from which to operate when working with sellers is to have a catchy way of presenting your program. In addition to the marketing examples, you’ve seen earlier, one way to accomplish this objective is shown as an example in this section. The so-called Perfect-Tenant Program captures the essence of what you can do for a seller and does much of the “heavy lifting” for you, making the process easier. The components of the program summary fall into three parts:
□ An Introductory Letter
□ A Q&A List
□ A Summary Letter"


 

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Sample Intro Letter
It is our goal to ensure the process of selling your home is a smooth and easy one for
you. We strive to achieve a win-win-win situation in all our lease option purchases.
You, as the seller of the house, win by receiving the assurance of knowing that while the
house is being sold, all of the expenses are taken care of, the house is maintained, and
you are receiving all of the tax benefits associated with being a landlord, with none of
the management responsibilities.
Our tenant/buyer wins by getting to own a home in a shorter amount of time than it
would take them if they were trying to buy conventionally, as well
as being able to immediately occupy their new home, while qualifying for a loan. We
have created a system that creates the paperwork that mortgage lenders look for when
qualifying people for loans to assist our tenant/buyers. In addition, we give our
tenant/buyers immediate credit tips to assist in the loan qualification process.
We win by profiting from the sale of the home, as well as gaining two more satisfied
customers. The reason that we are in business, of course, is to make a profit, as well as
to use our expertise in real estate transactions to assist homebuyers and sellers in
making the sale or purchase of their home an easy, stress-free one.
Thank you for taking the time to explore our “Perfect-Tenant Program.” We hope you
see the benefits of PRICE, CONVENIENCE, and SECURITY that we have worked to create
in our program. We look forward to working with you soon and making the sale of your
home a stress-free and easy one.
The following pages summarize our “Perfect-Tenant Program,” answer many of the
most common questions regarding the program and explains how it can be a very
beneficial way to sell your property for full-market value and pay no commissions or
fees. We look forward to discussing our program further and meeting with you soon.
Thank you.
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SAMPLE FAQ LIST
FAQ –Why is it a benefit to place my home in the “Perfect- Tenant Program?”
Q- What are the benefits of selling my house on a lease option?
A- PRICE, CONVENIENCE, and SECURITY. We offer to buy your house at today’s fullmarket
value and take care of the rest. When we lease option a house, we guarantee in
writing that all maintenance and repairs will be paid by us while we are selling your
house to a tenant/ buyer. We only deal with high-quality people who are looking to buy,
not just rent a house. When you sell your home to us, we handle all the marketing of the
house. This includes paying for advertising, screening potential tenant/buyers, and
showing the house. We want the process of selling your home to go as smoothly as
possible, with no more headaches for you caused by buyers who tell you that they want
a house but end up not being able to qualify for financing. You are also relieved of
having to pay double mortgage payments in the event that you have to move before
you are able to get a buyer for your home. We simplify the process of selling your home
by handling all the details that waste much of your time and money.
Q- What are the advantages of selling my home by lease option over listing it with a
Realtor?
A- We make your monthly payments while a tenant/buyer is qualifying for a loan. All
your expenses related to the house are taken care of. Try getting a Realtor to do that
while listing your home! Another advantage is that our objective is to put only highquality
tenant/buyers in the house since we make our profit by selling for higher than
we buy. Since we guarantee all maintenance on the house, it is in our best interest to
ensure that our tenant/buyer will take care of the home and eventually secure financing
to cash you, the seller, and us out. This means that we put our tenant/buyers through
an intensive pre-screening process before they are even permitted to look at the house.
We don’t work for commissions, so you keep your equity. And, because our profits are
made by selling for slightly higher than what we buy for, we have a vested interest in
the house and in making sure it gets sold.
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Q- How long does it take before your tenant/buyer cashes me out?
A- That can depend on a number of different factors. We work with many mortgage
brokers that are usually able to get most people financed after they have paid for 12
months on the lease option. Since everyone’s credit history and circumstances vary, that
time period can be shorter or longer for the tenant/buyer that we eventually put into
the home. Because of this, we cannot guarantee the exact time our tenant/buyer will
secure financing. However, until our tenant/buyer qualifies for financing, we continue to
pay all the expenses related to the home. It is also in our best interest to get our tenant/
buyer a new loan as soon as possible, since that cashes us out as well. We aggressively
work to get our tenant/buyer financed as soon as possible.
Q- Why don’t I just sell my house myself or rent it in the meantime?
A- These are always options available to you. The difference would be that you are
responsible for your monthly payments, maintenance and repairs during the selling
period. You need to try to find someone who can actually qualify for financing, wait for
them to get approved, and hope that they don’t pull out of the deal, making you start
the whole process over again. Renting during this period opens entirely new difficulties
that would-be landlords often overlook, especially when you are trying to show the
home and sell while renters are living there.
Q- Why don’t I just find my own tenant/buyer?
A- Our tenant/buyers are carefully pre-screened to ensure that they want to buy the
house and are able to do so at some point in the future. However, circumstances can
change in someone’s life, such as an unexpected job transfer that can make it necessary
to move. In situations like that, we continue to pay all the expenses for the house while
we find another qualified tenant/buyer to put into the home. Remember, we make our
money when your house sells!!
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Sample Summary Letter
It is our goal to ensure the process of selling your home is a smooth and easy one for
you. We strive for a win-win-win situation in all our lease option purchases.
You, as the seller of the house, win by receiving the assurance of knowing that while the
house is being sold, all of the expenses are taken care of, the house is maintained, and
you are receiving all of the tax benefits associated with being a landlord, with none of
the management responsibilities. Our tenant/buyer wins by getting to own a home in a
shorter amount of time than it would take them if they were trying to buy
conventionally, as well as being able to immediately occupy their new home, while
qualifying for a loan. We have created a system that creates the paperwork that
mortgage lenders look for when qualifying people for loans to assist our tenant/buyers.
In addition, we give our tenant/buyers immediate credit tips to assist in the loan
qualification process.
We win by profiting from the sale of the home, as well as gaining two more satisfied
customers. The reason that we are in business, of course, is to make a profit, as well as
to use expertise in real estate transactions to assist home buyers and sellers in making
the sale or purchase of their home an easy, stress-free one.
Thank you for taking the time to explore our “Perfect-Tenant Program.”
We hope you see the benefits of PRICE, CONVENIENCE, and SECURITY that we have
worked to create in our program. We look forward to working with you soon and
making the sale of your home a stress-free and easy one.
XYZ Real Estate Solutions
PS We will differentiate ourselves from our competition by becoming
a full-service Real Estate Solution Provider. We can take any phone call and create a
profitable solution by utilizing our specialized knowledge. Deals aren’t found; they are
created. We will stay in our seller’s lives until their Real Estate problems have been
solved.
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INTRODUCTION TO SELLER-MOTIVATION ANALYSIS
Once your marketing gets the phone ringing, it then becomes necessary to effectively
screen possible sellers, as not all of your respondents will be adequately motivated, and
thus suited to your programs.
Screening is a must because some sellers who respond to your marketing will be
unqualified for one of the following two reasons:
􀀀 They aren’t circumstantially motivated enough to accept a creative proposal
􀀀 They are too afraid to take any action at all
There are of course other possible reasons, but these two will be the most common
issues that impair a prospect’s ability to work with your program. You want to be able to
identify these potential weaknesses as soon as possible in the screening process, to
avoid wasting undue time on an otherwise unqualified prospect.
Screening seller prospects can be simplified with a couple of basic goals:
You Have Two Goals During Initial Seller Contact:
Find out the Circumstance
If the Circumstance is Right; Get the Appointment!
If these are the primary goals, how do you get there? The following sections offer a
couple of viable ways to gather the information you will need to qualify a seller for a
lease option.
INTERACTING WITH SELLERS: MOTIVATION ANALYSIS QUESTIONNAIRE
*Introduce Yourself:
My name is and my company/we provide(s) full-service real estate solutions for
any and all of your Real Estate Needs.
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1. With whom am I speaking?
2. In case we are disconnected may I get a good contact number to call you back?
3. How did you hear about us?
4. Are you the Owner of the Property?
5. Where is the Property Located?
6. How Long Have You Owned the Property?
7. Why are you Selling?
8. Have you tried to sell your property?
9. How soon do you want to sell Close?
10. What is Your Asking Price? You are willing to owner finance at that price, aren’t
you?
11. In Your Opinion, what is the Appraised Value of Your Property?
12. Is there a Mortgage on the property, or is it Owned Free and Clear?
a. What is Your Mortgage Balance? $
b. What is Your Monthly Payment? $
c. Are Your Payments Current? Yes/No
d. If no, how far behind are you?
e. Have you received any Default Notices from the Lender?
13. Tell me about your property
a. Bedrooms
b. Bathrooms
c. Square footage
d. Construction type
e. Year built
14. What, if any, Repairs are Necessary?
What is your best-case scenario?
What is your worst-case scenario?
Are there any other bills weighing you down?
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INTERACTING WITH SELLERS:
PHONE SCRIPTS
“Thanks for calling. I’m a local real estate investor. I buy houses in any area or condition.
Do you have time for a few questions?
One thing I would like to ask of you is that if you dislike any of the ideas we discuss, are
you agreeable to telling me that you dislike them?
On the other hand, if you think any of the ideas, we discuss are a good fit for you, are
you agreeable to moving forward with them?
I appreciate your honesty, because I plan to do the same for you. If I feel your property
is a good fit for any of our programs, I’ll let you know by the end of our conversation. It
is important to me to be respectful of your time as well as mine. Is that fair?”
Note: Always discuss MOTIVATION before Money! If the seller’s response to the
motivation analysis reveals that we cannot purchase the property based on the seller’s
inability to sell to us at a significant discount, then we say:
“Normally, we buy houses one of two ways, either all cash at a significant discount, or
with our lease option program. I hope you can appreciate the fact that we can’t pay you
cash for your property because you are unable to give the discount, we would need to
make a profit. However, that doesn’t mean we can’t buy your property.
One thing that may work is our Lease Option Program where we guarantee to make
your monthly payment for an agreeable period of time and then pay you close to the full
amount of your asking price. Does that sound like something you might be interested in
hearing more about?”
Your goal here is to set an appointment with the seller to meet him at the property as
soon as possible.
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INTERACTING WITH SELLERS: MEETING WITH THE SELLER
Once your sellers have passed the screening process, it is time to meet, and hopefully
secure the deal. There are steps involved here, and these steps are summarized in the
next few sections. To start, let’s address the steps and dialogue in meeting in person
with your seller.
Drive By:
Survey the neighborhood and check the exterior of the house Notice the families and
businesses in the neighborhoods and make sure the area and home provide a desirable
situation for a family to live.
Greet Seller:
Greet seller with a smile; introduce yourself and allow him to show you his property.
Praise the house and build rapport with your seller. Notice things that need to be
repaired or replaced. Stop and write them down.
Compare what you see with what your seller told you over the phone during the
motivation analysis.
If there are problems with the house:
“You have a lovely property; however, there are some things we need to address before
we can put it into our lease option program.”
Rule of Thumb:
Only do minimal repairs that will increase the value of the property for every dollar you
spend. If the property needs major repairs, negotiate the costs (time and money) with
your seller or walk away.
If the property is beautiful:
“I’ve got some great news. You have a lovely property that would fit nicely into our
lease option program. Let’s sit down so I can discuss with you exactly how the program
works.
What we do is purchase nice houses just like yours by guaranteeing a long-term lease
35
with an option to purchase on an agreed upon date and at an agreed upon price. This
program allows us to pay you much closer to your full-asking price while providing you
with solutions for your immediate and future financial needs. We would be responsible
for all of the maintenance and management of the property while you get all of the
benefits of property ownership.
We have a list of carefully selected families who are looking to own a nice home but
unfortunately, they lack the ability to do so without a little help. The families we work
with are unable to purchase a home because they either have no credit, some bumps in
their credit, or they lack the down payment that most conventional lenders require for
them to buy a home.
What we do is carefully screen these families to make sure they are potential owners
and not renters. It is our experience that owners take pride in their home and maintain
it at much higher standards than renters, and I am sure that you would agree. The
reason why this program has been so successful for us is because it creates a solution
where everybody wins.”
At this point, you should have a better idea of whether or not the seller is on board with
you and your proposal. If they are on board, continue forward. If they have questions or
objections, these are also natural, and you will see how to handle them shortly.
MEETING WITH THE SELLER: COMING TO TERMS
Once a tentative agreement is reached with a seller, you need to close the deal, and this
means showing them just how easy it is to set up an agreement with your company. Try
the following dialogue sequence to get the job done.
Mr./Mrs. Seller, there are only three things we need to agree on:
Price: On a terms basis we can pay much closer to asking price. “We can’t pay full price,
but we don’t need a huge discount either.”
Rationale: Remember you have the initial “fudge” factor of the amount they would have
had to pay a Realtor for commissions.
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􀀀 The price you can offer your seller will be driven by their mortgage balance,
market value of the home and average annual appreciation in the area
􀀀 If the seller owes more than what the property is worth:
􀀀 The option to purchase price will be the mortgage balance at the time of closing
rather than today’s mortgage balance
􀀀 If the area is experiencing higher-than-average appreciation, consider an Equity
split with the seller
􀀀 If the area is experiencing lower-than-average appreciation you will need a bigger
discount on your option to purchase price
Term Length: “Now the length of time that we need to pay for the house in full varies on
an individual deal basis. The average time we need to perform on our responsibility to
purchase your house is 60 months…how does that sound to you?”
Rationale: Ask for 60 months but be willing to settle for at least 36 months.
Payment Amount and Payment Start Date:
Our monthly payment has to be at or below Sellers monthly PITI to create a monthly
spread for cash flow.
“We would like to put your property into our program and make our first payment and
initial down payment (if discussed) in 60 days.”
Rationale: You need time to find a tenant/buyer.
INTERACTING WITH SELLERS: HANDLING OBJECTIONS
Sellers will have objections to your proposal, but this isn’t necessarily a bad thing. In
fact, objections will center on common themes, which are given as examples in this
section and are there for you to use as you start putting together your own deals.
What if the buyer tears up the house? “I can truly appreciate your fear and concerns,
but I can assure you that we take the time to carefully screen each and every one of our
buyers. Obviously, we aren’t going to be living there so we can’t guarantee it won’t
37
happen. But we can guarantee that if it does, it is our responsibility, and we will put it in
writing. Is having someone living in your home other than you going to prevent you
from selling your property to us?” (If, at this point, the seller says YES, then consider an
option to purchase without a lease.)
Can you guarantee that five years from now you are going to buy my house? “No, but it
has been our experience that because we take the time to carefully screen our buyers,
most of them will buy the house. However, what you look at to be the worst-case
scenario may not be as bad as you think. Five years from now you will have benefited
from someone else making your payment, maintaining and managing your property.
You have benefited from the principal being paid down by someone else, yet you
receive all of the depreciation benefits and write offs. What you haven’t had is the
worry and the headaches of making the payment every month.”
May we run this by our attorney? “Absolutely, but please understand that they will
probably advise you not to do this because they are unfamiliar with how our program
works.”
This sounds good, but what about references? “We don’t trouble our past sellers for a
reference, and when you agree to do this, we won’t trouble you for one either.”
This sounds too good to be true… “We’ve found a niche in the market that we are filling.
We are experienced real estate investors, and we specialize in solutions for sellers and
buyers of nice homes just like yours.”
What about future equity? “By agreeing to pay you close to your full-asking price, our
motivation for the deal is profiting from the appreciation. I am sure you can appreciate
the fact that we are in business to make a profit, can’t you?”
When running your numbers to structure your deal, consider splitting some of the
equity with your seller to overcome the objection of future appreciation.
Couldn’t I just do this myself? “Absolutely, but understand we have experience with
structuring this type of situation so that it goes smoothly for all parties involved. You
are, however, more than welcome to get out your landlord manual and go for it.”
Why don’t I just list it with a Realtor? “You definitely have that option if you so choose,
but I doubt the Realtor will make your payment for you while they are listing the
38
property. I am offering to make your payment, pay you top dollar for your property, and
perform all the maintenance and management. All you have to do is sit back and forget
about your property until the closing agent sends you the closing documents and a
check. If you do decide to list it with a Realtor and it doesn’t sell, please feel free to
contact us in the future. But keep in mind, that might be three to five payments later
based on the CONTRACT the Realtor has you sign.”
Debt relief is the major motivating factor for someone allowing you to lease option their
home. If the motivation for debt relief is not strong enough, then try an option without
a lease.
DUE DILIGENCE WITH SELLERS
Any real estate investment deal worth doing should be able to withstand a little due
diligence, and lease options are no different. Due diligence does not have to be a
difficult process; in fact, it is usually only challenging when it is not carried out properly
to begin with. The bottom line is that you need to protect yourself. It’s just good
business. Examples of due diligence you’ll want to perform include:
Property Inspection:
Market Analysis (values, rents, etc.):
Title Inspection:
Lien Review:
Confirmation of Seller’s Mortgage Balance and Payment:
Confirmation of “Currency” of Seller’s Mortgage:
Mortgage Terms (e.g., fixed or adjustable, prepayment penalties, etc.):
As much as good due diligence protects you, it is also important to remember that due
diligence on your part now only strengthens the relationship you will carry forward with
both your seller and your eventual tenant buyer.
Poor due diligence, even if you have escape clauses in your agreements to protect you,
may expose the other parties in the deal. Even if flaws in the deal are not of your doing
(and they rarely are), you are the professed expert and challenges that put a deal in
jeopardy are invariably going to make you look like the bad guy. Conversely, good due
diligence is transparent, meaning issues will likely never come up, unless before a deal
39
ever gets off the ground. This makes for a much smoother process and will greatly
enhance both your perceived professionalism and also the success of your lease option
deals.
INTERACTING WITH SELLERS: KEYS TO SUCCESS
1. Get in Light: Low to No Out-of-Pocket Expense
2. Only Desirable Neighborhoods
3. Give Yourself Plenty of Time to Close (and find a buyer)
4. Check the Title: Preliminary Lien Search
5. No Small Houses (harder to market to buyers)
6. Use Your Company Name on all Paperwork
7. Insurance Must Match Occupancy (shift policy to “non-owner-occupied”)
8. Use an Escrow Account to Make Payments
9. DON’T Do Repaires/Maintenance
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Chapter 6
COMMUNICATIONS WITH TENANT/BUYERS
LEARNING OBJECTIVES
􀀀 Recognize the role of screening in the approval process for tenant/buyers
􀀀 Understand strategies behind and practice specific scenarios that are common,
when interacting with tenant/buyers
MARKETING TO TENANT/BUYERS
Marketing for tenant buyers is a critical first step to both getting your properties
occupied and building a database of buyers for future deals. It is important to highlight
features of your program and also requirements, to help screen out highly unqualified
prospects. Among ways to market are ones shown below but the intended outcome is
almost always the same:
Selling your properties for maximum profit.
One of the best and easiest ways to market to tenant/buyers is to use advertising,
placing ads in either Rental sections online or Lease Purchase (if such a section exists).
Newspaper/On-line Ad: Example Wildcard Ad
NO BANK QUALIFYING
Many to choose from!
Why rent when you can own?
Your job is your credit!
Call NOW! (XXX) XXX-XXXX
www.webaddress
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Example House Specific Ad
NO BANK QUALIFYING
Rent to Own 3 Bed/ 2 Bath Swimming Pool
(XXX) XXX-XXXX
No Money Down Available! www.webaddress
Call NOW!!! (XXX) XXX-XXXX
Alternate Marketing Tools to Attract Tenant/Buyers
􀀀 Signs
􀀀 Mortgage Brokers
􀀀 Model Home Salesperson
􀀀 Realtors
􀀀 Flyers at Apartment Complexes
􀀀 Credit Repair Specialists
SCREENING TENANT/BUYERS
Once your marketing gets the phone ringing, it then becomes necessary to effectively
screen tenant/buyers, as clearly not all of your respondents will be suited to your
programs.
Screening is a must because some people who respond to your marketing will be
unqualified for one of the following two reasons:
􀀀 They can’t afford the monthly rent payment you are seeking
􀀀 They don’t have a sufficient option consideration
Of course, there are other possible reasons, but these two will be the most common
issues that impair a prospect’s ability to work with your program. You want to be able to
identify these potential weaknesses as soon as possible in the screening process, to
avoid wasting undue time on an otherwise unqualified prospect.
Screening Tenant/Buyer prospects can be simplified with a couple of basic questions:
42
“Were you looking to RENT, or looking to BUY if we could make that possible for you?”
a. RENT: One of the qualifications is that you’re looking to buy the house, provided
you like it.
b. BUY: Great, you’ve called the right number!
“How much do you have to put toward the purchase of your next home?” (You need
three to five percent of the purchase price.)
a. If they have the money, whatever the amount over three to five percent, your
response should be, “That’s just the amount we were looking for.”
b. Otherwise, get their name, number, possible consideration amount and add them
to your buyer database.
Screening Tenant/Buyers: Sample Tenant-Buyer Questionnaire
Name:
Good contact number to reach you?
How did you hear about us?
Are you looking to rent or own a new home?
What area are you looking to live in?
Where are you living now?
What are you paying monthly to live there?
How many people will be living with you?
How much consideration do you have to own you?
New home?
How much can you afford as a monthly payment to own your
new home?
How many bedrooms where you looking for?
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How soon were you looking to move into your new home?
What to Do with Unqualified Prospects
Even though you don’t want to waste too much time with prospects who are not a good
fit for a property you have available, it may be a good idea to keep them in your
database. People interested in lease options now may also be months or even years
down the road. The key is to educate them on what they will need to do to become
better qualified, so a poor prospect now may become a good one later. This approach
keeps your time sacred and also gives you maximum value from your marketing efforts.
SHOWING PROPERTIES TO TENANT/BUYERS
Beyond the basic-screening process, buyers will need to see the property before making
a final decision. Once a prospective buyer or buyers have expressed, they want to buy
and have the option consideration amount you are looking for, take the following steps:
Send them to look at the house. Tell them you have a lot of activity and they need to call
you back as soon as possible if they are interested. When they call back with a favorable
response after driving by to look at the house, arrange a time to meet them at the
house. Tell them to bring their checkbook because you’ll be collecting a deposit (option
consideration). Open the house and invite them inside to take a look. You will be in the
kitchen to answer any questions they might have after completion of their tour. When
they come to the kitchen, let them tell you how well they liked the house, then ask:
“How much of the deposit (option consideration) were you prepared to give us today?”
(Collect at least $1000).
ONCE YOU GET THE CHECK—CASH IT AT THEIR BANK!
The remaining monies will be collected when paperwork is signed. You will then give the
keys and possession of the property to the tenant/buyer.
An important thing to remember is that the process outlined above can occur with
multiple prospects, sometimes at the same time, if you have enough interest to warrant
an open house. In these cases, you may want to fuel a little competition among
prospects to both get the best occupant and also the best deal for your business.
INTERACTING WITH TENANT/BUYERS: NEGOTIATING THE DEAL
44
Once you select a prospect who will become your tenant/buyer, it is time to sit down
and cover the specifics of the lease option arrangement. This of course will involve
paperwork, which is discussed in a later chapter. At this point, it is sufficient for you to
learn what strategy is necessary to secure the best deal possible with your buyer.
Negotiable terms with tenant/buyers include the following, which you’ll note are
remarkably similar to the points you needed to cover with your seller:
􀀀 Option consideration
􀀀 Monthly payment
􀀀 Term of the agreement
􀀀 Agreed purchase price
􀀀 Date the agreement begins
In all cases, the deal you arrange with the tenant/buyer should be advantageous for
you, when you compare the terms to those you negotiated with your seller. This is how
you establish the multiple- profit centers that characterize successful lease options.
In some cases, you may find that a tenant/buyer wishes to negotiate some, or all of the
terms listed above. In these cases, don’t lose sight of the fact that you are offering
creative financing, and thus are calling the shots.
*REMEMBER* YOU DICTATE THE TERMS.
Do not let the Tenant-Buyer start dictating the terms, as that will just lead to other
problems down the road. If they try to negotiate the terms, tell them, if they would like
to bring a letter of pre-approval from their bank, you will consider their offer.
INTERACTING WITH TENANT-BUYERS: PROPERTY-MANAGEMENT ISSUES
One of the clear advantages of lease option deals is that, by virtue of the agreements
you reach with the parties involved, there should be little property management to
contend with, making them much more “user-friendly” than traditional rentals. With
that said, there are occasionally issues that come up, and you need to be ready for
them.
45
These include:
􀀀 Maintenance issues or requests
􀀀 Missed or late payments
􀀀 Change of heart (wavering commitment to buy)
Let’s address these in order.
Maintenance issues should be avoidable, by virtue of how you strategically set up your
agreements with both sellers and tenant/ buyers. That said, there are issues that you
may need to address to protect your interest in a deal, so it is a good idea to leave some
option consideration set aside, just in case unexpected issues arise.
Missed or late payments by a tenant-buyer are troublesome but do happen. This is why
you have a fundamental tenant/landlord relationship (on paper) with tenant-buyers
until they formally pursue their right to purchase. You can and should pursue regular
eviction procedures when this happens, and sometimes a simple reminder that their
deposit is non-refundable will help avoid future problems.
A wavering commitment to purchase is sometimes unavoidable, given that life happens,
and things can change for a tenant-buyer over the span of a couple of years. Regardless,
there’s a reason you collect nonrefundable option consideration. If they back out of the
deal, you keep the nonrefundable option consideration.
Ultimately, the greatest success in lease option investing comes with closing more of
your deals. You can increase the odds in your favor when you do the following three
things:
Set up a tenant-buyer with a monthly payment that is similar to what they would be
paying, once they purchase and get a mortgage. This strategy also allows you to do lease
options in almost any market and any price point.
Offer NICE homes in NICE neighborhoods. The old adage goes: “Garbage in, garbage
out.” If you put a tenant-buyer in a flawed home, they are less likely to buy and you will
also have to deal with more maintenance issues (even if they are simply requesting),
regardless of how you set up your agreements.
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Have a good relationship with a mortgage broker who can work with your tenant-buyer
throughout their lease period. You don’t have to seek tenant-buyers with decent credit
to succeed in this business, but you do need to make sure they are working on their
credit to increase the odds that they are eventually able to close.
You can’t account for or fix every potential issue but following these key steps can
greatly increase the likelihood that your tenant-buyers close with you, which can do
wonders for your final profit margins.
INTERACTING WITH TENANT-BUYERS: KEYS TO SUCCESS
Like any aspect of the real estate business, working with tenant buyers is a learned
process. Using the tips presented in this chapter will better prepare you for both what
to expect and what to do to set yourself up for maximum success. Keep the following
summary tips in mind:
􀀀 Constantly Search Until You Find the Right Buyer No Shortcuts!
􀀀 Remain Positive at ALL Times!
􀀀 Qualify Your Tenant/Buyer Up Front
􀀀 NEVER Agree to Deferred or Partial Deposits
􀀀 Have a Lender on your team who is familiar with your Business Plan
􀀀 Remain Flexible and Honest.
􀀀 You Dictate the Terms!
Remember, you create equity when you negotiate your purchase price, and you convert
your equity to cash when you sell. With Lease Option Investing, you create larger sums
of cash over time. Lease Option Investing is wealth building with a shorter fuse.
47
Learning Objectives:
Chapter 7
How to put together joint venture lease options using none of your own money or
credit.
THE LEASE MODEL REVISITED
You have now seen how and where to find lease option deals, and also learned how to
run the numbers for your prospective deals. The next step is to learn how to work with
the buyers and sellers that are each critical in a successful sandwich lease option. With
that in mind, let’s see where you are at in the Model that accompanies the course:
The course content centers on the LEASE Model, an acronym that stands for:
􀀀 Locating Lease Option Deals
􀀀 Evaluating Profit Potential
􀀀 Attract Sellers and Buyers
􀀀 Secure the Deal
􀀀 Exiting the Transaction
The joint venture lease option allows you to put everything into practice that we have
already learned and add a creative financing strategy with it.
Step by step process to finding tenant buyers for JV lease options.
1. Prospective buyers approach realtors to buy a property.
2. Prospective buyers are asked if they are pre-qualified to buy.
3. Realtor sends prospective buyer to a mortgage lender to get approved.
4. Mortgage lender denies pre-approval. There are many reasons someone might
not qualify.
a. Lack of money for a down payment
b. Low credit scores
c. Self-employed (reporting less income because of verifiable business expenses.)
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d. New immigrant (many immigrants have cash but no credit) One must establish
credit when they immigrate from another country.
e. Job loss/Down-sizing
f. Medical hardship
g. Divorce
These situations happen all the time. Prospective buyers want to get into a property
and are denied. They may be close to qualifying but if they can’t get qualified now, they
have to wait and continue to rent instead of own even though they have a desire to be
homeowners.
This is especially important to note that realtors and mortgage lenders do not get paid if
the prospective buyer doesn’t qualify and is unable to purchase a home.
In this case no one wins. Our goal is to create win/win relationships whenever possible.
“If you help enough other people get what they want in life, you will get everything
that you want in life” Zig Ziglar
Talking to realtors and mortgage brokers.
First of all, most realtors and mortgage brokers want to talk to you if you are an
investor. They are both in sales and if you can offer them the ability to close more deals
you will be a valuable asset.
When networking with realtors and mortgage brokers ask them if they ever have a
client that wants to buy a property but can’t quite qualify. Preferably someone who is
close to qualifying but might be a few years from making it happen.
This is important to note. We don’t want to work with the clients they are currently
able to close deals with. We are looking for the ones that can’t close right now so they
are probably not making any money on these clients and if you can help them close any
of these deals you are huge benefit to their business. This needs to be communicated
when you are talking to them. You want to work with the clients who can’t get
qualified.
49
If you are talking to a mortgage broker or realtor and they say they don’t have anyone
move onto more realtors and mortgage brokers. If you talk to a few you will find that
most have multiple people like this. This is also important when markets are going up or
down.
In a down market people are losing jobs and might not be able to qualify because of
their personal situation. In a hot market people may get priced out of properties that
are becoming too expensive.
This should make you confident that ANY market will work for this strategy.
Once you talked to a realtor or mortgage broker and they have a client that might work
you can explain your program.
Explaining the JV lease option to relators and mortgage brokers.
Remember when you are talking to realtors and mortgage brokers about this strategy,
they may not be familiar with it and sometimes when people are unfamiliar, they will
look at it negatively. They may have pre-conceived opinions about lease option.
The best way to explain it is to explain that you or one of your JV partners are going to
be buying the property with a traditional investor mortgage. Generally, this is an 80%
loan and 20% for down payment. (One or both of these will come from the JV partner,
so it is not your money or credit!)
You or your partner buys the house for the prospective buyer (now they will be
considered our tenant buyer (TB)). The TB will actually work with the realtor, mortgage
broker and you to do the deal.
The realtor and the TB will spend the time looking for the house or houses that we will
be making offers on. This frees up your time as you won’t be spending a lot of time
looking at houses. This also gives the TB an ownership mentality as they are finding the
house they want. Remember the realtor is paid from the seller of the property so it is
fine if they look at properties that are for sale on the MLS (multiple listing service). You
will give the realtor and TB parameters of what price and type of house they can look.
Remember you and your JV partner are going to be purchasing the property with the
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intention of leasing it to the TB with an option to buy it when they qualify. You have to
make sure you think this property could be a good investment if something happens and
the TB can’t follow through with the lease option.
You are going to be working with the mortgage broker to see how long it will take the TB
to get qualified and what they will need to do in order to get qualified to buy. Ideally
you would want a TB who can qualify in three years or less. The mortgage broker would
be working with the TB closely for the duration of the lease option process to help them
get qualified. This is how the mortgage broker gets paid, so it is in their best interest to
help them through this process. A mortgage broker may also be paid a finder’s fee to
give you a prospective TB.
Obtaining investors to be JV partners on your JV lease option business.
It is not generally hard to explain to investors that investing in real estate is quite
lucrative and has some very strong tax advantages. The issue why many people don’t
want to invest in real estate are the perceived challenges of dealing with tenants and
property problems. If we can eliminate those problems, the challenges of getting
investors is greatly reduced.
Sample JV investor ad.
“Investors wanted. Great returns! No landlording, no talking to tenants, no fixing
toilets. All the benefits of real estate without the headaches! Call now!!!!”
You can also network at investment groups, meetups and generally anyone you talk to.
Our goal is to show them the money without the problems associated with real estate.
We will go through some sample numbers but on average you should be able to pay
investors 10-15% returns on their money. Sometimes you can pay significantly higher.
You do all the work to put the details of the deal together for basically 50% of the profit.
50% of something is better than 100% of nothing!!!
The JV partner will actually be the one using their credit and cash to buy the house.
They will be going on title, so they have good security on the deal. The best way to do
51
these types of deals is to have the JV partner use the mortgage broker that the TB is
using. It is a great motivator for the mortgage broker to get a mortgage with the same
mortgage broker. There is big incentive to the mortgage broker to work with you on
future deals.
The JV partner will bring the down payment money and use their credit to get the
property the TB and realtor have chosen. Ideally the goal is to get the property at a
reduced price from the asking price. Even if the property can’t be purchased at a
discount there is still room to make money in this type of deal.
The benefit to the JV partner is to get the return on the investment without the
problems of traditional real estate investing. You are going to put everything together,
so they have very little work to do other than to sign some paperwork. You will take
care of the management of the property. Since you have a tenant buyer you can require
them to take care of some or all of the repairs on the property. Remember the tenant
buyer is a homeowner in training so they will have to do it when they exercise their
option with you. The JV partner will be on title, so they have good security as well.
Once the realtor and TB find the property you will make the offer on it to get the best
price you can. The bigger the discount the more profitable the deal. The TB will be
required to pay for a home inspection. The seller and the JV partner will be the two
parties on the contract. They will pay the negotiated closing costs.
You will do a joint venture agreement with the JV partner. In the agreement all details
of your deal will be agreed upon as to who gets what and where the money and credit
are going to come from and how all profits are split. Make sure all details are in the
contract to protect you and your JV partner. Remember the goal is for both parties to
make money on this deal. If your JV partner is happy with their return on their
investment, they will be inclined to do more business with you in the future.
You can split the deal in an infinite number of ways. The easiest is generally to split
everything 50/50. Even if you have to give up a higher share of the deal, the returns for
you will be infinite so you have no money or credit in the deal. You will have multiple
profit centers in the NROC, the monthly cash flow and the appreciation on the property
not to mention mortgage paydown as well.

"Running the numbers on the JV lease option. Example"        
"Nice house/nice neighborhood."        
"Asking price/Fair Market value"    300000    
"Purchase price at asking price"    300000    
"Fair market rent"    2000    
"Assume a 3-year Lease option"        
"Tenant buyer has $9k to put down mortgage lender Says they need 5% of purchase price."        
"JV partner 80% Loan-to-value mortgage"    240000    
"JV partner 20% Down payment (investment) We will split the deal 50/50 with JV partner."    60000    
"Monthly rent from TB (10-40% above FMR)"    2400    
"Monthly payment for mortgage Principal and interest monthly"    1200    
"Taxes monthly"    400    
"Insurance  monthly"    100    
"Total monthly expenses"    1700    
"Monthly Cash flow"    700    
"3 year LO"    "x 36 months"    
"Total cash flow in 3 years"    25200    
"Property appreciation at 3% per year"    300000    
"Year 1"    "x   1.03"    
"$309,000
Year 2                                  x   1.03
$318,270"
"Year 3"    "x"    1.03    
       327818    
"Sale price at"        327818    
"Mortgage payoff in 3 years"        287000    
"Total difference on property"        40818    
"3-year cash flow"        25200    
"Total Gross profit"        65018    
"Mortgage lender needs 5% from tenant buyer Sale price to TB"        327818    
"TB needs this for down payment"        "X   5%
$16,390"    
"TB has $9k for NROC (give it back to them)"        -9000    
"Subtract NROC from needed down payment Take this from your profit."        7390    
"Gross profit from above"        65018    
"Credit to the tenant buyer"        7390    
"Total profit to split with JV partner"        58628    
"Investor/your share $68,628/2"        29314    
"Investors money in the deal is $60,000"            
"Investors return on investment $29,314/$60,000 Divide by 3 for each year. 48.86/3"    "= 48.86%"    "= 16.29%"    
"Per year investor ROI."            
"The joint venture lease option creates a great win/win scenario for all involved."
"Chapter 8"
"LEARNING OBJECTIVE"
"□ Review and practice using the paperwork that is essential to securing a sandwich lease option agreement with a seller
THE LEASE MODEL REVISITED
You are now well into the lease option process and it is time to learn how to secure the deals that will help boost your business and
provide valuable revenue. Let’s see where you are at in the Model that accompanies the course:
The course content centers on the LEASE Model, an acronym that stands for:
□ Locating Lease Option Deals
□ Evaluating Profit Potential
□ Attract Sellers and Buyers
□ Secure the Deal
□ Exiting the Transaction
THE IMPORTANCE OF PAPERWORK
Paperwork is a necessary tool for any professional real estate investor. It is as important as it is often feared and, for that reason, it is important that you take some time to review the forms you will need to complete lease option transactions. The better you are at being a master of the paperwork side of the business, the more attention you can give to the needs of your seller, putting you in a better position to negotiate better deals!
How comfortable are you with paperwork in general? Is this a fundamental that you feel you need help with when you attend real estate trainings? You need to get comfortable
with the paperwork, so it doesn’t show when you are talking to tenant buyers."

"Paperwork with Sellers: Summary
The paperwork you complete has three-primary purposes. First, it puts you in a secure position that protects your interest in your deal. Second, it gives you a certain amount of control over how the deal proceeds. Last, it sets the table for the numerous paydays you will have from a quality sandwich lease option.
Property Information Sheet:
□ Gather as much information from the seller while you have their attention.
Authorization to Release Information:
□ You want to be able to contact the seller’s lender or Insurance Company.
Letter of Instructions to the Lender/Title/Escrow:
□ Informs the lender as to why the payments and coupons should be sent to a different entity.
Residential Lease with Option:
□ Do not record unless your seller is not living up to his/her contractual rights. By recording this document, it may trigger the due on sale clause.
Memorandum of Option:
□ You will record this document to give yourself first right of refusal and prevent your seller from selling out from underneath of you or further encumbering the property. Also protects your equity if the property goes to foreclosure.
Addendum to Lease/Lease Option Agreement:
□ (Optional) Not notarized, not recorded. Allows changes to be made to the monthly payment based on increases in the taxes, insurance, homeowner’s association fees and any other easements.
NOTE: Contact your local Real Estate Professional or real estate attorney to research the appropriate documents that are required for all real estate transactions in your state."

"PAPERWORK WITH SELLERS: SAMPLES"
"□ The best way to become familiar with lease option paperwork is to review samples and then practice filling out the paperwork yourself. Naturally, the samples included in this section are for reference only; you’ll need to have your paperwork reviewed in your own area to make sure it is compliant with your state laws!
Once you have reviewed the samples, you’ll have a chance to go through it yourself, giving you valuable practice with both the paperwork itself and the process of presenting it to a client.
Contact Information:
Date: "
"SELLER: "
"SELLER:  "
"Home Phone:  "
"Work Phone:  "
"Cell Phone:  "
"Address: "
"e-Mail: "
"Asking Price:  "
"How Determined:  "
"Reason for Sale:  "
"Vacant or Occupied:  "
"Moving Date:  "
"Repairs Needed:  "
"FIRST MORTGAGE:"
"Loan Amount   Balance: "
"Rate:  Lender: "
"Account Number:   Due Date:  "
"Address:  PITI:  "
"PMI:  
Balloon:  "    "Telephone:  
Due Date:  "
"SECOND MORTGAGE:"
"Loan Amount   Balance: "
"Rate:  Lender: "
"Account Number:   Due Date: "
"Address:  PITI:  "
"PMI:  
Balloon:  "    "Telephone:  
Due Date:  "
"PROPERTY INFORMATION:"
"Beds/Baths:  "    "SQ. FT.:  "    "Lot:  "
"Construct:  "    "Garage:  "    "Built:  "
"Subdivision:  Gate Code: Taxes:  "
"HOA LstPy: HOA NxtPy: HOA Dues:  "
"INSURANCE
Company:   Agent:   Phone:  "
"Premium:   Renewal Date:  "
"Policy #:  "
"TANGIBLES:
Fridge:  Micro:   Range:  "
"Dishwasher: Washer: Dryer:  Other:  "
"SAMPLE AUTHORIZATION TO RELEASE INFORMATION"
"Lender:  Account or Loan #:   Borrower Name:   Borrower SSN:   Borrower       Name:        
Borrower SSN:  "
"I/We hereby authorize you to release any and all information regarding my loan, including loan status, interest rate, payoff amount, amount of monthly payment, late charges, penalties, and fees (if applicable) and any other information about our account that might otherwise be protected through the Right of Financial Privacy Act of 1978, Fair Credit Reporting Act, or any other federal, state, local or lender regulations to: Your Name, Title,
It is requested that this information be sent immediately to:"
"Borrower’s Signature  Date "
"Borrower’s Signature  Date "
"SAMPLE RESIDENTIAL LEASE WITH OPTION (Variation for
Sandwich LO)"
"THIS AGREEMENT made and entered into on by and between
(landlord/owner), hereinafter referred to as ""Lessor,"" and
(tenant/buyer), hereinafter referred to as ""Lessee."" Lessors lease to Lessees all the goods and chattels detailed in the inventory designated as Schedule ""A"" annexed hereto and specifically made a part hereof, and also that certain dwelling house situated at and more particularly described as follows:
Legal Description: To Be Attached
Together with all appurtenances for a period of one year to commence on
through with the right to four (4) consecutive terms of the original term with Lessee's notification to Lessor inwriting thirty (30) days prior to end of term.
1. RENT. Lessees agree to pay, without demand, to Lessors as monthly rent for the demised premises, the sum of , in which the payments are due on or before the tenth (10th) day of each month. The first payment will be due on or
before ."

"2. SECURITY & OPTION. Upon the execution of this lease, the Lessees shall pay unto the Lessors, the first month's rent as well as the sum of $100.00 as security for the faithful performance by Lessees of the terms hereof, to be returned to Lessees, without interest, on the full and faithful performance by them of the provisions hereof, plus the sum of $1,000.00 as down payment for the option to purchase the aforementioned property. This sum is nonrefundable.
3. USE. The Lessees shall use the premises hereby leased exclusively for a private residence. Lessees shall be permitted to access the above dwelling for the purpose of"
"showing the property to perspective tenants, contractors, and partners.
4. PERSONAL PROPERTY. All personal property placed or moved in the premises above described shall be at risk of the Lessees or owner thereof, and Lessors shall not be liable for any damage to said personal property, or to the Lessees arising from any act of negligence of any co-tenant or occupants of the building or of any other person whomsoever.
5. COMPLIANCE. The Lessees shall promptly execute and comply with all statutes, ordinances, rules, orders, regulations and requirements of the federal, state, and city government and of any and all their departments and bureaus applicable to said premises, for the correction, prevention, and abatement of nuisances or other grievances, in, upon, or connected with said premises during said term.
6. FIRE. Lessee will not allow any items on or in the dwelling, which will endanger the habitants or the premises. That in the event the premises are destroyed or so damaged by fire or other unavoidable casualty as to be unfit for occupancy or use, then the rent hereby reserved, or a fair and just proportion thereof, according to the nature and extent of the damage sustained, shall, until the said premises shall have been rebuilt or reinstated, be suspended and cease to be payable, or this lease shall, at the election of the Lessor, thereby be determined and ended, provided, however, that this agreement shall not be construed so as to extend the term of this lease or to render the Lessor liable to rebuild or replace the said premises.
7. ACCEPTANCE. Lessees hereby accept the premises in the condition they are in at the time beginning of this lease and agree to maintain said premises in the same condition, order and repair as they are at the commencing of said term, excepting only reasonable wear and tear. Lessee agrees to pay for all repairs costing less than
$500.00 per incident arising from the use thereof under this agreement, and to make good to said Lessors immediately upon demand any damage to water apparatus, or electric lights or any fixture, appliances or appurtenances of said premises, or of the building, caused by any act of neglect of Lessees, or of any person or persons in the employ or under the control of the Lessees. In the event of any default by Lessor or then in addition to any other remedies available to Lessee at law or in equity Lessee shall have the option to terminate this lease and all rights by giving written notice of
intention to terminate, via certified mail."

"8. TERMS OF CONTRACT. It is understood and agreed between the parties hereto that time is of the essence of this contract and this applies to all terms and conditions contained herein. Lessees shall have the unqualified right to sublet and/or assign, sell, transfer, and convey any rights which the Lessee or their administrators, successors, executors and heirs may have in this contract to a third party without written notice. Any assignment will release Lessees from any liability, as new assignee will accept all rights, obligations and responsibilities agreed upon in this agreement between Lessor and Lessees.
9. NOTICE. It is understood and agreed between the parties hereto that written notice by certified mail or delivered to the premises hereunder shall constitute sufficient notice to the Lessees and written notice by certified mail or delivered to the office of the Lessors shall constitute sufficient notice to the Lessors, to comply with the terms of this contract. The Lessor's mailing address is
."
"10.  RIGHTS. The rights of the Lessors under the foregoing shall be cumulative, and failure on the part of the Lessors to exercise promptly any given rights hereunder shall not operate to forfeit any of the said rights.
11.  UTILITIES. The Lessees shall be responsible for the payment of all utility bills (water, electricity, telephone, etc.) and specifically including, but not limited to glass breakage and all doors and screens. The Lessors will be responsible for all structural repairs, meaning thereof, exterior walls, foundation, and to pay all repairs costing greater than $500.00 per incident. In the event Lessor is delinquent on any payments required under this agreement to include repairs and maintenance, Lessee shall have the right to make such payments as necessary to cure defaults or make said repairs on behalf of the Lessor. Any payments made by Lessee will be credited to Lessee on a two-to-one basis (2 to 1). The closing agent will apply said credit toward thepurchase price at the time of closing.
12.  REPAIRS. The Lessees will permit the Lessors or their agent, at any reasonable time, to enter said premises or any part thereto for the purpose of exhibiting the same or making repairs thereto.
13.  RECOVERY. If either party of this agreement shall bring legal action for
enforcement of said agreement, the prevailing party shall recover the cost of the"
"proceedings including reasonable attorney fees.
14.  EMINENT DOMAIN. If the leased premises, or any part thereof are taken by virtue of eminent domain, this lease shall expire on the date when the same shall be so taken and the rent shall be apportioned as of said date. Lessee shall be entitled to FULL refund of any option consideration money and security deposits.
15.  BENEFIT. All covenants and agreements of this lease shall be binding upon and inure to the benefit of the heirs, executors, administrator and assigns of the Lessor and Lessee, without affecting the restrictions imposed by Section 3 hereof.
16.  RIGHT TO EXTEND. Lessee shall have the right to extend the agreement for six (6) months, for an additional fee of $1.00.
17.  CHATTELS. The said Lessees hereby pledge and assign to the Lessors all the furniture, fixtures, goods and chattels of said Lessees which shall or may be brought or put on said premises as security for the payment of the term herein reserved.
18.  VALIDITY. It is expressly agreed between the parties that if any clause of this lease be found unconscionable it shall not affect the validity of the remainder of this lease.
19.  ENTIRE AGREEMENT. Neither party has made any representation or promise, except as contained herein. Any and all modifications to this agreement must be in writing and signed by Lessee/Lessor and/ or assigns.
20.  INSPECTIONS. Real property taxes on the property, both general and special assessments, if any, for the current fiscal year shall be prorated for the close of escrow and be paid by the Lessor. Also, the Lessors shall provide the Lessees with a certificate from a licensed and bonded exterminator showing that there is no evidence of termite infestation in improvements on said property. Should termite eradication be required, the Lessors shall perform the same at their own expense. The Lessees shall examine the leasehold premises to determine that the premises are in good and inhabitable condition, as are the condition of the electrical, plumbing and heating system, and if they are not, said leasehold period shall not commence until the premises are in such inhabitable condition. In addition, the Lessees shall examine
said premises and prepare a list of those items damaged at the commencement of"

"the leasehold period. Lessees agree to notify Lessor immediately upon first discovery any signs of serious dwelling problems to include leaking roof, dysfunctional heating/air conditioning systems, spongy floor, crack in foundation, moisture in ceiling, leaking water heater or evidence of termites.
21.  PURCHASE. Lessees shall have the option to purchase said premises for the purchase price of . This option may be exercised at any time during the lease period upon notice to the Lessors in writing by certified mail. The Lessees shall place with ABC Title Company (title company/attorney), the option payment specified in paragraph (2) above paid by the Lessees to the Lessor in escrow as earnest money towards the purchase of said property. $100.00 (amount) of all rents paid by the Lessee up to the time of the exercise of the option shall be credited to the down payment. Should the Lessee exercise their option, the Lessors shall have ten (10) days to provide Lessees with an updated abstract showing their title to be good, marketable, and insurable. The Lessees shall close the transaction within seven (7) days from the delivery of said abstract. The closing costs incurred with closing escrow shall be paid at the close of escrow as follows: Lessee to pay for their own closing costs; Lessor to pay for their own closing costs. This lease shall terminate upon the closing of the subject property and the Lessee shall not be liable for any rent subsequent to the closing date. All monies put for security shall be returned to the Lessees at that time.
22.  CONTEXT. The terms Lessor and Lessee as herein contained shall include singular and/or plural, masculine, feminine, and/or assigns neuter, heirs, successors, personal representatives, and/or assigns wherever the context so requires or admits.
23. AGREEMENT. This agreement constitutes the entire agreement between the Lessee and the Lessor, as written. No further promises have been made to one another whether it is written or verbal.
24.  RIGHT OF RESCISSION. Lessee has fourteen (14) business days to cancel this agreement. The purpose of this right to cancel option is to allow Lessee time to properly inspect above said property. In the event that Lessee decides to cancel agreement within the allotted time; all deposits and options, consideration, and
monies shall be refunded promptly."

"25.  DISCLAIMER. Parties in this agreement by their signatures agree not to hold preparer of this document for any error, mistakes, omissions or negligence."
"Lessor:  Date "
"Lessor:  Date "
"Lessee:  Date "
"Lessee:   Date "
"State of  County of  "
"The foregoing instrument was acknowledged before me this day of ,
20 by who is/are personally known to me or who has/have produced as identification."
"Notary:
My Commission Expires:
(Seal)"
"Lease with Owner Agreement (When you are doing a Sandwich LO)"
"THIS LEASE AGREEMENT is made and entered into this day of , 20 by and between , hereafter referred to as “Landlord”,
and , hereafter referred to as “Tenant”. THIS LEASE AGREEMENT is conditional upon the Tenant’s approval within business days of the signing of this lease by the Tenant.
PROPERTY ADDRESS: Landlord leases to Tenant and Tenant leases from Landlord, upon the terms and conditions contained herein, the dwelling located at  in the city of
  , State of .
LEASE TERM: The said premises, as described above, with all appurtenances, are hereby leased to the Tenant for the period commencing on the:  day of ,
20  and thereafter until the  day of , 20 at which time this lease agreement shall terminate.
RENEWAL OF LEASE: For and in consideration of $ per/month the Landlord hereby grants the Tenant, at the Tenant’s sole and absolute unfettered discretion, the right to extend this lease for month(s).
RENT: Tenant shall pay as rent the sum of $ , per month, due and payable monthly on or before the fifth (5th) day of the month for which the rent is due.
Payments to commence upon the Tenant procuring a suitable sub-tenant or assignee.
For and in consideration of the mutual promise made by the parties, each to the other, the Landlord and Tenant hereby agree that $   of each rent payments made by the Tenant shall be applied toward reducing the purchase price if, and only if the Tenant exercises his/her option to purchase the above property, failing which all rentpayments shall be kept by the Landlord as rent.
ASSIGNMENT: Tenant shall be permitted the right of sub-letting or assignment. If this agreement is assigned with the approval of the Landlord, whose consent shall not be unreasonably withheld, Tenant shall be released from any further liability hereunder.
ACCESS: Tenant shall have immediate access to the property and a key to show the property to all prospective sub-tenants."

"INSURANCE: Landlord shall protect Tenant’s interest by maintaining property insurance upon the property naming Tenant as additional insured. In the event of destruction in whole or in part of the property, Tenant shall have the option to proceed with the Option to Purchase Agreement and accept the insurance proceeds for said damages, or to declare this agreement null and void, releasing both parties from any obligations hereunder, except for the return of all monies paid by the Tenant which shall become
immediately due and payable from the insurance proceeds."
   "Landlord’s Initial
Tenant’s Initials "
"DAMAGE BY FIRE: In the event that the building(s) is damaged by fire and through no fault of the Tenant and cannot be restored within a reasonable time in the opinion of the Tenant, this lease shall terminate with no further liability of either party, except for the return of all monies paid by the Tenant which shall become immediately due and payable from the insurance proceeds.
THE TENANT, in consideration of the leasing of said premises as aforesaid, covenants and agrees to the following:
□ to pay the rent for said premises as herein above provided
□ to keep the premises in good condition and state of repair and at the expiration of this lease to deliver up the same in as good condition as when entered upon, less normal wear and tear, except for loss by fire, inevitable accidents, or an act of God.
UTILITIES/SERVICES: Tenant agrees to pay all utilities and services with the exception of the following, which the Landlord agrees to pay: homeowner’s fees, insurance, and taxes.
MERGER CLAUSE: This agreement shall constitute the full and complete understanding of the parties and supersedes all prior written or oral agreements. There shall be no further additions or changes to this agreement unless the same is reduced to writing
and signed by both parties."

"ALL STATE LAWS OF APPLY and Landlord guarantees rents are in accordance to State laws.
Landlord Signature                            Date
Tenant Signature                             Date"
"Option With Owner Agreement (When you are doing a Sandwich LO)"
"THIS PURCHASE OPTION AGREEMENT is made and entered into this day
of 20 by and between OPTIONOR:
and OPTIONEE: .
PROPERTY ADDRESS: The dwelling is located at in the city of , State of ."
"THE OPTIONOR AND THE OPTIONEE MUTUALLY AGREE subject to terms and conditions hereof, and subject to the Optionee exercising their option in the manner provided for in this agreement, the Optionor and the Optionee shall close on the terms outlined in the Offer To Purchase Agreement attached to this Option With Owner Agreement.
THE OPTIONOR AND THE OPTIONEE MUTUALLY AGREE that TIME IS OF THE ESSENCE
for this agreement.
□ IN CONSIDERATION of $ representing the option consideration or purchase deposit (which shall be credited to the purchase price of the property if the Optionee exercises his Option to purchase said property as outlined in attached Offer To Purchase Agreement), the receipt of which is acknowledged by
, the Optionor, and the Optionee meeting all obligations as stated herein, the Optionor hereby grants the Optionee an Option to Purchase the above stated property under the following terms:
□ OPTIONOR GRANTS to Optionee, the right to purchase the above property or purchase and resell at any time so long as it is done within the terms of this agreement and the attached Offer To Purchase contract.
□ OPTIONOR AGREES not to indebt the property for any more than the agreed purchase price during the term of this option.
□ OPTIONOR FURTHER AGREES to supply proof of tax payments within 15 days following the due date."

"□ ·OPTIONOR FURTHER AGREES to make all mortgage payments in a timely manner.
□ OPTIONOR AGREES that upon exercise of the option the Optionee shall be credited with $ from each monthly rental payment of $ ."
"□ THE PURCHASE PRICE shall be $ at the time the option is exercised less any Rent Credit.
□ OPTIONOR UPON PAYMENT OF SAID PURCHASE MONEY, SHALL CONVEY the said
premises to the Optionee by way of a Deed free of all encumbrances except: any encroachments and zoning infractions, and any overriding or superseding provisions at Land Titles already registered on title.
□ OPTIONOR SHALL PROVIDE to the Optionee a real property report at closing or shall furnish a policy of title from a reputable title insurance company at his/her expense.
□ OPTIONOR SHALL at his/her expense make all repairs over $ per repair.
□ OPTIONOR SHALL PROTECT Optionee’s equitable interest by maintaining hazard insurance upon the property, naming the Optionee as additional insured. Optionee, at his/her sole and unfettered discretion, may proceed with the closing and accept the insurance proceeds for said damage, or declare this agreement null and void, releasing both parties from any obligations hereunder, except for the return of monies paid by Optionee which shall become immediately due and payable from the insurance proceeds.
□ OPTIONOR GUARANTEES that the building meets all fire codes, city codes, and zoning bylaws, or will make the necessary repairs to meet these by-laws before closing. Optionor further guarantees that the present use of the property may be lawfully continued and if within the time period of this Option To Purchase any valid objection is made in writing to title or nonconformity with municipal orother governmental enactments, which the Optionor shall be unable or unwilling to remove, remedy or satisfy, and which the Optionee will not waive, this agreement
shall be null and void notwithstanding any intermediate acts or negotiations in"

"respect of the objection, the Optionor shall refund to the Optionee all monies paid by the Optionee to the Optionor.
□ OPTIONOR AGREES that if there are any outstanding work orders or deficiency notices which the Optionor does not repair or rectify before the date of completion, the Optionee shall be entitled to an abatement of the purchase price for the cost of repair or rectification.
□ OPTIONEE SHALL HAVE IMMEDIATE ACCESS to the property and a key to show the property to all prospective sub-tenants and/or assigns.
□ _ INSPECTION: This agreement is subject to a final inspection and approval of the property in writing by the Optionee, prior to taking possession, and such inspection and approval to be at the Optionee’s sole discretion.
□ CLOSING COSTS: All closing costs pertaining to the purchase shall be payable by
  .
□ RIGHT TO CANCEL OPTION: The Optionee has days to cancel this Purchase Option Agreement. In the event that the Optionee decides to cancel the contract within the allotted time all Option Consideration or deposit monies will be promptly refunded.
□ DEFAULT BY OPTIONOR (PAYMENTS): In the event the Optionor is delinquent on any payments, such as mortgage, taxes, insurance, required under this agreement or pertinent to the above property the Optionee shall have the right to make such payments as necessary to cure said default on behalf of the Optionor. All future payments shall be made into escrow for distribution to appropriate parties and escrow costs to be paid by Optionor. Upon the payment of funds being made into escrow by the Optionee due to Optionor being delinquent on any payments, if the monthly costs incurred by the Optionee to ensure the timely payment(s) of any or all of the mortgage payment(s), taxes, insurance, legal or any other associated costs such as late penalties or fees, should be greater than the total amount of monthly rent the Optionee pays to the Optionor as per the attached Lease With
Owner Agreement, the Optionor shall reimburse Optionee, without deduction or"

"set-off, the entire difference between the rent and the actual cost(s) within three
(3) business days of receipt of proof of payment from the Optionee or the Optionee’s agent or solicitor. In the event that the Optionor fails to reimburse Optionee for said difference within three (3) business days of receipt of proof of payment then both parties mutually agree that the Optionee will be compensated on a 2 to 1 basis which will be offset against the purchase price.
□ DEFAULT BY OPTIONOR (MAINTENANCE AND REPAIR): In the event the Optionor fails to complete repair/maintenance (as deemed necessary by the Optionee upon notice to the Optionor) of which the Optionor agrees to be wholly responsible for any repairs/maintenance that exceed $ per repair, the cost of which such repair/maintenance shall be determined by the Optionee providing a quote for such repair/maintenance by an (state.) licensed contractor at the time of notice, which such contractor’s quote provided for by the Optionee at the time of notice by the Optionee shall be considered conclusive proof that the cost of the repair/maintenance is not less than $ per repair, the Optionor within 10 days of being notified shall pay the contractor directly for said repair/maintenance and provide proof of same to Optionee, failing which the Optionee shall have the option to make such repair/maintenance or payment of said repair/maintenance and seek reimbursement from Optionor by submitting proof of payment of said repair/maintenance to Optionor. Optionor shall reimburse Optionee, without deduction or set-off, within three (3) business days of receipt of proof of payment from the Optionee. In the event that the Optionor fails to reimburse Optionee for said repairs within three (3) business days of receipt of proof of payment then both parties mutually agree that the Optionee will be compensated on a 2 to 1 basis which will be offset against the purchase price.
□ OPTIONEE SHALL BE PERMITTED THE RIGHT OF ASSIGNMENT. The Optionee may
assign this Option and the Offer To Purchase Agreement arising from it. If this agreement is assigned with the approval of the Optionor, whose consent shall not be unreasonably withheld, Optionee shall be released from any further liability hereunder.
□ OPTIONOR AGREES that if the accompanying lease end date is extended the option to purchase period stated in this Option With Owner Agreement will be"

"extended to match the extended date of the extended lease agreement. Furthermore, the Optionor agrees that the closing date on the Offer To Purchase Contract will also be extended to match the extended Lease and Option With Owner Agreement dates.
□ THE OPTIONOR AND THE OPTIONEE MUTUALLY AGREE that this agreement is binding upon any heirs, assigns and or executors of the Optionor and or the Optionee.
□ ACKNOWLEDGEMENTS: The undersigned Optionor acknowledges that s/he has read this Purchase Option Agreement, understands it, agrees to it, and has been given a copy. S/he further has been advised to seek legal, tax, technical expertise, and any other counsel of their choosing concerning this contract prior to signing and does not rely on any representations made by the Optionee in entering into this agreement. This agreement shall constitute the full and complete understanding of the parties and supersedes all prior written or oral agreements.
Optionor                                  Date
Optionee                                  Date"

"Tenant Lease Agreement (For a purchase LO TB or a JV LO TB)
THIS LEASE AGREEMENT is made and entered into this day of ,
20 by and between , hereafter referred to as “Landlord”, and , hereafter referred to as “Tenant”."
"PROPERTY ADDRESS: Landlord leases to Tenant and Tenant leases from Landlord, upon the terms and conditions contained herein, the dwelling located
at in the city of , State of ."
"LEASE TERM: months for the period commencing on the: day
of ,and thereafter until the day of ,
20 at which time this lease agreement shall terminate."
"RENT: Tenant shall pay as rent the sum of $ per month, due and Payable monthly on the first day of the month. Rent may be mailed through the Post Office at the Tenant’s risk. Any rents that are late or lost in the mail are treated as if unpaid until received by Landlord. Tenant further agrees to pay a late charge of $25.00, plus $5.00 a day, for each day the entire rent is not received by the Landlord by the first day of the month regardless of the cause, including insufficient checks, time being of the essence. If rent is received after the first of the month and late fees as defined herein are not included with such payment, rent is considered unpaid. Any payment received by Landlord is applied firstly toward collection costs, including costs of a lawyer and his own client full indemnity basis, secondly towards rental arrears and then towards rent.
An additional Service Charge of $50.00 will be paid to Landlord for all insufficient checks. If Tenant checks are insufficient, Landlord shall have the right to demand certified check or money orders on all future payments. If any State rent control laws do not allow the above procedure or any procedure contained in this lease, then the State law(s) shall
prevail."
"OCCUPANTS: Tenant agrees to use said dwelling as occupancy only for adults and children whose names are as follows:"
"And to pay an additional $50.00 each month for each additional person who shall occupy the premises in any capacity and is not listed above.
PETS: Any pets kept on the property without the permission of the Landlord in writing shall be a breach of this lease. The following pet(s) shall be kept on the premises:
Landlord requires a picture of the pet(s) and copy of Rabies and Distemper Vaccination.
NO ASSIGNMENT: Tenant agrees not to assign this lease, nor to sublet any portion or the property, nor to allow any other person to live therein other than persons named above without first obtaining written permission from Landlord. Tenant will be responsible for all administrative costs incurred by Landlord.
Further, it is agreed that covenants contained in this lease, once breached, cannot afterward be performed and that legal proceedings may be commenced at once, without notice to the Tenant, (other than any notice required by State laws).
Landlord’s Initials
Tenant’s Initials "

"ENFORCEABILITY: Should any provisions of this lease be found to be invalid or unenforceable, the remainder of the lease shall not be affected thereby, and each term and provision herein shall be valid and enforceable to the fullest extent permitted by law.
NO WAIVER: All rights given to the Landlord by this lease shall be cumulative to any other laws, which might exist or come into being. Any failure of the Landlord to enforce any of the provisions or restrictions herein contained shall in no way be deemed a"
"Heat        Electricity      Garbage       Water/Sewer
waivTearxeosf the right toTedloepshootnhereafter oGr ainss/iOstilupon strict cAosmsopclianticoenoFfetehse terms hereSonfo.wNoResmtaotevmalent or promise of theLLaawnndloCardre, servants or his agent as to tenancy, repairs, alterations, or other terms and conditions shall be binding unless reduced to writing and signed by Landlord.
UTILITIES: Tenants are responsible for the payment of the following utilities:
and any other bills incurred during the term of this lease.
INSURANCE: Tenant agrees it is the responsibility of the Tenant to insure the Tenant’s property on the premises against damage or loss of such property occasioned by fire, theft and any other perils. The Tenant’s policy shall waive all rights of subrogation against the Landlord and its servants, agents and contractors. The Tenant hereby waives and releases the Landlord from any liability whatsoever for damage or loss to any persons or property whatsoever which occurs in or in connection with the Premises and any improvements, building or property thereon or from the Tenant’s use of the premises however caused, including loss due to negligence or fault of the Landlord and its servants, agents or contractors (Tenant to look to its own insurance and insurers for recovery of and protection against any such loss or damage). Without limiting the generality of the foregoing, the Landlord shall not be responsible for any loss of Tenant’s property in the premises or stored in, at or near the building due to any cause whatsoever.
Tenant shall on demand provide a copy of insurance to the Landlord. Tenant is hereby notified to obtain insurance to cover loss on his/her personal belongings located in the Premises or on the grounds where Premises are situated.
Initial:
EMERGENCY ACCESS: Landlord has the right of emergency access to the leased premises at any time and access during reasonable hours to inspect the property or show it to prospective tenants with a 24-hour notice to Tenant. Landlord shall retain a key at all times. If the Tenant wishes to change the locks, s/he must notify the Landlord
in writing and provide a new key immediately."


 

"CONDITION OF PREMISES: Landlord and Tenant hereby agree to inspect the Premises at the commencement of the tenancy and upon termination or expiration of this Agreement, and that the condition of the premises at the aforesaid times will be noted on the Inspection Report which forms part of this agreement. The Inspection Report will be signed by both the Landlord and the Tenant. The Inspection Report may be used and relied upon by the Landlord as proof of the condition of the Premises at the time of Inspection and for determining damages and or seeking appropriate deductions or compensation from the Tenant. Landlord reserves the right to take photographs at both aforesaid times for further documentation to the condition of the Premises.
MAINTENANCE COSTS: The Tenant shall be responsible for the cost of repairing plugged toilets, sinks, and drains, and for the cost of replacing all windows and screens broken by the Tenant, employees, contractors, invitees or guests. The Tenant shall be responsible for replacing light bulbs, fluorescent tubes, stove fuses, broken toilet seats and any other damaged items. The tenant shall be responsible for damages caused by windows and doors being left open including cost of repairing and cleaning. The Tenant shall also be responsible for damage due to fire caused by the Tenant negligence i.e.: careless smoking, cooking, etc. The Tenant agrees to immediately report to the Landlord any and all damage that may occur to the Premises and or Property by way of, but not limited to, accident, breakage or defect throughout the continuance of this tenancy. In the event Tenant fails to complete maintenance/ repairs, that are the responsibility of the Tenant, the Tenant agrees to immediately reimburse Landlord for all monies expended to complete said repairs.
AID IN MAINTENANCE: The Tenant shall cooperate with the Landlord in the care and maintenance of the Premises and or Property including any improvements.
Landlord’s Initials Tenant’s Initials"

"DEFAULT: To further clarify the terms of this lease, the Tenant shall make certain that rent is received by the Landlord by the first of the month or the Landlord shall consider this lease to be breached and terminated if the rent has not been received before midnight on the first day of the month that the rent was due. The acceptance by Landlord of partial payments of rent due shall not, under any circumstances, constitute
a waiver of Landlord, nor affect any notice or legal proceedings therefore given or"
"commenced under state law. If Tenant defaults on any other provisions of the lease, including but not limited, to any misrepresentations on Tenant’s application, Landlord, at his/her option, can elect to continue the lease or terminate the lease and take possession of the property by any legal means available to him/her. Landlord is not required to give any notice to cure a violation of the lease, other than what is required by law.
ORDINANCES & STATUTES: Tenants shall comply with all municipal, state, and federal laws, statutes, and ordinances now in effect, or which shall be enacted in the future, and any violation of such shall be a complete and material breach of the lease.
LEGAL ACTION: Tenant agrees without protest, to reimburse Landlord for all actual and reasonable expenses incurred by way of Tenant’s violation of any term or provisions of this lease, including but not limited to a $50.00 fee for each notice, Notice to Quit, or other notices mailed or delivered by Landlord to Tenant due to Tenant’s non-payment of rent or other breach of lease, all court costs and including costs of a lawyer and his own client full indemnity basis , and all collection costs. Any such costs are due immediately as additional rent. Any payments received by Landlord will be applied first towards late fees and/or other additional charges, then toward rent. Both Landlord and tenant waive trial by jury and agree to submit to the personal jurisdiction and venue of a court of subject matter whose jurisdiction is located in the area in which the property is located. In such event, no action shall be entertained by said court or any other court of competent jurisdiction, if filed more than one (1) year subsequent to the date the cause(s) of action accrued.
WAIVER OF CLAIMS: Tenant hereby waives any and all rights to assert affirmative
defenses or counterclaims in any eviction action instituted by Landlord with the exception of an affirmative defence based upon payment of all amounts claimed by the Landlord not to have been paid by the Tenant. Other matters may be only advanced by Tenant in a separate lawsuit.
DAMAGE BY FIRE: In the event that the building(s) is damaged by fire and through no fault of the Tenant and cannot be restored within a reasonable time in the sole and unfettered discretion of the Landlord, this lease shall terminate with no further liability of either party.
MERGER CLAUSE: This agreement shall constitute the full and complete understanding"

"of the parties and supersedes all prior written or oral agreements. There shall be no further additions or changes to this agreement unless the same is reduced to writing and signed by both parties.
Landlord                                   Date
Tenant Signature                             Date
Tenant Signature                             Date"
"Purchase Option Contract"
"OPTIONOR: "
"OPTIONEE:  "
"IN CONSIDERATION of the Optionee meeting all obligations as stated herein, the Optionor hereby grants the Optionee an Option to Purchase under the following terms:
OPTIONEE SHALL HAVE THE OPTION TO PURCHASE the property located at:
THIS OPTION WILL EXPIRE WITHOUT NOTICE AND SHALL BE OF NO FURTHER EFFECT IF NOT EXERCISED ON OR BEFORE:
, 20 ."
"1. NOTICE MUST BE DELIVERED TO THE OPTIONOR IN WRITING of Optionee’s intention
to exercise this Option to Purchase at least days prior to the exercise date stated above. This Option to Purchase is NOT contingent upon Optionee’s ability to obtain financing from a Lender or any other contingency. Optionee understands that TIME IS OF THE ESSENCE for this agreement, and that the Optionee’s failure to exercise their Option in the manner prescribed herein, or the failure to purchase the property by the specified closing date, for any reasons, will result in the immediate cancellation of this Agreement and this Agreement will be deemed null and void by the specified closing date. ALL MONIES paid by the Optionee will be retained by the Optionor as liquidated damages.
2. OPTIONOR AND OPTIONEE AGREE THAT THIS CONTRACT IS NOT an instalment
contract, contract for deed or equitable mortgage, but merely Optionee’s Option to Purchase the above referenced property under the terms stated in this agreement.
3. OPTION PRICE: The option price is $ . The terms of the purchase are as follows:"
"4. The following items will be prorated at closing:  "
"5. OPTION CONSIDERATION: Optionee has paid the sum of $ as a non- refundable option consideration which shall be applied toward the down payment on the property, if and only if Optionee exercises the Option to Purchase. In the event that the Optionee fails to exercise the Option to Purchase, or defaults under any terms of a lease entered into with the Optionor, this Option to Purchase shall be null and void and all monies will be retained by the Optionor as liquidated damages and
not as a penalty."
   "Optionor’s Initials
Optionee’s Initial "
"6. DEFAULT: Optionee agrees and understands that a fundamental condition of this Option Contract is that all terms and conditions of both the Optionee’s lease and or this Purchase Option Contract must not be in default, or expired, or this Option Contract will be null and void. To further clarify, all covenants of said lease agreement must have been faithfully performed in order for this Option To Purchase to be valid and enforceable. This includes, but is not limited to, the repairs, maintenance and upkeep of said property, payment or other obligations required under such lease. Default of any of the terms and conditions of said lease will result in this Option To Purchase, being automatically null and void and any monies paid hereunder as option consideration will be retained by Optionor as liquidated damages and not as a penalty. “Substantial Default” includes, but is not limited to, failure to make any lease payments by midnight on the 1st day of themonth.
Optionor’s Initials
Optionee’s Initials
7. RECORDING: A filing of a caveat against the subject legal title by the Optionee, referring to potential rights under this Option of Purchase, will result in the automatic revocation and cancellation of this Option To Purchase and all monies will be retained by the Optionor as liquidated damages and not as a penalty. In addition, Optionee will be liable to Optionor for all incidental and consequential damages for slander of title or the wrongful filing of a caveat, including but not limited to solicitor and his
own client costs on a full indemnity basis."

"8. OPTION CREDIT: In the event the Optionee exercises the Option a credit of
$ of each monthly payment that is received on or before midnight on the 1st of the month will be applied as additional Option to Purchase consideration towards the down payment. Under NO circumstances will a credit of $  of each monthly payment that is received AFTER midnight on the 1st day of each month be applied towards the down payment.
9. THIS OPTION TO PURCHASE, OR ANY INTEREST THEREIN, IS NOT TRANSFERABLE OR
ASSIGNABLE and the Option To Purchase can only be exercised by the individual(s) signing this Option To Purchase Agreement.
10.  REPAIRS: The Optionee shall be responsible for all repairs, maintenance, costs, service charges, painting improvements, and additions to the property on a per- occasion basis. All repairs that have the potential of exceeding $ per occasion must be approved in writing by the Optionor prior to the commencementof any work or purchase of materials related thereto.
11.  Optionee shall take an active role to ensure that the property stays in excellent condition. Optionee agrees that s/he has had adequate opportunity to inspect the condition of the property, the improvements, utilities, electrical, plumbing, appliances or any latent defects of the property or the neighbourhood. Optionee has the right to paint and decorate the property at his/her discretion within tasteful guidelines. Optionee agrees to get written acceptance from the Optionor to accept the colour of the paint to be used either inside or outside or before making any alterations or additions to the property. Optionee further agrees that all work that requires a permit from the city is at the Optionee’s expense and responsibility. All work performed on the building either by Optionee or other Contractors or any other parties shall be as an independent contractor or agent of the Optionee and not as an agent or employee of the Optionor. Optionor has no right of supervision of the work performed. Optionee further warrants that s/he will be accountable for any mishaps and/or accidents resulting from such work, and will defend, indemnify and hold the Optionor or his/her agent free from any claims from any other person, corporation, or entity. Optionee further acknowledges and agrees that all improvements, of any kind, to the property belong to the Optionor until such time that the Optionee actually becomes owner of the property pursuant to this Agreement.
Optionor’s Initials "

"Optionee’s Initials "
"12.  ORDINANCES & STATUTES: Optionee shall comply with all municipal, state, and federal laws, statutes, and ordinances now in effect, or which shall be enacted in the future, and any violation of such shall be a complete and material breach of this Purchase Option Agreement. Furthermore, Optionee shall abide by any and all condominium rules, regulations & bylaws, as well as any restrictive covenants and caveats on title. Optionee has no authority to, and shall not cause any lien to be placed against the subject legal title. In addition, Optionee will be liable to Optionor for all incidental and consequential damages for slander of title or the wrongful filing of a caveat, including but not limited to solicitor and his own client costs on a full indemnity basis.
13.  ACKNOWLEDGEMENTS: The undersigned Optionee acknowledges that s/he has read this Option Contract, understands it, agrees to it and has been given a copy. S/he further has been advised to seek legal, tax, technical expertise and any other counsel of their choosing concerning this contract and prior to signing. . This agreement shall constitute the full and complete understanding of the parties and supersedes all prior written or oral agreements. There shall be no further additions or changes to this agreement unless the same is reduced to writing and signed by both parties.
Optionor                                  Date
Optionee                                  Date
Optionee                                  Date"

"Purchase Option Contract"
"THIS PURCHASE OPTION CONTRACT is made and entered into this day of
by and between:
OPTIONOR: (Your Management Co.) (referred to herein as Optionor) OPTIONEE: (Tenant Buyer) (referred to herein as Optionee)."
"1. IN CONSIDERATION of the Optionee's promises herein AND of other valuable consideration AND the sum of One Dollar ($1.00) now paid by each party to the other(s), the receipt and sufficiency of which is hereby acknowledged by each party AND subject to the terms and conditions set out in this agreement, the parties agree as follows:
2. Provided that the Optionee has never been in default pursuant to the Optionee’s Tenant Lease Agreement (“Lease”) nor this Purchase Option Contract, OPTIONEE SHALL HAVE THE OPTION TO PURCHASE (the “Option to Purchase”) the property located at  (the ""Property"").
3. THIS OPTION WILL EXPIRE WITHOUT NOTICE AND SHALL BE OF NO FURTHER EFFECT IF NOT EXERCISED ON OR BEFORE (“Option
Expiry Date”):
4. The Optionee, desiring to exercise the Option to Purchase on the Option Expiration Date, must give the Optionor written notice (“Notice”) at least 90 days prior to the Option Expiration. The Optionee understands that the exercise of the Option is not to be conditional on the Optionee obtaining satisfactory financing; and the Optionee shall, before exercising the Option to Purchase, first satisfy itself that it has an appropriate mortgage commitment. Optionee understands that TIME IS OF THE ESSENCE for this agreement, and that the Optionee’s failure to exercise the Option to Purchase in the manner prescribed herein, or the failure to purchase the property by the specified Option Expiration Date, for any reason, will result in the immediate Termination of this Agreement and the Option to Purchase shall be deemed null and void by 5:01 p.m. on the specified closing date. ALL MONIES paid by the Optionee will be retained by the
Optionor as liquidated damages."

"5. OPTIONOR AND OPTIONEE AGREE THAT THIS CONTRACT IS NOT an installment
contract, nor a contract for deed, nor a contract for sale (or like document) nor equitable mortgage (or like document), but merely Optionee’s Option to Purchase the above referenced property under the terms stated in this agreement.
6. PURCHASE PRICE OF THE PROPERTY: The purchase price of the Property is
The purchase price shall be paid by credit for the initial Option Consideration as described below plus the amount of any Additional Option Consideration amount and any other Option Consideration as accumulated over the term of the Option Agreement plus the remaining purchase amount due on closing of the purchase as follows:
7. The Optionee to obtain new unconditional financing on or before “date” (30 days before closing)
8. The applicable Purchase Price shall be subject to adjustments. Real Estate taxes, including local improvement rates; mortgage interest; rentals; unmetered public or private utilities and fuel where billed to the Unit and not the Condominium Corporation; are to be apportioned and allowed to the day of completion, the day of completion itself to be apportioned to the Optionee. If this is a condominium, the following also applies; Common Expenses and there shall be no adjustment for the Optionor's share of any assets or liabilities of the Condominium Corporation including any reserve or contingency fund to which Seller may have contributed prior to the date of completion.
9. THE OPTION CONSIDERATION: The Optionee agrees to pay the Optionor the sum of $ for this Option to Purchase and the Option Consideration shall be paid as follows:
10.    The entire Option Consideration is non-refundable. The Option
Consideration amount shall be applied toward the down payment on the property if and only if Optionee exercises the Option to Purchase."

"11.   MONTHLY PAYMENTS - Additional Option Consideration: The Optionee agrees to pay the Optionor, in addition to the terms set out in the Tenant Lease Agreement, the sum of $ on the first day of each month (""Additional Option Consideration"").Subject to Paragraph 9 hereof, the Optionor shall have no obligation to repay to the Optionee the Additional Option Consideration if the Optionee defaults pursuant to the Lease, does not exercise the Option as herein provided, and/or does not complete the purchase of the Property. The Optionee acknowledges that rent paid pursuant to the Lease shall NOT be applied to the Purchase Price.
12.   DEFAULT: Optionee agrees and understands that a fundamental condition of this Purchase Option Contract is that all terms and conditions of both the Optionee’s Lease and/or this Purchase Option Contract must not be in default, or expired, or this Purchase Option Contract will be null and void. To further clarify, all covenants of said Lease and this Purchase Option Contract must have been fully performed by the Optionee in order for this Option To Purchase to be valid and enforceable. This includes, but is not limited to, the repairs, maintenance and upkeep of said property, payment or other obligations required under such Lease and or Option to Purchase. Default of any of the terms and conditions of said Lease and or Option to Purchase by the Optionee will result in this Option To Purchase being automatically null and void and any monies paid hereunder as option consideration will be retained by Optionor as liquidated damages and not as a penalty. Default includes, but is not limited to, failure to make any lease or monthly option consideration payments by midnight on the 1st day of themonth.
The Optionee agrees that the Optionee’s rights herein are subject to the Optionee complying with all of the terms and conditions of the Lease and of this Purchase Option Contract. If the Optionee defaults pursuant to the Lease, that default shall be deemed to be default pursuant to this Purchase Option Agreement. The Optionee acknowledges that this term is fundamental to this agreement without which the Optionor would not have entered into this
agreement."

"Optionee’s Initials:  "
"REGISTRATION OF THIS PURCHASE OPTION CONTRACT ON TITLE:
13.   A filing of a caveat against the subject legal title by the Optionee, referring to potential rights under this Option of Purchase, will result in the automatic revocation and cancellation of this Option To Purchase and all monies will be retained by the Optionor as liquidated damages and not as a penalty. In addition, Optionee will be liable to Optionor for all incidental and consequential damages for slander of title or the wrongful filing of a caveat, including but not limited to a lawyer and his own client costs on a full indemnity basis.
14.   OPTION CREDIT: Upon the closing of the Purchase following the exercise of the Option, the Optionor shall give the Optionee a credit in the amount of
$ (“Option Credit”) for each month the Additional Option Consideration was paid in full and on time.
15.   THIS OPTION TO PURCHASE CONTRACT, OR ANY INTERESTS ARISING FROM OR CONTAINED HEREIN, ARE NOT TRANSFERABLE OR ASSIGNABLE and the
Options To Purchase can only be exercised by the individual(s) signing this Purchase Option Contract.
16.   REPAIRS, MAINTENANCE AND INSURANCE: The Optionee shall be responsible for all repairs, maintenance, costs, service charges, painting improvements, and additions to the property up to  on a per-occasion basis. All repairs that have the potential of exceeding  per occasion must be approved in writing by the Optionor prior to the commencement of any work or purchase of materials related thereto. The Optionor agrees that it is responsible for all amounts over   on a per occasion basis other than those uncovered during the building inspection and/or highlighted in the ""Building Inspection Sign Off Form"" - Schedule A.
17.   The Optionor has disclosed all relevant facts about the property. The Optionor makes no representation about any aspect of neighborhood or other facts or knowledge that are in the public domain of which the Optionor may or
may not have knowledge."

"18.   Optionee shall take an active role to ensure that the property stays in excellent condition. Optionee agrees that s/he has had adequate opportunity to inspect the condition of the property, the improvements, utilities, electrical, plumbing, appliances or any defects of the property or the neighbourhood. Optionee has the right to paint and decorate the property at his/her discretion within tasteful guidelines. Optionee agrees to get written acceptance from the Optionor to accept the colour of the paint to be used either inside or outside or before making any alterations or additions to the property. Optionee further agrees that all work that requires a permit from the city is at the Optionee’s expense and responsibility. All work performed on the building either by Optionee or other Contractors or any other parties shall be as an independent contractor or agent of the Optionee and not as an agent or employee of the Optionor. Optionor has no right of supervision of the work performed. Optionee further warrants that s/he will be accountable for any mishaps and/or accidents resulting from such work, and will defend, indemnify and hold the Optionor or his/her agent free from any claims from any other person, corporation, or entity. Optionee further acknowledges and agrees that all improvements, of any kind, to the property belong to the Optionor until such time that the Optionee actually becomes owner of the property pursuant to this Agreement.
19.   ORDINANCES & STATUTES: The Optionee and the Optionor shall comply with all municipal, state/provincial, and federal laws, statutes, and ordinances now in effect, or which shall be enacted in the future, and any violation of such by the Optionee shall be default pursuant to this Purchase Option Contract.
Furthermore, the Optionee and the Optionor shall abide by any and all restrictive covenants and caveats on title.
20.   Optionee has no right to, and shall not cause any lien to be placed against the subject legal title. Optionee will be liable to Optionor for all incidental and consequential damages for slander of title or the wrongful filing of a caveat, including but not limited to solicitor and his own client costs on a full indemnity basis.
21.   ACKOWLEDGEMENTS: The Optionees acknowledge that they have read and understood this Purchase Option Contract, have been given an executed copy of
same. The Optionees to this contract further have been advised to seek legal, tax,"

"technical expertise and any other counsel of their choosing concerning this contract prior to signing. This supersedes all prior written or oral agreements. There shall be no further additions or changes to this agreement unless the same is reduced to writing and signed by both parties.
22.   SUBJECT TO OTHER AGREEMENTS: The parties to this contract specifically acknowledge and agree that this Purchase Option Contract is subject to and shall be interpreted in accordance with the Renting to Own Payments Agreement executed by the Optionee on the day of , 20 and the Lease entered into by the parties on the day of ,
20 ."
"23.   BINDING EFFECT: This Purchase Option Contract and the agreements referred to herein shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors and assigns.
24.   THIS OPTION is subject to the Optionor becoming the registered owner of said property by , 20 ."
"(Handwritten Notes)
1. “I understand that if I am behind on my rent payments, I will be evicted as permitted by state/provincial law, and I forfeit all option considerations and any rental credits that may have built up.”
2. “I understand that I am responsible for repairs up to $ per repair.”
3. “I understand that if I am late, which is after midnight on the 1st day of the month, on any rent payment or monthly option consideration, my Option to Purchase the property is null and void.”
4. “I understand that if I do not close, refinance, and cash you out of the property on
or before the expiration of my option I lose all of my option consideration and built-up funds.”"
"5. “I understand that I must give my intent to exercise my option in writing at least 90 days prior to the expiration date of the option.”
Optionor                                  Date
Optionee                                  Date
Optionee                                  Date"
"SAMPLE MEMORANDUM OF OPTION"
"On this date, the following parties entered into an agreement in which
acquired an option to purchase an interest in property owned by ."
"The property is described as:
Address  City  State             
Zip Code  
Legal Description: (To be attached.)
The term of this agreement is five (5) years, running through midnight
.
As part of this agreement, John and Jane Seller agree not to further encumber the property, nor sell any interest in the property during the term of this agreement. Any encumbrance placed on the property after this agreement is properly executed and recorded, including leases will be subordinate to this agreement and will be extinguished by the proper execution of this contract.
This agreement will bind heirs, executors, administrators, successors, legal representatives, and assigns of each party to this agreement.
In the event of foreclosure, the owners’ equity at the sale and any right of redemption shall transfer to the Optionee without further compensation and this contract shall serve as conveyance without further action.
Signed and sealed this               ."

"Seller: Date Buyer:  
Seller: Date Buyer: "
"State of County of
The foregoing instrument was acknowledged before me this day of , 20 by who is/are personally known to me or who has/have produced as identification.
Notary
My Commission Expires:
(Seal)"

"SAMPLE ASSIGNMENT OF OPTION TO PURCHASE REAL ESTATE"
"For value received, (Seller), assignor, assigns to
(Buyer) assignee, all rights and interest of assignor in an agreement, dated , 20 whereby assignor was given the option from
(Seller), the following described real estate at a price and under the terms and conditions therein contained:
Address  City  State                
Zip Code  
Legal Description: (To be attached.)
Assignor, by virtue of this assignment, grants to assignee the right to exercise or reject the option in good faith and the right to recover any moneys deposited by assignor to receive said option.
Dated , 20 ."
"Seller:  Buyer: "    "Date  Date "
"State of  County of  "        
"The foregoing instrument was acknowledged before me this day
of , 20 by who is/are personally known to me or who has/have produced as identification.
Notary:
My Commission Expires:                 (Seal)"
"SAMPLE ADDENDUM TO LEASE/LEASE OPTION AGREEMENT"
"Monthly payments are subject to change/increase on an annual basis due to increases in taxes, insurance, HOA or any other easements that are the responsibility of the homeowner. The tenant/buyer will be notified in writing by certified mail with verifiable proof from the landlord/seller 30 days prior to the necessary increase. The tenant/ buyer reserves the right to verify any and all changes to the monthly payment during the 30 days prior to the change. Any increase will be a dollar-for-dollar increase and the landlord/seller will not be experiencing a profit from any all increases to the monthly payment stated in the original agreement. The purpose of this addendum is to prevent the landlord/seller from taking on any future costs that are the responsibility of the occupants.
Seller                                   Date"
"Sample Joint Venture Agreement"
"AGREEMENT"
"THIS AGREEMENT made the   day of , 20 ."
"BETWEEN:"
"#YOUR COMPANY NAME#
and
#INVESTOR# "
"hereinafter referred to collectively as the “Parties”
RECITALS"
"#YOUR CO# purchased , Ontario (the “Property”).
#YOUR CO# intends to rent the Property;
The purchase of the Property closed on or about ;"
"The purchase price of the Property was ;"
"1. The purpose of this Agreement is to provide:
a. for the acquisition, financing, management, maintaining, altering, improving, mortgaging, re-mortgaging, ownership, operation, leasing and sale of the Property or any part thereof;
b. or the holding of title to the Property by #YOUR CO# as trustee for the Parties; and"
"c. to define the respective rights and obligations of the Parties between themselves and in the Property.
2. Now therefore in consideration of the mutual covenants contained in this Agreement, THE PARTIES AGREE AS FOLLOWS:
a. The Parties acknowledge that the mortgage was only in #YOUR CO#'s name and therefore legal title is only registered in #YOUR CO#'s name.
b. The parties further acknowledge that this joint venture trust Agreement (hereto referred to as the ""Agreement"") is non registerable and that only #YOUR CO# appears on legal title as the owner of the Property and that only #YOUR CO# has the benefits, responsibilities, and obligations of a legal owner of title.
3. #YOUR CO# acknowledges that it is holding the Property in trust as follows:
a. A one hundred percent (100%) interest in legal title in the Property to #YOUR CO#;
b. A fifty percent (50%) equity interest in ownership in the Property to Investor (hereinafter referred to as the “Non-Title Interest”); and
c. A fifty percent (50%) equity interest in ownership in the Property to #YOUR CO#.
d. #YOUR CO# acknowledges that it remains fully responsible for all obligations of an owner of a property and will arrange and see to it that all mortgage, insurance, landscaping, utility accounts, and property taxes of the said Property are kept current and in good standing.
e. #YOUR CO# shall hire a management company, at its sole discretion, to deal with all daily management items of the Property, specifically but not limited to, all those items mentioned above in section 4. #YOUR CO# acknowledges that it will be fully responsible for all property management fees incurred.
4. Cost of any and all repairs, maintenance, and the like will be split equally between #YOUR CO# and the Investor."

"5. #YOUR CO# agrees to provide the investor with monthly financial statements.
6. Investor acknowledges that in consideration of receiving the Non-Title Interest the Investor   is   providing   #YOUR   CO#   with    
($ )."
"7. The Parties acknowledge that the intent of use and timeline of the Property are as follows:
a. Rent the Property for three years to a tenant-buyer using #YOUR CO#’s “Rent to Own” program.
b. After three years the property is to be sold to the tenant buyer.
c. If, for whatever reason, the intent of the property cannot be followed, #YOUR CO# will determine a new intent for use and timeline of the Property. While making this decision, #YOUR CO# will strongly consider opinions and recommendations made by the Investor.
8. If the Property is sold the net sale proceeds of the property are to be paid out as follows:
a. Investors Deposit ($ ) paid back to Investor; and
b. Balance of net sale proceeds to #YOUR CO# and Investor equally.
9. The Parties acknowledge that any monthly revenue shall be held in trust by #YOUR CO# until the property is transferred or sold and divided amongst the Parties as follows:
a. Fifty percent (50%) of monthly revenues to Investor;
b. Fifty percent (50%) of monthly revenues to #YOUR CO#.
10.    The Parties acknowledge the Agreement is effective from
."

"11.    It is agreed that, unless the context of this Agreement requires otherwise, the singular number shall include the plural and vice versa, the number of the verb shall be construed as agreeing with the word so substituted, words importing the masculine gender shall include the feminine and neuter genders, and words importing persons shall include firms and corporations and vice versa.
12.  Descriptive headings are inserted solely for convenience of reference, do not form part of this Agreement, and are not to be used as an aid in the interpretation of this Agreement.
13.   It is intended that all provisions of this Agreement shall be fully binding and effective between the parties but, in the event that any particular provision or provisions or a part of one is found to be void, voidable or unenforceable for any reason whatever, then the particular provision or provisions of part of the provision shall be deemed severed from the remainder of this Agreement and all other provisions shall remain in full force.
14.   This Agreement shall be governed and construed in accordance with the laws of the State of ."
"15.   The sole asset to which this Agreement relates is, and shall hereafter be, the Property and any benefits, monies or other advantages to be derived therefrom or connected therewith, or in the case of the sale of the Parties interest in the Property or any part thereof, the proceeds of sale thereof and any security received by reason of such sale. The Parties relationship evidenced by this Agreement shall subsist for the limited purposes and scope referred to above in accordance with the terms of this Agreement and shall commence as at the date hereof and shall continue thereafter, save as aforesaid, so long as the interest in the Property is not vested in one person, firm or corporation.
16.   The Parties are not partners and neither this Agreement, the conduct of the Parties or anything done by them pursuant to this Agreement shall make them partners or constitute them agents for the other or impose any fiduciary duty, liability or obligations upon any of them except as herein expressly set forth. Any
Party may engage in and conduct any business or activity whatsoever without"
"incurring any liability or obligation or fiduciary duty or accountability to the other Party.
17.   A Party shall not have the right to partition and shall not make any application for partition to any court or authority having jurisdiction over the matter nor commence nor prosecute any action for partition and/or sale; and, upon any breach of the provisions of this Agreement by a Party, the other Party shall, in addition to all rights and remedies in law and in equity, be entitled to a decree or order restraining and enjoining such application, petition, action or proceeding, and the offending Party shall not plead in defense thereto that there would be an adequate remedy at law, it being recognized and agreed that the injury and damage resulting from such a breach would be impossible to measure monetarily. The intention is that #YOUR CO# shall hold title to the Property at all times as a bare trustee pursuant to the provisions of this Agreement.
18.   All matters in difference between the parties in relation to this Agreement shall be referred to the arbitration of a single arbitrator, if the parties agree upon one, otherwise to three arbitrators, one to be appointed by each party. The award and determination of the arbitrator or arbitrators or any two of the three arbitrators shall be binding upon the parties and their respective successors and assigns.
19.   The remedies provided by the provisions of this Agreement upon the default of a Party are in addition to any other remedies which the other Party may have against such Party in default.
20.   This Agreement contains the entire understanding between the Parties and supersedes any prior understandings and/or written or oral Agreements between them respecting the within subject matter. There are no representations, Agreements, arrangements or undertakings, oral or written, between and among the Parties relating to the subject matter of this Agreement which are not fully expressed herein.
21.   This Agreement may be amended or altered in any provision and such change shall become effective when reduced to writing and signed by the Parties."

"22.  This Agreement may be executed in counterparts, each of which so executed shall be deemed to be an original, and such counterparts together shall constitute one and the same instrument.
23.   This Agreement shall be binding upon the Parties and their respective successors and assigns, and the Parties hereto agree for themselves and their heirs, executors, administrators, successors and assigns to execute any instruments which may be necessary or proper to carry out the purposes and intent of this Agreement.
24.    Each of the parties acknowledges that he, she, and it:
a. has been advised that they should obtain independent legal advice, and they have declined;
b. understands the nature and consequences of this Agreement; and
c. is signing this Agreement voluntarily.
25.   This Agreement may be amended only by written Agreement between the parties witnessed by at least one other person.
IN WITNESS WHEREOF the parties have set their hands and seals on the day first above written.
SIGNED and SEALED
In the presence of:
Investor
An authorized signing authority of the Company"

"Agreement of Purchase and Sale"
"This Agreement of Purchase and Sale (“Agreement”) is dated this     day of
  20 .
(“Buyer”), agrees to purchase from
  (“Seller”) the following REAL PROPERTY at
  and having a frontage of  
more or less by a depth of more or less
and legally described as: (the ""Property"").
PURCHASE PRICE: $ "
"DEPOSIT: Buyer submits $ Herewith by cash payable to Seller and to be credited toward the Purchase Price on completion.
Buyer agrees to pay the balance of the purchase price, subject to adjustments by bank draft or certified cheque to the Seller upon completion of this transaction.
SCHEDULE(S) attached hereto form(s) part of this Agreement."
"1. IRREVOCABILITY: This Offer shall be irrevocable by until
on the day of 20 , after which time, if not accepted, this Offer shall be null and void and the deposit shall be returned to the Buyer in full without interest.
2. COMPLETION DATE: This Agreement shall be completed by no later than 6:00 p.m. on the day of , 20 ."
"3. NOTICES: Any notice relating hereto or provided for herein shall be in writing. In addition to any provision contained herein and in any Schedule hereto, this offer, any counter-offer, notice of acceptance thereof or any notice to be given or received pursuant to this Agreement or any Schedule hereto shall be deemed given and received
when delivered personally or hand delivered to the Address for Service provided in the"

"Acknowledgement below, or where a facsimile number or email address is provided herein, when transmitted electronically to that facsimile number or email address."
"Seller Fax: Buyer Fax:"    "Seller email: Buyer email:"
"4. CHATTELS INCLUDED:
Unless otherwise stated in this Agreement or any Schedule hereto, Seller agrees to convey all fixtures and chattels included in the Purchase Price free from all liens, encumbrances or claims affecting the said fixtures and chattels.
5. FIXTURES EXCLUDED
6. RENTAL ITEMS: The following equipment is rented and not included in the Purchase Price. The Buyer agrees to assume the rental contract(s), if assumable:
7. TITLE SEARCH: Buyer shall be allowed until 6:00 p.m. on the day of , 20 ,
(Requisition Date) to examine the title to the property at Buyer’s own expense and until the earlier of: (i) thirty days from the later of the Requisition Date or the date on which the conditions in this Agreement are fulfilled or otherwise waived or; (ii) five days prior to completion, to satisfy Buyer that there are no outstanding work orders or deficiency notices affecting the property, and that its present use ( ) may be lawfully continued and that the principal building may be insured against risk of fire. Seller hereby consents to the municipality or other governmental agencies releasing to Buyer details of all outstanding work orders and deficiency notices affecting the property, and Seller agrees to execute and deliver such further authorizations in this
gard as Buyer may reasonably require."

"8. FUTURE USE: Seller and Buyer agree that there is no representation or warranty of any kind that the future intended use of the property by Buyer is or will be lawful except as may be specifically provided for in this Agreement.
9. TITLE: Provided that the title to the property is good and free from all registered restrictions, charges, liens, and encumbrances except as otherwise specifically provided in this Agreement and save and except for (a) any registered restrictions or covenants that run with the land providing that such are complied with; (b) any registered municipal agreements and registered agreements with publicly regulated utilities providing such have been complied with, or security has been posted to ensure compliance and completion, as evidenced by a letter from the relevant municipality or regulated utility; (c) any minor easements for the supply of domestic utility ortelephone services to the property or adjacent properties; and (d) any easements for drainage, storm or sanitary sewers, public utility lines, telephone lines, cable television lines or other services which do not materially affect the use of the property. If within the specified times referred to in paragraph 7 any valid objection to title or to any outstanding work order or deficiency notice, or to the fact the said present use may not lawfully be continued, or that the principal building may not be insured against risk of fire is made in writing to Seller and which Seller is unable or unwilling to remove, remedy or satisfy or obtain insurance save and except against risk of fire (Title Insurance) in favor of the Buyer and any mortgagee, (with all related costs at the expense of the Seller), and which Buyer will not waive, this Agreement notwithstanding any intermediate acts or negotiations in respect of such objections, shall be at an end and all monies paid shall be returned without interest or deduction and Seller shall not be liable for any costs or damages. Save as to any valid objection so made by such day and except for any objection going to the root of the title, Buyer shall be conclusively deemed to have accepted Seller's title to the property.
10. INSPECTION: Buyer acknowledges having had the opportunity to inspect the property and understands that upon acceptance of this Offer there shall be a binding agreement of purchase and sale between Buyer and Seller.
11. INSURANCE: All buildings on the property and all other things being purchased shall be and remain until completion at the risk of Seller. Pending completion, Seller shall hold all insurance policies, if any, and the proceeds thereof in trust for the parties as
their interests may appear and in the event of substantial damage, Buyer may either"

"terminate this Agreement and have all monies paid returned without interest or deduction or else take the proceeds of any insurance and complete the purchase. No insurance shall be transferred on completion. If Seller is taking back a Charge/Mortgage, or Buyer is assuming a Charge/Mortgage, Buyer shall supply Seller with reasonable evidence of adequate insurance to protect Seller's or other mortgagee's interest on completion.
12. ADJUSTMENTS: Any rents, mortgage interest, realty taxes including local improvement rates and unmetered public or private utility charges and unmetered cost of fuel, as applicable, shall be apportioned and allowed to the day of completion, the day of completion itself to be apportioned to Buyer.
13. PROPERTY ASSESSMENT: The Buyer and Seller hereby acknowledge that certain states may have implemented current value assessments and properties may be re- assessed on an annual basis. The Buyer and Seller agree that no claim will be made against the Buyer or Seller, for any changes in property tax as a result of a re-assessment of the property, save and except any property taxes that accrued prior to the completion of this transaction.
14. TIME LIMITS: Time shall in all respects be of the essence hereof provided that the time for doing or completing of any matter provided for herein may be extended or abridged by an agreement in writing signed by Seller and Buyer or by their respective lawyers who may be specifically authorized in that regard.
15. TENDER: Any tender of documents or money hereunder may be made upon Seller or Buyer or their respective lawyers on the day set for completion. Money may be tendered by bank draft or check certified by a Bank, Trust Company or Credit Union.
16. LEGAL, ACCOUNTING AND ENVIRONMENTAL ADVICE: The parties acknowledge that they are responsible to obtain their own legal, tax or environmental advice.
17. AGREEMENT IN WRITING: If there is conflict or discrepancy between any provisions added to this Agreement (including any Schedule attached hereto) and any provision in the standard pre-set portion hereof, the added provision shall supersede the standard pre-set provision to the extent of such conflict or discrepancy. This Agreement including
any Schedule attached hereto, shall constitute the entire Agreement between Buyer"

"and Seller. There is no representation, warranty, collateral agreement or condition, which affects this Agreement other than as expressed herein. For the purposes of this Agreement, Seller means vendor and Buyer means purchaser. This Agreement shall be read with all changes of gender or number required by the context.
18. TIME AND DATE: Any reference to a time and date in this Agreement shall mean the time and date where the property is located.
19. SUCCESSORS AND ASSIGNS: The heirs, executors, administrators, successors and assigns of the undersigned are bound by the terms herein.
I, the Undersigned Buyer, agree to the above Offer
SIGNED, SEALED AND DELIVERED in the presence of: IN WITNESS whereof I have hereunto set my hand:"
"Witness:
Buyer:  Buyer: "    "Date
Date  Date "
"I, the Undersigned Seller, agree to the above Offer.
SIGNED, SEALED AND DELIVERED in the presence of: IN WITNESS whereof I have hereunto set my hand:"
"Witness:
Seller:  Seller: "    "Date
Date  Date "
"I acknowledge receipt of my signed copy of this accepted Agreement of Purchase and Sale."
"Seller  Seller "    "Date  Date "
"Address for Service  Telephone "
"Seller’s Lawyer  Address
Telephone Fax "
"I acknowledge receipt of my signed copy of this accepted Agreement of Purchase and Sale."
"Buyer  Buyer "    "Date  Date "
"Address for Service  Telephone "
"Buyer’s Lawyer  Address  Telephone Fax "
"Schedule A
Agreement of Purchase and Sale
This Schedule is attached to and forms part of the Agreement of Purchase and Sale between:
BUYER, , and
SELLER, for the purchase and sale of
  dated the day of
, 20 ."
"Chapter 9
PAPERWORK WITH TENANT/BUYERS
LEARNING OBJECTIVE
□ Review and practice using the paperwork that is essential to securing a qualified- tenant buyer
PAPERWORK WITH TENANT/BUYERS: SUMMARY
Paperwork is as necessary with buyers as it is with sellers, and this is especially true with a creative-financing arrangement like a lease option. For that reason, it is important that you take some time to review the forms you will need to complete lease option transactions by properly completing paperwork with your tenant/buyers. The better you are at being a master of the paperwork side of the business, the better position you are in to negotiate better deals!
As a fundamental, remember that you are offering a great way for a buyer to get their so-called foot in the door, when you extend opportunities for tenant/buyers. By virtue of this, you are in the driver’s seat and shouldn’t feel obligated to negotiate or let the tenant/buyer dictate terms. This will make the paperwork process easier and one that you can feel you are in command of throughout the process.
Paperwork with Tenant/Buyers: Summary
1. The paperwork you complete with a tenant/buyer has the same three-primary purposes as the paperwork with sellers. Just to recap, first, it puts you in a secure position that protects your interest in your deal. Second, it gives you a certain amount of control over how the deal proceeds. Last, it sets the table for the numerous paydays you will have from a quality sandwich lease option.
2. Rental Application: Not notarized, not recorded. Gather as much information as
you can to start to qualify the buyer to determine if they are going to be able to qualify for the property. (Keep on file.)"

"3. Authorization to Release Information: Not notarized, not recorded. You need this document filled out to be able to check their credit. This information will tell you what the buyer needs to do and how long it will take for them to qualify for financing on the property. Once you qualify the buyer, you move forward with additional documents.
4. Residential Lease Agreement: Not notarized, not recorded. (Must get a deposit because you want to maintain the Landlord/Tenant relationship.)
5. Option to Purchase Real Estate: Not notarized, not recorded. (Do not include the legal description so the document cannot be recorded.) Lease agreement supersedes the Option to Purchase and must be adhered to or the Option Purchase becomes null and void.
6. Option to Purchase Disclosure: Not notarized, not recorded.
7. Addendum to Lease/Lease Option Agreement: Not notarized, not recorded.
8. Addendum to Option to Purchase Real Estate: (Optional) Not notarized, not recorded.
As with any rental agreement, you will also want to convey a Lead Based Paint disclosure to Tenant/Buyer.
PAPERWORK WITH TENANT/BUYERS: SAMPLES
Just as was the case with seller paperwork, the best way to become familiar with lease option tenant/buyer paperwork is to review samples and then practice filling out the paperwork yourself. The samples included in this section are also for reference only; you’ll need to have your paperwork reviewed in your own area to make sure it is
compliant with your state laws!"

"SAMPLE RENTAL APPLICATION
Name  
Date of Birth Home Phone Work Phone  
Social Security #  
Driver’s License #  
Present Address  
How long at this address? Rent $  Reason for moving   Owner/Manager              
Previous Address  "
"How long at this address? Rent $  
Reason for moving  
Owner/Manager  "
"Name, relationship and age of every person to live with you:
Any pets?  "
"Describe  "
"Waterbed?  "
"Present Occupation  
Employer Phone  
Supervisor Phone  "
"How long with this employer?   Previous Occupation   Employer Phone   Supervisor    Phone        
How long with this employer?  
Current gross income per month (before deductions) $  
Amount of alimony or child support you pay: $  receive: $ "
"Savings Account Bank  
Checking Account Bank  "    "Branch  Branch  "    "Account No.  
Account No.  "
"Major Credit Card Account No.            Balance Owed  
Payment  "
"Major Credit Card Account No.            Balance Owed  
Payment  "
"Major Credit Card Account No.            Balance Owed  
Payment  
Major Credit Card Account No.            Balance Owed  
Payment  "
"Have you ever filed bankruptcy?  
Have you ever been evicted?  "
"Vehicle(s):
Make Model
Make Model  Make Model  "    "Year
Year  Year  "
"Personal Reference:
Name  Address  Phone  Contact in Emergency:
Name  "
"Address  
Phone  
I declare that the statements above are true and correct, and I hereby authorize verification of references given and a credit check.
Signature  Date "
"Rental Application Deposit Receipt"
"This deposit of $ is refundable upon the following conditions:
1. Prospective tenant is not approved.
2. If approved, it may be applied to rent.
If the prospective tenant cancels after landlord has taken the time, expense and trouble to check the tenant out, the deposit is NOT refunded; landlord will keep the deposit to pay for time and trouble.
Prospective Tenant  "
"Landlord/Agent "
"(Date Refunded)  "
"Perspective’s Signature  "
"Money Received  "
"Authorization to Release Information
Authorization Dated:
Tenant:
Name: "
"Address: "
"Phone: "
"Social Security#:  "
"Date of Birth:  "
"Landlord:
Name: "
"Address: "
"Phone: "
"Property:  "
"Address: "
"Legal Description:
I/We, , being the tenant of the above- described property do hereby authorize and grant permission
to , being the landlord of the above- described property, to contact a/our lender or lenders or any of their agents for the purpose of gathering the necessary information concerning the successful performance
of our option to purchase on the above-described property."
"Tenant/Optionee  Tenant/Optionee "    "Date  Date "
"SAMPLE RESIDENTIAL LEASE AGREEMENT"
"THIS AGREEMENT made and entered into on January 24, 2020, by and between
  (landlord), hereinafter referred to as “Lessor;” and
(tenant), hereinafter referred to as “Lessee.”"
"PROPERTY: Lessor leases to the Lessee that certain residence described as:
Address  City  State
Zip code  "
"TERM: The term of this lease shall be for a period of one (1) year, commencing
and ending . This lease can be extended for one (1) additional year(s).
RENTAL: Lessee shall pay unto the Lessor the sum of $995.00 on the above-described day of each month during the term of this lease, said sums being delivered to Lessor at the address so designated by Lessor.
SECURITY: Lessee has deposited with the Lessor the sum of $100.00 as security for the full and faithful performance by the Lessee of all terms and covenants contained herein.
USE: The property shall be occupied by Lessee and family, consisting of two (2) adults and two (2) children. Lessee agrees to use the property for residential purposes only. No animals or pets shall be permitted upon the subject property.
BROKERAGE: No real estate agents are involved in this transaction, nor are any entitled to brokerage commission as a result of this Lease Agreement.
DAMAGE TO PROPERTY: Should the property be partially damaged by casualty not due
to the negligence of Lessee, or person having the consent of Lessee, the property shall be repaired immediately by Lessor and any rentals for the period that the property is"

"untenantable shall be abated. However, should the property suffer substantial damages, Lessor may elect to terminate this lease, and rentals shall be adjusted up to the date of casualty.
CONDEMNATION: Should the subject property, or part thereof, be taken by the of exercise of condemnation, eminent domain, or other governmental action, this lease shall terminate.
LESSEE’S OBLIGATIONS:
1. Maintain the subject property in the same condition as when leased, excepting only the reasonable use of said property.
2. Comply with all applicable housing, building and health codes.
3. Pay for all utilities utilized, including electricity, gas, water, sewer, and telephone.
4. Keep the property clean and sanitary.
5. Keep all plumbing fixtures in repair.
6. Remove all garbage from the property.
7. Use the facilities and appliances in a reasonable manner.
8. Refrain from damaging Lessor’s property.
9. Conduct himself, and others on the property with his consent, in a reasonable manner.
10.    Provide Lessor with a key and access to the property.
11.    To pay for all repairs not covered by the owner’s insurance policy.
LESSOR’S OBLIGATION:
1. Comply with all applicable housing, building, and health codes."

"2. Maintain all basic structural and service components of the property so that same are capable of resisting normal forces and loads.
3. RIGHT OF ENTRY: Lessor shall have the right of entry upon the property to inspect the same, make repairs and exhibit the property to others, provided that such entry is at reasonable times.
4. LIABILITY: Lessee accepts the condition of the subject property, waiving inspection of same by Lessor, and repair of defects, if any. Lessee further agrees to indemnify Lessor against any loss or liability arising out of Lessee’s use of the property, including those using the property with Lessee’s consent. However, such indemnification shall only be applicable to the extent that Lessor’s loss is not covered by insurance proceeds.
5. TAXES: Any taxes that may be imposed by governmental authority, whether they be sales, use, or resort taxes, shall be the obligation of Lessee.
6. ASSIGNMENT: Lessee may not make an assignment of this lease, nor sublet any part of the subject property, without prior written consent, which consent shall not be unreasonably refused by Lessor.
7. DEFAULT: In the event of a default, by either party, of any of the terms herein contained, the non-defaulting party shall be entitled to all remedies under law, reasonable attorney’s fees and court costs. Should it become necessary for Lessor to apply any part of the security to correct a default, Lessee agrees to restore the security to its original amount.
8. PERSONAL PROPERTY: Lessee shall be responsible for insuring his own personal property. Any personal property placed upon the subject property shall be at the sole risk of Lessee. Any property of Lessee remaining upon the leased premises after the termination of this lease shall be presumed abandoned and may be disposed of by Lessor.
9. FURNISHED PROPERTY: If the subject premises are rented furnished, Lessee acknowledges receipt of inventoried furnishings in good condition. A copy of said
inventory shall be attached hereto."

"10.  HOUSE: If subject property is a house or townhouse, then Lessee shall be responsible for waste removal, exterminating service, yard and pool maintenance.
11.  ALTERATIONS AND IMPROVEMENTS: Lessee shall make no alterations to the subject property without Lessor’s prior written consent. Any improvements made by Lessee shall become the property of Lessor at the conclusion of the lease.
12.   WAIVER AND SEPARABILITY: The waiver of any one breach of any provisions in this lease shall not be considered a waiver of that or any other provision herein. Should any portion of this lease be adjudged invalid, such invalidation shall not operate to invalidate the remaining provisions hereof.
13.   BINDING EFFECT: This agreement shall be binding upon the parties hereto, their heirs, successors, assigns and legal representatives.
14.   ENTIRE AGREEMENT: This lease constitutes the entire agreement between the parties, and may not be modified, unless in writing and executed by the parties.
IN WITNESS WHEREOF the parties hereto have executed the foregoing Lease Agreement the day and year first above written.
LESSOR:  Date "

"LESSOR:  Date "
"LESSEE:  Date "
"LESSEE:  Date "
"SAMPLE OPTION TO PURCHASE REAL ESTATE"
"THIS AGREEMENT made on , 20 , by and between the seller,
  (hereinafter called Optionor), and
, the buyer, (hereinafter called Optionee)."
"WITNESSETH, that for and in consideration of the sum of
$ paid by Optionee to Optionor, the receipt whereof is hereby acknowledged, the Optionor hereby gives and grants unto the Optionee, his heirs, personal representatives, and assigns, the right of purchasing, on or before
, 20 , the following described real estate:"
"Address:  "
"For the total purchase price of $ of which the sum of
(consideration amount) shall be paid in cash and the balance of $  shall be paid as follows:
See Below.
If the Optionee elects to purchase the said real estate pursuant to this Option, Optionee shall give written notice of such to Optionor, by registered or certified mail to:
, on or before , 20 ."
"All of the terms of the residential lease agreement must be complied with in order for this Option to Purchase Real Estate to be valid. If the Optionee shall so elect to purchase said real estate, and shall mail a written notice of such election as herein provided within the time required, and shall tender the required amount of cash and deliver a promissory note for the balance, properly executed and payable in accordance with the terms agreed to herein, together with a real estate mortgage or deed of trust, real estate contract or other security acceptable to Optionor, securing said note, on the real estate herein above particularly described, then Optionor agrees to convey the real estate to Optionee, by warranty deed, free and clear of all liens, encumbrances, or taxes, to the date of closing of the purchase. Optionor further agrees, that upon such
election by Optionee, to deliver to Optionee, within thirty (30) days after receipt of such"
"written notice of election to purchase, an abstract of title or a policy of title insurance in the full sum of $ showing merchantable title to said real estate, and Optionee shall have a reasonable time, not to exceed five days, to examine the title insurance and to complete and close said purchase.
If the Optionee does not exercise the privilege of purchase herein given and does not fully perform the conditions herein within the time herein stated, the privilege shall wholly cease and terminate, and the sum herein paid by Optionee shall be retained by Optionor as nonrefundable. This property is to be sold as is, where is, how is, and the buyers acknowledge that they have inspected the property and accept it in current condition. The Optionees are responsible for all repairs to the property during the term of this agreement.
This agreement may be extended for one year for an additional fee of
$ . This fee will not be credited towards the purchase price.
, 20 "
"Optionee:                             Date "
"Optionee:                             Date "
"Optionor: Date "
"Optionor: Date "
"SAMPLE OPTION TO PURCHASE DISCLOSURE"
"Property Address: Date:  "
"I/We, the undersigned Lessee execute this disclosure form after having read and been given (or voluntarily waived) the opportunity to seek advice as to the legal and financial implications of the attached residential lease agreement and option to purchase real estate agreement. Specifically, we agree and understand that this arrangement is essentially a landlord-lessee relationship, and that we have an option to purchase the property under the terms stated in the attached option to purchase agreement. We agree and understand that should we default on the residential lease agreement by failing to make timely payments, failing to keep the property in good repair or any other reason, that our option to purchase will become void. In that event we understand that we will no longer have the option to purchase the property, nor do we have any rights, interests or claims to it.
I/We have read the attached residential lease agreement and option to purchase real estate agreement and they have been thoroughly explained to us. Specifically, we agree and understand that should we fail to purchase the property for any reason, we are not entitled to any money back (except our security deposit, if all rent is paid and the property is left in good condition after we leave).
The landlord and/or his agent have not made any representations not contained in this disclosure or the attached residential lease agreement and option to purchase real estate agreement as to the property, its ownership, the condition, the neighborhood or the value of the property. Lessee agrees and understands that Landlord is not acting as a real estate broker or agent in this transaction.
I/We understand that landlord is not the titled owner, but rather is acting as a principal/owner or principal/optionee under an agreement of sale or lease/option with the owner of the property, and that our estate of possession is subordinate to a master
lease between landlord and the titled owner."

"Lessee:  Date: "
"Lessee:  Date "
"Lessor:  Date  "
"SAMPLE ADDENDUM TO LEASE/LEASE OPTION AGREEMENT"
"Monthly payments are subject to change/increase on an annual basis, due to increases in taxes, insurance, HOA or any other easements that are the responsibility of the homeowner. The tenant/ buyer will be notified in writing by certified mail with verifiable proof from the landlord/seller 30 days prior to the necessary increase.
The tenant/buyer reserves the right to verify any and all changes to the monthly payment during the 30 days prior to the change. Any increase will be a dollar-for-dollar increase and the landlord seller will not be experiencing a profit from any and all increases to the monthly payment stated in the original agreement. The purpose of this addendum is to prevent the landlord/seller from taking on any future costs that are the responsibility of the occupants."
"Tenant/Buyer  Date "
"Tenant/Buyer  Date "
"SAMPLE ADDENDUM TO OPTION TO PURCHASE REAL ESTATE"
"I understand that the option consideration provided is nonrefundable. If I, as Lessee, do all of the following, $1,250.00 will be refunded:
□ Provide landlord with 60 days’ notice to vacate
□ All rents are paid in full through date vacated
□ Allow landlord to show property to new prospective Lessees during the 60 days’ notice to vacate
□ Keep property in show condition
□ Clean property out of all my possessions
□ Property is left in good condition except for normal wear and tear
□ Hand keys to landlord upon inspection and departure
□ Provide landlord with a paid receipt for all utilities
Lessee:  Date: "

"Lessee:  Date: "
"Landlord:  Date: "
"Chapter 8
THE CLOSING PROCESS FOR LEASE OPTIONS
LEARNING OBJECTIVES
□ Review and be able to explain the simultaneous closing process that is used to exit a sandwich lease option transaction
□ Identify the specific need for business capital in some lease option transactions and how private lenders can fill this critical need
THE LEASE MODEL REVISITED
You are now through much of the lease option process and it is time to learn how to close your deals, so you can move on to others and also get paid in the process. Let’s see where you are at in the Model that accompanies the course:
The course content centers on the LEASE Model, an acronym that stands for:
□ Locating Lease Option Deals
□ Evaluating Profit Potential
□ Attract Sellers and Buyers
□ Secure the Deal
□ Exiting the Transaction
THE CLOSING PROCESS FOR LEASE OPTIONS
Even though there are multiple profit centers in a sandwich lease option, the largest is typically the margin from the final closing of the property with the tenant/buyer. This leads to a common question, given your unusual positioning in the deal:
“How does the investor get paid from the closing, given that they are neither the seller nor the buyer in the deal?”
This is a great question and naturally one that is worth addressing."

"The process of contract assignment is similar to that for a traditional wholesale deal. You simply assign your option to purchase the property to the tenant/buyer, designating the expected profit margin for the deal as the so-called assignment fee.
As with some assignments, the higher profit margins with many lease options could be a red flag to other parties in the deal, creating the need for a second option to close your deals. This second option is a simultaneous or double closing, the steps for which are shown in the next few pages.
Whether you close your deals via assignment or via the double close, one thing remains consistent. You need to have your Power Team on board to make sure the process flows as smoothly as it possibly can. For this reason, you’ll also be reviewing team members you’ll need to make your closings a smooth process.
SETTING UP A DOUBLE CLOSE SAMPLE DEAL WITH THE SELLER
Term: 60 Months Current Value: $100,000 Agreed Price: $ 85,000
Appreciation Rate: 9 percent Monthly Payment: $710.00 PITI
SAMPLE DEAL WITH TENANT/BUYER
Term: 24 Months
Value at End of Term: $118,810 Agreed Price: $ 111,000
Appreciation Rate: 9 percent Monthly Payment: $995.00
About 23 Months into the lease with tenant/Buyer, they advise they are prepared to close in the next 30 days.
We ask Seller for a discount if we can exercise early. (Only if there is some equity left in
the deal)"

"Then we advise the Seller we are ready to close in the next 30 days.
We inform our Title Company we are ready to close on the property with a Double Close and that they need to complete the following:
□ the title work
□ prepare title insurance
□ schedule the time for the closing We send them copies of our contracts
□ Package #1: Lease Purchase Agreement with Seller
□ Package #2: Lease + Purchase Agreement with Tenant/Buyer Title Company prepares a Preliminary Title search to determine:
1. Mortgage Balance $68,471.36
2. Property Taxes: Paid to date
3. No Junior Liens
4. No Judgments
5. No Assessments
THE SPECIFICS OF THE DOUBLE CLOSING PROCESS
Title Company schedules the two following closings: 10:00 am – Us to the Tenant/Buyer, room #1 Contract #2
$111,000 Sales Price Less $5000 Credit
$106,000 Paid at closing by T/B T/B gets deed #2
10:15 am – Seller to us, room #2"


 

"Contract #1
$85,000 Purchase Price Less $1000 Credit
$84,000 Paid to Seller at closing less payoffs We get deed #1 Time course:
10:00 am: T/B arrives and brings $106,000 in certified funds 10:15 am: Seller arrives and has the deed
10:20 am: Seller signs deed and gets $15,528.64. ($84,000 - $68,471.36 = $15,528.64)
10:25 am: We get $22,000 ($106,000 - $84,000 = $22,000)
10:45 am: Record deed #1 from Seller to us 10:50 am: Record deed #2 from us to T/B
OVERCOMING CHALLENGES IN THE CLOSING PROCESS
As with any aspect of the real estate business, lease options also have their occasional challenges and many are tied in with the closing process, as this is what brings the deal to its end and may often be unfamiliar to the parties involved.
Common challenges that accompany the lease option closing process include:
□ Parties who don’t show up for the closing
□ Uncooperative team members
□ Unanticipated liens
□ Inability for the buyer to obtain financing
Let’s discuss briefly ways to handle the primary closing issues you may face.
CLOSING NO SHOWS
One of the most common fears (especially with double closings) is the seller or buyer “no show.” Yes, this can happen, and it occasionally does, forever appearing on the FEAR radar screen of novice investors. That said, given that all parties want the deal to
get closed, how often do you really think this sort of things happens? As you might"

"expect, less often than you might fear. Good communication with the parties who are set to appear, confirmation calls, and the like can all do wonders to avoid this potential challenge.
POWER TEAM DIFFICULTIES
While your Power Team may be initially unfamiliar with doing either assignments or double closings, these things can and should be cleared up before any scheduled closing. This type of situation is most common with a title company or closing agent, as they are most directly involved in the closing process. A good interview, followed by meetings to make sure the team member in question is fully aware of what they need to do, should help alleviate any closing table woes that trace back to your Power Team.
LIENS
Not to sound too much like a broken record, but this is not something that should surprise you at a closing. True, liens do sometimes surface during the term of a lease option and may even necessitate the assistance of an attorney or other remedial actions. That said, part of your role in the process is to be and remain aware of what is happening with your deal and this is something that can be avoided in most all cases.
BUYER FINANCING (OR LACK THEREOF)
While there is never an absolute guarantee that your tenant/buyer will be able to secure financing, this should not be something that you are blind-sided by at the closing table. Any challenges with your buyer obtaining financing should be “diagnosed” during their tenancy and regular reports from your buyer’s mortgage broker can keep you in the loop during the process.
TEAM MEMBERS NEEDED FOR LEASE OPTION CLOSINGS
You’ve all been encouraged to develop your Power Team so here are some of the key roles of Power Team members for closing your lease option deals."

"REAL ESTATE ATTORNEY:
□ Do not underestimate the value of a good attorney, and do not always go for the least expensive one. Get some referrals from other successful investors and businesspeople in your area and interview the attorneys carefully.
□ It is a good idea that your attorney has a good understanding of accounting as it applies to real estate as well. The reason being is that most litigation today involves the financial side of the investment business.
□ Also, keep in mind that your attorney needs to do what you want him to do and when; you must be in control.
□ Three keys your attorney must have is knowledge of the law, solid real estate experience, and a good reputation.
□ Make sure you understand how your attorney charges you and how you are billed. Do not be shy about negotiating here if you feel your attorney is charging too much.
□ Some states require attorneys to close and others do not. If you are in a state that uses attorneys to close, make sure he is well versed in the straight option close technique. As with any contracts involving the real estate transaction, you will need to have your attorney look at and tweak the documents to the specific rules of your state.
□ In terms of private money, explain to him what your plans are. He may be interested or know someone who is interested in investing with you. Be careful that this is not viewed as a solicitation. Again, you will need him to look over the
documentation that you use for your private money projects."

"Attorney Interview Questions:
Opening phone call:
□ I am a REI looking for a RE Attorney to handle my affairs.
□ Are you a RE Attorney or can you recommend one to me?
□ If Yes, “Do you invest in RE yourself?”
□ If Yes, set appointment.
At appointment:
□ How many years have you been a RE Attorney?
□ What type of property do you invest in?
□ Why do I need a RE Attorney? (this will really let you know if he is on the ball)
□ How do you get paid and when do you get paid?
□ What other resources does your Firm offer?
□ Can you offer any asset protection advice?
□ Can you offer any entity creation advice?
□ What are the top three behaviors that land REIs in court?
□ Do you sit on the board of any Banks? If Yes, can you make an introduction for me?"

"MORTGAGE BROKER:
□ It is crucial that you have a mortgage broker that specializes in investor loans, and subprime lending
□ It is critical that your broker can help qualify your tenant/ buyers as well as understand the closing process that you will be using
□ Watch out for unethical brokers who are eager to refinance
□ you just so they can make a buck. Ensure the refinance is to your advantage and not just saving a couple of points on your rate
□ A good broker will teach you everything you need to know about creative financing and lenders
□ When interviewing brokers, ask them what percentage of their business is subprime. If it is not a majority, he/she may not be the right broker for you
□ Also ask about interest only loan products for your area and his opinion on them. As a rule of thumb, interest only loan products are better for the higher appreciating markets or for properties you are going to do a buy fix and sell on
□ Also ask the broker how many lenders he has access to and how many does he prefer to do business with
□ It can also be extremely beneficial if your broker is connected to a national bank so loans can be underwritten in house. In other words, is your broker also a mortgage banker?
□ “How many investors do you work with?” and “How many loans per month do you complete?” are also excellent questions.
□ Mortgage Broker Interview Questions:
□ Opening phone call: “Does your company specialize in B, C, D paper and non- conforming loans? (must be a YES to continue). Do you work with REIs? (must be a YES to continue). How many investors do you work with? If Yes to the first two
questions, set an appointment."

"At appointment:
For all of the following questions, we want to know what your best/ highest Loan is to Value (LTV) available for:
□ (Notice we are not asking about interest rate)
□ LTV and Loan Product
□ Owner Occupied: Single Units Duplexes Triplex’s/Quads 5+ units
□ Vacant
□ Single Units Duplexes Triplex’s/Quads 5+ units
□ Is second mortgage money available?
□ How much?
□ Do you have Hard Money? If NO, do you know who does?
□ Do you have Stated Income, No Documentation loans?
□ Do you have NENA, No Employment, No Assets loans?
□ What areas of town are appreciating?
□ What areas of town are rents increasing?
□ What are the investors working with you doing? And where are they doing it?
□ How can I make your work easier?
□ What paperwork do you need from me?
□ Are you a corresponding lender?
□ Would you like me to bring you FHA buyers?
TITLE COMPANY/CLOSING AGENT
Opening phone call: “Does your company work with REIs? (must be YES to continue). How many do you work with? (must be a good number 20-30 at least). If satisfied, set appointment.
At appointment:
□ What is your fee schedule?
□ How much lead time do you require?
□ What documentation will you need?
□ Do you work with assignments and simultaneous closings? If not, would you be willing to sit down with us so we can explain the process to you?"

"□ Do you have pre-foreclosure information that we can access to help those folks?"
"□ What areas are your investors in?
□ When deals fail to close, can you forward the sellers contact information to us? We will close.
□ What paperwork do you need from me and when?
□ What can I do to make your life easier?
□ Do you sit on the boards of any Banks? If Yes, can you make an introduction for me?
HIT THE GROUND RUNNING WHEN YOU GET HOME!
90- Day Action Plan Steps
□ Identify three-key advantages of lease options, over other types of real estate investments you may have considered.
Date to Complete:
□ Review and commit to memory the important terms that relate to the completion of lease option transactions.
Date to Complete:
•  Select two to three types of options purchases that will likely be integral parts of your real estate business.
Date to Complete:
•  Review and commit to memory the characteristics of the primary types of sellers and buyers you will face when working with lease options.
Date to Complete:
•  List three-five motivating circumstances that might lead a client to a sandwich lease option and document the ideal ways to match their needs with a lease option exit strategy.
Date to Complete:
•  Prepare marketing pieces you can use to attract either lease option sellers or
tenant buyers to your business."

"Date to Complete:
•  Review the Five-D profit centers of a sandwich lease option and identify each for each potential deal you encounter.
Date to Complete:
•  Practice calculating the profit potential for each lease option deal you encounter in your business.
Date to Complete:
•  Prepare an interview questionnaire you can use when testing the motivation for possible lease option sellers.
Date to Complete:
•  Prepare a master list of common topic points and objections with lease option sellers and practice how you will handle each.
Date to Complete:
•  Create a checklist for due diligence items you will need to perform beforefinalizing agreements with lease option sellers.
Date to Complete:
•  Create a basic-screening checklist for the approval process for tenant/buyers.
Date to Complete:
•  Prepare a master list of common topic points and objections with tenant/buyers and practice how you will handle each.
Date to Complete:
•  Prepare, print, and practice filling out the paperwork package that is essential to securing a sandwich lease option agreement with a seller.
Date to Complete:
•  Prepare, print, and practice filling out the paperwork package that is essential to
securing a qualified tenant/buyer."

"Date to Complete:
• Interview and select a title company or closing attorney that you can work with to perform assignments or simultaneous closings to exit your sandwich lease option transactions.
Date to Complete:
•  Prepare a basic-credibility portfolio that you can use to attract potential private investors to your business.
Date to Complete:
•  Assess your own improvement as a creative investor by completing evaluation worksheets for each phone call and/ or face-to-face meeting you have with potential lease option clients."
"GLOSSARY SECTION"
"A
Abandon - To choose not to exercise or sell an option before it expires. To voluntarily relinquish the rights of property ownership.
Abstract (of Title) - A historical summary of all the recorded transactions that affect the title to the property. An attorney or a title company will review an abstract of title to determine if there are any problems affecting the title to the property. All such problems must be cleared before the buyer can be issued a clear and insurable title.
Acceleration Clause - A provision in a loan contract that allows the lender to demand full and immediate repayment of the entire loan balance if the contract is breached or conditions for repayment occur.
Addendum - Clauses that are added to the end of a contract which supersede what is written in the contract.
Adjustable-Rate Mortgage (ARM) - Also known as a variable rate mortgage. A mortgage with an interest rate that may change, usually in response to changes in the Treasury Bill rate or the prime rate.
Adjustment Period - This is the length of time for which the interest rate is fixed on an adjustable-rate mortgage. Therefore, if the adjustment period is six months, then the interest rate will remain fixed for six months, after which time it will adjust.
Agent - Generally, someone who acts on behalf of another for a fee. In real estate, the term refers to a person with a real estate license who works under the authority of a real estate broker.
Agreement of Sale - A written signed agreement between the seller and the purchaser in which the purchaser agrees to buy certain real estate and the seller agrees to sell upon terms of the agreement. Also known as contract of purchase, purchase agreement, offer
and acceptance, earnest money contract or sales agreement."

"Amortization - A gradual paying off of a debt by regular periodic installments, which pay principal and interest over a specified period of time.
Annual Percentage Rate (APR) - The effective rate of interest for a loan per year. This rate is typically higher than the note rate because it takes into account closing costs. This is one way to compare loan programs offered by different lenders. Caution: the APR is sometimes computed differently by different lenders and can be misleading.
Appraisal - An opinion or estimate of the value of a property at a given date.
Appreciation - Increase in value of a property.
Arm’s Length Transaction - Typically, a transaction between two related or affiliated parties that is conducted as if they were unrelated, so that there is no question of a conflict of interest.
Arrears - The amount of debt that is overdue or unpaid. A payment that is made past its due date.
Assessment - A local tax levied against a property for a specific purpose such as streetlights.
Asset - Anything of value that can be converted into cash or used to pay a debt.
Assign - To transfer interest.
Assignee - Individual to whom a title, claim, property, interest, or right has been transferred.
Assignor - The one who transfers a title, claim, property, interest, or right to another person.
Assignment Clause - A sales contract with an assignment clause allows the buyer to transfer interest in the property (e.g., the right to buy it at the given rates and terms) to
another party."

"Assumable Mortgage - A mortgage loan which allows a new home buyer to take over the obligation of making loan payments with no change in the terms of the loan.
Assumable loans do not have a due-on-sale clause. The lender has to be notified and agree to the assumption. The lender may require the buyer to qualify for the loan and may charge an assumption fee. The seller should obtain a written release from the lender stating clearly that he/she is no longer liable to make mortgage payments.
Assumption - To assume a mortgage means to take over the repaying of that debt from the seller.
B
Balloon (payment) Mortgage - Usually a short-term fixed-rate loan which involves small payments (such as if it were amortized for a traditional 30-year period) for a certain period of time, followed by one large payment for the remaining amount of the principal at a time specified in the contract. Example: A balloon mortgage for $25,000 has interest only payments for 5 years at 12% ($250 per month), with the full principal of $25,000 due and payable after 5 years.
Bankruptcy - The legal process of declaring one’s financial inability to pay one’s debts when due. The debtor surrenders his assets to the bankruptcy court in order to help satisfy existing debts.
Beneficiary - The person who receives or is eligible to receive the benefits resulting from certain acts.
Bid - An offer of a specific amount of money in exchange for products and services, as in an auction.
Bi-weekly Mortgage - A mortgage which requires 1/2 the normal monthly payment every two weeks. Over the course of the year, 26 half-payments are made which is equivalent to 13 full-mortgage payments. As a result of this extra payment, the loan amortizes much faster than a loan with normal monthly payments.
Blanket Mortgage - A mortgage covering more than one piece of property. Example: A
developer subdivides a tract of land into lots and obtains a blanket mortgage on the whole tract."

"Book Value - The value of an asset as shown in the financial records of an individual or corporation. Book Value may differ substantially from Market Price.
Borrower (Mortgagor) - One who applies for a loan secured by real estate and is responsible for repaying the loan (mortgage).
Broker - An individual or firm that acts as an intermediary between a buyer and seller, usually charging a commission.
Buy-Back Agreement - An agreement specifying conditions under which a seller agrees to repurchase a property from whom they sold it to, usually for a stated price and within a stated time limit.
Buy Down - Obtaining a lower interest rate (buying down the rate) by paying additional points (fees) to the lender. The lower rate may apply for the full duration of the loan or for just the first few years. A buy down may be used to qualify a borrower who would otherwise not qualify. This is because a buy down results in lower payments that are easier to qualify for.
Buyers Broker - An agent hired by a buyer to locate a property for purchase. The broker represents the buyer and negotiates with the seller’s broker for the best possible deal for the buyer.
Buyer’s Market - Market conditions that favor buyers i.e., there are more sellers than buyers in the market. As a result, buyers have ample choice of properties and may negotiate lower prices. Buyers markets may be caused by an economic slump or overbuilding.
C
Capital - Money used to generate income or pay for operating expenses.
Capital Gains - Profit earned from the sale of real estate or the amount by which an asset’s selling price exceeds its initial purchase price.
Capitalization Rate - The rate used to determine the present value of property with future earnings."

"CAPS (interest) - Consumer safeguards, which limit the amount, the interest rate on an adjustable-rate mortgage may change per year and/or over the life of the loan.
CAPS (payment) - Consumer safeguards, which limit the amount monthly payments on an adjustable-rate mortgage, may change.
Cash Flow - The amount of cash derived over a certain period of time from an income- producing property. Cash receipts minus cash payments over a given period of time. The cash flow should be large enough to pay the expenses of the income-producing property (mortgage payment, maintenance, utilities, etc.).
Caveat Emptor - A legal term meaning “let buyer beware.” The buyer must examine the property and buy at his/her own risk.
Example: A property may be offered in an “as is” condition with no expressed or implied guarantee of quality or condition.
Certificate of Occupancy - Document issued by a local governmental agency that states a property meets the local building standards for occupancy and is in compliance with public health and building codes. This document is normally required by a lender prior to closing the loan.
Certificate of Title - An opinion rendered by an attorney as to the status of title to a property, according to the public records. This certificate does not hold the same level of protection as title insurance.
Chain of Title - Chronological order of conveyance of a parcel of land from the original owner to the present owner. An abstractor can research title to property going back to the date that the property was granted to the United States.
Chattel - Personal, tangible, moveable property. The same as personal property. Not real estate.
Clear Title - A marketable title, free of liens and legal questions as
to the ownership of the property. Most lenders require a clear title prior to closing."

"Closing –
1. The act of transferring ownership of a property from seller to buyer in accordance with a sales contract.
2. The time when a closing takes place.
3. The process of signing the documents to transfer property.
Closing Costs - Expenses incurred by the buyer and seller in a real estate or mortgage transaction over and above the price of the property. There are two types of costs: recurring and non-recurring.
□ Non-recurring costs are one-time transactional costs, which include:
□ discount and origination points,
□ lender fees (underwriting, processing, document preparations, flood certificate, tax service, wire transfer, courier, etc.),
□ title insurance fees,
□ escrow,
□ attorney or closing agent fees,
□ recording fees,
□ inspection and appraisal fees, and
□ real estate brokerage commissions.
□ Recurring fees are costs associated with owning the property and they recur month after month. These costs may include
□ hazard insurance,
□ interest,
□ property taxes,
□ mortgage insurance (PMI),
□ association fees. A pro-rated amount of these fees may have to be paid at closing, including prepaid interest (interest charges from the date of closing to the end of the month),
□ property taxes if due,
□ hazard insurance,
□ fire insurance or homeowner’s insurance (has to be paid for one year). Mortgage insurance (PMI) - may be required if the loan amount is more than 80% of the value of the property. In the past a whole year of PMI had to be paid up front;"

"however, in recent years many PMI companies only require 1-2 months up front. Mortgage insurance premiums are normally paid every month with the loan payment.
Closing Statement - The settlement statement (usually called a HUD- 1) that discloses all of the financial details of the transaction between the buyer and seller, including all costs.
Cloud on Title - An outstanding claim or encumbrance that, if valid, would affect or impair the owner’s title. Compare to clear title.
Collateral - Assets pledged by a borrower to secure a loan or other credit, and subject to seizure in the event of default.
Commission - The fee charged by a broker or agent when selling real estate.
Comparative Market Analysis (CMA) - A comparison of sales prices of similar properties in a given area for the purpose of determining the fair market value of a property. Also referred to as “Comps.”
Conditional Commitment - A written document provided by a lender agreeing to make a loan provided certain conditions are met by the borrower prior to closing.
Consideration - Anything of value given to induce another to enter into a contract. An earnest money deposit on a sales contract is consideration.
Construction Loan - A short-term loan to pay for the construction of buildings or homes. These loans typically provide periodic disbursements to the builder as each stage of the building is completed. When construction is completed a “take-out” or permanent loan is used to pay off the construction loan.
Contingency - Conditions, which must be satisfied before the buyer, can close the purchase of a property. Contingencies are generally outlined in the purchase contract between the buyer and seller.
Example: The buyer has 14 days to remove the property contingency under the sales
contract. In this case the buyer has 14 days to inspect the property and request the"

"seller to perform repairs. If the buyer is not satisfied with the condition of the property or if the buyer and the seller cannot agree on repairs, the buyer may back out of the contract with no penalty. After 14 days the buyer no longer has the right to back out, without penalty, as a result of a problem with the condition of the property.
Contract - A binding agreement between competent parties to do or not do certain things for consideration. To have a valid contract for the sale of real estate there must be: 1) an offer, 2) an acceptance, 3) competent parties, 4) consideration, 5) legal purpose, 6) written documentation, 7) description of the property, 8) signatures by principals or their attorney-in-fact.
Contract for Sale - Same as the Agreement of Sale.
Contract Sale or Deed - A real estate installment selling arrangement where the buyer may occupy the property, but the seller retains the
title until the agreed upon sales price has been paid. Also known as an installment land contract.
Contract to Purchase - An agreement of sale detailing the transaction and submitted by the buyer to the seller.
Conventional Loan - Any mortgage loan other than a VA or an FHA loan. A conventional loan may be conforming or non-conforming.
Convertible ARM - Some variable rate loans come with options to convert them to a fixed-rate loan based on a pre-determined formula, during a given time period.
Conveyance - The transfer of title of real property from one party to another.
Covenant - A written agreement or restriction on the use of land or promising certain acts.
Credit Report - A report detailing a borrower’s credit history including payment history on revolving accounts (e.g., credit cards), installment accounts (e.g., car loan), bankruptcies and late payments, and recent inquiries. It can be obtained by prospective
lenders with the borrower’s permission, to determine his or her creditworthiness. A"

"credit report also includes information found from public records including tax liens and judgment.
D
Debt-to-Income Ratio - The ratio, expressed as a percentage, which results when a borrower’s monthly payment obligation on long-term debts is divided by his or her net effective income (FHA/ VA loans) or gross monthly income (conventional loans).
Deed - A written document by which title to real property is transferred from one owner to another. The deed should contain an ac- curate description of the property being conveyed, should be signed and witnessed according to the laws of the State where the property is located, and should be delivered to the buyer at closing.
Deed of Trust - Used in many states instead of a mortgage to secure the payment of a note. In a deed of trust there are three parties
- the borrower, the trustee, and the lender, (or beneficiary). The deed to a property is held by a trustee instead of the borrower.
Deed Restriction - A clause in a deed that limits the use of land.
Default - Failure to meet legal obligations in a contract - such as the failure to make the monthly mortgage payment.
Defective Title - Any recorded instrument that would prevent a grantor/seller from giving a clear title.
Delinquency - Failure to make payments on time. This can lead to foreclosure.
Depreciation - Decline in the value of a house due to wear and tear, obsolescence, adverse changes in the neighborhood, or any other reason.
Disclosure - Statement of fact(s) concerning the condition of the property for sale and the surrounding area. In most states, the buyer is protected by disclosure laws requiring sellers to divulge certain information about the property.
Discount Points - Fees paid to a lender to reduce the interest rate."

"Documentary Tax Stamps - Stamps affixed to a deed showing the amount of transfer tax paid.
Down Payment - The part of the purchase price paid in cash up front, reducing the amount of the loan or mortgage.
Due on Sale Clause - A clause in the deed of trust or mortgage that states that the entire loan is due upon the sale or transfer of
the property.
E
Earnest Money - A deposit made by a buyer of real estate towards the down payment to evidence good faith. This money is typically held by the real estate broker or the escrow company.
Easement - The right to use the land of another for a specific purpose. Easements may be temporary or permanent.
Eminent Domain - The right of the government or a public utility to acquire private property for public use by condemnation, with proper compensation to the owner.
Encumbrance - A legal right or interest in land that affects a good or clear title and diminishes the land’s value. It can take numerous forms, such as zoning ordinances, easement rights, claims, mortgages, liens, charges, a pending legal action, unpaid taxes, or restrictive covenants.
Equal Credit Opportunity Act (ECOA) - A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status or receipt of income from public assistance programs.
Equity - (Equity=Property Value - Loans/Liens Against the property) - The property value minus what you still owe (the mortgage balance).
Escheat - The reversion of property to the state in the event that the owner dies without leaving a will and has no legal heirs."

"Escrow - An account held by the lender into which a homeowner pays money for taxes and insurance.
Eviction - The lawful removal of an occupant and her/his belongings from a property.
F
Fannie Mae/Federal National Mortgage Association (FNMA) – A federal organization that purchases loans from lenders and then sells them as FNMA mortgage-backed securities.
Farmers Home Administration (FHA) - An agency, within the
U.S. Department of Agriculture, that makes and insures loans for rural housing and farms.
Federal Deposit Insurance Corporation (FDIC) - A government agency that supervises and insures accounts held by lending institutions.
Fee Simple (Fee Absolute or Fee Simple Absolute) – Absolute ownership of real property; owner is entitled to the entire property with unrestricted power of disposition during the owner’s life and upon his death the property descends to the owner’s designated heirs.
Federal Housing Administration (FHA) - A government agency within HUD that administers and insures mortgage loans for private lending agencies.
FHA Loan - This program provides mortgage insurance to protect lenders against the risk of default on loans to qualified buyers. A loan insured by the Federal Housing Administration is open to all qualified home purchasers.
FICO Score - FICO stands for Fair Isaac & Company. Credit scores are reported by three major credit bureaus, Equifax, Experian and Trans-Union. Scores are not necessarily the same on each bureau’s report because each bureau may place a slightly different value on different items.
Fiduciary - A person in a position of trust or responsibility with the legal authority and duty to make decisions regarding financial matters on behalf of the other party."

"Finance Charge - Interest charged by a lender.
Fixed Rate Mortgage (FRM) - The mortgage interest rate will remain the same throughout the term of the mortgage for the original borrower.
Forbearance - A lenders postponement of foreclosure in order to give the borrower time and an opportunity to make up for overdue payments. Also, an agreement for a buyer to temporarily make higher payments in order to satisfy overdue payments.
Foreclosure (Repossession) - A legal sale of property forced by the lender when the borrower defaults on the mortgage loan. Freddie Mac/Federal Home Loan Mortgage Corporation Freddie Mac/Federal Home Loan Mortgage Corporation (FHLMC) - Purchases loans from the Federal Reserve and the Federal Home Loan Bank Systems then sells them as FHLMC mortgage-backed securities on Wall Street.
Free and Clear - A property that has no liens.
FSBO (For Sale by Owner) - A property for sale that is not listed with a real estate broker and therefore will not be listed on the Multiple Listing Service (MLS).
G
Grace Period - The time period between the due date of a mortgage payment and the date when late charges are assessed. For example, payments due on the first of the month may have a 14-day grace period, meaning that fees will be charged if payment is not received by the fifteenth.
Graduated Payment Mortgage (GPM) - A mortgage that has lower payments initially (with potential negative amortization), which payments then increase each year until the loan is fully amortized. This program is intended for people with low current income but greater anticipated future income.
Grantee - That party in the deed who is the buyer or recipient.
Grantor - That party who is the seller or the giver."

"H
Hard Money Lender - Lenders who use private money to make loans with Borrowers who have trouble getting loans via conventional methods. There is usually a very high interest rate associated with hard money lenders.
Home Improvement Loan - A loan used to finance home improvements. It may or may not require a mortgage or collateral.
Homeowner’s Association - An association of homeowners that oversees the common areas of the development and its rules and regulations.
Home Warranty Plan - Private insurance insuring a buyer against defects (usually in plumbing, electrical, appliances and heating and cooling systems. Typically purchased at the time of closing, a warranty can cover both new and used homes.
Homestead - Status provided to a homeowner’s principal residence in some states that protects the home against certain judgments up to specified amounts.
Homestead Exemption - Available in some states - this causes the assessed value of a principal residence to be reduced by the amount of the exemption for the purposes of calculating property tax.
Housing and Urban Development (HUD) - A U.S. government agency established to implement certain federal housing and community development programs.
I
Improvements - Additions to raw land such as buildings, streets, etc. that add value to the land.
Income Approach - A method used by an appraiser to estimate the value of rental property based on the income it generates over the life of the structure, discounted to determine its present value.
Income Property - Real estate that generates rental income.
Ingress and Egress - The right to go in and out over a piece of property but not the right"

"to park on it. See also Easements.
Inspection - An examination of a property or building to determine condition or quality for a particular purpose such as an assessment of structural or termite damage. An inspection may also be used to confirm that the property meets the standards of the contract.
Installment Sale - See land contract.
Interest Cap - A limit on the amount that the interest rate for an adjustable-rate mortgage can change, regardless of how much the index changes. Most ARMs have a cap on both the amount they can increase and decrease at any periodic adjustment interval, and a life-long cap that limits the amount the interest rate can vary over the life of the loan. The two interest caps are sometimes called a “periodic cap” and a “life cap.”
Interest rate - The percentage rate on a principal amount charged by a lender for the use of a sum of money.
Investor - A money source for a lender. Also, one who makes investments.
J
Jumbo Loan - Loan size that is larger than the limit established by Fannie Mae or Freddie Mac.
Junior Lien - A lien which is in a subordinate position to other liens existing on a property.
Junior Mortgage - All mortgages/liens subordinate to the first mortgage.
L
Land Contract - A real estate installment selling arrangement where- by the buyer may use and occupy land, but ownership of the property is not transferred until all the payments have been made.
Landlord - The owner of real property who rents or leases to another party, called a tenant."

"Land Trust - A revocable trust agreement usually used in conjunction with a piece of property. The managing party of the agreement, the Trustee, is named in public records while the beneficiary is not disclosed.
Lease - An agreement giving the right to occupy property for a specific period of time for a specific amount.
Lease Option - An agreement giving a renter the option to purchase the property within a defined period of time and for a de- fined purchase price.
Lease with Option to Purchase - A lease under which the lessee has the right to purchase the property. The option may run for a portion or for the full length of the lease.
Lessee - A person who leases a property from its owner. (Tenant)
Lessor - A person who rents property to another under a lease. (Landlord)
Lien - A claim against the property for the payment of a debt, judgement, mortgage or taxes. A lien must be satisfied when the property is sold.
Lis Pendens - Latin term for “Lawsuit Pending”
Loan Application - A document required by a lender prior to loan approval. The application includes detailed information about the borrower, their finances, and the property.
Loan Origination Fee or Points - A one-time fee charged by a lender or broker connected with originating a loan. This is different from discount points, which are used to buy down the rate of interest.
Loan-to-Value Ratio (LTV) - The relationship of the loan amount to the price (or value) of the property.
M
Manufactured Home - Homes built in a factory-controlled environment and that meet
strict HUD codes. They are brought to the property site and are assembled there."


 

"Margin - A fixed number added to the index to compute the rate on an adjustable-rate mortgage.
Market Value - The highest price that a buyer would pay and the lowest price a seller would accept on a property.
Mortgage - A written legal agreement that creates a lien against a property as security for the payment of a debt; a loan to pay for real estate that usually includes interest rates and a payment schedule.
Mortgage Banker - Specializes in originating, selling and servicing loans. They generally sell their loans to investors but may continue to service them.
Mortgage Broker - An individual or company which brings borrowers and lenders together for the purpose of loan origination, but which does not originate or service the mortgages. They are paid a fee by the borrower or the seller at the closing.
Mortgagee - The lender.
Mortgagor - The borrower.
Motivated Buyer - Any buyer with a strong circumstance or reason to buy.
Motivated Seller - Any seller with a strong circumstance or reason to sell.
Multiple Listing Service (MLS) - A group of brokers joined together in a marketing organization for the purpose of pooling their respective listings. In exchange for a potentially larger audience of buyers, the brokers agree to share commissions. The listings are pooled by using a computerized network.
N
Negative Amortization - An increase in principal balance, which occurs when the monthly payments do not cover all of the interest cost. The interest cost, which is not covered by the payment, is added to the unpaid principal balance.
Net Operating Income (NOI) - The amount of income you have left after you deduct"

"operating expenses (but before deducting interest and taxes). NOI does not include debt service (mortgage payment).
Non-Assumption Clause - A statement in a mortgage contract forbidding the assumption of the mortgage without the prior approval of the lender.
Noncompliance - Failure to comply or obey.
Non-Conforming Loan - A loan that does not meet the Freddie Mac or Fannie Mae standards.
Notary Public - One authorized to take acknowledgments of certain types of documents, such as deeds, contracts, and mortgages.
Note - A legal document that obligates a borrower to repay a loan at a specified interest rate during a specified period of time or on demand.
Notice of Default - A formal notice to a borrower declaring that a default has occurred, and that legal action may be taken.
O
Offer - An expression of willingness to purchase a property at a specified price.
Offeree - One who receives the offer. When the buyer makes an offer to the seller, the seller is an offeree.
Offeror - One who makes the offer. When the buyer makes an offer to the seller, the buyer is an offeror.
Option - The right to buy a property at a specific price within a specific time period.
Optionee - One who receives or purchases an option.
Optionor - One who gives or sells an option.
Option to Purchase - An agreement giving the right to buy a property at a specific price"

"within a specific time period.
Oral Contract - A verbal agreement. Verbal agreements for the sale or use of real estate are normally unenforceable.
Origination Fee - A fee charged by a lender for processing a loan application, expressed as a percentage of the mortgage amount.
Owner Occupant - A tenant of a residence who also owns the property.
Owner of Record - The individual named on a deed that has been recorded at the county recorder’s office.
P
Paper - A mortgage, deed of trust or land contract provided in lieu of cash.
PITI - Abbreviation for principal, interest, taxes and insurance, which may be combined in a single monthly mortgage payment.
Plat - A plan or map of a specific land area.
Plat Book - A public record containing maps of land, showing the division of the land into streets, blocks, and lots and indicating the measurements of the individual parcels.
Points - Fees paid to lenders at the beginning of a loan. 1 point=1% of the loan amount. Points may be further classified into origination points or discount points.
Portfolio Loan - A loan held (not sold) by banks as an investment.
Power of Attorney - A written document authorizing an outside party to act on his or her behalf, naming that outside party as an Attorney in Fact. One does not need to be a licensed attorney to act as an attorney in fact. However, power of attorney forms are powerful legal documents that should be used only under advice of a licensed attorney at law.
Prepaid Interest - Interest paid before it is earned. Prepaid interest is the interest charged to borrowers at closing to pay for the cost of borrowing for a balance of the month. For example, if a loan closes on the 19th of the month and the first payment is"

"due on the 1st of the following month, the lender will charge 12 days of prepaid interest.
Prepayment - Full or partial payment of the principal before the due date. This might occur if the borrower makes extra payments, sells the property, or refinances the existing loan.
Prime Rate - The lowest commercial interest rate charged by a bank on short-term loans to their most credit worthy customers.
Principal - The outstanding balance on a loan.
Private Mortgage Insurance (PMI) - Mortgage insurance provided by non-government insurers that protects a lender against loss if the borrower defaults. In the event the borrower doesn’t have a 20 percent down payment, lenders will allow a smaller or nonexistent down payment. With the smaller down payment loans, however, borrowers are usually required to carry private mortgage insurance. Private mortgage insurance payments are normally made either annually or monthly.
Probate - Court process to establish the validity of the will of a deceased person. Also, the process by which an executor, personal representative or a court-appointed administrator manages and distributes a decedent’s property.
Pro Forma - Projected financial statements based on assumptions.
Promissory Note - A signed legal document that acknowledges the existence of a debt and the promise to repay it.
Prorate - To divide proportionately, so as to determine actual amounts owed by the buyer and seller at closing.
Public Sale - An auction of property that is open to the general public. A public sale generally requires notice (advertising) and must be held in a place accessible to the general public.
Purchase - To buy; or, to obtain property in exchange for money."

"Purchase Agreement - See Agreement of Sale.
Purchase Money Mortgage - A mortgage used to finance the purchase of a property.
Q
Qualifying - The process of determining whether a buyer is financially able to accommodate the terms of a mortgage by checking credit history, present and previous employment, and any other sources which may help to determine the buyer’s financial capability.
Quiet Title (Action) - A court action to establish ownership of property.
Quitclaim Deed - A deed, which transfers whatever interest or title the maker of the deed may have in the particular parcel of land. A quit claim deed is often given to clear the title when the grantor’s interest in a property is questionable. By accepting such a deed, the buyer assumes all the risk. Such a deed makes no warranties as to the title, but simply transfers to the buyer whatever interest the grantor has.
R
Real Estate Broker - A licensed individual who arranges the buying and selling of real estate for a fee. A broker usually owns his/her own real estate company or is in a management position.
Real Property - Land including trees, minerals, and any permanent fixtures attached to it.
Realtor - A real estate professional who is a member of the National Association of Realtors.
Recording - The act of entering into a book of public records instruments affecting title to the real property. A lender requires that a deed of trust or a mortgage be recorded to evidence the debt against the property.
Recording Fees - Money paid to the lender for recording a home sale with the local authorities, thereby making it part of the public records."

"Red-Lining - Illegal practice of discriminating based on geographic location when providing loans or insurance coverage.
Refinance - Obtainment of a new mortgage loan on a property already owned, often to replace existing loans on the property.
Refinancing - Repaying an existing loan from the proceeds of a new loan on the same property.
Restrictive Covenants - Private restrictions limiting the use of real property. Restrictive covenants are created by deed and may “run with the land,” binding all subsequent purchasers of the land, or may be “personal” and binding only between the original seller and buyer.
Right of First Refusal - The right to purchase a property under terms and conditions made by another purchaser and accepted by the seller. For example, if the Joneses make an offer of $120,000 on a property and the seller accepts the offer subject to the Wilson’s right of first refusal, the Wilsons have the right to buy the property for
$120,000.
Rollover Loan - A loan that is amortized over a long period of time (e.g., 30 years) but the interest rate is fixed for a short period (e.g., 5 years). The loan may be extended or rolled over, at the end of the shorter-term, based on the terms of the loan.
S
Sales Agreement or Sales Contract - See Agreement of Sale.
Second Mortgage - A subordinated lien, created by a mortgage loan, over the amount of a first mortgage. Second mortgages generally carry a higher rate than a first mortgage since they represent a higher risk for an investor. Mortgages are generally recorded in the order of the date they are placed.
Section 1031 - The section of the IRS code that deals with tax deferred exchanges of certain property. General rules for tax free ex- changes are that the properties must be
exchanged, similar, and used for business or as an investment."

"Section 8 Housing - Privately owned rental units participating in the low-income rental assistance program sponsored by HUD. Landlords receive subsidies on behalf of qualified low-income ten- ants, allowing the tenants to pay a limited proportion of their incomes toward the rent.
Seller Financing - The Seller of the property agrees to hold a mortgage and accept monthly payments instead of receiving their money in one lump sum.
Sheriff’s Deed - A deed given at the sheriff’s sale in the foreclosure of a mortgage.
Single Family Housing (SFR) - A general term originally used to distinguish a house designed for use by one family from an apartment house. More recently, used to distinguish a house with no common area from a planned development or condominium. Example: Townhouses, detached units.
Special Warranty Deed - The grantor does not warrant against title defects arising from conditions that existed before he/she owned the property. The seller warrants that he/she has done nothing to impair title.
Subordination - A loan in a lower priority, for example a second mortgage is subordinate to a first.
Substitution of Liability - A buyer’s assumption of responsibility for an assumable loan.
Survey - Map made by a licensed surveyor who measures land and charts its boundaries, improvements and relationship to the property surrounding it.
Sweat Equity - Value added to a property due to improvements made by the owner.
T
Tax Lien - A lien placed on a property for nonpayment of taxes
Tax Sale - Public sale of a property at an auction by a government authority as a result of non-payment of property taxes.
Tenancy at Will - A tenancy arrangement in which one party (the tenant) occupies real estate with the permission of the owner, for an unspecified period of time. The tenant"

"may decide to leave the property at any time or must leave at the landlords will. Tenancy for Years - Created by a lease for a fixed term, such as 6 months, 2 years, etc. Tenancy in Common - Ownership of a property by 2 or more per- sons, each of whom has an undivided interest, without the right of survivorship. Upon the death of one of the owners, the ownership share of the deceased is inherited by the beneficiary designated on the owner’s will.
Time is of the Essence - Legal phrase in a contract requiring that all references to specific dates and times in the contract be interpreted exactly.
Title - A legal document establishing evidence of ownership.
Title Insurance - An insurance policy, which protects the insured against loss arising from a property title dispute. Title insurance policies are typically obtained for the buyer and the lender.
Title Report - A document indicating the current state of title. The report includes information on the current ownership, outstanding deeds of trust or mortgages, liens, easements, covenants, restrictions, and any defects.
Title Search - An examination of the public records to determine the ownership and encumbrances affecting the property.
Tract - A parcel of land, generally held for subdividing.
Trust Deed - See Deed of Trust.
Trustee - A party who is given legal responsibility via a Deed of Trust to hold property in the best interest of or “for the benefit of” another. The trustee is one placed in a position of responsibility for another, a responsibility enforceable in a court of law.
U
Underwriting - The decision whether to make a loan to a potential home buyer based on credit, income, employment history, assets, etc.
Unencumbered Property - Real estate with free and clear title."

"Unimproved Property - Land that has received no improvements.
V
VA Loan - Home loan guaranteed by the U.S. Veterans Administration, enabling a veteran to buy a home with little to no money down.
Valuation - An estimation of value of a property, as determined by various factors.
Variable Rate Mortgage - See Adjustable-Rate Mortgage
W
Waiver - The voluntary renunciation, abandonment, or surrender of some claim, right, or privilege.
Warranty Deed - A deed, which guarantees the transfer of title from the seller to the buyer.
Wraparound Mortgage - A seller created mortgage that includes the remaining amount on a current mortgage AND any remaining amount to reach the agreed upon purchase price. The new mortgage “wraps around” the current mortgage. The seller is still responsible for the first mortgage. By making defined monthly payments on the wraparound mortgage, the buyer will satisfy the terms of the mortgage held by the bank.
Y
Yield Spread - A rebate to a mortgage broker from the lending institution that purchases the loan on the open market. The yield spread is usually determined by the difference between the interest rate on the issued loan and the current prime rate.
Z
Zoning - The process of determining what, if any, types of property may be placed in a particular land area. Common zoning distinctions include residential, commercial, industrial, and agricultural. These zoning ordinances are normally enforced by the city or
the county."


 

Lease with Owner Agreement
THIS LEASE AGREEMENT is made and entered into this _______ day of ________________________ , 20 _____
by and between ______________________________________________________ , hereafter referred to as “Landlord”,
and __________________________________________________________________ , hereafter referred to as “Tenant”.
THIS LEASE AGREEMENT is conditional upon the Tenant’s ________________________ approval within _____
business days of the signing of this lease by the Tenant.
PROPERTY ADDRESS: Landlord leases to Tenant and Tenant leases from Landlord, upon the terms and conditions
contained herein, the dwelling located at ______________________________ in the city of ___________________ ,
State of _________________________ .
LEASE TERM: The said premises, as described above, with all appurtenances, are hereby leased to the Tenant for the
period commencing on the: ___________________________ day of _______________________________ , 20 ____
and thereafter until the _______________________________ day of _______________________________ , 20 ____
at which time this lease agreement shall terminate.
RENEWAL OF LEASE: For and in consideration of $ __________________ per/month the Landlord hereby grants
the Tenant, at the Tenant’s sole and absolute unfettered discretion, the right to extend this lease for ________ month(s).
RENT: Tenant shall pay as rent the sum of $ _____________ , per month, due and payable monthly on or before the
fifth (5th) day of the month for which the rent is due. Payments to commence upon the Tenant procuring a suitable
sub-tenant or assignee.
For and in consideration of the mutual promise made by the parties, each to the other, the Landlord and Tenant hereby
agree that $ ___________ of each rent payments made by the Tenant shall be applied toward reducing the purchase
price if, and only if the Tenant exercises his/her option to purchase the above property, failing which all rent payments
shall be kept by the Landlord as rent.
ASSIGNMENT: Tenant shall be permitted the right of sub-letting or assignment. If this agreement is assigned with the
approval of the Landlord, whose consent shall not be unreasonably withheld, Tenant shall be released from any further
liability hereunder.
ACCESS: Tenant shall have immediate access to the property and a key to show the property to all prospective
sub-tenants.
INSURANCE: Landlord shall protect Tenant’s interest by maintaining property insurance upon the property naming
Tenant as additional insured. In the event of destruction in whole or in part of the property, Tenant shall have the option
to proceed with the Option to Purchase Agreement and accept the insurance proceeds for said damages, or to declare this
agreement null and void, releasing both parties from any obligations hereunder, except for the return of all monies paid
by the Tenant which shall become immediately due and payable from the insurance proceeds.
______ Landlord’s Initials _________Tenant’s Initials
Page 2 of 2
DAMAGE BY FIRE: In the event that the building(s) is damaged by fire and through no fault of the Tenant and cannot
be restored within a reasonable time in the opinion of the Tenant, this lease shall terminate with no further liability of
either party, except for the return of all monies paid by the Tenant which shall become immediately due and payable
from the insurance proceeds.
THE TENANT, in consideration of the leasing of said premises as aforesaid, covenants and agrees to the following:
• to pay the rent for said premises as herein above provided
• to keep the premises in good condition and state of repair and at the expiration of this lease to deliver up the
same in as good condition as when entered upon, less normal wear and tear, except for loss by fire, inevitable
accidents, or an act of God.
UTILITIES/SERVICES: Tenant agrees to pay all utilities and services with the exception of the following, which the
Landlord agrees to pay: homeowner’s fees, insurance, and taxes.
MERGER CLAUSE: This agreement shall constitute the full and complete understanding of the parties and supersedes
all prior written or oral agreements. There shall be no further additions or changes to this agreement unless the same is
reduced to writing and signed by both parties.
ALL STATE LAWS OF_____________________________________ APPLY and Landlord guarantees rents are in
accordance to State laws.
____________________________ _____________________ __________________________ _________________
Landlord Signature Date Witness Signature Date
____________________________________________
Print Witness Name
____________________________ _____________________ __________________________ _________________
Tenant Date Witness Signature Date

 

"Tenant Lease Agreement (For a purchase LO TB or a JV LO TB)
THIS LEASE AGREEMENT is made and entered into this day of ,
20 by and between , hereafter referred to as “Landlord”, and , hereafter referred to as “Tenant”."
"PROPERTY ADDRESS: Landlord leases to Tenant and Tenant leases from Landlord, upon the terms and conditions contained herein, the dwelling located
at in the city of , State of ."
"LEASE TERM: months for the period commencing on the: day
of ,and thereafter until the day of ,
20 at which time this lease agreement shall terminate."
"RENT: Tenant shall pay as rent the sum of $ per month, due and Payable monthly on the first day of the month. Rent may be mailed through the Post Office at the Tenant’s risk. Any rents that are late or lost in the mail are treated as if unpaid until received by Landlord. Tenant further agrees to pay a late charge of $25.00, plus $5.00 a day, for each day the entire rent is not received by the Landlord by the first day of the month regardless of the cause, including insufficient checks, time being of the essence. If rent is received after the first of the month and late fees as defined herein are not included with such payment, rent is considered unpaid. Any payment received by Landlord is applied firstly toward collection costs, including costs of a lawyer and his own client full indemnity basis, secondly towards rental arrears and then towards rent.
An additional Service Charge of $50.00 will be paid to Landlord for all insufficient checks. If Tenant checks are insufficient, Landlord shall have the right to demand certified check or money orders on all future payments. If any State rent control laws do not allow the above procedure or any procedure contained in this lease, then the State law(s) shall
revail."
"OCCUPANTS: Tenant agrees to use said dwelling as occupancy only for adults and children whose names are as follows:"
"And to pay an additional $50.00 each month for each additional person who shall occupy the premises in any capacity and is not listed above.
PETS: Any pets kept on the property without the permission of the Landlord in writing shall be a breach of this lease. The following pet(s) shall be kept on the premises:
Landlord requires a picture of the pet(s) and copy of Rabies and Distemper Vaccination.
NO ASSIGNMENT: Tenant agrees not to assign this lease, nor to sublet any portion or the property, nor to allow any other person to live therein other than persons named above without first obtaining written permission from Landlord. Tenant will be responsible for all administrative costs incurred by Landlord.
Further, it is agreed that covenants contained in this lease, once breached, cannot afterward be performed and that legal proceedings may be commenced at once, without notice to the Tenant, (other than any notice required by State laws).
Landlord’s Initials
Tenant’s Initials "

"ENFORCEABILITY: Should any provisions of this lease be found to be invalid or unenforceable, the remainder of the lease shall not be affected thereby, and each term and provision herein shall be valid and enforceable to the fullest extent permitted by law.
NO WAIVER: All rights given to the Landlord by this lease shall be cumulative to any other laws, which might exist or come into being. Any failure of the Landlord to enforce any of the provisions or restrictions herein contained shall in no way be deemed a"
"waiver of the right to do so thereafter or insist upon strict compliance of the terms hereof. No statement or promise of the Landlord, servants or his agent as to tenancy, repairs, alterations, or other terms and conditions shall be binding unless reduced to writing and signed by Landlord."
"UTILITIES: Tenants are responsible for the payment of the following utilities:"
   "Heat"    "Electricity"    "Garbage"    "Water/Sewer"    
   "Taxes"    "Telephone"    "Gas/Oil"    "Association Fees"    
   "Snow Removal"        "Lawn Care"        
"and any other bills incurred during the term of this lease."
"INSURANCE: Tenant agrees it is the responsibility of the Tenant to insure the Tenant’s property on the premises against damage or loss of such property occasioned by fire, theft and any other perils. The Tenant’s policy shall waive all rights of subrogation against the Landlord and its servants, agents and contractors. The Tenant hereby waives and releases the Landlord from any liability whatsoever for damage or loss to any persons or property whatsoever which occurs in or in connection with the Premises and any improvements, building or property thereon or from the Tenant’s use of the premises however caused, including loss due to negligence or fault of the Landlord and its servants, agents or contractors (Tenant to look to its own insurance and insurers for recovery of and protection against any such loss or damage). Without limiting the generality of the foregoing, the Landlord shall not be responsible for any loss of Tenant’s property in the premises or stored in, at or near the building due to any cause
whatsoever."
"Tenant shall on demand provide a copy of insurance to the Landlord. Tenant is hereby notified to obtain insurance to cover loss on his/her personal belongings located in the Premises or on the grounds where Premises are situated.
Initial:
EMERGENCY ACCESS: Landlord has the right of emergency access to the leased premises at any time and access during reasonable hours to inspect the property or show it to prospective tenants with a 24-hour notice to Tenant. Landlord shall retain a key at all times. If the Tenant wishes to change the locks, s/he must notify the Landlord
in writing and provide a new key immediately."
"CONDITION OF PREMISES: Landlord and Tenant hereby agree to inspect the Premises at the commencement of the tenancy and upon termination or expiration of this Agreement, and that the condition of the premises at the aforesaid times will be noted on the Inspection Report which forms part of this agreement. The Inspection Report will be signed by both the Landlord and the Tenant. The Inspection Report may be used and relied upon by the Landlord as proof of the condition of the Premises at the time of Inspection and for determining damages and or seeking appropriate deductions or compensation from the Tenant. Landlord reserves the right to take photographs at both aforesaid times for further documentation to the condition of the Premises.
MAINTENANCE COSTS: The Tenant shall be responsible for the cost of repairing plugged toilets, sinks, and drains, and for the cost of replacing all windows and screens broken by the Tenant, employees, contractors, invitees or guests. The Tenant shall be responsible for replacing light bulbs, fluorescent tubes, stove fuses, broken toilet seats and any other damaged items. The tenant shall be responsible for damages caused by windows and doors being left open including cost of repairing and cleaning. The Tenant shall also be responsible for damage due to fire caused by the Tenant negligence i.e.: careless smoking, cooking, etc. The Tenant agrees to immediately report to the Landlord any and all damage that may occur to the Premises and or Property by way of, but not limited to, accident, breakage or defect throughout the continuance of this tenancy. In the event Tenant fails to complete maintenance/ repairs, that are the responsibility of the Tenant, the Tenant agrees to immediately reimburse Landlord for all monies expended to complete said repairs.
AID IN MAINTENANCE: The Tenant shall cooperate with the Landlord in the care and maintenance of the Premises and or Property including any improvements.
Landlord’s Initials             Tenant’s Initials            "

"DEFAULT: To further clarify the terms of this lease, the Tenant shall make certain that rent is received by the Landlord by the first of the month or the Landlord shall consider this lease to be breached and terminated if the rent has not been received before midnight on the first day of the month that the rent was due. The acceptance by Landlord of partial payments of rent due shall not, under any circumstances, constitute
a waiver of Landlord, nor affect any notice or legal proceedings therefore given or"
"commenced under state law. If Tenant defaults on any other provisions of the lease, including but not limited, to any misrepresentations on Tenant’s application, Landlord, at his/her option, can elect to continue the lease or terminate the lease and take possession of the property by any legal means available to him/her. Landlord is not required to give any notice to cure a violation of the lease, other than what is required by law.
ORDINANCES & STATUTES: Tenants shall comply with all municipal, state, and federal laws, statutes, and ordinances now in effect, or which shall be enacted in the future, and any violation of such shall be a complete and material breach of the lease.
LEGAL ACTION: Tenant agrees without protest, to reimburse Landlord for all actual and reasonable expenses incurred by way of Tenant’s violation of any term or provisions of this lease, including but not limited to a $50.00 fee for each notice, Notice to Quit, or other notices mailed or delivered by Landlord to Tenant due to Tenant’s non-payment of rent or other breach of lease, all court costs and including costs of a lawyer and his own client full indemnity basis , and all collection costs. Any such costs are due immediately as additional rent. Any payments received by Landlord will be applied first towards late fees and/or other additional charges, then toward rent. Both Landlord and tenant waive trial by jury and agree to submit to the personal jurisdiction and venue of a court of subject matter whose jurisdiction is located in the area in which the property is located. In such event, no action shall be entertained by said court or any other court of competent jurisdiction, if filed more than one (1) year subsequent to the date the cause(s) of action accrued.
WAIVER OF CLAIMS: Tenant hereby waives any and all rights to assert affirmative
defenses or counterclaims in any eviction action instituted by Landlord with the exception of an affirmative defence based upon payment of all amounts claimed by the Landlord not to have been paid by the Tenant. Other matters may be only advanced by Tenant in a separate lawsuit.
DAMAGE BY FIRE: In the event that the building(s) is damaged by fire and through no fault of the Tenant and cannot be restored within a reasonable time in the sole and unfettered discretion of the Landlord, this lease shall terminate with no further liability of either party.
MERGER CLAUSE: This agreement shall constitute the full and complete understanding"

"of the parties and supersedes all prior written or oral agreements. There shall be no further additions or changes to this agreement unless the same is reduced to writing and signed by both parties.
Landlord                                   Date
Tenant Signature                             Date
Tenant Signature                             Date"
"Purchase Option Contract"
"OPTIONOR: "
"OPTIONEE:  "
"IN CONSIDERATION of the Optionee meeting all obligations as stated herein, the Optionor hereby grants the Optionee an Option to Purchase under the following terms:
OPTIONEE SHALL HAVE THE OPTION TO PURCHASE the property located at:
THIS OPTION WILL EXPIRE WITHOUT NOTICE AND SHALL BE OF NO FURTHER EFFECT IF NOT EXERCISED ON OR BEFORE:
, 20 ."
"1. NOTICE MUST BE DELIVERED TO THE OPTIONOR IN WRITING of Optionee’s intention
to exercise this Option to Purchase at least days prior to the exercise date stated above. This Option to Purchase is NOT contingent upon Optionee’s ability to obtain financing from a Lender or any other contingency. Optionee understands that TIME IS OF THE ESSENCE for this agreement, and that the Optionee’s failure to exercise their Option in the manner prescribed herein, or the failure to purchase the property by the specified closing date, for any reasons, will result in the immediate cancellation of this Agreement and this Agreement will be deemed null and void by the specified closing date. ALL MONIES paid by the Optionee will be retained by the Optionor as liquidated damages.
2. OPTIONOR AND OPTIONEE AGREE THAT THIS CONTRACT IS NOT an instalment
contract, contract for deed or equitable mortgage, but merely Optionee’s Option to Purchase the above referenced property under the terms stated in this agreement.
3. OPTION PRICE: The option price is $ . The terms of the purchase are as follows:"
"4. The following items will be prorated at closing:  "
"5. OPTION CONSIDERATION: Optionee has paid the sum of $ as a non- refundable option consideration which shall be applied toward the down payment on the property, if and only if Optionee exercises the Option to Purchase. In the event that the Optionee fails to exercise the Option to Purchase, or defaults under any terms of a lease entered into with the Optionor, this Option to Purchase shall be null and void and all monies will be retained by the Optionor as liquidated damages and
not as a penalty."
   "Optionor’s Initials
Optionee’s Initial "
"6. DEFAULT: Optionee agrees and understands that a fundamental condition of this Option Contract is that all terms and conditions of both the Optionee’s lease and or this Purchase Option Contract must not be in default, or expired, or this Option Contract will be null and void. To further clarify, all covenants of said lease agreement must have been faithfully performed in order for this Option To Purchase to be valid and enforceable. This includes, but is not limited to, the repairs, maintenance and upkeep of said property, payment or other obligations required under such lease. Default of any of the terms and conditions of said lease will result in this Option To Purchase, being automatically null and void and any monies paid hereunder as option consideration will be retained by Optionor as liquidated damages and not as a penalty. “Substantial Default” includes, but is not limited to, failure to make any lease payments by midnight on the 1st day of themonth.
Optionor’s Initials
Optionee’s Initials
7. RECORDING: A filing of a caveat against the subject legal title by the Optionee, referring to potential rights under this Option of Purchase, will result in the automatic revocation and cancellation of this Option To Purchase and all monies will be retained by the Optionor as liquidated damages and not as a penalty. In addition, Optionee will be liable to Optionor for all incidental and consequential damages for slander of title or the wrongful filing of a caveat, including but not limited to solicitor and his
own client costs on a full indemnity basis."

"8. OPTION CREDIT: In the event the Optionee exercises the Option a credit of
$ of each monthly payment that is received on or before midnight on the 1st of the month will be applied as additional Option to Purchase consideration towards the down payment. Under NO circumstances will a credit of $  of each monthly payment that is received AFTER midnight on the 1st day of each month be applied towards the down payment.
9. THIS OPTION TO PURCHASE, OR ANY INTEREST THEREIN, IS NOT TRANSFERABLE OR
ASSIGNABLE and the Option To Purchase can only be exercised by the individual(s) signing this Option To Purchase Agreement.
10.  REPAIRS: The Optionee shall be responsible for all repairs, maintenance, costs, service charges, painting improvements, and additions to the property on a per- occasion basis. All repairs that have the potential of exceeding $ per occasion must be approved in writing by the Optionor prior to the commencementof any work or purchase of materials related thereto.
11.  Optionee shall take an active role to ensure that the property stays in excellent condition. Optionee agrees that s/he has had adequate opportunity to inspect the condition of the property, the improvements, utilities, electrical, plumbing, appliances or any latent defects of the property or the neighbourhood. Optionee has the right to paint and decorate the property at his/her discretion within tasteful guidelines. Optionee agrees to get written acceptance from the Optionor to accept the colour of the paint to be used either inside or outside or before making any alterations or additions to the property. Optionee further agrees that all work that requires a permit from the city is at the Optionee’s expense and responsibility. All work performed on the building either by Optionee or other Contractors or any other parties shall be as an independent contractor or agent of the Optionee and not as an agent or employee of the Optionor. Optionor has no right of supervision of the work performed. Optionee further warrants that s/he will be accountable for any mishaps and/or accidents resulting from such work, and will defend, indemnify and hold the Optionor or his/her agent free from any claims from any other person, corporation, or entity. Optionee further acknowledges and agrees that all improvements, of any kind, to the property belong to the Optionor until such time that the Optionee actually becomes owner of the property pursuant to this Agreement.
Optionor’s Initials "

"Optionee’s Initials "
"12.  ORDINANCES & STATUTES: Optionee shall comply with all municipal, state, and federal laws, statutes, and ordinances now in effect, or which shall be enacted in the future, and any violation of such shall be a complete and material breach of this Purchase Option Agreement. Furthermore, Optionee shall abide by any and all condominium rules, regulations & bylaws, as well as any restrictive covenants and caveats on title. Optionee has no authority to, and shall not cause any lien to be placed against the subject legal title. In addition, Optionee will be liable to Optionor for all incidental and consequential damages for slander of title or the wrongful filing of a caveat, including but not limited to solicitor and his own client costs on a full indemnity basis.
13.  ACKNOWLEDGEMENTS: The undersigned Optionee acknowledges that s/he has read this Option Contract, understands it, agrees to it and has been given a copy. S/he further has been advised to seek legal, tax, technical expertise and any other counsel of their choosing concerning this contract and prior to signing. . This agreement shall constitute the full and complete understanding of the parties and supersedes all prior written or oral agreements. There shall be no further additions or changes to this agreement unless the same is reduced to writing and signed by both parties.
Optionor                                  Date
Optionee                                  Date
Optionee                                  Date"

"Purchase Option Contract"
"THIS PURCHASE OPTION CONTRACT is made and entered into this day of
by and between:
OPTIONOR: (Your Management Co.) (referred to herein as Optionor) OPTIONEE: (Tenant Buyer) (referred to herein as Optionee)."
"1. IN CONSIDERATION of the Optionee's promises herein AND of other valuable consideration AND the sum of One Dollar ($1.00) now paid by each party to the other(s), the receipt and sufficiency of which is hereby acknowledged by each party AND subject to the terms and conditions set out in this agreement, the parties agree as follows:
2. Provided that the Optionee has never been in default pursuant to the Optionee’s Tenant Lease Agreement (“Lease”) nor this Purchase Option Contract, OPTIONEE SHALL HAVE THE OPTION TO PURCHASE (the “Option to Purchase”) the property located at  (the ""Property"").
3. THIS OPTION WILL EXPIRE WITHOUT NOTICE AND SHALL BE OF NO FURTHER EFFECT IF NOT EXERCISED ON OR BEFORE (“Option
Expiry Date”):
4. The Optionee, desiring to exercise the Option to Purchase on the Option Expiration Date, must give the Optionor written notice (“Notice”) at least 90 days prior to the Option Expiration. The Optionee understands that the exercise of the Option is not to be conditional on the Optionee obtaining satisfactory financing; and the Optionee shall, before exercising the Option to Purchase, first satisfy itself that it has an appropriate mortgage commitment. Optionee understands that TIME IS OF THE ESSENCE for this agreement, and that the Optionee’s failure to exercise the Option to Purchase in the manner prescribed herein, or the failure to purchase the property by the specified Option Expiration Date, for any reason, will result in the immediate Termination of this Agreement and the Option to Purchase shall be deemed null and void by 5:01 p.m. on the specified closing date. ALL MONIES paid by the Optionee will be retained by the
Optionor as liquidated damages."

"5. OPTIONOR AND OPTIONEE AGREE THAT THIS CONTRACT IS NOT an installment
contract, nor a contract for deed, nor a contract for sale (or like document) nor equitable mortgage (or like document), but merely Optionee’s Option to Purchase the above referenced property under the terms stated in this agreement.
6. PURCHASE PRICE OF THE PROPERTY: The purchase price of the Property is
The purchase price shall be paid by credit for the initial Option Consideration as described below plus the amount of any Additional Option Consideration amount and any other Option Consideration as accumulated over the term of the Option Agreement plus the remaining purchase amount due on closing of the purchase as follows:
7. The Optionee to obtain new unconditional financing on or before “date” (30 days before closing)
8. The applicable Purchase Price shall be subject to adjustments. Real Estate taxes, including local improvement rates; mortgage interest; rentals; unmetered public or private utilities and fuel where billed to the Unit and not the Condominium Corporation; are to be apportioned and allowed to the day of completion, the day of completion itself to be apportioned to the Optionee. If this is a condominium, the following also applies; Common Expenses and there shall be no adjustment for the Optionor's share of any assets or liabilities of the Condominium Corporation including any reserve or contingency fund to which Seller may have contributed prior to the date of completion.
9. THE OPTION CONSIDERATION: The Optionee agrees to pay the Optionor the sum of $ for this Option to Purchase and the Option Consideration shall be paid as follows:
10.    The entire Option Consideration is non-refundable. The Option
Consideration amount shall be applied toward the down payment on the property if and only if Optionee exercises the Option to Purchase."

"11.   MONTHLY PAYMENTS - Additional Option Consideration: The Optionee agrees to pay the Optionor, in addition to the terms set out in the Tenant Lease Agreement, the sum of $ on the first day of each month (""Additional Option Consideration"").Subject to Paragraph 9 hereof, the Optionor shall have no obligation to repay to the Optionee the Additional Option Consideration if the Optionee defaults pursuant to the Lease, does not exercise the Option as herein provided, and/or does not complete the purchase of the Property. The Optionee acknowledges that rent paid pursuant to the Lease shall NOT be applied to the Purchase Price.
12.   DEFAULT: Optionee agrees and understands that a fundamental condition of this Purchase Option Contract is that all terms and conditions of both the Optionee’s Lease and/or this Purchase Option Contract must not be in default, or expired, or this Purchase Option Contract will be null and void. To further clarify, all covenants of said Lease and this Purchase Option Contract must have been fully performed by the Optionee in order for this Option To Purchase to be valid and enforceable. This includes, but is not limited to, the repairs, maintenance and upkeep of said property, payment or other obligations required under such Lease and or Option to Purchase. Default of any of the terms and conditions of said Lease and or Option to Purchase by the Optionee will result in this Option To Purchase being automatically null and void and any monies paid hereunder as option consideration will be retained by Optionor as liquidated damages and not as a penalty. Default includes, but is not limited to, failure to make any lease or monthly option consideration payments by midnight on the 1st day of themonth.
The Optionee agrees that the Optionee’s rights herein are subject to the Optionee complying with all of the terms and conditions of the Lease and of this Purchase Option Contract. If the Optionee defaults pursuant to the Lease, that default shall be deemed to be default pursuant to this Purchase Option Agreement. The Optionee acknowledges that this term is fundamental to this agreement without which the Optionor would not have entered into this
agreement."

"Optionee’s Initials:  "
"REGISTRATION OF THIS PURCHASE OPTION CONTRACT ON TITLE:
13.   A filing of a caveat against the subject legal title by the Optionee, referring to potential rights under this Option of Purchase, will result in the automatic revocation and cancellation of this Option To Purchase and all monies will be retained by the Optionor as liquidated damages and not as a penalty. In addition, Optionee will be liable to Optionor for all incidental and consequential damages for slander of title or the wrongful filing of a caveat, including but not limited to a lawyer and his own client costs on a full indemnity basis.
14.   OPTION CREDIT: Upon the closing of the Purchase following the exercise of the Option, the Optionor shall give the Optionee a credit in the amount of
$ (“Option Credit”) for each month the Additional Option Consideration was paid in full and on time.
15.   THIS OPTION TO PURCHASE CONTRACT, OR ANY INTERESTS ARISING FROM OR CONTAINED HEREIN, ARE NOT TRANSFERABLE OR ASSIGNABLE and the
Options To Purchase can only be exercised by the individual(s) signing this Purchase Option Contract.
16.   REPAIRS, MAINTENANCE AND INSURANCE: The Optionee shall be responsible for all repairs, maintenance, costs, service charges, painting improvements, and additions to the property up to  on a per-occasion basis. All repairs that have the potential of exceeding  per occasion must be approved in writing by the Optionor prior to the commencement of any work or purchase of materials related thereto. The Optionor agrees that it is responsible for all amounts over   on a per occasion basis other than those uncovered during the building inspection and/or highlighted in the ""Building Inspection Sign Off Form"" - Schedule A.
17.   The Optionor has disclosed all relevant facts about the property. The Optionor makes no representation about any aspect of neighborhood or other facts or knowledge that are in the public domain of which the Optionor may or
may not have knowledge."

"18.   Optionee shall take an active role to ensure that the property stays in excellent condition. Optionee agrees that s/he has had adequate opportunity to inspect the condition of the property, the improvements, utilities, electrical, plumbing, appliances or any defects of the property or the neighbourhood. Optionee has the right to paint and decorate the property at his/her discretion within tasteful guidelines. Optionee agrees to get written acceptance from the Optionor to accept the colour of the paint to be used either inside or outside or before making any alterations or additions to the property. Optionee further agrees that all work that requires a permit from the city is at the Optionee’s expense and responsibility. All work performed on the building either by Optionee or other Contractors or any other parties shall be as an independent contractor or agent of the Optionee and not as an agent or employee of the Optionor. Optionor has no right of supervision of the work performed. Optionee further warrants that s/he will be accountable for any mishaps and/or accidents resulting from such work, and will defend, indemnify and hold the Optionor or his/her agent free from any claims from any other person, corporation, or entity. Optionee further acknowledges and agrees that all improvements, of any kind, to the property belong to the Optionor until such time that the Optionee actually becomes owner of the property pursuant to this Agreement.
19.   ORDINANCES & STATUTES: The Optionee and the Optionor shall comply with all municipal, state/provincial, and federal laws, statutes, and ordinances now in effect, or which shall be enacted in the future, and any violation of such by the Optionee shall be default pursuant to this Purchase Option Contract.
Furthermore, the Optionee and the Optionor shall abide by any and all restrictive covenants and caveats on title.
20.   Optionee has no right to, and shall not cause any lien to be placed against the subject legal title. Optionee will be liable to Optionor for all incidental and consequential damages for slander of title or the wrongful filing of a caveat, including but not limited to solicitor and his own client costs on a full indemnity basis.
21.   ACKOWLEDGEMENTS: The Optionees acknowledge that they have read and understood this Purchase Option Contract, have been given an executed copy of
same. The Optionees to this contract further have been advised to seek legal, tax,"

"technical expertise and any other counsel of their choosing concerning this contract prior to signing. This supersedes all prior written or oral agreements. There shall be no further additions or changes to this agreement unless the same is reduced to writing and signed by both parties.
22.   SUBJECT TO OTHER AGREEMENTS: The parties to this contract specifically acknowledge and agree that this Purchase Option Contract is subject to and shall be interpreted in accordance with the Renting to Own Payments Agreement executed by the Optionee on the day of , 20 and the Lease entered into by the parties on the day of ,
20 ."
"23.   BINDING EFFECT: This Purchase Option Contract and the agreements referred to herein shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors and assigns.
24.   THIS OPTION is subject to the Optionor becoming the registered owner of said property by , 20 ."
"(Handwritten Notes)
1. “I understand that if I am behind on my rent payments, I will be evicted as permitted by state/provincial law, and I forfeit all option considerations and any rental credits that may have built up.”
2. “I understand that I am responsible for repairs up to $ per repair.”
3. “I understand that if I am late, which is after midnight on the 1st day of the month, on any rent payment or monthly option consideration, my Option to Purchase the property is null and void.”
4. “I understand that if I do not close, refinance, and cash you out of the property on
or before the expiration of my option I lose all of my option consideration and built-up funds.”"
"5. “I understand that I must give my intent to exercise my option in writing at least 90 days prior to the expiration date of the option.”
Optionor                                  Date
Optionee                                  Date
Optionee                                  Date"
"SAMPLE MEMORANDUM OF OPTION"
"On this date, the following parties entered into an agreement in which
acquired an option to purchase an interest in property owned by ."
"The property is described as:
Address  City  State             
Zip Code  
Legal Description: (To be attached.)
The term of this agreement is five (5) years, running through midnight
.
As part of this agreement, John and Jane Seller agree not to further encumber the property, nor sell any interest in the property during the term of this agreement. Any encumbrance placed on the property after this agreement is properly executed and recorded, including leases will be subordinate to this agreement and will be extinguished by the proper execution of this contract.
This agreement will bind heirs, executors, administrators, successors, legal representatives, and assigns of each party to this agreement.
In the event of foreclosure, the owners’ equity at the sale and any right of redemption shall transfer to the Optionee without further compensation and this contract shall serve as conveyance without further action.
Signed and sealed this               ."

"Seller: Date Buyer:  
Seller: Date Buyer: "
"State of County of
The foregoing instrument was acknowledged before me this day of , 20 by who is/are personally known to me or who has/have produced as identification.
Notary
My Commission Expires:
(Seal)"

"SAMPLE ASSIGNMENT OF OPTION TO PURCHASE REAL ESTATE"
"For value received, (Seller), assignor, assigns to
(Buyer) assignee, all rights and interest of assignor in an agreement, dated , 20 whereby assignor was given the option from
(Seller), the following described real estate at a price and under the terms and conditions therein contained:
Address  City  State                
Zip Code  
Legal Description: (To be attached.)
Assignor, by virtue of this assignment, grants to assignee the right to exercise or reject the option in good faith and the right to recover any moneys deposited by assignor to receive said option.
Dated , 20 ."
"Seller:  Buyer: "    "Date  Date "
"State of  County of  "        
"The foregoing instrument was acknowledged before me this day
of , 20 by who is/are personally known to me or who has/have produced as identification.
Notary:"
"My Commission Expires:                 (Seal)"
"SAMPLE ADDENDUM TO LEASE/LEASE OPTION AGREEMENT"
"Monthly payments are subject to change/increase on an annual basis due to increases in taxes, insurance, HOA or any other easements that are the responsibility of the homeowner. The tenant/buyer will be notified in writing by certified mail with verifiable proof from the landlord/seller 30 days prior to the necessary increase. The tenant/ buyer reserves the right to verify any and all changes to the monthly payment during the 30 days prior to the change. Any increase will be a dollar-for-dollar increase and the landlord/seller will not be experiencing a profit from any all increases to the monthly payment stated in the original agreement. The purpose of this addendum is to prevent the landlord/seller from taking on any future costs that are the responsibility of the occupants.
Seller                                   Date"
"Sample Joint Venture Agreement"
"AGREEMENT"
"THIS AGREEMENT made the   day of , 20 ."
"BETWEEN:"
"#YOUR COMPANY NAME#
and
#INVESTOR# "
"hereinafter referred to collectively as the “Parties”
RECITALS"
"#YOUR CO# purchased , Ontario (the “Property”).
#YOUR CO# intends to rent the Property;
The purchase of the Property closed on or about ;"
"The purchase price of the Property was ;"
"1. The purpose of this Agreement is to provide:
a. for the acquisition, financing, management, maintaining, altering, improving, mortgaging, re-mortgaging, ownership, operation, leasing and sale of the Property or any part thereof;
b. or the holding of title to the Property by #YOUR CO# as trustee for the Parties; and"
"c. to define the respective rights and obligations of the Parties between themselves and in the Property.
2. Now therefore in consideration of the mutual covenants contained in this Agreement, THE PARTIES AGREE AS FOLLOWS:
a. The Parties acknowledge that the mortgage was only in #YOUR CO#'s name and therefore legal title is only registered in #YOUR CO#'s name.
b. The parties further acknowledge that this joint venture trust Agreement (hereto referred to as the ""Agreement"") is non registerable and that only #YOUR CO# appears on legal title as the owner of the Property and that only #YOUR CO# has the benefits, responsibilities, and obligations of a legal owner of title.
3. #YOUR CO# acknowledges that it is holding the Property in trust as follows:
a. A one hundred percent (100%) interest in legal title in the Property to #YOUR CO#;
b. A fifty percent (50%) equity interest in ownership in the Property to Investor (hereinafter referred to as the “Non-Title Interest”); and
c. A fifty percent (50%) equity interest in ownership in the Property to #YOUR CO#.
d. #YOUR CO# acknowledges that it remains fully responsible for all obligations of an owner of a property and will arrange and see to it that all mortgage, insurance, landscaping, utility accounts, and property taxes of the said Property are kept current and in good standing.
e. #YOUR CO# shall hire a management company, at its sole discretion, to deal with all daily management items of the Property, specifically but not limited to, all those items mentioned above in section 4. #YOUR CO# acknowledges that it will be fully responsible for all property management fees incurred.
4. Cost of any and all repairs, maintenance, and the like will be split equally between #YOUR CO# and the Investor."

"5. #YOUR CO# agrees to provide the investor with monthly financial statements.
6. Investor acknowledges that in consideration of receiving the Non-Title Interest the Investor   is   providing   #YOUR   CO#   with    
($ )."
"7. The Parties acknowledge that the intent of use and timeline of the Property are as follows:
a. Rent the Property for three years to a tenant-buyer using #YOUR CO#’s “Rent to Own” program.
b. After three years the property is to be sold to the tenant buyer.
c. If, for whatever reason, the intent of the property cannot be followed, #YOUR CO# will determine a new intent for use and timeline of the Property. While making this decision, #YOUR CO# will strongly consider opinions and recommendations made by the Investor.
8. If the Property is sold the net sale proceeds of the property are to be paid out as follows:
a. Investors Deposit ($ ) paid back to Investor; and
b. Balance of net sale proceeds to #YOUR CO# and Investor equally.
9. The Parties acknowledge that any monthly revenue shall be held in trust by #YOUR CO# until the property is transferred or sold and divided amongst the Parties as follows:
a. Fifty percent (50%) of monthly revenues to Investor;
b. Fifty percent (50%) of monthly revenues to #YOUR CO#.
10.    The Parties acknowledge the Agreement is effective from
."


 

"11.    It is agreed that, unless the context of this Agreement requires otherwise, the singular number shall include the plural and vice versa, the number of the verb shall be construed as agreeing with the word so substituted, words importing the masculine gender shall include the feminine and neuter genders, and words importing persons shall include firms and corporations and vice versa.
12.  Descriptive headings are inserted solely for convenience of reference, do not form part of this Agreement, and are not to be used as an aid in the interpretation of this Agreement.
13.   It is intended that all provisions of this Agreement shall be fully binding and effective between the parties but, in the event that any particular provision or provisions or a part of one is found to be void, voidable or unenforceable for any reason whatever, then the particular provision or provisions of part of the provision shall be deemed severed from the remainder of this Agreement and all other provisions shall remain in full force.
14.   This Agreement shall be governed and construed in accordance with the laws of the State of ."
"15.   The sole asset to which this Agreement relates is, and shall hereafter be, the Property and any benefits, monies or other advantages to be derived therefrom or connected therewith, or in the case of the sale of the Parties interest in the Property or any part thereof, the proceeds of sale thereof and any security received by reason of such sale. The Parties relationship evidenced by this Agreement shall subsist for the limited purposes and scope referred to above in accordance with the terms of this Agreement and shall commence as at the date hereof and shall continue thereafter, save as aforesaid, so long as the interest in the Property is not vested in one person, firm or corporation.
16.   The Parties are not partners and neither this Agreement, the conduct of the Parties or anything done by them pursuant to this Agreement shall make them partners or constitute them agents for the other or impose any fiduciary duty, liability or obligations upon any of them except as herein expressly set forth. Any
Party may engage in and conduct any business or activity whatsoever without"
"incurring any liability or obligation or fiduciary duty or accountability to the other Party.
17.   A Party shall not have the right to partition and shall not make any application for partition to any court or authority having jurisdiction over the matter nor commence nor prosecute any action for partition and/or sale; and, upon any breach of the provisions of this Agreement by a Party, the other Party shall, in addition to all rights and remedies in law and in equity, be entitled to a decree or order restraining and enjoining such application, petition, action or proceeding, and the offending Party shall not plead in defense thereto that there would be an adequate remedy at law, it being recognized and agreed that the injury and damage resulting from such a breach would be impossible to measure monetarily. The intention is that #YOUR CO# shall hold title to the Property at all times as a bare trustee pursuant to the provisions of this Agreement.
18.   All matters in difference between the parties in relation to this Agreement shall be referred to the arbitration of a single arbitrator, if the parties agree upon one, otherwise to three arbitrators, one to be appointed by each party. The award and determination of the arbitrator or arbitrators or any two of the three arbitrators shall be binding upon the parties and their respective successors and assigns.
19.   The remedies provided by the provisions of this Agreement upon the default of a Party are in addition to any other remedies which the other Party may have against such Party in default.
20.   This Agreement contains the entire understanding between the Parties and supersedes any prior understandings and/or written or oral Agreements between them respecting the within subject matter. There are no representations, Agreements, arrangements or undertakings, oral or written, between and among the Parties relating to the subject matter of this Agreement which are not fully expressed herein.
21.   This Agreement may be amended or altered in any provision and such change shall become effective when reduced to writing and signed by the Parties."

"22.  This Agreement may be executed in counterparts, each of which so executed shall be deemed to be an original, and such counterparts together shall constitute one and the same instrument.
23.   This Agreement shall be binding upon the Parties and their respective successors and assigns, and the Parties hereto agree for themselves and their heirs, executors, administrators, successors and assigns to execute any instruments which may be necessary or proper to carry out the purposes and intent of this Agreement.
24.    Each of the parties acknowledges that he, she, and it:
a. has been advised that they should obtain independent legal advice, and they have declined;
b. understands the nature and consequences of this Agreement; and
c. is signing this Agreement voluntarily.
25.   This Agreement may be amended only by written Agreement between the parties witnessed by at least one other person.
IN WITNESS WHEREOF the parties have set their hands and seals on the day first above written.
SIGNED and SEALED
In the presence of:
Investor
An authorized signing authority of the Company"

"Agreement of Purchase and Sale"
"This Agreement of Purchase and Sale (“Agreement”) is dated this     day of
  20 .
(“Buyer”), agrees to purchase from
  (“Seller”) the following REAL PROPERTY at
  and having a frontage of  
more or less by a depth of more or less
and legally described as: (the ""Property"").
PURCHASE PRICE: $ "
"DEPOSIT: Buyer submits $ Herewith by cash payable to Seller and to be credited toward the Purchase Price on completion.
Buyer agrees to pay the balance of the purchase price, subject to adjustments by bank draft or certified cheque to the Seller upon completion of this transaction.
SCHEDULE(S) attached hereto form(s) part of this Agreement."
"1. IRREVOCABILITY: This Offer shall be irrevocable by until
on the day of 20 , after which time, if not accepted, this Offer shall be null and void and the deposit shall be returned to the Buyer in full without interest.
2. COMPLETION DATE: This Agreement shall be completed by no later than 6:00 p.m. on the day of , 20 ."
"3. NOTICES: Any notice relating hereto or provided for herein shall be in writing. In addition to any provision contained herein and in any Schedule hereto, this offer, any counter-offer, notice of acceptance thereof or any notice to be given or received pursuant to this Agreement or any Schedule hereto shall be deemed given and received
when delivered personally or hand delivered to the Address for Service provided in the"
"Acknowledgement below, or where a facsimile number or email address is provided herein, when transmitted electronically to that facsimile number or email address."
"Seller Fax:  Buyer Fax: "    "Seller email:  Buyer email: "
"4. CHATTELS INCLUDED:"        
"Unless otherwise stated in this Agreement or any Schedule hereto, Seller agrees to convey all fixtures and chattels included in the Purchase Price free from all liens, encumbrances or claims affecting the said fixtures and chattels.
5. FIXTURES EXCLUDED
6. RENTAL ITEMS: The following equipment is rented and not included in the Purchase Price. The Buyer agrees to assume the rental contract(s), if assumable:
7. TITLE SEARCH: Buyer shall be allowed until 6:00 p.m. on the day of , 20 ,
(Requisition Date) to examine the title to the property at Buyer’s own expense and until the earlier of: (i) thirty days from the later of the Requisition Date or the date on which the conditions in this Agreement are fulfilled or otherwise waived or; (ii) five days prior to completion, to satisfy Buyer that there are no outstanding work orders or deficiency notices affecting the property, and that its present use ( ) may be lawfully continued and that the principal building may be insured against risk of fire. Seller hereby consents to the municipality or other governmental agencies releasing to Buyer details of all outstanding work orders and deficiency notices affecting the property, and Seller agrees to execute and deliver such further authorizations in this
regard as Buyer may reasonably require."

"8. FUTURE USE: Seller and Buyer agree that there is no representation or warranty of any kind that the future intended use of the property by Buyer is or will be lawful except as may be specifically provided for in this Agreement.
9. TITLE: Provided that the title to the property is good and free from all registered restrictions, charges, liens, and encumbrances except as otherwise specifically provided in this Agreement and save and except for (a) any registered restrictions or covenants that run with the land providing that such are complied with; (b) any registered municipal agreements and registered agreements with publicly regulated utilities providing such have been complied with, or security has been posted to ensure compliance and completion, as evidenced by a letter from the relevant municipality or regulated utility; (c) any minor easements for the supply of domestic utility ortelephone services to the property or adjacent properties; and (d) any easements for drainage, storm or sanitary sewers, public utility lines, telephone lines, cable television lines or other services which do not materially affect the use of the property. If within the specified times referred to in paragraph 7 any valid objection to title or to any outstanding work order or deficiency notice, or to the fact the said present use may not lawfully be continued, or that the principal building may not be insured against risk of fire is made in writing to Seller and which Seller is unable or unwilling to remove, remedy or satisfy or obtain insurance save and except against risk of fire (Title Insurance) in favor of the Buyer and any mortgagee, (with all related costs at the expense of the Seller), and which Buyer will not waive, this Agreement notwithstanding any intermediate acts or negotiations in respect of such objections, shall be at an end and all monies paid shall be returned without interest or deduction and Seller shall not be liable for any costs or damages. Save as to any valid objection so made by such day and except for any objection going to the root of the title, Buyer shall be conclusively deemed to have accepted Seller's title to the property.
10. INSPECTION: Buyer acknowledges having had the opportunity to inspect the property and understands that upon acceptance of this Offer there shall be a binding agreement of purchase and sale between Buyer and Seller.
11. INSURANCE: All buildings on the property and all other things being purchased shall be and remain until completion at the risk of Seller. Pending completion, Seller shall hold all insurance policies, if any, and the proceeds thereof in trust for the parties as
their interests may appear and in the event of substantial damage, Buyer may either"

"terminate this Agreement and have all monies paid returned without interest or deduction or else take the proceeds of any insurance and complete the purchase. No insurance shall be transferred on completion. If Seller is taking back a Charge/Mortgage, or Buyer is assuming a Charge/Mortgage, Buyer shall supply Seller with reasonable evidence of adequate insurance to protect Seller's or other mortgagee's interest on completion.
12. ADJUSTMENTS: Any rents, mortgage interest, realty taxes including local improvement rates and unmetered public or private utility charges and unmetered cost of fuel, as applicable, shall be apportioned and allowed to the day of completion, the day of completion itself to be apportioned to Buyer.
13. PROPERTY ASSESSMENT: The Buyer and Seller hereby acknowledge that certain states may have implemented current value assessments and properties may be re- assessed on an annual basis. The Buyer and Seller agree that no claim will be made against the Buyer or Seller, for any changes in property tax as a result of a re-assessment of the property, save and except any property taxes that accrued prior to the completion of this transaction.
14. TIME LIMITS: Time shall in all respects be of the essence hereof provided that the time for doing or completing of any matter provided for herein may be extended or abridged by an agreement in writing signed by Seller and Buyer or by their respective lawyers who may be specifically authorized in that regard.
15. TENDER: Any tender of documents or money hereunder may be made upon Seller or Buyer or their respective lawyers on the day set for completion. Money may be tendered by bank draft or check certified by a Bank, Trust Company or Credit Union.
16. LEGAL, ACCOUNTING AND ENVIRONMENTAL ADVICE: The parties acknowledge that they are responsible to obtain their own legal, tax or environmental advice.
17. AGREEMENT IN WRITING: If there is conflict or discrepancy between any provisions added to this Agreement (including any Schedule attached hereto) and any provision in the standard pre-set portion hereof, the added provision shall supersede the standard pre-set provision to the extent of such conflict or discrepancy. This Agreement including
any Schedule attached hereto, shall constitute the entire Agreement between Buyer"

"and Seller. There is no representation, warranty, collateral agreement or condition, which affects this Agreement other than as expressed herein. For the purposes of this Agreement, Seller means vendor and Buyer means purchaser. This Agreement shall be read with all changes of gender or number required by the context.
18. TIME AND DATE: Any reference to a time and date in this Agreement shall mean the time and date where the property is located.
19. SUCCESSORS AND ASSIGNS: The heirs, executors, administrators, successors and assigns of the undersigned are bound by the terms herein.
I, the Undersigned Buyer, agree to the above Offer
SIGNED, SEALED AND DELIVERED in the presence of: IN WITNESS whereof I have hereunto set my hand:"
"Witness:
Buyer:  Buyer: "    "Date
Date  Date "
"I, the Undersigned Seller, agree to the above Offer.
SIGNED, SEALED AND DELIVERED in the presence of: IN WITNESS whereof I have hereunto set my hand:"
"Witness:
Seller:  Seller: "    "Date
Date  Date "
"I acknowledge receipt of my signed copy of this accepted Agreement of Purchase and Sale.
Seller  Seller"
"Date  Date "
"Address for Service  Telephone "
"Seller’s Lawyer  Address
Telephone Fax "
"I acknowledge receipt of my signed copy of this accepted Agreement of Purchase and Sale."
"Buyer  Buyer "    "Date  Date "
"Address for Service Telephone"
"Buyer’s Lawyer Address
Telephone Fax"
"Schedule A
Agreement of Purchase and Sale
This Schedule is attached to and forms part of the Agreement of Purchase and Sale between:
BUYER, , and
SELLER, for the purchase and sale of
  dated the
day of
, 20 ."
"Purchase Lease Option Strategy Tenant First Process"
"•  Find a potential Tenant/Buyer
o Interview
■  Why are you moving?
■  How much do you think you can afford? (Monthly & Purchase Price)
■  Where do you want to live?
■  How much do you make (household income)
■  Tell me about your credit history.
■  Do you have any outstanding loans?
■  What do you have available to put down … right now?
o Have credit team / mortgage broker discuss potential future loans
■  Type of loan
■  Down payment and loan-to-value
■  Lease option time period: 1, 2 or 3 years
o Collect a deposit toward the NROC
•  Find several matching houses available for sale
o Find it yourself, have the T/B find it, and/or work with a real estate agent who understands your program
•  Decide how you are going to buy the house.
o Yourself: all cash or cash & credit
o Work with a Joint Venture partner: their cash only or their cash & credit
•  Make offers on properties contingent on your due diligence including:
o Inspection (you should verify the condition, title, property value, market appreciation, and rental rate)
o Tenant/buyer’s approval
o Partner’s approval (if using a JV)
o Financing (if you or the JV are getting a loan)
•  Before the inspection period expires or you waive the remainder of your inspection period, do the following:
o Complete paperwork with JV
o Complete paperwork with T/B
o Collect remainder of money from T/B: NROC, rent, security deposit
•  Complete the purchase
•  Have your T/B move into the property"

"PREMISES INSPECTION REPORT"
"The Premises should be inspected immediately before the Lease is signed or the Premises is occupied
Address:   Move in Date:   Move out Date:   Inspected by:     Inspected by:   
(for Landlord)                        (for Tenant)"
"MOVE IN                     MOVE OUT"
   "OK"    "NO"    "Comments"        "OK"    "NO"    "Comments"    
"Bedroom 1"                                
"Bedroom 2"                                
"Bedroom 3"                                
"Bathroom 1"                                
"Bathroom 2"                                
"Balcony"                                
"Cabinets"                                
"Carpeting"                                
"Ceilings"                                
"Closets"                                
"Dishwasher"                                
"Disposal / Sink"                                
"Doors"                                
"Drapes / Blinds"                                
"Entry Area"                                
"Fireplace"                                
"Flooring"                                
"Garage"                                
"Hallways"                                
"Laundry Room"                                
"Lights"                                
"Living Areas"                                
"Locks"                                
"Oven"                                
"Patio"                                
"Refrigerator"                                
"Screens"                                
"Storage"                                
"Toilets"                                
"Walls"                                
"Washer / Dryer"                                
"Windows"                                
"Window Coverings"                                
"Yard"                                
                               
                               
                               
                               
                               
                               
                               
                               
                               
"Additional comments:"























"PURCHASE OPTION CONTRACT"
"THIS PURCHASE OPTION CONTRACT (this ""Contract"" or ""Option"") is made and entered into this     day of   by and between WONDER ESTATES LLC, a Wyoming limited liability company, qualified to transact business within the State of Florida (""Optionor""), and [BUYER-TENANT NAME] (""Optionee"").
In consideration of the promises and other valuable consideration herein, and the sum of Ten and 00/100 Dollars ($10.00), now paid by each party to the other, the receipt and sufficiency of which is hereby acknowledged, and subject to the terms and conditions set out in this Contract and any other agreements executed in connection with the agreements contained herein, the parties agree as follows:
1.   OPTION TO PURCHASE: Provided that the Optionee has never been in default pursuant to the Optionee's Lease Agreement of even date herewith (the ""Lease"") nor this Contract, Optionee shall have the option to purchase (the ""Option to Purchase"") the property located at                    (the ""Property"").
2. THIS OPTION WILL EXPIRE WITHOUT NOTICE AND SHALL BE OF NO FURTHER   EFFECT   IF   NOT   EXERCISED   ON   OR   BEFORE
                 (""Option Expiration Date"").
3.   EXERCISE OF OPTION AND TERMINATION: The Optionee, desiring to exercise the Option to Purchase on the Option Expiration Date, must give the Optionor written notice (""Notice"") at least Ninety (90) Days prior to the Option Expiration Date. The Optionee understands that the exercise of the Option is not to be conditional upon the Optionee obtaining satisfactory financing; and the Optionee shall, before exercising the Option to Purchase, first satisfy itself that it has an appropriate mortgage commitment. Optionee understands that time is of the essence for this Contract, and that the Optionee's failure to exercise the Option to Purchase in the manner prescribed herein, or the failure to purchase the Property by the specified Option Expiration Date, for any reason, will result in the immediate Termination of this Contract and the Option to Purchase shall be deemed null and void by 5:01 p.m. on the Option Expiration Date. All monies paid by the Optionee to the Optionor will be retained by the Optionor as liquidated damages.
4.  OPTIONEE RIGHTS: This Contract is not an installment contract, nor a contract for deed, nor a contract for sale (or like document), nor equitable mortgage (or like document), but merely Optionee's Option to Purchase the Property under the terms of this Contract.
5.  PURCHASE PRICE OF THE PROPERTY: The purchase price for the Property (the ""Purchase Price"") shall be determined in accordance with the following procedures:
a.    If the Optionee exercises the Option to Purchase:
i.    On  or  before             ,  the  Purchase  Price  shall  be
$            ; or"

"ii.   After the date in (i) above, and on or before           , the Purchase Price shall be $           ; or
iii.   After the date in (ii) above, and on or before Ninety (90) Days prior to the Option Expiration Date, the Purchase Price shall be $            ."
"b.  Subject to the other provisions of this Contract, the Purchase Price shall be paid by credit for the initial Option Consideration as described below plus the amount of any Additional Option Consideration amount. Optionee shall pay the remaining balance of the Purchase Price at closing with: (i) cash; or (ii) if Optionee obtains a loan for any part of the Purchase Price of the Property, Optionee shall obtain such unconditional financing no less than Thirty (30) Days before closing. Optionee acknowledges that any terms and conditions imposed by Optionee's lender(s) or by CFPB Requirements shall not affect or extend the Optionee's obligation to close or otherwise affect any terms or conditions of this Contract. There is no financing contingency to Optionee's obligation to close.
c.  The applicable Purchase Price shall be subject to adjustments. Real Estate and personal property taxes and assessments, including local improvement rates; mortgage interest; rentals; sales and use tax; unmetered public or private utilities and fuel where billed to the Property and not any condominium/property association; are all to be apportioned and allowed to the day of closing, the day of closing itself to be apportioned to the Optionee. If this is a condominium, the following also applies; common expenses and there shall be no adjustment for the Optionor's share of any assets or liabilities of the condominium association including any reserve or contingency fund to which Optionor may have contributed prior to the date of completion.
d.  Optionee hereby releases Optionor for any liability related to and assumes all liability for real estate and/or personal property taxes and all water and sewer charges and assessments relating to the period prior to closing. All standby fees, taxes, and assessments by any taxing authority for the year of closing and subsequent years, and subsequent taxes and assessments by any taxing authority for prior years and the current year due to change in land usage, ownership or valuation, or because of improvements not assessed or under assessed for a previous or the current tax year, any unpaid homeowner's association dues, fines, fees and penalties and water and sewer charges and assessments for past, the current and future years shall be the liability and sole responsibility of the Optionee. If real estate and personal property taxes for the year of closing are not known, real estate and personal property taxes will be prorated as of closing based on taxes for the year prior to closing with the maximum available discount, and the parties agree, at the
request of either party, to re-prorate the taxes within thirty (30) days after tax bills for the year of closing are available and finalized."

"6.  EVIDENCE OF TITLE: Upon providing Notice and at least Fifteen (15) Days prior to closing, the  [OPTIONOR OR OPTIONEE], at its expense, shall cause to be issued a title insurance commitment, by BROWN, HUFF & ZOHAR, PLLC (the ""Escrow Agent""), agreeing to issue Optionee, upon recordation of the deed, an owner's policy in the full amount of the purchase price, insuring Optionee's title to the Property, subject to the following Permitted Exceptions: (a) Real property taxes and assessments for the year of closing, and subsequent years (which shall be prorated as set forth herein); (b) Declaration of Covenants, Conditions and Restrictions common to the subdivision, if any;
(c) All matters shown on recorded plats of the subdivision; (d) Easements, rights of way, limitations, conditions, covenants and restrictions of record and matters otherwise common to any subdivision; (e) The nature and extent, if any, of riparian or littoral rights, if any; (f) Zoning and other regulatory laws and ordinances affecting the Property; (g) Matters which would be disclosed by an accurate survey; and (h) Such other exceptions that are reasonable and customary.
Optionee shall have Five (5) Days from the date of receipt of the title insurance commitment to examine it and, if Optionee believes that title is unmarketable, to notify Optionor in writing specifying the purported defect(s). If the defect(s) render title unmarketable, Optionor shall have the option of either: (a) canceling this Contract; or (b) the Optionor shall, at its election, have One Hundred Twenty (120) Days from receipt of the title notice within which to remove the defect(s), failing which Optionee shall have the option of either accepting the title as it then is or demanding Twenty Percent (20%) of Option Consideration only (and not the Additional Option Consideration), which shall immediately be returned to Optionee; thereupon, Optionee and Optionor shall release one another of all further obligations under this Contract. Marketable title shall be determined according to applicable Title Standards adopted by the authority of the Florida Bar
7.  PLACE OF CLOSING AND CLOSING PROCEDURES: This transaction shall be closed and the deed and other closing papers delivered within    (  ) Days after Optionee provides Notice to Optionor. The closing shall be held at a place designated by Optionor. Optionee shall be responsible to assure that all funds payable to Optionor shall be available at closing so as to allow disbursement to Optionor on the date and time of closing. As used in this Section, the ""closing"" shall mean Optionee's consummation of this Contract and the acquisition of the Property as contemplated hereunder. The closing and Optionor's obligation to close are conditioned upon Optionee complying with all of the terms and conditions of the Lease and of this Contract, and Optionee having obtained a ready to fund loan for the purchase of the Property.
8.  CLOSING DOCUMENTS: Provided that Optionee has complied with all terms and conditions of this Contract to exercise the Option to Purchase, at closing, Optionor shall execute and deliver a: (i) Special Warranty Deed subject the Permitted Exceptions and to exceptions to title appearing in the title evidence which Optionee has approved or accepted as title exceptions; (ii) Optionor's Affidavit, in a form acceptable to the title insurance company, sufficient to remove standard printed exceptions to title regarding parties in possession and mechanic's liens; and (iii) a Non-Foreign (Foreign Investment Real
Property Tax Act) Affidavit."

"9.    CLOSING COSTS:
a.   If the Optionor selects the Closing Agent, Optionor shall pay for the premium of any owner's policy of title insurance, title search charges, and municipal lien search. Optionor shall pay for recording and other fees needed to cure title and its attorneys' fees.
b.   If the Optionee selects the Closing Agent, Optionee shall pay for the premium of any owner's policy of title insurance, title search charges, and municipal lien search. In all respects, Optionee shall pay for state documentary stamps on the deed of conveyance, all recording costs, endorsements to all title insurance policies, association application/transfer fees, inspections, insurance, Optionee's attorneys' fees, and surveying fees. In the event all or any portion of the funds necessary for the purchase of the Property shall be financed through a lender, the parties agree that any such costs incurred in obtaining such financing shall be paid by the Optionee, including but not limited to, premium of any loan policy of title insurance and endorsements, loan expenses, and appraisal fees.
10.  THE OPTION CONSIDERATION: The Optionee agrees to pay the Optionor the sum of $       for the Option to Purchase the Property (the ""Option Consideration""), and shall provide evidence thereof to Closing Agent. The Option Consideration shall be paid as follows:
a.  The entire Option Consideration shall be deemed non-refundable upon payment to Optionor. The Option Consideration shall not be applied to the Purchase Price, be considered a down payment, or credited to Optionee in any way unless Optionee exercises the Option to Purchase.
b.  The Optionee agrees to pay the Optionor, in addition to the terms set out in the Lease, the sum of $            on the first day of each month (""Additional Option Consideration""). The Optionor shall have no obligation to repay to the Optionee the Additional Option Consideration if the Optionee defaults on the Lease, this Contract, does not exercise the Option as herein provided, and/or does not complete the purchase of the Property. The Optionee acknowledges that rent paid pursuant to the Lease shall NOT be applied to the Purchase Price.
Optionee's Initials:          "

"11.  DEFAULT: Optionee agrees and understands that a fundamental condition of this Contract is that all terms and conditions of both the Lease and/or this Contract must not be in default, or expired, or this Contract will be null and void. To further clarify, all covenants of the Lease and this Contract must have been fully performed by the Optionee in order for the Option to Purchase to be valid and enforceable. This includes, but is not limited to, the repairs, maintenance and upkeep of the Property, payment or other obligations required under the Lease and/or this Contract. Default of any of the terms and conditions of the
Lease and/or this Contract by the Optionee will result in this Contract being automatically"
"null and void and any monies paid hereunder as the Option Consideration or Additional Option Consideration will be retained by Optionor as liquidated damages and not as a penalty. Default includes, but is not limited to, failure to make any Lease or Additional Option Consideration payments by midnight on the first day of the month.
The Optionee agrees that Optionee's rights herein are subject to Optionee complying with all terms and conditions of the Lease and this Contract. If the Optionee defaults pursuant to the Lease, that default shall be deemed to be default pursuant to this Contract. The Optionee acknowledges that this term is fundamental to this Contract without which the Optionor would not have entered into this Contract.
Optionee's Initials:  "
"12.   REGISTRATION OF THIS PURCHASE OPTION CONTRACT ON TITLE: A
filing of this Contract or any similar agreement against the subject legal title of the Property by the Optionee, including but not limited to its successors, assigns, legal representatives, agents, or otherwise, referring to potential rights under the Lease or this Contract, including Optionee's Option to Purchase, will result in the automatic revocation and cancellation of this Contract and all monies will be retained by the Optionor as liquidated damages and not as a penalty. In addition, Optionee will be liable to Optionor for all incidental and consequential damages for slander of title or the wrongful filing of a caveat, including but not limited to attorney's fees and his own client costs on a full indemnity basis.
13.  OPTION CREDIT: Upon the closing of the following the exercise of the Option, the Optionor shall give the Optionee a credit in the amount of $         (""Option Credit"") for each month the Additional Option Consideration was paid in full and on time.
14.  ASSIGNABILITY: This Contract, the Option to Purchase or any interests arising from or contained herein, are not transferable or assignable by the Optionee, and the Option to Purchase can only be exercised by the individuals and entities signing this Contract.
15.  REPAIRS, MAINTENANCE AND INSURANCE: The Optionee shall be responsible for all repairs, maintenance, costs, service charges, and other items as provided in the Lease. All repairs that have the potential of exceeding One Hundred Dollars ($100.00) per occasion must be approved in writing by the Optionor prior to the commencement of any work or purchase of materials related thereto. The Optionor agrees that it is only responsible for amounts over One Thousand Dollars ($1,000.00) on a per occasion basis other than those uncovered during the building inspection and/or highlighted in the ""Building Inspection Sign Off Form"" - Schedule A.
The Optionor has disclosed all relevant facts about the Property, and Optionee acknowledges receipt and accepts all written disclosures provided to Optionor or Optionee by the previous owner of the Property. The Optionor makes no representation about any aspect of neighborhood or other facts or knowledge that are in the public domain of which the Optionor may or may not have knowledge. Optionor knows of no facts materially
affecting the value of the Property that are not readily observable and that have not been"

"disclosed to Optionee. Except as provided for in the preceding sentence, Optionor extends and intends no warranty and makes no representation of any type, either express or implied, as to the physical condition or history of the Property.
Optionee shall take an active role to ensure that the Property stays in excellent condition. Optionee agrees that s/he has had adequate opportunity to inspect the condition of the Property, the improvements, utilities, electrical, plumbing, appliances or any defects of the Property or the neighbourhood. Optionee has the right to paint and decorate the Property at his/her discretion within tasteful guidelines. Optionee agrees to get written acceptance from the Optionor to accept the colour of the paint to be used either inside or outside or before making any alterations or additions to the Property. Optionee further agrees that all work that requires a permit from the city is at the Optionee's expense and responsibility. All work performed on the building either by Optionee or other contractors or any other parties shall be as an independent contractor or agent of the Optionee and not as an agent or employee of the Optionor. Optionor has no right of supervision of the work performed. Optionee further warrants that s/he will be accountable for any mishaps and/or accidents resulting from such work, and will defend, indemnify and hold the Optionor or his/her agent free from any claims from any other person, corporation, or entity. Optionee further acknowledges and agrees that all improvements, of any kind, to the Property belong to the Optionor until such time that the Optionee actually becomes owner of the Property pursuant to this Contract.
16.  ORDINANCES AND STATUTES: The Optionee and the Optionor shall comply with all municipal, state/provincial, and federal laws, statutes, and ordinances now in effect, or which shall be enacted in the future, and any violation of such by the Optionee shall be default pursuant to this Contract. Furthermore, the Optionee and the Optionor shall abide by any and all restrictive covenants and other similar exceptions/encumbrances on title.
17.  NO LIENS: Optionee has no right to, and shall not cause any lien to be placed against the subject legal title. Optionee will be liable to Optionor for all incidental and consequential damages for slander of title or the wrongful filing of a lien or other encumbrance to title, including but not limited to attorneys' fees on a full indemnity basis.
18. EMINENT DOMAIN: In the event Optionor or Optionee receives any notice of any condemnation proceedings or other proceedings in the nature of eminent domain affecting the Property, it will forthwith send a copy of such notice to the other. In the event of any condemnation or taking where Optionee has not then exercised the Option, Optionor shall be entitled to all condemnation awards and proceeds. Except as expressly set forth in this Section, no taking or condemnation shall in any way affect, nullify or impair Optionee's rights hereunder.
19.  ENVIRONMENTAL MATTERS: To the best of Optionor's knowledge, the Property is in compliance with Environmental Laws (as defined below). To the best of Optionor's knowledge, Optionor has obtained, or will obtain, and is in compliance with all licenses,
permits, certificates, authorizations, consents, approvals or other grants of authority which are required (collectively, ""Environmental Permits"") with respect to the ownership, use,"

"occupancy or operation of the Property under any Applicable Law pertaining to human health or safety, Hazardous Substances (as defined below) or the environment, including but not limited to, pollution or protection of the environment (collectively, ""Environmental Laws"").
To the best of Optionor's knowledge, no Hazardous Materials or Hazardous Substances exist on, at, under, above, through or from the Property. For purposes of this Section, ""Hazardous Materials"" and ""Hazardous Substances"" shall include but shall not be limited to any of the following: (a) asbestos; (b) urea formaldehyde foam insulation; (c) transformers or other equipment which contain dielectric fluid containing levels of polychlorinated biphenyls in excess of fifty (50) parts per million; (d) any mold, fungus or similar growth or (e) any other chemical, material, substance or other matter of any kind whatsoever which is prohibited, limited or regulated by any federal, state, county, regional or local authority or legislation, including, without limitation, the Federal Resource Conservation and Recovery Act, 42 U.S.C. Sections 6901 et seq., the Federal Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended, 42 U.S.C. Sections 9601 et seq., the regulations promulgated from time to time thereunder, environmental laws administered by the Environmental Protection Agency and laws and regulations of the State of Florida, or any other governmental organization or agency having jurisdiction.
20.  PERMITS AND PROPERTY DISCLOSURE: Except as may have been disclosed to Optionor and Optionee in a written disclosure by a previous owner of the Property, Optionor does not know of any improvements made to the Property without required permits or made pursuant to permits that have not been properly closed. After the closing, if Optionee identifies permits that have not been properly closed or improvements that were not permitted, then Optionor shall promptly deliver to Optionee all plans, written documentation or other information in Optionor's possession, knowledge, or control relating to improvements to the Property that are the subject of such open permits or unpermitted improvements. Optionor shall not be required to expend, or become obligated to expend, any money.
OPTIONEE HEREBY ACKNOWLEDGES, AGREES AND REPRESENTS THAT OPTIONEE HAS HAD THE OPPORTUNITY TO FULLY INSPECT THE PROPERTY AND THAT UPON EXECUTING THIS CONTRACT OR EXERCISING THE OPTION TO PURCHASE THE PROPERTY, OPTIONEE IS PURCHASING THE PROPERTY ""AS IS"", AND ""WHERE IS"", AND IN ITS PRESENT CONDITION AND SUBJECT TO ALL CHANGES OCCURRING BETWEEN THE DATE HEREOF AND THE DATE OF CLOSING.
21.  BROKERAGE: The Optionee warrants and represents that Optionee has not consulted, dealt or negotiated in any manner concerning the purchase of the Property with any real estate broker, salesperson, or agent, other than           of             , and agrees to indemnify and hold Optionor harmless from and against any and all loss and liability, including attorney's fees, resulting from or arising out of any claim against
Optionor, by any real estate broker, salesperson, or agent, other than the above-named"

"broker, in connection with the transaction which is the subject of this Contract. Optionor's Broker will be paid by Seller pursuant to a separate agreement (the ""Brokerage Commission"") when, and if, the transaction contemplated herein closes.
22. ACKNOWLEDGEMENTS: The Optionee acknowledges that they have read and understand this Contract, and have been given an executed copy of same. The Optionee has been advised to seek legal, tax, technical expertise and any other counsel of their choosing concerning this Contract prior to signing. This supersedes all prior written or oral agreements. There shall be no further additions or changes to this Contract unless the same is reduced to writing and signed by both parties.
23.  SUBJECT TO OTHER AGREEMENTS: The parties specifically acknowledge and agree that this Contract is subject to and shall be interpreted in accordance with this Contract and the Lease.
24.  BINDING EFFECT: This Contract and the agreements referred to herein shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors and assigns.
25.  JOINT AND SEVERAL: All obligations of the Optionee hereunder shall be deemed joint and several in instances in which the Optionee is comprised of two or more parties.
26.  SEVERABILITY: In the event any provisions hereof should be declared by a court of competent jurisdiction to be invalid, illegal or unenforceable for any reason whatsoever, such illegality, unenforceability or invalidity shall not affect the remainder of this Contract.
27.  COUNTERPARTS: This Contract may be executed simultaneously in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
28.   RADON: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county health department.
29.  LEAD-BASED PAINT: If the Property includes pre-1978 residential housing, a lead- based paint disclosure is mandatory.
30. F.S. 689.261 PROPERTY TAX DISCLOSURE SUMMARY: OPTIONEE SHOULD NOT RELY ON THE OPTIONOR'S CURRENT PROPERTY TAXES AS THE AMOUNT OF PROPERTY TAXES THAT THE OPTIONEE MAY BE OBLIGATED TO PAY IN THE YEAR SUBSEQUENT TO PURCHASE. A CHANGE OF OWNERSHIP OR PROPERTY IMPROVEMENTS TRIGGERS REASSESSMENTS OF
THE PROPERTY THAT COULD RESULT IN HIGHER PROPERTY TAXES. IF YOU"

"HAVE ANY QUESTIONS CONCERNING VALUATION, CONTACT THE COUNTY PROPERTY APPRAISER'S OFFICE FOR INFORMATION.
31.  SUBDIVISION DISCLOSURE: The Optionee hereby acknowledges that the Property may be subject to restrictive covenants that may impose upon the Optionee an obligation to pay homeowner's dues and assessments. In addition to the foregoing, the Optionee shall be responsible to pay all applicable bonds or other assessments, including any special taxing district that may appear on the annual ad valorem tax bill for the Property.
32.  MOLD: Mold is naturally occurring and may cause health risks or damage to property. If Optionee is concerned or desired additional information regarding mold, Optionee should contact an appropriate professional.
33. FLOOD ZONE; ELEVATION CERTIFICATION: Optionee is advised to verify by elevation certificate which flood zone the Property is in, whether flood insurance is required by Optionee's lender, and what restrictions apply to improving the Property and rebuilding in the event of casualty. Optionee accepts existing elevation of buildings and flood zone designation of Property. The National Flood Insurance Program may assess additional fees or adjust premiums for pre-Flood Insurance Rate Map (pre-FIRM) non- primary structures (residential structures in which the insured or spouse does not reside for at least 50% of the year) and an elevation certificate may be required for actuarial rating.
34.  ENERGY RATING: Optionee acknowledges receipt of Florida Energy-Efficiency Rating Information Brochure required by Section 553.996, F.S.
35.   FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT (""FIRPTA""): Optionor
shall inform Optionee in writing if Optionor is a ""foreign person"" as defined by the Foreign Investment in Real Property Tax Act (""FIRPTA""). Optionee and Optionor shall comply with FIRPTA, which may require Optionor to provide additional cash at closing. If Optionor is not a ""foreign person"", Optionor can provide Optionee, at or prior to closing, a certification of non-foreign status, under penalties of perjury, to inform Optionee and Closing Agent that no withholding is required.
36.  WAIVER JURY TRIAL: To the extent such waiver is permitted by law, the parties waive trial by jury in any action or proceeding brought in connection with this Contract or any matter arising out of this Contract.
37.  FORCE MAJEURE: Optionee or Optionor shall not be required to perform any obligation under this Contract or be liable to each other for damages so long as performance or non-performance of the obligation, or the availability of services, insurance or required approvals essential to closing, is disrupted, delayed, caused or prevented by Force Majeure. Force Majeure means: hurricanes, floods, extreme weather, earthquakes, fire, or other acts of God, unusual transportation delays, or wars, pandemics, insurrections, or acts of terrorism, which, by exercise of reasonable diligent effort, the non-performing party is
unable in whole or in part to prevent or overcome. All time periods, including will be extended a reasonable time up to Seven (7) Days after the Force Majeure no longer prevents"

"performance under this Contract, provided, however, if such Force Majeure continues to prevent performance under this Contract more than Thirty (30) days beyond closing, then either party may terminate this Contract by delivering written notice to the other, but the Deposit shall not be refunded to Optionee, and Optionee and Optionor shall be release from all further obligations under this Contract.
38.  COUNSEL FEES: In the event of any dispute between the parties arising out of this Contract, the prevailing party in such dispute shall be entitled to recover from and be paid by the other party all costs and expenses incurred in connection with such dispute, including reasonable counsel fees and court costs and expenses.
39.  AMENDMENTS: This Contract may not be amended, modified, altered or changed in any respect whatsoever except by a further agreement in writing duly executed by the parties hereto.
40.  GOVERNING LAW: This Contract shall be governed by and construed in accordance with the laws of the State of Florida (but not including the choice of law provisions thereof).
41.  NOTICES: All notices to be given by either party to the other, unless otherwise directed, shall be in writing, shall be served upon either party in person, by delivery by recognized overnight courier or by depositing such notice in the United States mails, properly addressed and directed to the party to receive the same, certified mail, return-receipt- requested, as follows:
TO OPTIONOR:
Jonathas & Jessica Sucupira"

   "TO OPTIONEE:"
"42.   This Contract is subject to the Optionor becoming the registered owner of the Property by
, 20    ."
"ADDITIONAL DISCLAIMERS AND CONSENTS"
"1.   ""I understand that if I am behind on my rent payments, I will be evicted as permitted by state law, and I forfeit all Option Consideration, Additional Option Consideration, and/or any rental credits that may have built up.""
2.    ""I understand that I am responsible for repairs up to $1,000.00 per repair.""
3.   ""I understand that if I am late, which is after midnight on the 1st day of the month, on any rent payment or monthly option consideration, my Option to Purchase the Property is null and void.""
4.   ""I understand that if I do not close, refinance, and cash you out of the Property on or before the expiration of my option I lose all of my Option Consideration, Additional Consideration, and/or any built-up funds.""
5.  ""I understand that I must give WONDER ESTATES LLC, a Wyoming limited liability company, qualified to transact business in the State of Florida my intent to exercise my option in writing at least Ninety (90) Days prior to the Option Termination Date.""
Optionee's Initials:          "

"IN WITNESS WHEREOF, the parties hereto agree to the terms and conditions of this Contract, as of the date signed by Optionor.
OPTIONOR:
WONDER ESTATES LLC
a Wyoming limited liability company"
"By:"    "                                                        "    "                      "    
   "Jonathas Sucupira"    "Date"    
   "Manager"        
"By:"    "                                                        "    "                      "    
   "Jessica Sucupira"    "Date"    
   "Manager"        
"OPTIONEE:"
"Name:                               Date"
"Name:                               Date"
"PURCHASE OPTION CONTRACT"
"THIS PURCHASE OPTION CONTRACT (this ""Contract"" or ""Option"") is made and entered into this     day of   by and between WONDER ESTATES LLC, a Wyoming limited liability company, qualified to transact business within the State of Florida (""Optionor""), and [BUYER-TENANT NAME] (""Optionee"").
In consideration of the promises and other valuable consideration herein, and the sum of Ten and 00/100 Dollars ($10.00), now paid by each party to the other, the receipt and sufficiency of which is hereby acknowledged, and subject to the terms and conditions set out in this Contract and any other agreements executed in connection with the agreements contained herein, the parties agree as follows:
1.   OPTION TO PURCHASE: Provided that the Optionee has never been in default pursuant to the Optionee's Lease Agreement of even date herewith (the ""Lease"") nor this Contract, Optionee shall have the option to purchase (the ""Option to Purchase"") the property located at                    (the ""Property"").
2. THIS OPTION WILL EXPIRE WITHOUT NOTICE AND SHALL BE OF NO FURTHER   EFFECT   IF   NOT   EXERCISED   ON   OR   BEFORE
                 (""Option Expiration Date"").
3.   EXERCISE OF OPTION AND TERMINATION: The Optionee, desiring to exercise the Option to Purchase on the Option Expiration Date, must give the Optionor written notice (""Notice"") at least Ninety (90) Days prior to the Option Expiration Date. The Optionee understands that the exercise of the Option is not to be conditional upon the Optionee obtaining satisfactory financing; and the Optionee shall, before exercising the Option to Purchase, first satisfy itself that it has an appropriate mortgage commitment. Optionee understands that time is of the essence for this Contract, and that the Optionee's failure to exercise the Option to Purchase in the manner prescribed herein, or the failure to purchase the Property by the specified Option Expiration Date, for any reason, will result in the immediate Termination of this Contract and the Option to Purchase shall be deemed null and void by 5:01 p.m. on the Option Expiration Date. All monies paid by the Optionee to the Optionor will be retained by the Optionor as liquidated damages.
4.  OPTIONEE RIGHTS: This Contract is not an installment contract, nor a contract for deed, nor a contract for sale (or like document), nor equitable mortgage (or like document), but merely Optionee's Option to Purchase the Property under the terms of this Contract.
5.  PURCHASE PRICE OF THE PROPERTY: The purchase price for the Property (the ""Purchase Price"") shall be determined in accordance with the following procedures:
a.    If the Optionee exercises the Option to Purchase:
i.    On  or  before             ,  the  Purchase  Price  shall  be
$            ; or"

"ii.   After the date in (i) above, and on or before           , the Purchase Price shall be $           ; or
iii.   After the date in (ii) above, and on or before Ninety (90) Days prior to the Option Expiration Date, the Purchase Price shall be $            ."
"b.  Subject to the other provisions of this Contract, the Purchase Price shall be paid by credit for the initial Option Consideration as described below plus the amount of any Additional Option Consideration amount. Optionee shall pay the remaining balance of the Purchase Price at closing with: (i) cash; or (ii) if Optionee obtains a loan for any part of the Purchase Price of the Property, Optionee shall obtain such unconditional financing no less than Thirty (30) Days before closing. Optionee acknowledges that any terms and conditions imposed by Optionee's lender(s) or by CFPB Requirements shall not affect or extend the Optionee's obligation to close or otherwise affect any terms or conditions of this Contract. There is no financing contingency to Optionee's obligation to close.
c.  The applicable Purchase Price shall be subject to adjustments. Real Estate and personal property taxes and assessments, including local improvement rates; mortgage interest; rentals; sales and use tax; unmetered public or private utilities and fuel where billed to the Property and not any condominium/property association; are all to be apportioned and allowed to the day of closing, the day of closing itself to be apportioned to the Optionee. If this is a condominium, the following also applies; common expenses and there shall be no adjustment for the Optionor's share of any assets or liabilities of the condominium association including any reserve or contingency fund to which Optionor may have contributed prior to the date of completion.
d.  Optionee hereby releases Optionor for any liability related to and assumes all liability for real estate and/or personal property taxes and all water and sewer charges and assessments relating to the period prior to closing. All standby fees, taxes, and assessments by any taxing authority for the year of closing and subsequent years, and subsequent taxes and assessments by any taxing authority for prior years and the current year due to change in land usage, ownership or valuation, or because of improvements not assessed or under assessed for a previous or the current tax year, any unpaid homeowner's association dues, fines, fees and penalties and water and sewer charges and assessments for past, the current and future years shall be the liability and sole responsibility of the Optionee. If real estate and personal property taxes for the year of closing are not known, real estate and personal property taxes will be prorated as of closing based on taxes for the year prior to closing with the maximum available discount, and the parties agree, at the
request of either party, to re-prorate the taxes within thirty (30) days after tax bills for the year of closing are available and finalized."

"6.  EVIDENCE OF TITLE: Upon providing Notice and at least Fifteen (15) Days prior to closing, the  [OPTIONOR OR OPTIONEE], at its expense, shall cause to be issued a title insurance commitment, by BROWN, HUFF & ZOHAR, PLLC (the ""Escrow Agent""), agreeing to issue Optionee, upon recordation of the deed, an owner's policy in the full amount of the purchase price, insuring Optionee's title to the Property, subject to the following Permitted Exceptions: (a) Real property taxes and assessments for the year of closing, and subsequent years (which shall be prorated as set forth herein); (b) Declaration of Covenants, Conditions and Restrictions common to the subdivision, if any;
(c) All matters shown on recorded plats of the subdivision; (d) Easements, rights of way, limitations, conditions, covenants and restrictions of record and matters otherwise common to any subdivision; (e) The nature and extent, if any, of riparian or littoral rights, if any; (f) Zoning and other regulatory laws and ordinances affecting the Property; (g) Matters which would be disclosed by an accurate survey; and (h) Such other exceptions that are reasonable and customary.
Optionee shall have Five (5) Days from the date of receipt of the title insurance commitment to examine it and, if Optionee believes that title is unmarketable, to notify Optionor in writing specifying the purported defect(s). If the defect(s) render title unmarketable, Optionor shall have the option of either: (a) canceling this Contract; or (b) the Optionor shall, at its election, have One Hundred Twenty (120) Days from receipt of the title notice within which to remove the defect(s), failing which Optionee shall have the option of either accepting the title as it then is or demanding Twenty Percent (20%) of Option Consideration only (and not the Additional Option Consideration), which shall immediately be returned to Optionee; thereupon, Optionee and Optionor shall release one another of all further obligations under this Contract. Marketable title shall be determined according to applicable Title Standards adopted by the authority of the Florida Bar
7.  PLACE OF CLOSING AND CLOSING PROCEDURES: This transaction shall be closed and the deed and other closing papers delivered within    (  ) Days after Optionee provides Notice to Optionor. The closing shall be held at a place designated by Optionor. Optionee shall be responsible to assure that all funds payable to Optionor shall be available at closing so as to allow disbursement to Optionor on the date and time of closing. As used in this Section, the ""closing"" shall mean Optionee's consummation of this Contract and the acquisition of the Property as contemplated hereunder. The closing and Optionor's obligation to close are conditioned upon Optionee complying with all of the terms and conditions of the Lease and of this Contract, and Optionee having obtained a ready to fund loan for the purchase of the Property.
8.  CLOSING DOCUMENTS: Provided that Optionee has complied with all terms and conditions of this Contract to exercise the Option to Purchase, at closing, Optionor shall execute and deliver a: (i) Special Warranty Deed subject the Permitted Exceptions and to exceptions to title appearing in the title evidence which Optionee has approved or accepted as title exceptions; (ii) Optionor's Affidavit, in a form acceptable to the title insurance company, sufficient to remove standard printed exceptions to title regarding parties in possession and mechanic's liens; and (iii) a Non-Foreign (Foreign Investment Real
Property Tax Act) Affidavit."

"9.    CLOSING COSTS:
a.   If the Optionor selects the Closing Agent, Optionor shall pay for the premium of any owner's policy of title insurance, title search charges, and municipal lien search. Optionor shall pay for recording and other fees needed to cure title and its attorneys' fees.
b.   If the Optionee selects the Closing Agent, Optionee shall pay for the premium of any owner's policy of title insurance, title search charges, and municipal lien search. In all respects, Optionee shall pay for state documentary stamps on the deed of conveyance, all recording costs, endorsements to all title insurance policies, association application/transfer fees, inspections, insurance, Optionee's attorneys' fees, and surveying fees. In the event all or any portion of the funds necessary for the purchase of the Property shall be financed through a lender, the parties agree that any such costs incurred in obtaining such financing shall be paid by the Optionee, including but not limited to, premium of any loan policy of title insurance and endorsements, loan expenses, and appraisal fees.
10.  THE OPTION CONSIDERATION: The Optionee agrees to pay the Optionor the sum of $       for the Option to Purchase the Property (the ""Option Consideration""), and shall provide evidence thereof to Closing Agent. The Option Consideration shall be paid as follows:
a.  The entire Option Consideration shall be deemed non-refundable upon payment to Optionor. The Option Consideration shall not be applied to the Purchase Price, be considered a down payment, or credited to Optionee in any way unless Optionee exercises the Option to Purchase.
b.  The Optionee agrees to pay the Optionor, in addition to the terms set out in the Lease, the sum of $            on the first day of each month (""Additional Option Consideration""). The Optionor shall have no obligation to repay to the Optionee the Additional Option Consideration if the Optionee defaults on the Lease, this Contract, does not exercise the Option as herein provided, and/or does not complete the purchase of the Property. The Optionee acknowledges that rent paid pursuant to the Lease shall NOT be applied to the Purchase Price.
Optionee's Initials:          "

"11.  DEFAULT: Optionee agrees and understands that a fundamental condition of this Contract is that all terms and conditions of both the Lease and/or this Contract must not be in default, or expired, or this Contract will be null and void. To further clarify, all covenants of the Lease and this Contract must have been fully performed by the Optionee in order for the Option to Purchase to be valid and enforceable. This includes, but is not limited to, the repairs, maintenance and upkeep of the Property, payment or other obligations required under the Lease and/or this Contract. Default of any of the terms and conditions of the
Lease and/or this Contract by the Optionee will result in this Contract being automatically"
"null and void and any monies paid hereunder as the Option Consideration or Additional Option Consideration will be retained by Optionor as liquidated damages and not as a penalty. Default includes, but is not limited to, failure to make any Lease or Additional Option Consideration payments by midnight on the first day of the month.
The Optionee agrees that Optionee's rights herein are subject to Optionee complying with all terms and conditions of the Lease and this Contract. If the Optionee defaults pursuant to the Lease, that default shall be deemed to be default pursuant to this Contract. The Optionee acknowledges that this term is fundamental to this Contract without which the Optionor would not have entered into this Contract.
Optionee's Initials:  "
"12.   REGISTRATION OF THIS PURCHASE OPTION CONTRACT ON TITLE: A
filing of this Contract or any similar agreement against the subject legal title of the Property by the Optionee, including but not limited to its successors, assigns, legal representatives, agents, or otherwise, referring to potential rights under the Lease or this Contract, including Optionee's Option to Purchase, will result in the automatic revocation and cancellation of this Contract and all monies will be retained by the Optionor as liquidated damages and not as a penalty. In addition, Optionee will be liable to Optionor for all incidental and consequential damages for slander of title or the wrongful filing of a caveat, including but not limited to attorney's fees and his own client costs on a full indemnity basis.
13.  OPTION CREDIT: Upon the closing of the following the exercise of the Option, the Optionor shall give the Optionee a credit in the amount of $         (""Option Credit"") for each month the Additional Option Consideration was paid in full and on time.
14.  ASSIGNABILITY: This Contract, the Option to Purchase or any interests arising from or contained herein, are not transferable or assignable by the Optionee, and the Option to Purchase can only be exercised by the individuals and entities signing this Contract.
15.  REPAIRS, MAINTENANCE AND INSURANCE: The Optionee shall be responsible for all repairs, maintenance, costs, service charges, and other items as provided in the Lease. All repairs that have the potential of exceeding One Hundred Dollars ($100.00) per occasion must be approved in writing by the Optionor prior to the commencement of any work or purchase of materials related thereto. The Optionor agrees that it is only responsible for amounts over One Thousand Dollars ($1,000.00) on a per occasion basis other than those uncovered during the building inspection and/or highlighted in the ""Building Inspection Sign Off Form"" - Schedule A.
The Optionor has disclosed all relevant facts about the Property, and Optionee acknowledges receipt and accepts all written disclosures provided to Optionor or Optionee by the previous owner of the Property. The Optionor makes no representation about any aspect of neighborhood or other facts or knowledge that are in the public domain of which the Optionor may or may not have knowledge. Optionor knows of no facts materially
affecting the value of the Property that are not readily observable and that have not been"

"disclosed to Optionee. Except as provided for in the preceding sentence, Optionor extends and intends no warranty and makes no representation of any type, either express or implied, as to the physical condition or history of the Property.
Optionee shall take an active role to ensure that the Property stays in excellent condition. Optionee agrees that s/he has had adequate opportunity to inspect the condition of the Property, the improvements, utilities, electrical, plumbing, appliances or any defects of the Property or the neighbourhood. Optionee has the right to paint and decorate the Property at his/her discretion within tasteful guidelines. Optionee agrees to get written acceptance from the Optionor to accept the colour of the paint to be used either inside or outside or before making any alterations or additions to the Property. Optionee further agrees that all work that requires a permit from the city is at the Optionee's expense and responsibility. All work performed on the building either by Optionee or other contractors or any other parties shall be as an independent contractor or agent of the Optionee and not as an agent or employee of the Optionor. Optionor has no right of supervision of the work performed. Optionee further warrants that s/he will be accountable for any mishaps and/or accidents resulting from such work, and will defend, indemnify and hold the Optionor or his/her agent free from any claims from any other person, corporation, or entity. Optionee further acknowledges and agrees that all improvements, of any kind, to the Property belong to the Optionor until such time that the Optionee actually becomes owner of the Property pursuant to this Contract.
16.  ORDINANCES AND STATUTES: The Optionee and the Optionor shall comply with all municipal, state/provincial, and federal laws, statutes, and ordinances now in effect, or which shall be enacted in the future, and any violation of such by the Optionee shall be default pursuant to this Contract. Furthermore, the Optionee and the Optionor shall abide by any and all restrictive covenants and other similar exceptions/encumbrances on title.
17.  NO LIENS: Optionee has no right to, and shall not cause any lien to be placed against the subject legal title. Optionee will be liable to Optionor for all incidental and consequential damages for slander of title or the wrongful filing of a lien or other encumbrance to title, including but not limited to attorneys' fees on a full indemnity basis.
18. EMINENT DOMAIN: In the event Optionor or Optionee receives any notice of any condemnation proceedings or other proceedings in the nature of eminent domain affecting the Property, it will forthwith send a copy of such notice to the other. In the event of any condemnation or taking where Optionee has not then exercised the Option, Optionor shall be entitled to all condemnation awards and proceeds. Except as expressly set forth in this Section, no taking or condemnation shall in any way affect, nullify or impair Optionee's rights hereunder.
19.  ENVIRONMENTAL MATTERS: To the best of Optionor's knowledge, the Property is in compliance with Environmental Laws (as defined below). To the best of Optionor's knowledge, Optionor has obtained, or will obtain, and is in compliance with all licenses,
permits, certificates, authorizations, consents, approvals or other grants of authority which are required (collectively, ""Environmental Permits"") with respect to the ownership, use,"

"occupancy or operation of the Property under any Applicable Law pertaining to human health or safety, Hazardous Substances (as defined below) or the environment, including but not limited to, pollution or protection of the environment (collectively, ""Environmental Laws"").
To the best of Optionor's knowledge, no Hazardous Materials or Hazardous Substances exist on, at, under, above, through or from the Property. For purposes of this Section, ""Hazardous Materials"" and ""Hazardous Substances"" shall include but shall not be limited to any of the following: (a) asbestos; (b) urea formaldehyde foam insulation; (c) transformers or other equipment which contain dielectric fluid containing levels of polychlorinated biphenyls in excess of fifty (50) parts per million; (d) any mold, fungus or similar growth or (e) any other chemical, material, substance or other matter of any kind whatsoever which is prohibited, limited or regulated by any federal, state, county, regional or local authority or legislation, including, without limitation, the Federal Resource Conservation and Recovery Act, 42 U.S.C. Sections 6901 et seq., the Federal Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended, 42 U.S.C. Sections 9601 et seq., the regulations promulgated from time to time thereunder, environmental laws administered by the Environmental Protection Agency and laws and regulations of the State of Florida, or any other governmental organization or agency having jurisdiction.
20.  PERMITS AND PROPERTY DISCLOSURE: Except as may have been disclosed to Optionor and Optionee in a written disclosure by a previous owner of the Property, Optionor does not know of any improvements made to the Property without required permits or made pursuant to permits that have not been properly closed. After the closing, if Optionee identifies permits that have not been properly closed or improvements that were not permitted, then Optionor shall promptly deliver to Optionee all plans, written documentation or other information in Optionor's possession, knowledge, or control relating to improvements to the Property that are the subject of such open permits or unpermitted improvements. Optionor shall not be required to expend, or become obligated to expend, any money.
OPTIONEE HEREBY ACKNOWLEDGES, AGREES AND REPRESENTS THAT OPTIONEE HAS HAD THE OPPORTUNITY TO FULLY INSPECT THE PROPERTY AND THAT UPON EXECUTING THIS CONTRACT OR EXERCISING THE OPTION TO PURCHASE THE PROPERTY, OPTIONEE IS PURCHASING THE PROPERTY ""AS IS"", AND ""WHERE IS"", AND IN ITS PRESENT CONDITION AND SUBJECT TO ALL CHANGES OCCURRING BETWEEN THE DATE HEREOF AND THE DATE OF CLOSING.
21.  BROKERAGE: The Optionee warrants and represents that Optionee has not consulted, dealt or negotiated in any manner concerning the purchase of the Property with any real estate broker, salesperson, or agent, other than           of             , and agrees to indemnify and hold Optionor harmless from and against any and all loss and liability, including attorney's fees, resulting from or arising out of any claim against
Optionor, by any real estate broker, salesperson, or agent, other than the above-named"

"broker, in connection with the transaction which is the subject of this Contract. Optionor's Broker will be paid by Seller pursuant to a separate agreement (the ""Brokerage Commission"") when, and if, the transaction contemplated herein closes.
22. ACKNOWLEDGEMENTS: The Optionee acknowledges that they have read and understand this Contract, and have been given an executed copy of same. The Optionee has been advised to seek legal, tax, technical expertise and any other counsel of their choosing concerning this Contract prior to signing. This supersedes all prior written or oral agreements. There shall be no further additions or changes to this Contract unless the same is reduced to writing and signed by both parties.
23.  SUBJECT TO OTHER AGREEMENTS: The parties specifically acknowledge and agree that this Contract is subject to and shall be interpreted in accordance with this Contract and the Lease.
24.  BINDING EFFECT: This Contract and the agreements referred to herein shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors and assigns.
25.  JOINT AND SEVERAL: All obligations of the Optionee hereunder shall be deemed joint and several in instances in which the Optionee is comprised of two or more parties.
26.  SEVERABILITY: In the event any provisions hereof should be declared by a court of competent jurisdiction to be invalid, illegal or unenforceable for any reason whatsoever, such illegality, unenforceability or invalidity shall not affect the remainder of this Contract.
27.  COUNTERPARTS: This Contract may be executed simultaneously in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
28.   RADON: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county health department.
29.  LEAD-BASED PAINT: If the Property includes pre-1978 residential housing, a lead- based paint disclosure is mandatory.
30. F.S. 689.261 PROPERTY TAX DISCLOSURE SUMMARY: OPTIONEE SHOULD NOT RELY ON THE OPTIONOR'S CURRENT PROPERTY TAXES AS THE AMOUNT OF PROPERTY TAXES THAT THE OPTIONEE MAY BE OBLIGATED TO PAY IN THE YEAR SUBSEQUENT TO PURCHASE. A CHANGE OF OWNERSHIP OR PROPERTY IMPROVEMENTS TRIGGERS REASSESSMENTS OF
THE PROPERTY THAT COULD RESULT IN HIGHER PROPERTY TAXES. IF YOU"

"HAVE ANY QUESTIONS CONCERNING VALUATION, CONTACT THE COUNTY PROPERTY APPRAISER'S OFFICE FOR INFORMATION.
31.  SUBDIVISION DISCLOSURE: The Optionee hereby acknowledges that the Property may be subject to restrictive covenants that may impose upon the Optionee an obligation to pay homeowner's dues and assessments. In addition to the foregoing, the Optionee shall be responsible to pay all applicable bonds or other assessments, including any special taxing district that may appear on the annual ad valorem tax bill for the Property.
32.  MOLD: Mold is naturally occurring and may cause health risks or damage to property. If Optionee is concerned or desired additional information regarding mold, Optionee should contact an appropriate professional.
33. FLOOD ZONE; ELEVATION CERTIFICATION: Optionee is advised to verify by elevation certificate which flood zone the Property is in, whether flood insurance is required by Optionee's lender, and what restrictions apply to improving the Property and rebuilding in the event of casualty. Optionee accepts existing elevation of buildings and flood zone designation of Property. The National Flood Insurance Program may assess additional fees or adjust premiums for pre-Flood Insurance Rate Map (pre-FIRM) non- primary structures (residential structures in which the insured or spouse does not reside for at least 50% of the year) and an elevation certificate may be required for actuarial rating.
34.  ENERGY RATING: Optionee acknowledges receipt of Florida Energy-Efficiency Rating Information Brochure required by Section 553.996, F.S.
35.   FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT (""FIRPTA""): Optionor
shall inform Optionee in writing if Optionor is a ""foreign person"" as defined by the Foreign Investment in Real Property Tax Act (""FIRPTA""). Optionee and Optionor shall comply with FIRPTA, which may require Optionor to provide additional cash at closing. If Optionor is not a ""foreign person"", Optionor can provide Optionee, at or prior to closing, a certification of non-foreign status, under penalties of perjury, to inform Optionee and Closing Agent that no withholding is required.
36.  WAIVER JURY TRIAL: To the extent such waiver is permitted by law, the parties waive trial by jury in any action or proceeding brought in connection with this Contract or any matter arising out of this Contract.
37.  FORCE MAJEURE: Optionee or Optionor shall not be required to perform any obligation under this Contract or be liable to each other for damages so long as performance or non-performance of the obligation, or the availability of services, insurance or required approvals essential to closing, is disrupted, delayed, caused or prevented by Force Majeure. Force Majeure means: hurricanes, floods, extreme weather, earthquakes, fire, or other acts of God, unusual transportation delays, or wars, pandemics, insurrections, or acts of terrorism, which, by exercise of reasonable diligent effort, the non-performing party is
unable in whole or in part to prevent or overcome. All time periods, including will be extended a reasonable time up to Seven (7) Days after the Force Majeure no longer prevents"

"performance under this Contract, provided, however, if such Force Majeure continues to prevent performance under this Contract more than Thirty (30) days beyond closing, then either party may terminate this Contract by delivering written notice to the other, but the Deposit shall not be refunded to Optionee, and Optionee and Optionor shall be release from all further obligations under this Contract.
38.  COUNSEL FEES: In the event of any dispute between the parties arising out of this Contract, the prevailing party in such dispute shall be entitled to recover from and be paid by the other party all costs and expenses incurred in connection with such dispute, including reasonable counsel fees and court costs and expenses.
39.  AMENDMENTS: This Contract may not be amended, modified, altered or changed in any respect whatsoever except by a further agreement in writing duly executed by the parties hereto.
40.  GOVERNING LAW: This Contract shall be governed by and construed in accordance with the laws of the State of Florida (but not including the choice of law provisions thereof).
41.  NOTICES: All notices to be given by either party to the other, unless otherwise directed, shall be in writing, shall be served upon either party in person, by delivery by recognized overnight courier or by depositing such notice in the United States mails, properly addressed and directed to the party to receive the same, certified mail, return-receipt- requested, as follows:
TO OPTIONOR:
Jonathas & Jessica Sucupira"

   "TO OPTIONEE:"
"42.   This Contract is subject to the Optionor becoming the registered owner of the Property by
, 20    ."
"ADDITIONAL DISCLAIMERS AND CONSENTS"
"1.   ""I understand that if I am behind on my rent payments, I will be evicted as permitted by state law, and I forfeit all Option Consideration, Additional Option Consideration, and/or any rental credits that may have built up.""
2.    ""I understand that I am responsible for repairs up to $1,000.00 per repair.""
3.   ""I understand that if I am late, which is after midnight on the 1st day of the month, on any rent payment or monthly option consideration, my Option to Purchase the Property is null and void.""
4.   ""I understand that if I do not close, refinance, and cash you out of the Property on or before the expiration of my option I lose all of my Option Consideration, Additional Consideration, and/or any built-up funds.""
5.  ""I understand that I must give WONDER ESTATES LLC, a Wyoming limited liability company, qualified to transact business in the State of Florida my intent to exercise my option in writing at least Ninety (90) Days prior to the Option Termination Date.""
Optionee's Initials:          "
"IN WITNESS WHEREOF, the parties hereto agree to the terms and conditions of this Contract, as of the date signed by Optionor.
OPTIONOR:
WONDER ESTATES LLC
a Wyoming limited liability company"
"By:"    "                                                        "    "                      "    
   "Jonathas Sucupira"    "Date"    
   "Manager"        
"By:"    "                                                        "    "                      "    
   "Jessica Sucupira"    "Date"    
   "Manager"        
"OPTIONEE:"
"Name:                               Date"
"Name:                               Date"
"PURCHASE OPTION CONTRACT"
"THIS PURCHASE OPTION CONTRACT (this ""Contract"" or ""Option"") is made and"
"entered into this      day of   by and between
and [BUYER-TENANT NAME] (""Optionee"")."    "Your Company"        "(""Optionor""),"
           
"In consideration of the promises and other valuable consideration herein, and the sum of Ten and 00/100 Dollars ($10.00), now paid by each party to the other, the receipt and sufficiency of which is hereby acknowledged, and subject to the terms and conditions set out in this Contract and any other agreements executed in connection with the agreements contained herein, the parties agree as follows:
1.   OPTION TO PURCHASE: Provided that the Optionee has never been in default pursuant to the Optionee's Lease Agreement of even date herewith (the ""Lease"") nor this Contract, Optionee shall have the option to purchase (the ""Option to Purchase"") the property located at                    (the ""Property"").
2. THIS OPTION WILL EXPIRE WITHOUT NOTICE AND SHALL BE OF NO FURTHER   EFFECT   IF   NOT   EXERCISED   ON   OR   BEFORE
                 (""Option Expiration Date"").
3.   EXERCISE OF OPTION AND TERMINATION: The Optionee, desiring to exercise the Option to Purchase on the Option Expiration Date, must give the Optionor written notice (""Notice"") at least Ninety (90) Days prior to the Option Expiration Date. The Optionee understands that the exercise of the Option is not to be conditional upon the Optionee obtaining satisfactory financing; and the Optionee shall, before exercising the Option to Purchase, first satisfy itself that it has an appropriate mortgage commitment. Optionee understands that time is of the essence for this Contract, and that the Optionee's failure to exercise the Option to Purchase in the manner prescribed herein, or the failure to purchase the Property by the specified Option Expiration Date, for any reason, will result in the immediate Termination of this Contract and the Option to Purchase shall be deemed null and void by 5:01 p.m. on the Option Expiration Date. All monies paid by the Optionee to the Optionor will be retained by the Optionor as liquidated damages.
4.  OPTIONEE RIGHTS: This Contract is not an installment contract, nor a contract for deed, nor a contract for sale (or like document), nor equitable mortgage (or like document), but merely Optionee's Option to Purchase the Property under the terms of this Contract.
5.  PURCHASE PRICE OF THE PROPERTY: The purchase price for the Property (the ""Purchase Price"") shall be determined in accordance with the following procedures:
a.    If the Optionee exercises the Option to Purchase:
i.    On  or  before             ,  the  Purchase  Price  shall  be
$            ; or"

"ii.   After the date in (i) above, and on or before           , the Purchase Price shall be $           ; or
iii.   After the date in (ii) above, and on or before Ninety (90) Days prior to the Option Expiration Date, the Purchase Price shall be $            ."
"b.  Subject to the other provisions of this Contract, the Purchase Price shall be paid by credit for the initial Option Consideration as described below plus the amount of any Additional Option Consideration amount. Optionee shall pay the remaining balance of the Purchase Price at closing with: (i) cash; or (ii) if Optionee obtains a loan for any part of the Purchase Price of the Property, Optionee shall obtain such unconditional financing no less than Thirty (30) Days before closing. Optionee acknowledges that any terms and conditions imposed by Optionee's lender(s) or by CFPB Requirements shall not affect or extend the Optionee's obligation to close or otherwise affect any terms or conditions of this Contract. There is no financing contingency to Optionee's obligation to close.
c.  The applicable Purchase Price shall be subject to adjustments. Real Estate and personal property taxes and assessments, including local improvement rates; mortgage interest; rentals; sales and use tax; unmetered public or private utilities and fuel where billed to the Property and not any condominium/property association; are all to be apportioned and allowed to the day of closing, the day of closing itself to be apportioned to the Optionee. If this is a condominium, the following also applies; common expenses and there shall be no adjustment for the Optionor's share of any assets or liabilities of the condominium association including any reserve or contingency fund to which Optionor may have contributed prior to the date of completion.
d.  Optionee hereby releases Optionor for any liability related to and assumes all liability for real estate and/or personal property taxes and all water and sewer charges and assessments relating to the period prior to closing. All standby fees, taxes, and assessments by any taxing authority for the year of closing and subsequent years, and subsequent taxes and assessments by any taxing authority for prior years and the current year due to change in land usage, ownership or valuation, or because of improvements not assessed or under assessed for a previous or the current tax year, any unpaid homeowner's association dues, fines, fees and penalties and water and sewer charges and assessments for past, the current and future years shall be the liability and sole responsibility of the Optionee. If real estate and personal property taxes for the year of closing are not known, real estate and personal property taxes will be prorated as of closing based on taxes for the year prior to closing with the maximum available discount, and the parties agree, at the request of either party, to re-prorate the taxes within thirty (30) days after tax bills for the year of closing are available and finalized.
6.   EVIDENCE OF TITLE: Upon providing Notice and at least Fifteen (15) Days prior to closing, the  [OPTIONOR OR OPTIONEE], at its expense, shall cause to be"

"Your Lawyer"
"issued a title insurance commitment, by          (the ""Escrow Agent""), agreeing to"
"issue Optionee, upon recordation of the deed, an owner's policy in the full amount of the purchase price, insuring Optionee's title to the Property, subject to the following Permitted Exceptions: (a) Real property taxes and assessments for the year of closing, and subsequent years (which shall be prorated as set forth herein); (b) Declaration of Covenants, Conditions and Restrictions common to the subdivision, if any; (c) All matters shown on recorded plats of the subdivision; (d) Easements, rights of way, limitations, conditions, covenants and restrictions of record and matters otherwise common to any subdivision; (e) The nature and extent, if any, of riparian or littoral rights, if any; (f) Zoning and other regulatory laws and ordinances affecting the Property; (g) Matters which would be disclosed by an accurate survey; and (h) Such other exceptions that are reasonable and customary."
"Optionee shall have Five (5) Days from the date of receipt of the title insurance commitment to examine it and, if Optionee believes that title is unmarketable, to notify Optionor in writing specifying the purported defect(s). If the defect(s) render title unmarketable, Optionor shall have the option of either: (a) canceling this Contract; or (b) the Optionor shall, at its election, have One Hundred Twenty (120) Days from receipt of the title notice within which to remove the defect(s), failing which Optionee shall have the option of either accepting the title as it then is or demanding Twenty Percent (20%) of Option Consideration only (and not the Additional Option Consideration), which shall immediately be returned to Optionee; thereupon, Optionee and Optionor shall release one another of all further obligations under this Contract. Marketable title shall be determined according to applicable Title Standards adopted by the authority of the Florida Bar"
"7.  PLACE OF CLOSING AND CLOSING PROCEDURES: This transaction shall be closed and the deed and other closing papers delivered within    (  ) Days after Optionee provides Notice to Optionor. The closing shall be held at a place designated by Optionor. Optionee shall be responsible to assure that all funds payable to Optionor shall be available at closing so as to allow disbursement to Optionor on the date and time of closing. As used in this Section, the ""closing"" shall mean Optionee's consummation of this Contract and the acquisition of the Property as contemplated hereunder. The closing and Optionor's obligation to close are conditioned upon Optionee complying with all of the terms and conditions of the Lease and of this Contract, and Optionee having obtained a ready to fund loan for the purchase of the Property."
"8.  CLOSING DOCUMENTS: Provided that Optionee has complied with all terms and conditions of this Contract to exercise the Option to Purchase, at closing, Optionor shall execute and deliver a: (i) Special Warranty Deed subject the Permitted Exceptions and to exceptions to title appearing in the title evidence which Optionee has approved or accepted as title exceptions; (ii) Optionor's Affidavit, in a form acceptable to the title insurance company, sufficient to remove standard printed exceptions to title regarding parties in possession and mechanic's liens; and (iii) a Non-Foreign (Foreign Investment Real Property Tax Act) Affidavit.
9.    CLOSING COSTS:"
"a.   If the Optionor selects the Closing Agent, Optionor shall pay for the premium of any owner's policy of title insurance, title search charges, and municipal lien search. Optionor shall pay for recording and other fees needed to cure title and its attorneys' fees.
b.   If the Optionee selects the Closing Agent, Optionee shall pay for the premium of any owner's policy of title insurance, title search charges, and municipal lien search. In all respects, Optionee shall pay for state documentary stamps on the deed of conveyance, all recording costs, endorsements to all title insurance policies, association application/transfer fees, inspections, insurance, Optionee's attorneys' fees, and surveying fees. In the event all or any portion of the funds necessary for the purchase of the Property shall be financed through a lender, the parties agree that any such costs incurred in obtaining such financing shall be paid by the Optionee, including but not limited to, premium of any loan policy of title insurance and endorsements, loan expenses, and appraisal fees.
10.  THE OPTION CONSIDERATION: The Optionee agrees to pay the Optionor the sum of $       for the Option to Purchase the Property (the ""Option Consideration""), and shall provide evidence thereof to Closing Agent. The Option Consideration shall be paid as follows:
a.  The entire Option Consideration shall be deemed non-refundable upon payment to Optionor. The Option Consideration shall not be applied to the Purchase Price, be considered a down payment, or credited to Optionee in any way unless Optionee exercises the Option to Purchase.
b.  The Optionee agrees to pay the Optionor, in addition to the terms set out in the Lease, the sum of $            on the first day of each month (""Additional Option Consideration""). The Optionor shall have no obligation to repay to the Optionee the Additional Option Consideration if the Optionee defaults on the Lease, this Contract, does not exercise the Option as herein provided, and/or does not complete the purchase of the Property. The Optionee acknowledges that rent paid pursuant to the Lease shall NOT be applied to the Purchase Price.
Optionee's Initials:          "

"11.  DEFAULT: Optionee agrees and understands that a fundamental condition of this Contract is that all terms and conditions of both the Lease and/or this Contract must not be in default, or expired, or this Contract will be null and void. To further clarify, all covenants of the Lease and this Contract must have been fully performed by the Optionee in order for the Option to Purchase to be valid and enforceable. This includes, but is not limited to, the repairs, maintenance and upkeep of the Property, payment or other obligations required under the Lease and/or this Contract. Default of any of the terms and conditions of the Lease and/or this Contract by the Optionee will result in this Contract being automatically null and void and any monies paid hereunder as the Option Consideration or Additional
Option Consideration will be retained by Optionor as liquidated damages and not as a"
"penalty. Default includes, but is not limited to, failure to make any Lease or Additional Option Consideration payments by midnight on the first day of the month.
The Optionee agrees that Optionee's rights herein are subject to Optionee complying with all terms and conditions of the Lease and this Contract. If the Optionee defaults pursuant to the Lease, that default shall be deemed to be default pursuant to this Contract. The Optionee acknowledges that this term is fundamental to this Contract without which the Optionor would not have entered into this Contract.
Optionee's Initials:  "
"12.   REGISTRATION OF THIS PURCHASE OPTION CONTRACT ON TITLE: A
filing of this Contract or any similar agreement against the subject legal title of the Property by the Optionee, including but not limited to its successors, assigns, legal representatives, agents, or otherwise, referring to potential rights under the Lease or this Contract, including Optionee's Option to Purchase, will result in the automatic revocation and cancellation of this Contract and all monies will be retained by the Optionor as liquidated damages and not as a penalty. In addition, Optionee will be liable to Optionor for all incidental and consequential damages for slander of title or the wrongful filing of a caveat, including but not limited to attorney's fees and his own client costs on a full indemnity basis.
13.  OPTION CREDIT: Upon the closing of the following the exercise of the Option, the Optionor shall give the Optionee a credit in the amount of $         (""Option Credit"") for each month the Additional Option Consideration was paid in full and on time.
14.  ASSIGNABILITY: This Contract, the Option to Purchase or any interests arising from or contained herein, are not transferable or assignable by the Optionee, and the Option to Purchase can only be exercised by the individuals and entities signing this Contract.
15.  REPAIRS, MAINTENANCE AND INSURANCE: The Optionee shall be responsible for all repairs, maintenance, costs, service charges, and other items as provided in the Lease. All repairs that have the potential of exceeding One Hundred Dollars ($100.00) per occasion must be approved in writing by the Optionor prior to the commencement of any work or purchase of materials related thereto. The Optionor agrees that it is only responsible for amounts over One Thousand Dollars ($1,000.00) on a per occasion basis other than those uncovered during the building inspection and/or highlighted in the ""Building Inspection Sign Off Form"" - Schedule A.
The Optionor has disclosed all relevant facts about the Property, and Optionee acknowledges receipt and accepts all written disclosures provided to Optionor or Optionee by the previous owner of the Property. The Optionor makes no representation about any aspect of neighborhood or other facts or knowledge that are in the public domain of which the Optionor may or may not have knowledge. Optionor knows of no facts materially affecting the value of the Property that are not readily observable and that have not been
disclosed to Optionee. Except as provided for in the preceding sentence, Optionor extends"

"and intends no warranty and makes no representation of any type, either express or implied, as to the physical condition or history of the Property.
Optionee shall take an active role to ensure that the Property stays in excellent condition. Optionee agrees that s/he has had adequate opportunity to inspect the condition of the Property, the improvements, utilities, electrical, plumbing, appliances or any defects of the Property or the neighbourhood. Optionee has the right to paint and decorate the Property at his/her discretion within tasteful guidelines. Optionee agrees to get written acceptance from the Optionor to accept the colour of the paint to be used either inside or outside or before making any alterations or additions to the Property. Optionee further agrees that all work that requires a permit from the city is at the Optionee's expense and responsibility. All work performed on the building either by Optionee or other contractors or any other parties shall be as an independent contractor or agent of the Optionee and not as an agent or employee of the Optionor. Optionor has no right of supervision of the work performed. Optionee further warrants that s/he will be accountable for any mishaps and/or accidents resulting from such work, and will defend, indemnify and hold the Optionor or his/her agent free from any claims from any other person, corporation, or entity. Optionee further acknowledges and agrees that all improvements, of any kind, to the Property belong to the Optionor until such time that the Optionee actually becomes owner of the Property pursuant to this Contract.
16.  ORDINANCES AND STATUTES: The Optionee and the Optionor shall comply with all municipal, state/provincial, and federal laws, statutes, and ordinances now in effect, or which shall be enacted in the future, and any violation of such by the Optionee shall be default pursuant to this Contract. Furthermore, the Optionee and the Optionor shall abide by any and all restrictive covenants and other similar exceptions/encumbrances on title.
17.  NO LIENS: Optionee has no right to, and shall not cause any lien to be placed against the subject legal title. Optionee will be liable to Optionor for all incidental and consequential damages for slander of title or the wrongful filing of a lien or other encumbrance to title, including but not limited to attorneys' fees on a full indemnity basis.
18. EMINENT DOMAIN: In the event Optionor or Optionee receives any notice of any condemnation proceedings or other proceedings in the nature of eminent domain affecting the Property, it will forthwith send a copy of such notice to the other. In the event of any condemnation or taking where Optionee has not then exercised the Option, Optionor shall be entitled to all condemnation awards and proceeds. Except as expressly set forth in this Section, no taking or condemnation shall in any way affect, nullify or impair Optionee's rights hereunder.
19.  ENVIRONMENTAL MATTERS: To the best of Optionor's knowledge, the Property is in compliance with Environmental Laws (as defined below). To the best of Optionor's knowledge, Optionor has obtained, or will obtain, and is in compliance with all licenses, permits, certificates, authorizations, consents, approvals or other grants of authority which are required (collectively, ""Environmental Permits"") with respect to the ownership, use,
occupancy or operation of the Property under any Applicable Law pertaining to human"

"health or safety, Hazardous Substances (as defined below) or the environment, including but not limited to, pollution or protection of the environment (collectively, ""Environmental Laws"").
To the best of Optionor's knowledge, no Hazardous Materials or Hazardous Substances exist on, at, under, above, through or from the Property. For purposes of this Section, ""Hazardous Materials"" and ""Hazardous Substances"" shall include but shall not be limited to any of the following: (a) asbestos; (b) urea formaldehyde foam insulation; (c) transformers or other equipment which contain dielectric fluid containing levels of polychlorinated biphenyls in excess of fifty (50) parts per million; (d) any mold, fungus or similar growth or (e) any other chemical, material, substance or other matter of any kind whatsoever which is prohibited, limited or regulated by any federal, state, county, regional or local authority or legislation, including, without limitation, the Federal Resource Conservation and Recovery Act, 42 U.S.C. Sections 6901 et seq., the Federal Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended, 42 U.S.C. Sections 9601 et seq., the regulations promulgated from time to time thereunder, environmental laws administered by the Environmental Protection Agency and laws and regulations of the State of Florida, or any other governmental organization or agency having jurisdiction.
20.  PERMITS AND PROPERTY DISCLOSURE: Except as may have been disclosed to Optionor and Optionee in a written disclosure by a previous owner of the Property, Optionor does not know of any improvements made to the Property without required permits or made pursuant to permits that have not been properly closed. After the closing, if Optionee identifies permits that have not been properly closed or improvements that were not permitted, then Optionor shall promptly deliver to Optionee all plans, written documentation or other information in Optionor's possession, knowledge, or control relating to improvements to the Property that are the subject of such open permits or unpermitted improvements. Optionor shall not be required to expend, or become obligated to expend, any money.
OPTIONEE HEREBY ACKNOWLEDGES, AGREES AND REPRESENTS THAT OPTIONEE HAS HAD THE OPPORTUNITY TO FULLY INSPECT THE PROPERTY AND THAT UPON EXECUTING THIS CONTRACT OR EXERCISING THE OPTION TO PURCHASE THE PROPERTY, OPTIONEE IS PURCHASING THE PROPERTY ""AS IS"", AND ""WHERE IS"", AND IN ITS PRESENT CONDITION AND SUBJECT TO ALL CHANGES OCCURRING BETWEEN THE DATE HEREOF AND THE DATE OF CLOSING.
21.  BROKERAGE: The Optionee warrants and represents that Optionee has not consulted, dealt or negotiated in any manner concerning the purchase of the Property with any real estate broker, salesperson, or agent, other than           of             , and agrees to indemnify and hold Optionor harmless from and against any and all loss and liability, including attorney's fees, resulting from or arising out of any claim against
Optionor, by any real estate broker, salesperson, or agent, other than the above-named broker, in connection with the transaction which is the subject of this Contract. Optionor's"

"Broker will be paid by Seller pursuant to a separate agreement (the ""Brokerage Commission"") when, and if, the transaction contemplated herein closes.
22. ACKNOWLEDGEMENTS: The Optionee acknowledges that they have read and understand this Contract, and have been given an executed copy of same. The Optionee has been advised to seek legal, tax, technical expertise and any other counsel of their choosing concerning this Contract prior to signing. This supersedes all prior written or oral agreements. There shall be no further additions or changes to this Contract unless the same is reduced to writing and signed by both parties.
23.  SUBJECT TO OTHER AGREEMENTS: The parties specifically acknowledge and agree that this Contract is subject to and shall be interpreted in accordance with this Contract and the Lease.
24.  BINDING EFFECT: This Contract and the agreements referred to herein shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors and assigns.
25.  JOINT AND SEVERAL: All obligations of the Optionee hereunder shall be deemed joint and several in instances in which the Optionee is comprised of two or more parties.
26.  SEVERABILITY: In the event any provisions hereof should be declared by a court of competent jurisdiction to be invalid, illegal or unenforceable for any reason whatsoever, such illegality, unenforceability or invalidity shall not affect the remainder of this Contract.
27.  COUNTERPARTS: This Contract may be executed simultaneously in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
28.   RADON: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county health department.
29.  LEAD-BASED PAINT: If the Property includes pre-1978 residential housing, a lead- based paint disclosure is mandatory.
30. F.S. 689.261 PROPERTY TAX DISCLOSURE SUMMARY: OPTIONEE SHOULD NOT RELY ON THE OPTIONOR'S CURRENT PROPERTY TAXES AS THE AMOUNT OF PROPERTY TAXES THAT THE OPTIONEE MAY BE OBLIGATED TO PAY IN THE YEAR SUBSEQUENT TO PURCHASE. A CHANGE OF OWNERSHIP OR PROPERTY IMPROVEMENTS TRIGGERS REASSESSMENTS OF THE PROPERTY THAT COULD RESULT IN HIGHER PROPERTY TAXES. IF YOU HAVE ANY QUESTIONS CONCERNING VALUATION, CONTACT THE COUNTY
PROPERTY APPRAISER'S OFFICE FOR INFORMATION."

"31.  SUBDIVISION DISCLOSURE: The Optionee hereby acknowledges that the Property may be subject to restrictive covenants that may impose upon the Optionee an obligation to pay homeowner's dues and assessments. In addition to the foregoing, the Optionee shall be responsible to pay all applicable bonds or other assessments, including any special taxing district that may appear on the annual ad valorem tax bill for the Property.
32.  MOLD: Mold is naturally occurring and may cause health risks or damage to property. If Optionee is concerned or desired additional information regarding mold, Optionee should contact an appropriate professional.
33. FLOOD ZONE; ELEVATION CERTIFICATION: Optionee is advised to verify by elevation certificate which flood zone the Property is in, whether flood insurance is required by Optionee's lender, and what restrictions apply to improving the Property and rebuilding in the event of casualty. Optionee accepts existing elevation of buildings and flood zone designation of Property. The National Flood Insurance Program may assess additional fees or adjust premiums for pre-Flood Insurance Rate Map (pre-FIRM) non- primary structures (residential structures in which the insured or spouse does not reside for at least 50% of the year) and an elevation certificate may be required for actuarial rating.
34.  ENERGY RATING: Optionee acknowledges receipt of Florida Energy-Efficiency Rating Information Brochure required by Section 553.996, F.S.
35.   FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT (""FIRPTA""): Optionor
shall inform Optionee in writing if Optionor is a ""foreign person"" as defined by the Foreign Investment in Real Property Tax Act (""FIRPTA""). Optionee and Optionor shall comply with FIRPTA, which may require Optionor to provide additional cash at closing. If Optionor is not a ""foreign person"", Optionor can provide Optionee, at or prior to closing, a certification of non-foreign status, under penalties of perjury, to inform Optionee and Closing Agent that no withholding is required.
36.  WAIVER JURY TRIAL: To the extent such waiver is permitted by law, the parties waive trial by jury in any action or proceeding brought in connection with this Contract or any matter arising out of this Contract.
37.  FORCE MAJEURE: Optionee or Optionor shall not be required to perform any obligation under this Contract or be liable to each other for damages so long as performance or non-performance of the obligation, or the availability of services, insurance or required approvals essential to closing, is disrupted, delayed, caused or prevented by Force Majeure. Force Majeure means: hurricanes, floods, extreme weather, earthquakes, fire, or other acts of God, unusual transportation delays, or wars, pandemics, insurrections, or acts of terrorism, which, by exercise of reasonable diligent effort, the non-performing party is unable in whole or in part to prevent or overcome. All time periods, including will be extended a reasonable time up to Seven (7) Days after the Force Majeure no longer prevents
performance under this Contract, provided, however, if such Force Majeure continues to prevent performance under this Contract more than Thirty (30) days beyond closing, then"

"either party may terminate this Contract by delivering written notice to the other, but the Deposit shall not be refunded to Optionee, and Optionee and Optionor shall be release from all further obligations under this Contract.
38.  COUNSEL FEES: In the event of any dispute between the parties arising out of this Contract, the prevailing party in such dispute shall be entitled to recover from and be paid by the other party all costs and expenses incurred in connection with such dispute, including reasonable counsel fees and court costs and expenses.
39.  AMENDMENTS: This Contract may not be amended, modified, altered or changed in any respect whatsoever except by a further agreement in writing duly executed by the parties hereto.
40.  GOVERNING LAW: This Contract shall be governed by and construed in accordance with the laws of the State of Florida (but not including the choice of law provisions thereof).
41.  NOTICES: All notices to be given by either party to the other, unless otherwise directed, shall be in writing, shall be served upon either party in person, by delivery by recognized overnight courier or by depositing such notice in the United States mails, properly addressed and directed to the party to receive the same, certified mail, return-receipt- requested, as follows:
TO OPTIONOR:"
   "TO OPTIONEE:"
"42.   This Contract is subject to the Optionor becoming the registered owner of the Property by
, 20    ."
"ADDITIONAL DISCLAIMERS AND CONSENTS"
"1.   ""I understand that if I am behind on my rent payments, I will be evicted as permitted by state law, and I forfeit all Option Consideration, Additional Option Consideration, and/or any rental credits that may have built up."""
"2.    ""I understand that I am responsible for repairs up to $1,000.00 per repair.""
3.   ""I understand that if I am late, which is after midnight on the 1st day of the month, on any rent payment or monthly option consideration, my Option to Purchase the Property is null and void."""
"4.   ""I understand that if I do not close, refinance, and cash you out of the Property on or before the expiration of my option I lose all of my Option Consideration, Additional Consideration, and/or any built-up funds."""
"Your Company"
"5.    ""I understand that I must give           my intent to exercise my option in writing"
"at least Ninety (90) Days prior to the Option Termination Date."""
"Optionee's Initials:          "
"IN WITNESS WHEREOF, the parties hereto agree to the terms and conditions of this Contract, as of the date signed by Optionor.
OPTIONOR:
Your Company"
"By:"    "                                                        "    "                      "    
   "Your Name"    "Date"    
   "Manager"        
"By:"    "                                                        "    "                      "    
   "Your Name"    "Date"    
   "Manager"        
"OPTIONEE:"
"Name:                               Date"
"Name:                               Date"

"Rental Application
PLEASE PRINT                          Today’s Date
Date Premise Required
Address of premise to be rented"
"Personal Information
Applicant’s full (legal) name  "
"Applicant’s present residence   Phone#  
How long at present residence    Reason for moving Owner/Manager of present residence
Landlord’s Phone     Amount of Rent  "    
"Co-Applicant’s full (legal) name  
Co-Applicant’s present residence  Phone#   How long at present residence    Reason for moving Owner/Manager of present residence
Landlord’s Phone     Amount of Rent  "    
"Name, relationship and age of other person/s to live with you:"    
"Pets to occupy premises"
"Employment Information"
"Applicant is employed by  Occupation  Phone#  Average   salary   or   monthly   income   $
How long with present employer  Employer or Supervisor phone #  Former employer  How   long   with   previous   employer   Phone
Or Social Worker’s Name:   Phone #  "    
"Co-Applicant is employed by  Occupation  Phone  Average   salary   or   monthly   income   $
How long with present employer  Employer or Supervisor phone #
Or Social Worker’s Name:   Phone #  "    
"Credit Information"
   "Credit reference: (List bank, credit union, charge accounts, or other credit references.)
1.
2.
3.
Driver’s Licence # -  "    
"Personal references:"
"Next of Kin   Phone   Address  Employer  Other Reference #1.  Phone  Other Reference #2.  Phone  Referred           to           landlord           by "    
"I/we declare that the statements above are true and correct and have not withheld any information. I/we also authorize the landlord to confirm the above information as required to process this application. The Landlord will rely on this information to decide on approval of this application. By signing this application I/we agree to move into the property listed above. I/we understand that if I/we don’t move in that I/we can be held responsible for the rent, damages and any other charges."
"I/we hereby authorize the person or firm to whom this application is submitted to obtain such credit reports or other information as may be deemed necessary in connection with the establishment and
maintenance of a credit account or for any other direct business requirement."
"Signed at [Insert City/Town], [Insert Province/State]. This the   day of              200
."
"Signature  Date "
"Signature  Date "
"OFFICE USE ONLY"
"Approved  Yes (  )   No (  )  Date Advised:  "
"US- SAMPLE RESIDENTIAL LEASE WITH OPTION (Variation for Sandwich LO)"
"THIS AGREEMENT made and entered into on    by and between (landlord/owner), hereinafter referred to as ""Lessor,"" and    (tenant/buyer), hereinafter referred to as ""Lessee.""
Legal Description: To Be Attached
Together with all appurtenances for a period of one year to commence on
through    with the right to four (4) consecutive terms of the original term with Lessee's notification to Lessor in writing thirty (30) days prior to end of term.
1. RENT. Lessees agree to pay, without demand, to Lessors as monthly rent for the demised premises, the sum of    , in which the payments are due on or before the tenth (10th) day of each month. The first payment will be due on or before    .
2. SECURITY & OPTION. Upon the execution of this lease, the Lessees shall pay unto the Lessors, the first month's rent as well as the sum of $100.00 as security for the faithful performance by Lessees of the terms hereof, to be returned to Lessees, without interest, on the full and faithful performance by them of the provisions hereof, plus the sum of $1,000.00 as down payment for the option to purchase the aforementioned property. This sum is nonrefundable.
3. USE. The Lessees shall use the premises hereby leased exclusively for a private residence. Lessees shall be permitted to access the above dwelling for the purpose of showing the property to perspective tenants, contractors, and partners.
4. PERSONAL PROPERTY. All personal property placed or moved in the premises above described shall be at risk of the Lessees or owner thereof, and Lessors shall not be liable for any damage to said personal property, or to the Lessees arising from any act of negligence of any co-tenant or occupants of the building or of any other person
whomsoever."

"5. COMPLIANCE. The Lessees shall promptly execute and comply with all statutes, ordinances, rules, orders, regulations and requirements of the federal, state, and city government and of any and all their departments and bureaus applicable to said premises, for the correction, prevention, and abatement of nuisances or other grievances, in, upon, or connected with said premises during said term.
6. FIRE. Lessee will not allow any items on or in the dwelling, which will endanger the habitants or the premises. That in the event the premises are destroyed or so damaged by fire or other unavoidable casualty as to be unfit for occupancy or use, then the rent hereby reserved, or a fair and just proportion thereof, according to the nature and extent of the damage sustained, shall, until the said premises shall have been rebuilt or reinstated, be suspended and cease to be payable, or this lease shall, at the election of the Lessor, thereby be determined and ended, provided, however, that this agreement shall not be construed so as to extend the term of this lease or to render the Lessor liable to rebuild or replace the said premises.
7. ACCEPTANCE. Lessees hereby accept the premises in the condition they are in at the time beginning of this lease and agree to maintain said premises in the same condition, order and repair as they are at the commencing of said term, excepting only reasonable wear and tear. Lessee agrees to pay for all repairs costing less than
$500.00 per incident arising from the use thereof under this agreement, and to make good to said Lessors immediately upon demand any damage to water apparatus, or electric lights or any fixture, appliances or appurtenances of said premises, or of the building, caused by any act of neglect of Lessees, or of any person or persons in the employ or under the control of the Lessees. In the event of any default by Lessor or then in addition to any other remedies available to Lessee at law or in equity Lessee shall have the option to terminate this lease and all rights by giving written notice of intention to terminate, via certified mail.
8. TERMS OF CONTRACT. It is understood and agreed between the parties hereto that time is of the essence of this contract and this applies to all terms and conditions contained herein. Lessees shall have the unqualified right to sublet and/or assign, sell, transfer, and convey any rights which the Lessee or their administrators, successors, executors and heirs may have in this contract to a third party without
written notice. Any assignment will release Lessees from any liability, as new assignee"

"will accept all rights, obligations and responsibilities agreed upon in this agreement between Lessor and Lessees.
9. NOTICE. It is understood and agreed between the parties hereto that written notice by certified mail or delivered to the premises hereunder shall constitute sufficient notice to the Lessees and written notice by certified mail or delivered to the office of the Lessors shall constitute sufficient notice to the Lessors, to comply with the terms of this contract. The Lessor's mailing address is    .
10.  RIGHTS. The rights of the Lessors under the foregoing shall be cumulative, and failure on the part of the Lessors to exercise promptly any given rights hereunder shall not operate to forfeit any of the said rights.
11.  UTILITIES. The Lessees shall be responsible for the payment of all utility bills (water, electricity, telephone, etc.) and specifically including, but not limited to glass breakage and all doors and screens. The Lessors will be responsible for all structural repairs, meaning thereof, exterior walls, foundation, and to pay all repairs costing greater than $500.00 per incident. In the event Lessor is delinquent on any payments required under this agreement to include repairs and maintenance, Lessee shall have the right to make such payments as necessary to cure defaults or make said repairs on behalf of the Lessor. Any payments made by Lessee will be credited to Lessee on a two-to-one basis (2 to 1). The closing agent will apply said credit toward the purchase price at the time of closing.
12.  REPAIRS. The Lessees will permit the Lessors or their agent, at any reasonable time, to enter said premises or any part thereto for the purpose of exhibiting the same or making repairs thereto.
13.  RECOVERY. If either party of this agreement shall bring legal action for enforcement of said agreement, the prevailing party shall recover the cost of the proceedings including reasonable attorney fees.
14.  EMINENT DOMAIN. If the leased premises, or any part thereof are taken by virtue of eminent domain, this lease shall expire on the date when the same shall be so taken and the rent shall be apportioned as of said date. Lessee shall be entitled to
FULL refund of any option consideration money and security deposits."

"15.  BENEFIT. All covenants and agreements of this lease shall be binding upon and inure to the benefit of the heirs, executors, administrator and assigns of the Lessor and Lessee, without affecting the restrictions imposed by Section 3 hereof.
16.  RIGHT TO EXTEND. Lessee shall have the right to extend the agreement for six (6) months, for an additional fee of $1.00.
17.  CHATTELS. The said Lessees hereby pledge and assign to the Lessors all the furniture, fixtures, goods and chattels of said Lessees which shall or may be brought or put on said premises as security for the payment of the term herein reserved.
18.  VALIDITY. It is expressly agreed between the parties that if any clause of this lease be found unconscionable it shall not affect the validity of the remainder of this lease.
19.  ENTIRE AGREEMENT. Neither party has made any representation or promise, except as contained herein. Any and all modifications to this agreement must be in writing and signed by Lessee/Lessor and/ or assigns.
20.  INSPECTIONS. Real property taxes on the property, both general and special assessments, if any, for the current fiscal year shall be prorated for the close of escrow and be paid by the Lessor. Also, the Lessors shall provide the Lessees with a certificate from a licensed and bonded exterminator showing that there is no evidence of termite infestation in improvements on said property. Should termite eradication be required, the Lessors shall perform the same at their own expense. The Lessees shall examine the leasehold premises to determine that the premises are in good and inhabitable condition, as are the condition of the electrical, plumbing and heating system, and if they are not, said leasehold period shall not commence until the premises are in such inhabitable condition. In addition, the Lessees shall examine said premises and prepare a list of those items damaged at the commencement of the leasehold period. Lessees agree to notify Lessor immediately upon first discovery any signs of serious dwelling problems to include leaking roof, dysfunctional heating/air conditioning systems, spongy floor, crack in foundation, moisture in
ceiling, leaking water heater or evidence of termites."

"21.  PURCHASE. Lessees shall have the option to purchase said premises for the purchase price of    . This option may be exercised at any time during the lease period upon notice to the Lessors in writing by certified mail. The Lessees shall place with ABC Title Company (title company/attorney), the option payment specified in paragraph (2) above paid by the Lessees to the Lessor in escrow as earnest money towards the purchase of said property. $100.00 (amount) of all rents paid by the Lessee up to the time of the exercise of the option shall be credited to the down payment. Should the Lessee exercise their option, the Lessors shall have ten (10) days to provide Lessees with an updated abstract showing their title to be good, marketable, and insurable. The Lessees shall close the transaction within seven (7) days from the delivery of said abstract. The closing costs incurred with closing escrow shall be paid at the close of escrow as follows: Lessee to pay for their own closing costs; Lessor to pay for their own closing costs. This lease shall terminate upon the closing of the subject property and the Lessee shall not be liable for any rent subsequent to the closing date. All monies put for security shall be returned to the Lessees at that time.
22.  CONTEXT. The terms Lessor and Lessee as herein contained shall include singular and/or plural, masculine, feminine, and/or assigns neuter, heirs, successors, personal representatives, and/or assigns wherever the context so requires or admits.
23. AGREEMENT. This agreement constitutes the entire agreement between the Lessee and the Lessor, as written. No further promises have been made to one another whether it is written or verbal.
24.  RIGHT OF RESCISSION. Lessee has fourteen (14) business days to cancel this agreement. The purpose of this right to cancel option is to allow Lessee time to properly inspect above said property. In the event that Lessee decides to cancel agreement within the allotted time; all deposits and options, consideration, and monies shall be refunded promptly.
25.  DISCLAIMER. Parties in this agreement by their signatures agree not to hold preparer of this document for any error, mistakes, omissions or negligence."

"Lessor:   Date "
"Lessor:  Date "
"Lessee:   Date "
"Lessee:   Date "
"State of  County of  "
"The foregoing instrument was acknowledged before me this  day of ,
20 by who is/are personally known to me or who has/have produced  as identification.
Notary:
My Commission Expires:
(Seal)"
"Rent To Own Option C
Di-Rae Development Inc.
Phone: 403-668-7755
Or 403-540-2668
Email: shelley@shelleyhagen.com www.diraedevelopment.com"

"Disclaimer: All information displayed is believed to be accurately calculated and reasonable estimates are made concerning future market trends however, we cannot predict future prices therefore the information is not guaranteed and should, with any investment be
independently verified. No warranties or representations of any kind are made."
"Di-Rae Development Inc.                                     1 | P a g e"
"How Rent To Own Programs Work?"
"Di-Rae Development Inc. is a local team with extensive business and real estate investing experience.
We offer real estate solutions and investment opportunities. We specialize in providing rent-to-own, owner
financing and other creative solutions. We work with our clients to find solutions to meet the needs of their families."
"Our Goals
♦  Provide a smooth & simple process for our clients.
♦  Provide solutions to meet the needs of our clients and their families.
♦  Provide renters with opportunity to buy a home sooner than through conventional means.
♦  Provide assistance to renters in obtaining new mortgages.
Overview of the Rent To Own Program
We work with clients who are looking to buy a new home, but have run into problems obtaining financing due to some of the following reasons:
•  New Business Owner
•  Self-employed
•  Not enough down payment
•  Credit challenges!
•  Newly immigrated to the country
•  Had a Bankruptcy!
Di-Rae Development Inc. specializes in providing rent-to-own solutions to people in circumstances just like this. We work with them, to help realize their dream of owning a home of their own!
Our criteria for this program:
•  No Banks
•  No Qualifying (your job is your credit!)
•  Quick approvals!
•  Self-Employment OK!
We can provide assistance (if required) to help clients in repairing their credit. At the end of the rent to own term, we assist them in getting a mortgage to buy the home."

"Di-Rae Development Inc.                                     2 | P a g e"
"How We Can Work Together"
"Di-Rae Development works with Real Estate professionals such as Realtors and Mortgage Brokers to provide another alternative for their clients to get into a new home. We consider ourselves ‘Option C’, behind traditional and sub-prime financing options, to help clients become Homeowners. Here’s how we can work
together:"
"Role of the Realtor or Broker:
•  Buyers will contact you to either purchase a home or get financing for a potential new purchase.
•  Most Realtors will want to have the Buyer obtain pre-approval for financing before moving forward to look for a home.
•  Sometimes the Buyer’s will have pre-approval from their banks, then when they go to get final approval for the purchase something comes up and the bank/lender will not approve the loan.
•  Mortgage Brokers have prospective Buyers approach them for financing and they are not able to qualify.
•  Realtors and Mortgage Brokers contact Di-Rae to determine if the Buyer will qualify for the Rent To Own Program."
   "Di-Rae’s Role:
•  Works with the Realtor to determine the situation with the prospective Tenant/Buyer. Obtains contact information and contacts the Tenant/Buyer to got through an assessment of their current situation and determine if they have been working with a bank/credit union or Mortgage Broker already. If so, we will get contact information for the person they were dealing with.
•  If the Tenant has not been working with a Broker or Lender then we will have them contact a Broker in our team to have an assessment of their current ability to obtain financing.
•  If the lead is from a Mortgage Broker, we will obtain information on their current situation and what needs to be done to get them financing in the future.
•  In either situation we work with a Broker to develop a credit repair plan to present to the Tenant to help them understand what needs to be done in order to obtain financing at the end of the program.
•  Assesses and prequalifies the Tenant’s ability for the Rent to Own program and for their option to purchase the property at the end of the program;
•  If they do not qualify, we notify the Realtor and/or Broker of the situation.
•  If they do qualify then we begin assessment of the current market value and monthly costs for the property to be considered for the rent to own program;
•  Present opportunities to our Investor team to determine who is interested in becoming our buying partner for the property;
•  Once the Investor has agreed to proceed with the deal, we will meet with Tenant to explain the Rent To
Own Program with them;"
"Di-Rae Development Inc.                                     3 | P a g e"
"How We Can Work Together"
"Di-Rae’s Role: continued
•  Once the Investor is selected then we arrange with a Realtor to do showings with the Tenant (if this is the Realtor that referred the client, then that Realtor will assist the Investor/Buyer with the acquisition of the house) ; NOTE: The Tenant is NOT the buyer. Details regarding the purchase of the property can not be shared with the Tenant as that is confidential information to only be discussed with the Investor/Buyer and Di-Rae.
•  Once the Investor is selected, we introduce them to a Mortgage Broker on our team to arrange financing to purchase the property (if this is the Mortgage Broker that referred the client, then that Broker will assist the Investor/Buyer with the financing to buy the house) ; NOTE: The Tenant is NOT the buyer. Details regarding the financing of the property can not be shared with the Tenant as that is confidential information to only be discussed with the Investor/Buyer and Di-Rae.
•  Once offer is accepted, we arrange date of possession with the Realtor, Broker, Investor and Tenant;
•  Provides information as required to the Lawyer handling the closing on behalf of the Investor;
•  Coordinates the move with the Tenants and conducts the move-in walk-through;
•  Coordinates with Tenant and Mortgage Broker at the end of the term to obtain financing so that the Tenant can close on the property."
"Role of the Tenant:
•  Pay for the home inspection."
   "•  Pay their rent on time or risk being evicted and lose their initial option deposit and any subsequent monthly option credits accumulated.
•  Provide an option payment which will be credited towards the future equity in the home. (assists in building down payment required to obtain financing)
•  The renter shall be responsible for all the maintenance of the home.
•  Provide the owner and/or representative access to the home to complete inspections periodically.
•  Provide the owner written proposals for any future enhancements requested for the property.
•  Renters are responsible for having their own content/renter’s insurance.
•  Responsible to meet with the mortgage broker to obtain financing at the end of the contract"
"Di-Rae Development Inc.                                     4 | P a g e"
"How We Can Work Together"
"Considerations for Selecting the Property:
• We prefer to buy single family, half duplexes, townhouses, or houses with a basement suite. Whenever possible we would like a property with a single or double garage (either detached or attached).
• Few Investors will want to buy apartment style condos due to the condo fees and possibility of special assessments being placed on the property unexpectedly. In some cities condos are more difficult to sell.
•  We prefer properties that are not on busy roads, next to schools, playgrounds, commercial properties, etc. We want to buy properties with good resale potential for the future.
•  Typically we stay with properties in ‘entry level’ locations in the city.
•  These conditions vary from one deal to the next.
We Look forward to an opportunity to work together with you in the future."
"Di-Rae Development Inc.                                     5 | P a g e"

"This Agreement is dated the  6th  day of  June  , A.D. 2022 ."
"BETWEEN:"
       "Phoenix Properties LLC
11155 N 82nd Dr, Peoria, AZ 85345
OF THE FIRST PART
(hereinafter referred to as “the Assignee”)"
"AND:"    "Di-Rae Development LLC
PO Box 4620, Stateline, NV 89449
OF THE SECOND PART
(hereinafter referred to as “the Assignor”)
Re:  Assignment of:  Lease Option Contract  Clients/Tenants:  Trent & Patti Smith  Closing date:   TBD  Assignor:    Di-Rae Development  Assignee:     Phoenix Properties LLC  Sale  Price:                N/A
Commission:    N/A "
"IN CONSIDERATION of the terms contained herein, the Parties agree as follows:
WHEREAS the Assignee has agreed to pay the Assignor an Assignment/Finder’s Fee. The fee shall be $5,000.00 , or  n/a % of the gross sale price, plus all applicable taxes. The Assignor exercises their unqualified right to assign all of their rights and obligations of the attached Lease Option contract. The fee shall be paid upon signing of this contract as cash or certified funds.
IN WITNESS WHEREOF each party to this Agreement has caused it to be executed at  Peoria, AZ, on the date indicated below."
"George Tyler"    "June 6th, 2022"    "SRHagen"    "June 6th, 2022"    
"Assignee Signature"    "Date"    "Assignor Signature"    "Date"    
"     George Tyler   Shelley Hagen
Assignee Name Printed                   Assignor Name Printed"
"Investment Opportunity"
       
"Disclaimer: All information displayed is believed to be accurately calculated and reasonable estimates are made concerning future market trends however, we cannot predict future prices therefore the information is not guaranteed and should, with
any investment be independently verified. No warranties or representations of any kind are made."
"Di-Rae Development Inc.                                 403-540-2668"

"Rent To Own Program"
"Di-Rae Development Inc. is a local team with extensive business and real estate investing experience.
We offer real estate solutions and investment opportunities. We specialize in providing rent-to-
own, owner financing and other creative solutions. We work with our clients to find solutions to meet the needs of their families."
"Our Goals
♦  Provide a smooth & simple process for our clients.
♦  Provide solutions to meet the needs of our clients and their families.
♦  Provide renters with opportunity to buy a home sooner than through conventional means.
♦  Provide assistance to renters in obtaining new mortgages.
Overview of the Rent To Own Program
We work with clients who are looking to buy a new home, but have run into problems obtaining financing due to some of the following reasons:
•  New Business Owner
•  Self-employed
•  Not enough down payment
•  Credit challenges!
•  Newly immigrated to the country
•  Had a Bankruptcy!
Di-Rae Development Inc. specializes in providing rent-to-own solutions to people in circumstances just like this. We work with them, to help realize their dream of owning a home of their own!
Our criteria for this program:
•  No Banks
•  No Qualifying (your job is your credit!)
•  Quick approvals!
•  Self-Employment OK!
We can provide assistance (if required) to help clients in repairing their credit. At the end of the rent to own term, we assist them in getting a mortgage to buy the home."

"Di-Rae Development Inc.                                 403-540-2668"
"Rent To Own Program"
"Di-Rae Development proposes to become a Joint Venture (JV) partner with yourself, the investor."
   "Di-Rae’s Role:
•  Markets to locate the tenant buyer;
•  Assesses and prequalifies the tenants’ ability for the Rent to Own program and for their option to purchase the property at the end of the program;
•  If approved to proceed, explains the Rent To Own Program with the tenant and gets their commitment to proceed;
•  Assesses the current market value and monthly costs for the property to be considered for the rent to own program;
•  Arranges showings with the realtor and tenants;
•  Determines best property to meet the needs of the tenant and as a good investment for the investor
•  Reviews the potential tenant and rent to own income potential with the investor.
•  Once investor agrees to proceed, arranges mortgage broker to deal with investor on financing.
•  Coordinates and attends inspection with licensed inspector and Tenant, who will pay for the inspection.
•  Reviews inspection report with investor and tenant. If all agreed, proceed to remove conditions, etc.
•  Negotiates the details of the rent agreement and option to purchase, along with all associated paperwork and contracts with Tenants;
•  Obtains initial option consideration deposits from the tenants before removal of the conditions;
•  Arranges date of possession with the Investor and tenant
•  Coordinates the move with the tenants and conducts the move-in walk-through;
•  Manages the property for the remainder of the term and provides monthly reports to the Investor/owner.
•  Establish a joint bank account with the investor/owner to accept rent deposits and pay monthly expenses, ie mortgage, taxes, etc.
•  Disburses profit payments to the investor and Di-Rae quarterly.
•  Coordinates with tenant and mortgage broker at the end of the term to obtain financing so that the tenant can close on the property."
   
"Di-Rae Development Inc.                                 403-540-2668"
"Rent To Own Program"
"Role of the Investor:
•  Investor approves tenant, property and property inspection as applicable through the process.
•  Investor coordinates financing and provides downpayment to purchase the selected house.
•  Investor maintains payments of the mortgage, property taxes and landlord property insurance for the duration of the rent to own contract with the tenant;
•  Provide a ‘credit’ to the tenant for initial option consideration and accumulated monthly option ‘credit’. Will need to show these funds in a trust bank account that has seasoning of a minimum of 120 days when the Tenant is ready to buy the property.
•  Completes the sale of the property to the tenant at the end of the contract through a
local lawyer."
"Role of the Tenant:
•  Pay for the home inspection."
   "•  Pay their rent on time or risk being evicted and lose their initial option deposit and any subsequent monthly option credits accumulated.
•  Work with a credit repair specialist to ensure they are able to obtain financing at the end of the rent to own term.
•  Provide an option payment which will be credited towards the future equity in the home. (assists in building down payment required to obtain financing)
•  The renter shall be responsible for all the maintenance of the home.
•  Provide the owner and/or representative access to the home to complete inspections periodically.
•  Provide the owner written proposals for any future enhancements to the property.
•  Renters are responsible for having their own content insurance.
•  Responsible to meet with the mortgage broker to obtain financing at the end of the contract."
"Di-Rae Development Inc.                                 403-540-2668"

"How The Numbers Work"
"(Note that these numbers are to be determined and may change before the project is finalized.)
1.  Determine the current value of the home
2. Determine the agreed upon future potential sale price of the home (typically 1-2% higher than current value)
3. Determine current market rent for a similar home and add additional option consideration credit to the rent.
4. Both parties split the profit and are liable for all issues that arise 50/50 throughout, but not limited to, the duration of the Rent to Own Program.
5.  Income streams:
a. Initial option deposit (portion to go to Di-Rae up front for costs and time to obtain the tenant)
b.  Monthly net rent cashflow (split equally with Di-Rae)
c. Net Income from the sale (difference between current value of the home and future sale price) (split equally with Di-Rae minus initial option deposit they received up front)
d. Net paydown on the mortgage during the term of the rent to own agreement. (Split equally with Di-Rae)
‘Provide a copy of the Lease Option Spreadsheet’"
"Di-Rae Development Inc.                                 403-540-2668"
"Investment Opportunity"
       
"Lease Option"
"Anytown"
"Di-Rae Development Inc.
403-540-2668
shelley@shelleyhagen.com"
"*DISCLOSURE*"
"DI-RAE DEVELOPMENT IS SELLING OUR ASSIGNABLE CONTRACT FOR THIS PROPERTY. WE MAY NOT OWN THIS HOME – ONE OR MORE OF OUR PRINCIPALS MAY HAVE A REAL ESTATE LICENSE. WE DO NOT REPRESENT THE SELLER. THE INFORMATION IS PROVIDED AS A COURTESY AND NOT MEANT FOR THE PURPOSES OF MARKETING THIS HOME. ALL INFORMATION IS DEEMED RELIABLE BUT NOT GUARANTEED. BUYER MUST DO THEIR OWN DUE DILIGENCE AND CHECK ALL INFORMATION PRIOR TO SIGNING ANY CONTRACT AND SUBMITTING THE NON- REFUNDABLE ESCROW DEPOSIT. THERE IS NO INSPECTION PERIOD FOR THE BUYER AFTER SIGNING THE
CONTRACT AND SENDING THE NON-REFUNDABLE ESCROW DEPOSIT."

"Lease Option Opportunity"
"How The Program Works
•  Di-Rae find a prospective Tenant Buyer who has funds for a reasonable option deposit and can afford the monthly rental payments. Typically we look for a minimum $10,000 from them to put down towards the rent to own. Tenants pay all repairs and maintenance during the time of the rent to own term. Any improvements to the property need to be approved by us in advance.
•  Di-Rae works with our team to determine if the tenants will qualify for our program. Di- Rae will also determine how long we think it will take for them to obtain financing in the future. Most rent to own deals are for a 2 to 3 year term.
• Di-Rae works with our Investor team to determine who is interested in partnering on this particular deal.
•  Once Di-Rae has qualified the tenants, then we either put them into an existing property in our investor inventory or purchase a new home to suit their needs.
• After determining how to proceed, if we are buying a new home, we engage a realtor to assist with finding a home that meets the needs of the tenants but more importantly that it meets our investment needs as well. Needs to be a good property in a good area, for example.
• We obtain the non-refundable option deposit from the tenant buyers before removing conditions on offers for new properties. We use this money for the initial deposit with the realtor when buying a new home.
•  The Tenant pay for a home inspection.
•  The Investor partner obtains the mortgage and provides remaining funds for the down payment as required. We assist with setting up monthly payments for taxes and insurance.
•  We provide all paperwork and contracts related to the project, and coordinate signing and closing, between the tenants and the investor partners.
•  Upon move in, the Tenants pay their first month’s rent up front and have all future payments set up as automatic deposit into our bank account.
•  We collect all rents and pay bills out of a separate bank account for each property and provide monthly reporting to the investor partners. We ensure rents are paid on time and do regular inspections of the property, to ensure the tenants are maintaining the property appropriately.
•  Payments are made to our Investor partners and ourselves for distribution of rental profits on a quarterly basis.
•  Our team monitors their credit and works with them to obtain financing at the end of the
term."

"Di-Rae Development Inc.                                403-540-2668"
"Lease Option Opportunity"
"Quick Overview – Proposed payments
See attached Lease Option Worksheet
Bio on Tenant Buyers
Trent and Patti Smith are a couple in their early 40's and with 2 children.
Trent has been working in construction for several years with his company. Patti has worked long term in administration for a company that supplies materials to oil companies. Even though the economy has slowed somewhat with the price of oil being down, her employer has gotten record orders and will be busy into the next year or more, trying to fill them and has expansion plans to accommodate the growth.
Trent and Patti both love Coventry Hills in NW Anytown and wish to continue to raise their children in this community. It is very important to them that their children have a place to call home. A yard to play in and grow things, and close the schools that they attend already.
They ran into some challenges a few months ago with payments on their line of credit when Trent was off work for a bit. They had some challenges with their bank at that time because of the way that they had registered a lien on their property for the full amount of the appraised value of the house even though the debt was less. They were unable to refinance that line of credit through them and got some bad advice from a mortgage broker they were referred to by the lender. That broker referred them to a lawyer in another part of the country for credit counseling who made their credit worse. Then the mortgage broker delayed getting them financing for 3 months which compounded the situation. When they finally got financing she set them up with a sub-prime mortgage at a high interest rate and payment. At that time they decided to sell their house, get their equity out and move on. Their realtor introduced them to us. They have good income to support potential rent. They also want to down size to a more affordable smaller house. They will have $30,000 from the sale of their house to put down onto
a lease option. They are looking for a house in the $390,000 to $410,000 price range."

"Di-Rae Development Inc.                                403-540-2668"
" Anytown Lease Option"
"Property Description – (Proposed)"
"We have not selected a property for purchase as of yet.
The clients have looked at a few for sale on MLS in their preferred neighbourhood and would like a bungalow with a developed basement and preferably a garage.
We are looking in the $390,000 to $410,000 price range at this time. A few that they are interested in are:"
   "Address"    "MLS #"    "Listed Price"    
   "662 Coventry Dr NE"    "C3649533"    399900    
   "170 Coverton Close NE"    "C3649496"    387000    
   "77 Covewood Green NE"    "C3650000 (2 story)"    409900    
"These are a sample of the potential type of house and price range."
"Di-Rae Development Inc.                                403-540-2668"

"Rental Application
PLEASE PRINT                          Today’s Date
Date Premise Required
Address of premise to be rented"
"Personal Information
Applicant’s full (legal) name  "
"Applicant’s present residence   Phone#  
How long at present residence    Reason for moving Owner/Manager of present residence
Landlord’s Phone     Amount of Rent  "    
"Co-Applicant’s full (legal) name  
Co-Applicant’s present residence  Phone#   How long at present residence    Reason for moving Owner/Manager of present residence
Landlord’s Phone     Amount of Rent  "    
"Name, relationship and age of other person/s to live with you:"    
"Pets to occupy premises"
"Employment Information"
"Applicant is employed by  Occupation  Phone#  Average   salary   or   monthly   income   $
How long with present employer  Employer or Supervisor phone #  Former employer  How   long   with   previous   employer   Phone
Or Social Worker’s Name:   Phone #  "    
"Co-Applicant is employed by  Occupation  Phone  Average   salary   or   monthly   income   $
How long with present employer  Employer or Supervisor phone #
Or Social Worker’s Name:   Phone #  "    
"Credit Information"
   "Credit reference: (List bank, credit union, charge accounts, or other credit references.)
1.
2.
3.
Driver’s Licence # -  "    
"Personal references:"
"Next of Kin   Phone   Address  Employer  Other Reference #1.  Phone  Other Reference #2.  Phone  Referred           to           landlord           by "    
"I/we declare that the statements above are true and correct and have not withheld any information. I/we also authorize the landlord to confirm the above information as required to process this application. The Landlord will rely on this information to decide on approval of this application. By signing this application I/we agree to move into the property listed above. I/we understand that if I/we don’t move in that I/we can be held responsible for the rent, damages and any other charges."
"I/we hereby authorize the person or firm to whom this application is submitted to obtain such credit reports or other information as may be deemed necessary in connection with the establishment and
maintenance of a credit account or for any other direct business requirement."
"Signed at [Insert City/Town], [Insert Province/State]. This the   day of              200
."
"Signature  Date "
"Signature  Date "
"OFFICE USE ONLY"
"Approved  Yes (  )   No (  )  Date Advised:  "
"US- SAMPLE RESIDENTIAL LEASE WITH OPTION (Variation for Sandwich LO)"
"THIS AGREEMENT made and entered into on    by and between (landlord/owner), hereinafter referred to as ""Lessor,"" and    (tenant/buyer), hereinafter referred to as ""Lessee.""
Legal Description: To Be Attached
Together with all appurtenances for a period of one year to commence on
through    with the right to four (4) consecutive terms of the original term with Lessee's notification to Lessor in writing thirty (30) days prior to end of term.
1. RENT. Lessees agree to pay, without demand, to Lessors as monthly rent for the demised premises, the sum of    , in which the payments are due on or before the tenth (10th) day of each month. The first payment will be due on or before    .
2. SECURITY & OPTION. Upon the execution of this lease, the Lessees shall pay unto the Lessors, the first month's rent as well as the sum of $100.00 as security for the faithful performance by Lessees of the terms hereof, to be returned to Lessees, without interest, on the full and faithful performance by them of the provisions hereof, plus the sum of $1,000.00 as down payment for the option to purchase the aforementioned property. This sum is nonrefundable.
3. USE. The Lessees shall use the premises hereby leased exclusively for a private residence. Lessees shall be permitted to access the above dwelling for the purpose of showing the property to perspective tenants, contractors, and partners.
4. PERSONAL PROPERTY. All personal property placed or moved in the premises above described shall be at risk of the Lessees or owner thereof, and Lessors shall not be liable for any damage to said personal property, or to the Lessees arising from any act of negligence of any co-tenant or occupants of the building or of any other person
whomsoever."

"5. COMPLIANCE. The Lessees shall promptly execute and comply with all statutes, ordinances, rules, orders, regulations and requirements of the federal, state, and city government and of any and all their departments and bureaus applicable to said premises, for the correction, prevention, and abatement of nuisances or other grievances, in, upon, or connected with said premises during said term.
6. FIRE. Lessee will not allow any items on or in the dwelling, which will endanger the habitants or the premises. That in the event the premises are destroyed or so damaged by fire or other unavoidable casualty as to be unfit for occupancy or use, then the rent hereby reserved, or a fair and just proportion thereof, according to the nature and extent of the damage sustained, shall, until the said premises shall have been rebuilt or reinstated, be suspended and cease to be payable, or this lease shall, at the election of the Lessor, thereby be determined and ended, provided, however, that this agreement shall not be construed so as to extend the term of this lease or to render the Lessor liable to rebuild or replace the said premises.
7. ACCEPTANCE. Lessees hereby accept the premises in the condition they are in at the time beginning of this lease and agree to maintain said premises in the same condition, order and repair as they are at the commencing of said term, excepting only reasonable wear and tear. Lessee agrees to pay for all repairs costing less than
$500.00 per incident arising from the use thereof under this agreement, and to make good to said Lessors immediately upon demand any damage to water apparatus, or electric lights or any fixture, appliances or appurtenances of said premises, or of the building, caused by any act of neglect of Lessees, or of any person or persons in the employ or under the control of the Lessees. In the event of any default by Lessor or then in addition to any other remedies available to Lessee at law or in equity Lessee shall have the option to terminate this lease and all rights by giving written notice of intention to terminate, via certified mail.
8. TERMS OF CONTRACT. It is understood and agreed between the parties hereto that time is of the essence of this contract and this applies to all terms and conditions contained herein. Lessees shall have the unqualified right to sublet and/or assign, sell, transfer, and convey any rights which the Lessee or their administrators, successors, executors and heirs may have in this contract to a third party without
written notice. Any assignment will release Lessees from any liability, as new assignee"

"will accept all rights, obligations and responsibilities agreed upon in this agreement between Lessor and Lessees.
9. NOTICE. It is understood and agreed between the parties hereto that written notice by certified mail or delivered to the premises hereunder shall constitute sufficient notice to the Lessees and written notice by certified mail or delivered to the office of the Lessors shall constitute sufficient notice to the Lessors, to comply with the terms of this contract. The Lessor's mailing address is    .
10.  RIGHTS. The rights of the Lessors under the foregoing shall be cumulative, and failure on the part of the Lessors to exercise promptly any given rights hereunder shall not operate to forfeit any of the said rights.
11.  UTILITIES. The Lessees shall be responsible for the payment of all utility bills (water, electricity, telephone, etc.) and specifically including, but not limited to glass breakage and all doors and screens. The Lessors will be responsible for all structural repairs, meaning thereof, exterior walls, foundation, and to pay all repairs costing greater than $500.00 per incident. In the event Lessor is delinquent on any payments required under this agreement to include repairs and maintenance, Lessee shall have the right to make such payments as necessary to cure defaults or make said repairs on behalf of the Lessor. Any payments made by Lessee will be credited to Lessee on a two-to-one basis (2 to 1). The closing agent will apply said credit toward the purchase price at the time of closing.
12.  REPAIRS. The Lessees will permit the Lessors or their agent, at any reasonable time, to enter said premises or any part thereto for the purpose of exhibiting the same or making repairs thereto.
13.  RECOVERY. If either party of this agreement shall bring legal action for enforcement of said agreement, the prevailing party shall recover the cost of the proceedings including reasonable attorney fees.
14.  EMINENT DOMAIN. If the leased premises, or any part thereof are taken by virtue of eminent domain, this lease shall expire on the date when the same shall be so taken and the rent shall be apportioned as of said date. Lessee shall be entitled to
FULL refund of any option consideration money and security deposits."

"15.  BENEFIT. All covenants and agreements of this lease shall be binding upon and inure to the benefit of the heirs, executors, administrator and assigns of the Lessor and Lessee, without affecting the restrictions imposed by Section 3 hereof.
16.  RIGHT TO EXTEND. Lessee shall have the right to extend the agreement for six (6) months, for an additional fee of $1.00.
17.  CHATTELS. The said Lessees hereby pledge and assign to the Lessors all the furniture, fixtures, goods and chattels of said Lessees which shall or may be brought or put on said premises as security for the payment of the term herein reserved.
18.  VALIDITY. It is expressly agreed between the parties that if any clause of this lease be found unconscionable it shall not affect the validity of the remainder of this lease.
19.  ENTIRE AGREEMENT. Neither party has made any representation or promise, except as contained herein. Any and all modifications to this agreement must be in writing and signed by Lessee/Lessor and/ or assigns.
20.  INSPECTIONS. Real property taxes on the property, both general and special assessments, if any, for the current fiscal year shall be prorated for the close of escrow and be paid by the Lessor. Also, the Lessors shall provide the Lessees with a certificate from a licensed and bonded exterminator showing that there is no evidence of termite infestation in improvements on said property. Should termite eradication be required, the Lessors shall perform the same at their own expense. The Lessees shall examine the leasehold premises to determine that the premises are in good and inhabitable condition, as are the condition of the electrical, plumbing and heating system, and if they are not, said leasehold period shall not commence until the premises are in such inhabitable condition. In addition, the Lessees shall examine said premises and prepare a list of those items damaged at the commencement of the leasehold period. Lessees agree to notify Lessor immediately upon first discovery any signs of serious dwelling problems to include leaking roof, dysfunctional heating/air conditioning systems, spongy floor, crack in foundation, moisture in
ceiling, leaking water heater or evidence of termites."

"21.  PURCHASE. Lessees shall have the option to purchase said premises for the purchase price of    . This option may be exercised at any time during the lease period upon notice to the Lessors in writing by certified mail. The Lessees shall place with ABC Title Company (title company/attorney), the option payment specified in paragraph (2) above paid by the Lessees to the Lessor in escrow as earnest money towards the purchase of said property. $100.00 (amount) of all rents paid by the Lessee up to the time of the exercise of the option shall be credited to the down payment. Should the Lessee exercise their option, the Lessors shall have ten (10) days to provide Lessees with an updated abstract showing their title to be good, marketable, and insurable. The Lessees shall close the transaction within seven (7) days from the delivery of said abstract. The closing costs incurred with closing escrow shall be paid at the close of escrow as follows: Lessee to pay for their own closing costs; Lessor to pay for their own closing costs. This lease shall terminate upon the closing of the subject property and the Lessee shall not be liable for any rent subsequent to the closing date. All monies put for security shall be returned to the Lessees at that time.
22.  CONTEXT. The terms Lessor and Lessee as herein contained shall include singular and/or plural, masculine, feminine, and/or assigns neuter, heirs, successors, personal representatives, and/or assigns wherever the context so requires or admits.
23. AGREEMENT. This agreement constitutes the entire agreement between the Lessee and the Lessor, as written. No further promises have been made to one another whether it is written or verbal.
24.  RIGHT OF RESCISSION. Lessee has fourteen (14) business days to cancel this agreement. The purpose of this right to cancel option is to allow Lessee time to properly inspect above said property. In the event that Lessee decides to cancel agreement within the allotted time; all deposits and options, consideration, and monies shall be refunded promptly.
25.  DISCLAIMER. Parties in this agreement by their signatures agree not to hold preparer of this document for any error, mistakes, omissions or negligence."

"Lessor:   Date "
"Lessor:  Date "
"Lessee:   Date "
"Lessee:   Date "
"State of  County of  "
"The foregoing instrument was acknowledged before me this  day of ,
20 by who is/are personally known to me or who has/have produced  as identification.
Notary:
My Commission Expires:
(Seal)"
"Rent To Own Option C
Di-Rae Development Inc.
Phone: 403-668-7755
Or 403-540-2668
Email: shelley@shelleyhagen.com www.diraedevelopment.com"

"Disclaimer: All information displayed is believed to be accurately calculated and reasonable estimates are made concerning future market trends however, we cannot predict future prices therefore the information is not guaranteed and should, with any investment be
independently verified. No warranties or representations of any kind are made."
"Di-Rae Development Inc.                                     1 | P a g e"
"How Rent To Own Programs Work?"
"Di-Rae Development Inc. is a local team with extensive business and real estate investing experience.
We offer real estate solutions and investment opportunities. We specialize in providing rent-to-own, owner
financing and other creative solutions. We work with our clients to find solutions to meet the needs of their families."
"Our Goals
♦  Provide a smooth & simple process for our clients.
♦  Provide solutions to meet the needs of our clients and their families.
♦  Provide renters with opportunity to buy a home sooner than through conventional means.
♦  Provide assistance to renters in obtaining new mortgages.
Overview of the Rent To Own Program
We work with clients who are looking to buy a new home, but have run into problems obtaining financing due to some of the following reasons:
•  New Business Owner
•  Self-employed
•  Not enough down payment
•  Credit challenges!
•  Newly immigrated to the country
•  Had a Bankruptcy!
Di-Rae Development Inc. specializes in providing rent-to-own solutions to people in circumstances just like this. We work with them, to help realize their dream of owning a home of their own!
Our criteria for this program:
•  No Banks
•  No Qualifying (your job is your credit!)
•  Quick approvals!
•  Self-Employment OK!
We can provide assistance (if required) to help clients in repairing their credit. At the end of the rent to own term, we assist them in getting a mortgage to buy the home."

"Di-Rae Development Inc.                                     2 | P a g e"
"How We Can Work Together"
"Di-Rae Development works with Real Estate professionals such as Realtors and Mortgage Brokers to provide another alternative for their clients to get into a new home. We consider ourselves ‘Option C’, behind traditional and sub-prime financing options, to help clients become Homeowners. Here’s how we can work
together:"
"Role of the Realtor or Broker:
•  Buyers will contact you to either purchase a home or get financing for a potential new purchase.
•  Most Realtors will want to have the Buyer obtain pre-approval for financing before moving forward to look for a home.
•  Sometimes the Buyer’s will have pre-approval from their banks, then when they go to get final approval for the purchase something comes up and the bank/lender will not approve the loan.
•  Mortgage Brokers have prospective Buyers approach them for financing and they are not able to qualify.
•  Realtors and Mortgage Brokers contact Di-Rae to determine if the Buyer will qualify for the Rent To Own Program."
   "Di-Rae’s Role:
•  Works with the Realtor to determine the situation with the prospective Tenant/Buyer. Obtains contact information and contacts the Tenant/Buyer to got through an assessment of their current situation and determine if they have been working with a bank/credit union or Mortgage Broker already. If so, we will get contact information for the person they were dealing with.
•  If the Tenant has not been working with a Broker or Lender then we will have them contact a Broker in our team to have an assessment of their current ability to obtain financing.
•  If the lead is from a Mortgage Broker, we will obtain information on their current situation and what needs to be done to get them financing in the future.
•  In either situation we work with a Broker to develop a credit repair plan to present to the Tenant to help them understand what needs to be done in order to obtain financing at the end of the program.
•  Assesses and prequalifies the Tenant’s ability for the Rent to Own program and for their option to purchase the property at the end of the program;
•  If they do not qualify, we notify the Realtor and/or Broker of the situation.
•  If they do qualify then we begin assessment of the current market value and monthly costs for the property to be considered for the rent to own program;
•  Present opportunities to our Investor team to determine who is interested in becoming our buying partner for the property;
•  Once the Investor has agreed to proceed with the deal, we will meet with Tenant to explain the Rent To
Own Program with them;"
"Di-Rae Development Inc.                                     3 | P a g e"
"How We Can Work Together"
"Di-Rae’s Role: continued
•  Once the Investor is selected then we arrange with a Realtor to do showings with the Tenant (if this is the Realtor that referred the client, then that Realtor will assist the Investor/Buyer with the acquisition of the house) ; NOTE: The Tenant is NOT the buyer. Details regarding the purchase of the property can not be shared with the Tenant as that is confidential information to only be discussed with the Investor/Buyer and Di-Rae.
•  Once the Investor is selected, we introduce them to a Mortgage Broker on our team to arrange financing to purchase the property (if this is the Mortgage Broker that referred the client, then that Broker will assist the Investor/Buyer with the financing to buy the house) ; NOTE: The Tenant is NOT the buyer. Details regarding the financing of the property can not be shared with the Tenant as that is confidential information to only be discussed with the Investor/Buyer and Di-Rae.
•  Once offer is accepted, we arrange date of possession with the Realtor, Broker, Investor and Tenant;
•  Provides information as required to the Lawyer handling the closing on behalf of the Investor;
•  Coordinates the move with the Tenants and conducts the move-in walk-through;
•  Coordinates with Tenant and Mortgage Broker at the end of the term to obtain financing so that the Tenant can close on the property."
"Role of the Tenant:
•  Pay for the home inspection."
   "•  Pay their rent on time or risk being evicted and lose their initial option deposit and any subsequent monthly option credits accumulated.
•  Provide an option payment which will be credited towards the future equity in the home. (assists in building down payment required to obtain financing)
•  The renter shall be responsible for all the maintenance of the home.
•  Provide the owner and/or representative access to the home to complete inspections periodically.
•  Provide the owner written proposals for any future enhancements requested for the property.
•  Renters are responsible for having their own content/renter’s insurance.
•  Responsible to meet with the mortgage broker to obtain financing at the end of the contract"
"Di-Rae Development Inc.                                     4 | P a g e"
"How We Can Work Together"
"Considerations for Selecting the Property:
• We prefer to buy single family, half duplexes, townhouses, or houses with a basement suite. Whenever possible we would like a property with a single or double garage (either detached or attached).
• Few Investors will want to buy apartment style condos due to the condo fees and possibility of special assessments being placed on the property unexpectedly. In some cities condos are more difficult to sell.
•  We prefer properties that are not on busy roads, next to schools, playgrounds, commercial properties, etc. We want to buy properties with good resale potential for the future.
•  Typically we stay with properties in ‘entry level’ locations in the city.
•  These conditions vary from one deal to the next.
We Look forward to an opportunity to work together with you in the future."
"Di-Rae Development Inc.                                     5 | P a g e"

"This Agreement is dated the  6th  day of  June  , A.D. 2022 ."
"BETWEEN:"
       "Phoenix Properties LLC
11155 N 82nd Dr, Peoria, AZ 85345
OF THE FIRST PART
(hereinafter referred to as “the Assignee”)"
"AND:"    "Di-Rae Development LLC
PO Box 4620, Stateline, NV 89449
OF THE SECOND PART
(hereinafter referred to as “the Assignor”)
Re:  Assignment of:  Lease Option Contract  Clients/Tenants:  Trent & Patti Smith  Closing date:   TBD  Assignor:    Di-Rae Development  Assignee:     Phoenix Properties LLC  Sale  Price:                N/A
Commission:    N/A "
"IN CONSIDERATION of the terms contained herein, the Parties agree as follows:
WHEREAS the Assignee has agreed to pay the Assignor an Assignment/Finder’s Fee. The fee shall be $5,000.00 , or  n/a % of the gross sale price, plus all applicable taxes. The Assignor exercises their unqualified right to assign all of their rights and obligations of the attached Lease Option contract. The fee shall be paid upon signing of this contract as cash or certified funds.
IN WITNESS WHEREOF each party to this Agreement has caused it to be executed at  Peoria, AZ, on the date indicated below."
"George Tyler"    "June 6th, 2022"    "SRHagen"    "June 6th, 2022"    
"Assignee Signature"    "Date"    "Assignor Signature"    "Date"    
"     George Tyler   Shelley Hagen
Assignee Name Printed                   Assignor Name Printed"
"Investment Opportunity"
       
"Disclaimer: All information displayed is believed to be accurately calculated and reasonable estimates are made concerning future market trends however, we cannot predict future prices therefore the information is not guaranteed and should, with
any investment be independently verified. No warranties or representations of any kind are made."
"Di-Rae Development Inc.                                 403-540-2668"

"Rent To Own Program"
"Di-Rae Development Inc. is a local team with extensive business and real estate investing experience.
We offer real estate solutions and investment opportunities. We specialize in providing rent-to-
own, owner financing and other creative solutions. We work with our clients to find solutions to meet the needs of their families."
"Our Goals
♦  Provide a smooth & simple process for our clients.
♦  Provide solutions to meet the needs of our clients and their families.
♦  Provide renters with opportunity to buy a home sooner than through conventional means.
♦  Provide assistance to renters in obtaining new mortgages.
Overview of the Rent To Own Program
We work with clients who are looking to buy a new home, but have run into problems obtaining financing due to some of the following reasons:
•  New Business Owner
•  Self-employed
•  Not enough down payment
•  Credit challenges!
•  Newly immigrated to the country
•  Had a Bankruptcy!
Di-Rae Development Inc. specializes in providing rent-to-own solutions to people in circumstances just like this. We work with them, to help realize their dream of owning a home of their own!
Our criteria for this program:
•  No Banks
•  No Qualifying (your job is your credit!)
•  Quick approvals!
•  Self-Employment OK!
We can provide assistance (if required) to help clients in repairing their credit. At the end of the rent to own term, we assist them in getting a mortgage to buy the home."

"Di-Rae Development Inc.                                 403-540-2668"
"Rent To Own Program"
"Di-Rae Development proposes to become a Joint Venture (JV) partner with yourself, the investor."
   "Di-Rae’s Role:
•  Markets to locate the tenant buyer;
•  Assesses and prequalifies the tenants’ ability for the Rent to Own program and for their option to purchase the property at the end of the program;
•  If approved to proceed, explains the Rent To Own Program with the tenant and gets their commitment to proceed;
•  Assesses the current market value and monthly costs for the property to be considered for the rent to own program;
•  Arranges showings with the realtor and tenants;
•  Determines best property to meet the needs of the tenant and as a good investment for the investor
•  Reviews the potential tenant and rent to own income potential with the investor.
•  Once investor agrees to proceed, arranges mortgage broker to deal with investor on financing.
•  Coordinates and attends inspection with licensed inspector and Tenant, who will pay for the inspection.
•  Reviews inspection report with investor and tenant. If all agreed, proceed to remove conditions, etc.
•  Negotiates the details of the rent agreement and option to purchase, along with all associated paperwork and contracts with Tenants;
•  Obtains initial option consideration deposits from the tenants before removal of the conditions;
•  Arranges date of possession with the Investor and tenant
•  Coordinates the move with the tenants and conducts the move-in walk-through;
•  Manages the property for the remainder of the term and provides monthly reports to the Investor/owner.
•  Establish a joint bank account with the investor/owner to accept rent deposits and pay monthly expenses, ie mortgage, taxes, etc.
•  Disburses profit payments to the investor and Di-Rae quarterly.
•  Coordinates with tenant and mortgage broker at the end of the term to obtain financing so that the tenant can close on the property."
   
"Di-Rae Development Inc.                                 403-540-2668"
"Rent To Own Program"
"Role of the Investor:
•  Investor approves tenant, property and property inspection as applicable through the process.
•  Investor coordinates financing and provides downpayment to purchase the selected house.
•  Investor maintains payments of the mortgage, property taxes and landlord property insurance for the duration of the rent to own contract with the tenant;
•  Provide a ‘credit’ to the tenant for initial option consideration and accumulated monthly option ‘credit’. Will need to show these funds in a trust bank account that has seasoning of a minimum of 120 days when the Tenant is ready to buy the property.
•  Completes the sale of the property to the tenant at the end of the contract through a
local lawyer."
"Role of the Tenant:
•  Pay for the home inspection."
   "•  Pay their rent on time or risk being evicted and lose their initial option deposit and any subsequent monthly option credits accumulated.
•  Work with a credit repair specialist to ensure they are able to obtain financing at the end of the rent to own term.
•  Provide an option payment which will be credited towards the future equity in the home. (assists in building down payment required to obtain financing)
•  The renter shall be responsible for all the maintenance of the home.
•  Provide the owner and/or representative access to the home to complete inspections periodically.
•  Provide the owner written proposals for any future enhancements to the property.
•  Renters are responsible for having their own content insurance.
•  Responsible to meet with the mortgage broker to obtain financing at the end of the contract."
"Di-Rae Development Inc.                                 403-540-2668"

"How The Numbers Work"
"(Note that these numbers are to be determined and may change before the project is finalized.)
1.  Determine the current value of the home
2. Determine the agreed upon future potential sale price of the home (typically 1-2% higher than current value)
3. Determine current market rent for a similar home and add additional option consideration credit to the rent.
4. Both parties split the profit and are liable for all issues that arise 50/50 throughout, but not limited to, the duration of the Rent to Own Program.
5.  Income streams:
a. Initial option deposit (portion to go to Di-Rae up front for costs and time to obtain the tenant)
b.  Monthly net rent cashflow (split equally with Di-Rae)
c. Net Income from the sale (difference between current value of the home and future sale price) (split equally with Di-Rae minus initial option deposit they received up front)
d. Net paydown on the mortgage during the term of the rent to own agreement. (Split equally with Di-Rae)
‘Provide a copy of the Lease Option Spreadsheet’"
"Di-Rae Development Inc.                                 403-540-2668"
"Investment Opportunity"
       
"Lease Option"
"Anytown"
"Di-Rae Development Inc.
403-540-2668
shelley@shelleyhagen.com"
"*DISCLOSURE*"
"DI-RAE DEVELOPMENT IS SELLING OUR ASSIGNABLE CONTRACT FOR THIS PROPERTY. WE MAY NOT OWN THIS HOME – ONE OR MORE OF OUR PRINCIPALS MAY HAVE A REAL ESTATE LICENSE. WE DO NOT REPRESENT THE SELLER. THE INFORMATION IS PROVIDED AS A COURTESY AND NOT MEANT FOR THE PURPOSES OF MARKETING THIS HOME. ALL INFORMATION IS DEEMED RELIABLE BUT NOT GUARANTEED. BUYER MUST DO THEIR OWN DUE DILIGENCE AND CHECK ALL INFORMATION PRIOR TO SIGNING ANY CONTRACT AND SUBMITTING THE NON- REFUNDABLE ESCROW DEPOSIT. THERE IS NO INSPECTION PERIOD FOR THE BUYER AFTER SIGNING THE
CONTRACT AND SENDING THE NON-REFUNDABLE ESCROW DEPOSIT."

"Lease Option Opportunity"
"How The Program Works
•  Di-Rae find a prospective Tenant Buyer who has funds for a reasonable option deposit and can afford the monthly rental payments. Typically we look for a minimum $10,000 from them to put down towards the rent to own. Tenants pay all repairs and maintenance during the time of the rent to own term. Any improvements to the property need to be approved by us in advance.
•  Di-Rae works with our team to determine if the tenants will qualify for our program. Di- Rae will also determine how long we think it will take for them to obtain financing in the future. Most rent to own deals are for a 2 to 3 year term.
• Di-Rae works with our Investor team to determine who is interested in partnering on this particular deal.
•  Once Di-Rae has qualified the tenants, then we either put them into an existing property in our investor inventory or purchase a new home to suit their needs.
• After determining how to proceed, if we are buying a new home, we engage a realtor to assist with finding a home that meets the needs of the tenants but more importantly that it meets our investment needs as well. Needs to be a good property in a good area, for example.
• We obtain the non-refundable option deposit from the tenant buyers before removing conditions on offers for new properties. We use this money for the initial deposit with the realtor when buying a new home.
•  The Tenant pay for a home inspection.
•  The Investor partner obtains the mortgage and provides remaining funds for the down payment as required. We assist with setting up monthly payments for taxes and insurance.
•  We provide all paperwork and contracts related to the project, and coordinate signing and closing, between the tenants and the investor partners.
•  Upon move in, the Tenants pay their first month’s rent up front and have all future payments set up as automatic deposit into our bank account.
•  We collect all rents and pay bills out of a separate bank account for each property and provide monthly reporting to the investor partners. We ensure rents are paid on time and do regular inspections of the property, to ensure the tenants are maintaining the property appropriately.
•  Payments are made to our Investor partners and ourselves for distribution of rental profits on a quarterly basis.
•  Our team monitors their credit and works with them to obtain financing at the end of the
term."

"Di-Rae Development Inc.                                403-540-2668"
"Lease Option Opportunity"
"Quick Overview – Proposed payments
See attached Lease Option Worksheet
Bio on Tenant Buyers
Trent and Patti Smith are a couple in their early 40's and with 2 children.
Trent has been working in construction for several years with his company. Patti has worked long term in administration for a company that supplies materials to oil companies. Even though the economy has slowed somewhat with the price of oil being down, her employer has gotten record orders and will be busy into the next year or more, trying to fill them and has expansion plans to accommodate the growth.
Trent and Patti both love Coventry Hills in NW Anytown and wish to continue to raise their children in this community. It is very important to them that their children have a place to call home. A yard to play in and grow things, and close the schools that they attend already.
They ran into some challenges a few months ago with payments on their line of credit when Trent was off work for a bit. They had some challenges with their bank at that time because of the way that they had registered a lien on their property for the full amount of the appraised value of the house even though the debt was less. They were unable to refinance that line of credit through them and got some bad advice from a mortgage broker they were referred to by the lender. That broker referred them to a lawyer in another part of the country for credit counseling who made their credit worse. Then the mortgage broker delayed getting them financing for 3 months which compounded the situation. When they finally got financing she set them up with a sub-prime mortgage at a high interest rate and payment. At that time they decided to sell their house, get their equity out and move on. Their realtor introduced them to us. They have good income to support potential rent. They also want to down size to a more affordable smaller house. They will have $30,000 from the sale of their house to put down onto
a lease option. They are looking for a house in the $390,000 to $410,000 price range."

"Di-Rae Development Inc.                                403-540-2668"
" Anytown Lease Option"
"Property Description – (Proposed)"
"We have not selected a property for purchase as of yet.
The clients have looked at a few for sale on MLS in their preferred neighbourhood and would like a bungalow with a developed basement and preferably a garage.
We are looking in the $390,000 to $410,000 price range at this time. A few that they are interested in are:"
   "Address"    "MLS #"    "Listed Price"    
   "662 Coventry Dr NE"    "C3649533"    399900    
   "170 Coverton Close NE"    "C3649496"    387000    
   "77 Covewood Green NE"    "C3650000 (2 story)"    409900    
"These are a sample of the potential type of house and price range."
"Di-Rae Development Inc.                                403-540-2668"

   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
   
"The Basics"
"Term"    "0 Months"
"Upfront Option Consideration"    "$           -"
"Monthly Rent"    "$           -"
"Monthly Option Credits"    "$           -"
"Purchase Price"    "$           -"
"Sale Price"    "$           -"
"The Details"
"Purchase Price"    "$           -"
"1st Mortgage @80% Loan to Value (LTV)"    "$           -"
"Investment"
"Downpayment"    "$           -"
"Purchase Credit"    "$           -"
"Land Transfer Tax"    "$           -"
"Legal Fees"    "$           -"
"Other Upfront Costs (Finders Fee, Appraisal)"    "$           -"
"Upfront Option Consideration from Tenant"    "$           -"
"Total"    "$           -"
"Profit Calculation"
"Sale Price"    "$           -"
"Mortgage Owing at End of Term"    "#DIV/0!"
"Legal Fees"    "$           -"
"Mortgage Early Termination Fee"    "$           -"
"Upfront Option Consideration Returned to Tenant"    "$           -"
"Initial Investment"    "$           -"
"Rents"    "$           -"
"Principle, Interest, Taxes, Insurance (PITI)"    "#DIV/0!"
"Monthly Option Consideration Returned to Tenant"    "$           -"
"Total Profit"    "#DIV/0!"
"Profit for Investor"    "#DIV/0!"
"Return on Investment (ROI per year)"    "#DIV/0!"
"Tenant Buyer Information:
Name(s):  "
"Day Phone:   Evening Phone:  "
"Cell Phone:  "
"Current Address:  "
"Email:  "
"How long have you been at your present address?   year(s)   months(s)
When does your present lease expire (if renting)?  "
"Have you ever owned a house before?   yes   no
When do you have to move?  "
"Why are you moving?  "
"Do you currently rent or own?   rent   own
How much is your current rent / mortgage?               "
"What does it include?  "
"What is the maximum monthly payment you could afford towards your new home?"
"What is your combined gross household income (before any deductions)?  Per Month  Per Year How much do you have for a down payment on your new home?    "
"If no down payment, do you have anything else of value?   yes   no
How is your credit?   good   bad   don’t know
What is your credit score now (if known)?  "
"Have you ever been through a:            (check all that applies)   bankruptcy   foreclosure   proposal What part area are you looking to own in?"
"How many bedrooms/bathrooms do you need?   bedrooms   bathrooms
How many people will be living in your home?   adults   teens"
"  children   pets
What else may be important to you in your home?
(For example: garage, deck, etc.)  "
"Tenant Lease Agreement
THIS LEASE AGREEMENT is made and entered into this   day of   , 20   by and between   , hereafter referred to as “Landlord”, and  , hereafter referred to as “Tenant”.
PROPERTY ADDRESS: Landlord leases to Tenant and Tenant leases from Landlord, upon the terms and conditions contained herein, the dwelling located at   in the city of   , State of   .
LEASE TERM:   months for the period commencing on the:   day of  , 20  and thereafter until the   day of   , 20   at which time this lease agreement shall terminate.
RENT: Tenant shall pay as rent the sum of $   , per month, due and Payable monthly on the first day of the month. Rent may be mailed through the Post Office at the Tenant’s risk. Any rents that are late or lost in the mail are treated as if unpaid until received by Landlord. Tenant further agrees to pay a late charge of $25.00, plus $5.00 a day, for each day the entire rent is not received by the Landlord by the first day of the month regardless of the cause, including dishonoured cheques, time being of the essence. If rent is received after the first of the month and late fees as defined herein are not included with such payment, rent is considered unpaid. Any payment received by Landlord is applied firstly toward collection costs, including costs of a lawyer and his own client full indemnity basis, secondly towards rental arrears and then towards rent.
An additional Service Charge of $50.00 will be paid to Landlord for all dishonoured cheques. If Tenant checks are insufficient, Landlord shall have the right to demand certified check or money orders on all future payments. If any State rent control laws do not allow the above procedure or any procedure contained in this lease then the State law(s) shall prevail.
OCCUPANTS: Tenant agrees to use said dwelling as occupancy only for   adults and   children whose names are as follows:"
"And to pay an additional $50.00 each month for each additional person who shall occupy the premises in any capacity and is not listed above.
PETS: Any pets kept on the property without the permission of the Landlord in writing shall be a breach of this lease. The following pet(s) shall be kept on the premises:"
"Landlord requires a picture of the pet(s) and copy of Rabies and Distemper Vaccination.
NO ASSIGNMENT: Tenant agrees not to assign this lease, nor to sublet any portion or the property, nor to allow any other person to live therein other than persons named above without first obtaining written permission from Landlord. Tenant will be responsible for all administrative costs incurred by Landlord.
Further, it is agreed that covenants contained in this lease, once breached, cannot afterward be performed and that legal proceedings may be commenced at once, without notice to the Tenant, (other than any notice required by State laws)."
   "  Landlord’s Initials  Tenant’s Initials"
"Page 1 of 3"
"ENFORCEABILITY: Should any provisions of this lease be found to be invalid or unenforceable, the remainder of the lease shall not be affected thereby and each term and provision herein shall be valid and enforceable to the fullest extent permitted by law.
NO WAIVER: All rights given to the Landlord by this lease shall be cumulative to any other laws, which might exist or come into being. Any failure of the Landlord to enforce any of the provisions or restrictions herein contained shall in no way be deemed a waiver of the right to do so thereafter or insist upon strict compliance of the terms hereof. No statement or promise of the Landlord, servants or his agent as to tenancy, repairs, alterations, or other terms and conditions shall be binding unless reduced to writing and signed by Landlord.
UTILITIES: Tenants are responsible for the payment of the following utilities:"
"Heat"    "Electricity"    "Garbage"    "Water/Sewer"    
"Taxes"    "Telephone"    "Gas/Oil"    "Association Fees"    
"Snow Removal"    "Lawn Care"            
"and any other bills incurred during the term of this lease.
INSURANCE: Tenant agrees it is the responsibility of the Tenant to insure the Tenant’s property on the premises against damage or loss of such property occasioned by fire, theft and any other perils. The Tenant’s policy shall waive all rights of subrogation against the Landlord and it’s servants, agents and contractors. The Tenant hereby waives and releases the Landlord from any liability whatsoever for damage or loss to any persons or property whatsoever which occurs in or in connection with the Premises and any improvements, building or property thereon or from the Tenant’s use of the premises however caused, including loss due to negligence or fault of the Landlord and its servants, agents or contractors (Tenant to look to its own insurance and insurers for recovery of and protection against any such loss or damage). Without limiting the generality of the foregoing, the Landlord shall not be responsible for any loss of Tenant’s property in the premises or stored in, at or near the building due to any cause whatsoever.
Tenant shall on demand provide a copy of insurance to the Landlord.  Tenant is hereby notified to obtain insurance to
cover loss on his/her personal belongings located in the Premises or on the grounds where Premises are situated.  Initial:
EMERGENCY ACCESS: Landlord has the right of emergency access to the leased premises at any time and access during reasonable hours to inspect the property or show it to prospective tenants with a 24 hour notice to Tenant. Landlord shall retain a key at all times. If the Tenant wishes to change the locks, s/he must notify the Landlord in writing and provide a new key immediately.
CONDITION OF PREMISES: Landlord and Tenant hereby agree to inspect the Premises at the commencement of the tenancy and upon termination or expiration of this Agreement, and that the condition of the premises at the aforesaid times will be noted on the Inspection Report which forms part of this agreement. The Inspection Report will be signed by both the Landlord and the Tenant. The Inspection Report may be used and relied upon by the Landlord as proof of the condition of the Premises at the time of Inspection and for determining damages and or seeking appropriate deductions or compensation from the Tenant. Landlord reserves the right to take photographs at both aforesaid times for further documentation to the condition of the Premises.
MAINTENANCE COSTS: The Tenant shall be responsible for the cost of repairing plugged toilets, sinks, and drains, and for the cost of replacing all windows and screens broken by the Tenant, employees, contractors, invitees or guests. The Tenant shall be responsible for replacing light bulbs, fluorescent tubes, stove fuses, broken toilet seats and any other damaged items. The tenant shall be responsible for damages caused by windows and doors being left open including cost of repairing and cleaning. The Tenant shall also be responsible for damage due to fire caused by the Tenant negligence i.e.: careless smoking, cooking, etc. The Tenant agrees to immediately report to the Landlord any and all damage that may occur to the Premises and or Property by way of, but not limited to, accident, breakage or defect throughout the continuance of this tenancy. In the event Tenant fails to complete maintenance/ repairs, that are the responsibility of the Tenant, the Tenant agrees to immediately reimburse Landlord for all monies expended to complete said repairs.
AID IN MAINTENANCE: The Tenant shall cooperate with the Landlord in the care and maintenance of the Premises and or Property including any improvements."

           "  Landlord’s Initials  Tenant’s Initials"
"Page 2 of 3"
"DEFAULT: To further clarify the terms of this lease, the Tenant shall make certain that rent is received by the Landlord by the first of the month or the Landlord shall consider this lease to be breached and terminated if the rent has not been received before midnight on the first day of the month that the rent was due. The acceptance by Landlord of partial payments of rent due shall not, under any circumstances, constitute a waiver of Landlord, nor affect any notice or legal proceedings therefore given or commenced under Provincial law. If Tenant defaults on any other provisions of the lease, including but not limited, to any misrepresentations on Tenant’s application, Landlord, at his/her option, can elect to continue the lease or terminate the lease and take possession of the property by any legal means available to him/her. Landlord is not required to give any notice to cure a violation of the lease, other than what is required by law.
ORDINANCES & STATUTES: Tenants shall comply with all municipal, state, and federal laws, statutes, and ordinances now in effect, or which shall be enacted in the future, and any violation of such shall be a complete and material breach of the lease.
LEGAL ACTION: Tenant agrees without protest, to reimburse Landlord for all actual and reasonable expenses incurred by way of Tenant’s violation of any term or provisions of this lease, including but not limited to a $50.00 fee for each notice, Notice to Quit, or other notices mailed or delivered by Landlord to Tenant due to Tenant’s non-payment of rent or other breach of lease, all court costs and including costs of a solicitor and his own client full indemnity basis , and all collection costs. Any such costs are due immediately as additional rent. Any payments received by Landlord will be applied first towards late fees and/or other additional charges, then toward rent. Both Landlord and tenant waive trial by jury and agree to submit to the personal jurisdiction and venue of a court of subject matter whose jurisdiction is located in the area in which the property is located. In such event, no action shall be entertained by said court or any other court of competent jurisdiction, if filed more than one (1) year subsequent to the date the cause(s) of action accrued.
WAIVER OF CLAIMS: Tenant hereby waives any and all rights to assert affirmative defenses or counterclaims in any eviction action instituted by Landlord with the exception of an affirmative defence based upon payment of all amounts claimed by the Landlord not to have been paid by the Tenant. Other matters may be only advanced by Tenant in a separate lawsuit.
DAMAGE BY FIRE: In the event that the building(s) is damaged by fire and through no fault of the Tenant and cannot be restored within a reasonable time in the sole and unfettered discretion of the Landlord, this lease shall terminate with no further liability of either party.
MERGER CLAUSE: This agreement shall constitute the full and complete understanding of the parties and supersedes all prior written or oral agreements. There shall be no further additions or changes to this agreement unless the same is
reduced to writing and signed by both parties."

"Landlord               Date              Witness Signature         Date
Per:     (signature)              Print Name         Print Witness Name"
"Tenant Signature          Date              Witness Signature         Date"
   "Print Witness Name"
"Tenant Signature          Date              Witness Signature         Date"
   "Print Witness Name"
"Page 3 of 3"
"Tenant Lease Agreement
THIS LEASE AGREEMENT is made and entered into this   day of   , 20   by and between  , hereafter referred to as “Landlord”,
and  , hereafter referred to as “Tenant”.
PROPERTY ADDRESS: Landlord leases to Tenant and Tenant leases from Landlord, upon the terms and conditions contained herein, the dwelling located at   in the city of  , State of  .
LEASE TERM:   months for the period commencing on the:   day of  , 20  and thereafter until the   day of   , 20   at which time this lease agreement shall terminate.
RENT: Tenant shall pay as rent the sum of $ , per month, due and Payable monthly on the first day of the month. Rent may be mailed through the Post Office at the Tenant’s risk. Any rents that are late or lost in the mail are treated as if unpaid until received by Landlord. Tenant further agrees to pay a late charge of $25.00, plus $5.00 a day, for each day the entire rent is not received by the Landlord by the first day of the month regardless of the cause, including dishonored checks, time being of the essence. If rent is received after the first of the month and late fees as defined herein are not included with such payment, rent is considered unpaid. Any payment received by Landlord is applied firstly toward collection costs, including costs of attorneys’ fees full indemnity basis, secondly towards rental arrears and then towards rent.
An additional Service Charge of $50.00 will be paid to Landlord for all dishonored checks. If Tenant checks are insufficient, Landlord shall have the right to demand certified check or money orders on all future payments. If any State rent control laws do not allow the above procedure or any procedure contained in this lease then the State law(s) shall prevail.
OCCUPANTS: Tenant agrees to use said dwelling as occupancy only for   adults and   children whose names are as follows:"
"And to pay an additional $50.00 each month for each additional person who shall occupy the premises in any capacity and is not listed above.
PETS: Any pets kept on the property without the permission of the Landlord in writing shall be a breach of this lease. The following pet(s) shall be kept on the premises:"
"Landlord requires a picture of the pet(s) and copy of Rabies and Distemper Vaccination.
NO ASSIGNMENT: Tenant agrees not to assign this lease, nor to sublet any portion or the property, nor to allow any other person to live therein other than persons named above without first obtaining written permission from Landlord. Tenant will be responsible for all administrative costs incurred by Landlord.
Further, it is agreed that covenants contained in this lease, once breached, cannot afterward be performed and that legal proceedings may be commenced at once, without notice to the Tenant, (other than any notice required by State laws)."
   "  Landlord’s Initials  Tenant’s Initials"
"Page 1 of 3"
"ENFORCEABILITY: Should any provisions of this lease be found to be invalid or unenforceable, the remainder of the lease shall not be affected thereby and each term and provision herein shall be valid and enforceable to the fullest extent permitted by law.
NO WAIVER: All rights given to the Landlord by this lease shall be cumulative to any other laws, which might exist or come into being. Any failure of the Landlord to enforce any of the provisions or restrictions herein contained shall in no way be deemed a waiver of the right to do so thereafter or insist upon strict compliance of the terms hereof. No statement or promise of the Landlord, servants or his agent as to tenancy, repairs, alterations, or other terms and conditions shall be binding unless reduced to writing and signed by Landlord.
UTILITIES: Tenants are responsible for the payment of the following utilities:"
"Heat"    "Electricity"    "Garbage"    "Water/Sewer"    
"Taxes"    "Telephone"    "Gas/Oil"    "Association Fees"    
"Snow Removal"    "Lawn Care"            
"and any other bills incurred during the term of this lease.
INSURANCE: Tenant agrees it is the responsibility of the Tenant to insure the Tenant’s property on the premises against damage or loss of such property occasioned by fire, theft and any other perils. The Tenant’s policy shall waive all rights of subrogation against the Landlord and its servants, agents and contractors. The Tenant hereby waives and releases the Landlord from any liability whatsoever for damage or loss to any persons or property whatsoever which occurs in or in connection with the Premises and any improvements, building or property thereon or from the Tenant’s use of the premises however caused, including loss due to negligence or fault of the Landlord and its servants, agents or contractors (Tenant to look to its own insurance and insurers for recovery of and protection against any such loss or damage). Without limiting the generality of the foregoing, the Landlord shall not be responsible for any loss of Tenant’s property in the premises or stored in, at or near the building due to any cause whatsoever.
Tenant shall on demand provide a copy of insurance to the Landlord. Tenant is hereby notified to obtain insurance to cover loss on his/her personal belongings located in the Premises or on the grounds where Premises are situated.
.                                                       Initial:  
EMERGENCY ACCESS: Landlord has the right of emergency access to the leased premises at any time and access during reasonable hours to inspect the property or show it to prospective tenants with a 24 hour notice to Tenant. Landlord shall retain a key at all times. If the Tenant wishes to change the locks, s/he must notify the Landlord in writing and provide a new key immediately.
CONDITION OF PREMISES: Landlord and Tenant hereby agree to inspect the Premises at the commencement of the tenancy and upon termination or expiration of this Agreement, and that the condition of the premises at the aforesaid times will be noted on the Inspection Report which forms part of this agreement. The Inspection Report will be signed by both the Landlord and the Tenant. The Inspection Report may be used and relied upon by the Landlord as proof of the condition of the Premises at the time of Inspection and for determining damages and or seeking appropriate deductions or compensation from the Tenant. Landlord reserves the right to take photographs at both aforesaid times for further documentation to the condition of the Premises.
MAINTENANCE COSTS: The Tenant shall be responsible for the cost of repairing plugged toilets, sinks, and drains, and for the cost of replacing all windows and screens broken by the Tenant, employees, contractors, invitees or guests. The Tenant shall be responsible for replacing light bulbs, fluorescent tubes, stove fuses, broken toilet seats and any other damaged items. The tenant shall be responsible for damages caused by windows and doors being left open including cost of repairing and cleaning. The Tenant shall also be responsible for damage due to fire caused by the Tenant negligence i.e.: careless smoking, cooking, etc. The Tenant agrees to immediately report to the Landlord any and all damage that may occur to the Premises and or Property by way of, but not limited to, accident, breakage or defect throughout the continuance of this tenancy. In the event Tenant fails to complete maintenance/ repairs, that are the responsibility of the Tenant, the Tenant agrees to immediately reimburse Landlord for all monies expended to complete said repairs.
AID IN MAINTENANCE: The Tenant shall cooperate with the Landlord in the care and maintenance of the Premises and or Property including any improvements.
  Landlord’s Initials   Tenant’s Initials"

"Page 2 of 3"
"HOME WARRANTY: The Tenant agrees to obtain and pay for a one-year home warranty for the Property.
DEFAULT: To further clarify the terms of this lease, the Tenant shall make certain that rent is received by the Landlord by the first of the month or the Landlord shall consider this lease to be breached and terminated if the rent has not been received before midnight on the first day of the month that the rent was due. The acceptance by Landlord of partial payments of rent due shall not, under any circumstances, constitute a waiver of Landlord, nor affect any notice or legal proceedings therefore given or commenced under state law. If Tenant defaults on any other provisions of the lease, including but not limited, to any misrepresentations on Tenant’s application, Landlord, at his/her option, can elect to continue the lease or terminate the lease and take possession of the property by any legal means available to him/her. Landlord is not required to give any notice to cure a violation of the lease, other than what is required by law.
ORDINANCES & STATUTES: Tenants shall comply with all municipal, state, and federal laws, statutes, and ordinances now in effect, or which shall be enacted in the future, and any violation of such shall be a complete and material breach of the lease.
LEGAL ACTION: Tenant agrees without protest, to reimburse Landlord for all actual and reasonable expenses incurred by way of Tenant’s violation of any term or provisions of this lease, including but not limited to a $50.00 fee for each notice, Notice to Quit, or other notices mailed or delivered by Landlord to Tenant due to Tenant’s non-payment of rent or other breach of lease, all court costs and including attorneys’ fees on a full indemnity basis , and all collection costs. Any such costs are due immediately as additional rent. Any payments received by Landlord will be applied first towards late fees and/or other additional charges, then toward rent. Both Landlord and tenant waive trial by jury and agree to submit to the personal jurisdiction and venue of a court of subject matter whose jurisdiction is located in the area in which the property is located. In such event, no action shall be entertained by said court or any other court of competent jurisdiction, if filed more than one (1) year subsequent to the date the cause(s) of action accrued.
WAIVER OF CLAIMS: Tenant hereby waives any and all rights to assert affirmative defenses or counterclaims in any eviction action instituted by Landlord with the exception of an affirmative defence based upon payment of all amounts claimed by the Landlord not to have been paid by the Tenant. Other matters may be only advanced by Tenant in a separate lawsuit.
DAMAGE BY FIRE: In the event that the building(s) is damaged by fire and through no fault of the Tenant and cannot be restored within a reasonable time in the sole and unfettered discretion of the Landlord, this lease shall terminate with no further liability of either party.
MERGER CLAUSE: This agreement shall constitute the full and complete understanding of the parties and supersedes all prior written or oral agreements. There shall be no further additions or changes to this agreement unless the same is reduced to writing and signed by both parties."

"Landlord               Date              Witness Signature         Date
Per:     (signature)              Print Name         Print Witness Name"
"Tenant Signature          Date              Witness Signature         Date"
   "Print Witness Name"
"Tenant Signature          Date              Witness Signature         Date"
   "Print Witness Name"
"Page 3 of 3"
"Purchase Option Contract
OPTIONOR:   OPTIONEE:  
IN CONSIDERATION of the Optionee meeting all obligations as stated herein, the Optionor hereby grants the Optionee an Option to Purchase under the following terms:
1.  OPTIONEE SHALL HAVE THE OPTION TO PURCHASE the property located at:"
"THIS OPTION WILL EXPIRE WITHOUT NOTICE AND SHALL BE OF NO FURTHER EFFECT IF
NOT EXERCISED ON OR BEFORE:
  , 20   .
2. NOTICE MUST BE DELIVERED TO THE OPTIONOR IN WRITING of Optionee’s intention to exercise this Option to Purchase at least   days prior to the exercise date stated above. This Option to Purchase is NOT contingent upon Optionee’s ability to obtain financing from a Lender or any other contingency. Optionee understands that TIME IS OF THE ESSENCE for this agreement, and that the Optionee’s failure to exercise their Option in the manner prescribed herein, or the failure to purchase the property by the specified closing date, for any reasons, will result in the immediate cancellation of this Agreement and this Agreement will be deemed null and void by the specified closing date. ALL MONIES paid by the Optionee will be retained by the Optionor as liquidated damages.
3. OPTIONOR AND OPTIONEE AGREE THAT THIS CONTRACT IS NOT an instalment contract, contract for deed or equitable mortgage, but merely Optionee’s Option to Purchase the above referenced property under the terms stated in this agreement.
4.  OPTION PRICE: The option price is $  . The terms of the purchase are as follows:"
   "The following items will be prorated at closing:"
"5. OPTION CONSIDERATION: Optionee has paid the sum of $  as a non-refundable option consideration which shall be applied toward the down payment on the property, if and only if Optionee exercises the Option to Purchase. In the event that the Optionee fails to exercise the Option to Purchase, or defaults under any terms of a lease entered into with the Optionor, this Option to Purchase shall be null and void and all monies will be retained by the Optionor as liquidated damages and not as a penalty."
       "  Optionor’s Initials  Optionee’s Initial"
"Page 1 of 3"
"6.  DEFAULT: Optionee agrees and understands that a fundamental condition of this Option Contract is that all terms and conditions of both the Optionee’s lease and or this Purchase Option Contract must not be in default, or expired, or this Option Contract will be null and void. To further clarify, all covenants of said lease agreement must have been faithfully performed in order for this Option To Purchase to be valid and enforceable. This includes, but is not limited to, the repairs, maintenance and upkeep of said property, payment or other obligations required under such lease. Default of any of the terms and conditions of said lease will result in this Option To Purchase being automatically null and void and any monies paid hereunder as option consideration will be retained by Optionor as liquidated damages and not as a penalty. “Substantial Default” includes, but is not limited to, failure to make any lease payments by midnight on the 1st day of the month.
Optionee’s Initials .
7. RECORDING: A filing of a caveat against the subject legal title by the Optionee, referring to potential rights under this Option of Purchase, will result in the automatic revocation and cancellation of this Option To Purchase and all monies will be retained by the Optionor as liquidated damages and not as a penalty. In addition Optionee will be liable to Optionor for all incidental and consequential damages for slander of title or the wrongful filing of a caveat, including but not limited to solicitor and his own client costs on a full indemnity basis.
8. OPTION CREDIT: In the event the Optionee exercises the Option a credit of $      of each monthly payment that is received on or before midnight on the 1st of the month will be applied as additional Option to Purchase consideration towards the down payment. Under NO circumstances will a credit of $       of each monthly payment that is received AFTER midnight on the 1st day of each month be applied towards the down payment.
9.  THIS OPTION TO PURCHASE, OR ANY INTEREST THEREIN, IS NOT TRANSFERABLE OR
ASSIGNABLE and the Option To Purchase can only be exercised by the individual(s) signing this Option To Purchase Agreement.
10. REPAIRS: The Optionee shall be responsible for all repairs, maintenance, costs, service charges, painting improvements, and additions to the property on a per-occasion basis. All repairs that have the potential of exceeding $  per occasion must be approved in writing by the Optionor prior to the commencement of any work or purchase of materials related thereto.
Optionee shall take an active role to insure that the property stays in excellent condition. Optionee agrees that s/he has had adequate opportunity to inspect the condition of the property, the improvements, utilities, electrical, plumbing, appliances or any latent defects of the property or the neighbourhood. Optionee has the right to paint and decorate the property at his/her discretion within tasteful guidelines. Optionee agrees to get written acceptance from the Optionor to accept the colour of the paint to be used either inside or outside or before making any alterations or additions to the property. Optionee further agrees that all work that requires a permit from the city is at the Optionee’s expense and responsibility. All work performed on the building either by Optionee or other Contractors or any other parties shall be as an independent contractor or agent of the Optionee and not as an agent or employee of the Optionor. Optionor has no right of supervision of the work performed. Optionee further warrants that s/he will be accountable for any mishaps and/or accidents resulting from such work, and will defend, indemnify and hold the Optionor or his/her agent free from any claims from any other person, corporation, or entity. Optionee further acknowledges and agrees that all improvements, of any kind, to the property belong to the Optionor until such time that the Optionee actually becomes owner of the
property pursuant to this Agreement."

   "  Optionor’s Initials    Optionee’s Initials"
"Page 2 of 3"
"11. ORDINANCES & STATUTES: Optionee shall comply with all municipal, state, and federal laws, statutes, and ordinances now in effect, or which shall be enacted in the future, and any violation of such shall be a complete and material breach of this Purchase Option Agreement. Furthermore, Optionee shall abide by any and all condominium rules, regulations & bylaws, as well as any restrictive covenants and caveats on title. Optionee has no authority to, and shall not cause any lien to be placed against the subject legal title. In addition Optionee will be liable to Optionor for all incidental and consequential damages for slander of title or the wrongful filing of a caveat, including but not limited to solicitor and his own client costs on a full indemnity basis.
12. ACKNOWLEDGEMENTS: The undersigned Optionee acknowledges that s/he has read this Option Contract, understands it, agrees to it and has been given a copy. S/he further has been advised to seek legal, tax, technical expertise and any other counsel of their choosing concerning this contract and prior to signing. . This agreement shall constitute the full and complete understanding of the parties and supersedes all prior written or oral agreements. There shall be no further additions or changes to this agreement unless the same is reduced to writing and signed by both parties."
"Optionor               Date              Witness Signature         Date
Per:     (signature)              Print Name          Print Witness Name"
"Optionee Signature         Date              Witness Signature         Date"
   "Print Witness Name"
"Optionee Signature         Date              Witness Signature         Date"
   "Print Witness Name"
"Page 3 of 3"
"Purchase Option Contract
OPTIONOR:   OPTIONEE:  
IN CONSIDERATION of the Optionee meeting all obligations as stated herein, the Optionor hereby grants the Optionee an Option to Purchase under the following terms:
1.  OPTIONEE SHALL HAVE THE OPTION TO PURCHASE the property located at:"
"THIS OPTION WILL EXPIRE WITHOUT NOTICE AND SHALL BE OF NO FURTHER EFFECT IF
NOT EXERCISED ON OR BEFORE:
  , 20   .
2. NOTICE MUST BE DELIVERED TO THE OPTIONOR IN WRITING of Optionee’s intention to exercise this Option to Purchase at least    days prior to the exercise date stated above. This Option to Purchase is NOT contingent upon Optionee’s ability to obtain financing from a Lender or any other contingency. Optionee understands that TIME IS OF THE ESSENCE for this agreement, and that the Optionee’s failure to exercise their Option in the manner prescribed herein, or the failure to purchase the property by the specified closing date, for any reasons, will result in the immediate cancellation of this Agreement and this Agreement will be deemed null and void by the specified closing date. ALL MONIES paid by the Optionee will be retained by the Optionor as liquidated damages.
3. OPTIONOR AND OPTIONEE AGREE THAT THIS CONTRACT IS NOT an instalment contract, contract for deed or equitable mortgage, but merely Optionee’s Option to Purchase the above referenced property under the terms stated in this agreement.
4.  OPTION PRICE: The option price is $            . The terms of the purchase are as follows:"
   "The following items will be prorated at closing:"
"5. OPTION CONSIDERATION: Optionee has paid the sum of $  as a non-refundable option consideration which shall be applied toward the down payment on the property if and only if Optionee exercises the Option to Purchase. The Optionee shall pay an additional monthly option consideration of $  on the first day of every month commencing on  , 20 . If and only if Optionee exercises the Option to Purchase, $  of the monthly option consideration will be applied towards the down payment of the property. The Optionee shall make certain that each and every monthly Option Consideration is received by the Optionor before midnight on the first day of the month or this Option To Purchase will be considered null and void at the Optionor’s sole and absolute unfettered discretion. In the event that the Optionee fails to exercise the Option to Purchase, or defaults under any terms of this Option To Purchase or a lease entered into with the Optionor, this Option to Purchase shall be null and void and all monies will be retained by the Optionor as liquidated damages and not as a penalty. It is understood and agreed that no portion of any rent payments received by the Optionor, arising from a lease entered into by the Optionee with the Optionor, will be
applied towards the down payment or purchase price of the property."
       "  Optionor’s Initials  Optionee’s Initial"
"Page 1 of 3"
"6.  DEFAULT: Optionee agrees and understands that a fundamental condition of this Option Contract is that all terms and conditions of both the Optionee’s lease and or this Purchase Option Contract must not be in default, or expired, or this Option Contract will be null and void. To further clarify, all covenants of said lease and this Purchase Option Contract must have been faithfully performed in order for this Option To Purchase to be valid and enforceable. This includes, but is not limited to, the repairs, maintenance and upkeep of said property, payment or other obligations required under such lease and or Option to Purchase. Default of any of the terms and conditions of said lease and or Option to Purchase will result in this Option To Purchase being automatically null and void and any monies paid hereunder as option consideration will be retained by Optionor as liquidated damages and not as a penalty. “Substantial Default” includes, but is not limited to, failure to make any lease or monthly option consideration payments by midnight on the 1st day of the month.
Optionee’s Initials .
7. RECORDING: A filing of a caveat against the subject legal title by the Optionee, referring to potential rights under this Option of Purchase, will result in the automatic revocation and cancellation of this Option To Purchase and all monies will be retained by the Optionor as liquidated damages and not as a penalty. In addition Optionee will be liable to Optionor for all incidental and consequential damages for slander of title or the wrongful filing of a caveat, including but not limited to solicitor and his own client costs on a full indemnity basis.
8. OPTION CREDIT: In the event the Optionee exercises the Option To Purchase, for each month the Optionor received on or before midnight on the 1st of the month from the Optionee, both the monthly rent due on a lease with the Optionor, and the monthly option consideration due on this Option To Purchase, a credit of
$ of each monthly option consideration payment will be applied as additional credit towards the down payment.
Under NO circumstances will a credit of $  be given where either or both of the monthly rent due on a lease with the Optionor, and or the monthly option consideration due on this Option To Purchase is received AFTER midnight on the 1st day of each month be applied towards the down payment.
9.  THIS OPTION TO PURCHASE, OR ANY INTEREST THEREIN, IS NOT TRANSFERABLE OR
ASSIGNABLE and the Option To Purchase can only be exercised by the individual(s) signing this Option To Purchase Agreement.
10. REPAIRS: The Optionee shall be responsible for all repairs, maintenance, costs, service charges, painting improvements, and additions to the property. All repairs that have the potential of exceeding $  per occasion must be approved in writing by the Optionor prior to the commencement of any work or purchase of materials related thereto.
Optionee shall take an active role to insure that the property stays in excellent condition. Optionee agrees that s/he has had adequate opportunity to inspect the condition of the property, the improvements, utilities, electrical, plumbing, appliances or any latent defects of the property or the neighborhood. Optionee has the right to paint and decorate the property at his/her discretion within tasteful guidelines. Optionee agrees to get written acceptance from the Optionor to accept the color of the paint to be used either inside or outside or before making any alterations or additions to the property. Optionee further agrees that all work that requires a permit from the city is at the Optionee’s expense and responsibility. All work performed on the building either by Optionee or other Contractors or any other parties shall be as an independent contractor or agent of the Optionee and not as an agent or employee of the Optionor. Optionor has no right of supervision of the work performed. Optionee further warrants that s/he will be accountable for any mishaps and/or accidents resulting from such work, and will defend, indemnify and hold the Optionor or his/her agent free from any claims from any other person, corporation, or entity. Optionee further acknowledges and agrees that all improvements, of any kind, to
the property belong to the Optionor until such time that the Optionee actually becomes owner of the property pursuant to this Agreement."

   "  Optionor’s Initials    Optionee’s Initials"
"Page 2 of 3"
"11. ORDINANCES & STATUTES: Optionee shall comply with all municipal, state, and federal laws, statutes, and ordinances now in effect, or which shall be enacted in the future, and any violation of such shall be a complete and material breach of this Purchase Option Agreement. Furthermore, Optionee shall abide by any and all condominium rules, regulations & bylaws, as well as any restrictive covenants and caveats on title. Optionee has no authority to, and shall not cause any lien to be placed against the subject legal title. In addition Optionee will be liable to Optionor for all incidental and consequential damages for slander of title or the wrongful filing of a caveat, including but not limited to solicitor and his own client costs on a full indemnity basis.
12. ACKNOWLEDGEMENTS: The undersigned Optionee acknowledges that s/he has read this Option Contract, understands it, agrees to it and has been given a copy. S/he further has been advised to seek legal, tax, technical expertise and any other counsel of their choosing concerning this contract and prior to signing. . This agreement shall constitute the full and complete understanding of the parties and supersedes all prior written or oral agreements. There shall be no further additions or changes to this agreement unless the same is reduced to writing and signed by both parties."
"Optionor               Date              Witness Signature         Date
Per:     (signature)              Print Name          Print Witness Name"
"Optionee Signature         Date              Witness Signature         Date"
   "Print Witness Name"
"Optionee Signature         Date              Witness Signature         Date"
   "Print Witness Name"
"Page 3 of 3"
"US- Lease with Owner Agreement (When you are doing a Sandwich LO)"
"THIS LEASE AGREEMENT is made and entered into this  day of
, 20 by and between  , hereafter referred to as “Landlord”, and , hereafter referred to as “Tenant”.
THIS LEASE AGREEMENT is conditional upon the Tenant’s  approval within  business days of the signing of this lease by the Tenant.
PROPERTY ADDRESS: Landlord leases to Tenant and Tenant leases from Landlord, upon the terms and conditions contained herein, the dwelling located at    in the city of
, State of  .
LEASE TERM: The said premises, as described above, with all appurtenances, are hereby leased to the Tenant for the period commencing on the:  day of ,
20  and thereafter until the  day of , 20  at which time this lease agreement shall terminate.
RENEWAL OF LEASE: For and in consideration of $ per/month the Landlord hereby grants the Tenant, at the Tenant’s sole and absolute unfettered discretion, the right to extend this lease for   month(s).
RENT: Tenant shall pay as rent the sum of $ , per month, due and payable monthly on or before the fifth (5th) day of the month for which the rent is due.
Payments to commence upon the Tenant procuring a suitable sub-tenant or assignee.
For and in consideration of the mutual promise made by the parties, each to the other, the Landlord and Tenant hereby agree that $   of each rent payments made by the Tenant shall be applied toward reducing the purchase price if, and only if the Tenant exercises his/her option to purchase the above property, failing which all rent payments shall be kept by the Landlord as rent.
ASSIGNMENT: Tenant shall be permitted the right of sub-letting or assignment. If this agreement is assigned with the approval of the Landlord, whose consent shall not be unreasonably withheld, Tenant shall be released from any further liability hereunder.
ACCESS: Tenant shall have immediate access to the property and a key to show the property to all prospective sub-tenants."

"INSURANCE: Landlord shall protect Tenant’s interest by maintaining property insurance upon the property naming Tenant as additional insured. In the event of destruction in whole or in part of the property, Tenant shall have the option to proceed with the Option to Purchase Agreement and accept the insurance proceeds for said damages, or to declare this agreement null and void, releasing both parties from any obligations hereunder, except for the return of all monies paid by the Tenant which shall become immediately due and payable from the insurance proceeds.
Landlord’s Initial
Tenant’s Initials "
"DAMAGE BY FIRE: In the event that the building(s) is damaged by fire and through no fault of the Tenant and cannot be restored within a reasonable time in the opinion of the Tenant, this lease shall terminate with no further liability of either party, except for the return of all monies paid by the Tenant which shall become immediately due and payable from the insurance proceeds.
THE TENANT, in consideration of the leasing of said premises as aforesaid, covenants and agrees to the following:
● to pay the rent for said premises as herein above provided
● to keep the premises in good condition and state of repair and at the expiration of this lease to deliver up the same in as good condition as when entered upon, less normal wear and tear, except for loss by fire, inevitable accidents, or an act of God.
UTILITIES/SERVICES: Tenant agrees to pay all utilities and services with the exception of the following, which the Landlord agrees to pay: homeowner’s fees, insurance, and taxes.
MERGER CLAUSE: This agreement shall constitute the full and complete understanding of the parties and supersedes all prior written or oral agreements. There shall be no further additions or changes to this agreement unless the same is reduced to writing
and signed by both parties."

"ALL STATE LAWS OF  APPLY and Landlord guarantees rents are in accordance to State laws."
"Landlord Signature                       Date"
"Tenant Signature                        Date"
"US- Option With Owner Agreement (When you are doing a Sandwich LO)"
"THIS PURCHASE OPTION AGREEMENT is made and entered into this  day
of 20  by and between OPTIONOR:
and OPTIONEE: .
PROPERTY ADDRESS: The dwelling is located at in the city of   , State of  .
The Optionor and the Optionee mutually agree subject to terms and conditions hereof, and subject to the Optionee exercising their option in the manner provided for in this agreement, the Optionor and the Optionee shall close on the terms outlined in the Offer To Purchase Agreement attached to this Option With Owner Agreement.
THE OPTIONOR AND THE OPTIONEE MUTUALLY AGREE that TIME IS OF THE ESSENCE
for this agreement.
• IN CONSIDERATION of $  representing the option consideration or purchase deposit (which shall be credited to the purchase price of the property if the Optionee exercises his Option to purchase said property as outlined in attached Offer To Purchase Agreement), the receipt of which is acknowledged by
, the Optionor, and the Optionee meeting all obligations as stated herein, the Optionor hereby grants the Optionee an Option to Purchase the above stated property under the following terms:
• OPTIONOR GRANTS to Optionee, the right to purchase the above property or purchase and resell at any time so long as it is done within the terms of this agreement and the attached Offer To Purchase contract.
• Optionor agrees not to indebt the property for any more than the agreed purchase price during the term of this option.
• Optionor further agrees to supply proof of tax payments within 15 days following the due date.
•  ·Optionor further agrees to make all mortgage payments in a timely manner."

"• OPTIONOR AGREES that upon exercise of the option the Optionee shall be credited with $  from each monthly rental payment of $   .
• THE PURCHASE PRICE shall be $ at the time the option is exercised less any Rent Credit.
•  OPTIONOR UPON PAYMENT OF SAID PURCHASE MONEY, SHALL CONVEY the said
premises to the Optionee by way of a Deed free of all encumbrances except: any encroachments and zoning infractions, and any overriding or superseding provisions at Land Titles already registered on title.
• OPTIONOR SHALL PROVIDE to the Optionee a real property report at closing or shall furnish a policy of title from a reputable title insurance company at his/her expense.
•  OPTIONOR SHALL at his/her expense make all repairs over $ per repair.
• OPTIONOR SHALL PROTECT Optionee’s equitable interest by maintaining hazard insurance upon the property, naming the Optionee as additional insured. Optionee, at his/her sole and unfettered discretion, may proceed with the closing and accept the insurance proceeds for said damage, or declare this agreement null and void, releasing both parties from any obligations hereunder, except for the return of monies paid by Optionee which shall become immediately due and payable from the insurance proceeds.
• OPTIONOR GUARANTEES that the building meets all fire codes, city codes, and zoning bylaws, or will make the necessary repairs to meet these by-laws before closing. Optionor further guarantees that the present use of the property may be lawfully continued and if within the time period of this Option To Purchase any valid objection is made in writing to title or nonconformity with municipal or other governmental enactments, which the Optionor shall be unable or unwilling to remove, remedy or satisfy, and which the Optionee will not waive, this agreement shall be null and void notwithstanding any intermediate acts or negotiations in respect of the objection, the Optionor shall refund to the Optionee all monies paid
by the Optionee to the Optionor."

"• OPTIONOR AGREES that if there are any outstanding work orders or deficiency notices which the Optionor does not repair or rectify before the date of completion, the Optionee shall be entitled to an abatement of the purchase price for the cost of repair or rectification.
• OPTIONEE SHALL HAVE IMMEDIATE ACCESS to the property and a key to show the property to all prospective sub-tenants and/or assigns.
• Inspection: This agreement is subject to a final inspection and approval of the property in writing by the Optionee, prior to taking possession, and such inspection and approval to be at the Optionee’s sole discretion.
•  CLOSING COSTS: All closing costs pertaining to the purchase shall be payable by
.
• RIGHT TO CANCEL OPTION: The Optionee has   days to cancel this Purchase Option Agreement. In the event that the Optionee decides to cancel the contract within the allotted time all Option Consideration or deposit monies will be promptly refunded.
• DEFAULT BY OPTIONOR (PAYMENTS): In the event the Optionor is delinquent on any payments, such as mortgage, taxes, insurance, required under this agreement or pertinent to the above property the Optionee shall have the right to make such payments as necessary to cure said default on behalf of the Optionor. All future payments shall be made into escrow for distribution to appropriate parties and escrow costs to be paid by Optionor. Upon the payment of funds being made into escrow by the Optionee due to Optionor being delinquent on any payments, if the monthly costs incurred by the Optionee to ensure the timely payment(s) of any or all of the mortgage payment(s), taxes, insurance, legal or any other associated costs such as late penalties or fees, should be greater than the total amount of monthly rent the Optionee pays to the Optionor as per the attached Lease With Owner Agreement, the Optionor shall reimburse Optionee, without deduction or set-off, the entire difference between the rent and the actual cost(s) within three
(3) business days of receipt of proof of payment from the Optionee or the
Optionee’s agent or solicitor. In the event that the Optionor fails to reimburse Optionee for said difference within three (3) business days of receipt of proof of"

"payment then both parties mutually agree that the Optionee will be compensated on a 2 to 1 basis which will be offset against the purchase price.
• DEFAULT BY OPTIONOR (MAINTENANCE AND REPAIR): In the event the Optionor fails to complete repair/maintenance (as deemed necessary by the Optionee upon notice to the Optionor) of which the Optionor agrees to be wholly responsible for any repairs/maintenance that exceed $  per repair, the cost of which such repair/maintenance shall be determined by the Optionee providing a quote for such repair/maintenance by an   (state.) licensed contractor at the time of notice, which such contractor’s quote provided for by the Optionee at the time of notice by the Optionee shall be considered conclusive proof that the cost of the repair/maintenance is not less than $  per repair, the Optionor within 10 days of being notified shall pay the contractor directly for said repair/maintenance and provide proof of same to Optionee, failing which the Optionee shall have the option to make such repair/maintenance or payment of said repair/maintenance and seek reimbursement from Optionor by submitting proof of payment of said repair/maintenance to Optionor. Optionor shall reimburse Optionee, without deduction or set-off, within three (3) business days of receipt of proof of payment from the Optionee. In the event that the Optionor fails to reimburse Optionee for said repairs within three (3) business days of receipt of proof of payment then both parties mutually agree that the Optionee will be compensated on a 2 to 1 basis which will be offset against the purchase price.
•  OPTIONEE SHALL BE PERMITTED THE RIGHT OF ASSIGNMENT. The Optionee may
assign this Option and the Offer To Purchase Agreement arising from it. If this agreement is assigned with the approval of the Optionor, whose consent shall not be unreasonably withheld, Optionee shall be released from any further liability hereunder.
• OPTIONOR AGREES that if the accompanying lease end date is extended the option to purchase period stated in this Option With Owner Agreement will be extended to match the extended date of the extended lease agreement. Furthermore, the Optionor agrees that the closing date on the Offer To Purchase Contract will also be extended to match the extended Lease and Option With
Owner Agreement dates."

"• THE OPTIONOR AND THE OPTIONEE MUTUALLY AGREE that this agreement is binding upon any heirs, assigns and or executors of the Optionor and or the Optionee.
• ACKNOWLEDGEMENTS: The undersigned Optionor acknowledges that s/he has read this Purchase Option Agreement, understands it, agrees to it, and has been given a copy. S/he further has been advised to seek legal, tax, technical expertise, and any other counsel of their choosing concerning this contract prior to signing and does not rely on any representations made by the Optionee in entering into this agreement. This agreement shall constitute the full and complete
understanding of the parties and supersedes all prior written or oral agreements."
"Optionor                                 Date"
"Optionee                                 Date"
"US- Purchase Option Contract (2)"
"THIS PURCHASE OPTION CONTRACT is made and entered into this  day of
by and between:
OPTIONOR: (Your Management Co.) (referred to herein as Optionor) OPTIONEE: (Tenant Buyer) (referred to herein as Optionee).
1. IN CONSIDERATION of the Optionee's promises herein AND of other valuable consideration AND the sum of One Dollar ($1.00) now paid by each party to the other(s), the receipt and sufficiency of which is hereby acknowledged by each party AND subject to the terms and conditions set out in this agreement, the parties agree as follows:
2. Provided that the Optionee has never been in default pursuant to the Optionee’s Tenant Lease Agreement (“Lease”) nor this Purchase Option Contract, OPTIONEE SHALL HAVE THE OPTION TO PURCHASE (the “Option to Purchase”) the property located at                      (the ""Property"").
3. THIS OPTION WILL EXPIRE WITHOUT NOTICE AND SHALL BE OF NO FURTHER EFFECT IF NOT EXERCISED ON OR BEFORE                   (“Option
Expiry Date”):
4. The Optionee, desiring to exercise the Option to Purchase on the Option Expiration Date, must give the Optionor written notice (“Notice”) at least 90 days prior to the Option Expiration. The Optionee understands that the exercise of the Option is not to be conditional on the Optionee obtaining satisfactory financing; and the Optionee shall, before exercising the Option to Purchase, first satisfy itself that it has an appropriate mortgage commitment. Optionee understands that TIME IS OF THE ESSENCE for this agreement, and that the Optionee’s failure to exercise the Option to Purchase in the manner prescribed herein, or the failure to purchase the property by the specified Option Expiration Date, for any reason, will result in the immediate Termination of this Agreement and the Option to Purchase shall be deemed null and void by 5:01 p.m. on the specified closing date. ALL MONIES paid by the Optionee will be retained by the
Optionor as liquidated damages."

"5. OPTIONOR AND OPTIONEE AGREE THAT THIS CONTRACT IS NOT an installment
contract, nor a contract for deed, nor a contract for sale (or like document) nor equitable mortgage (or like document), but merely Optionee’s Option to Purchase the above referenced property under the terms stated in this agreement.
6. PURCHASE PRICE OF THE PROPERTY: The purchase price of the Property is
The purchase price shall be paid by credit for the initial Option Consideration as described below plus the amount of any Additional Option Consideration amount and any other Option Consideration as accumulated over the term of the Option Agreement plus the remaining purchase amount due on closing of the purchase as follows:
7. The Optionee to obtain new unconditional financing on or before “date” (30 days before closing)
8. The applicable Purchase Price shall be subject to adjustments. Real Estate taxes, including local improvement rates; mortgage interest; rentals; unmetered public or private utilities and fuel where billed to the Unit and not the Condominium Corporation; are to be apportioned and allowed to the day of completion, the day of completion itself to be apportioned to the Optionee. If this is a condominium, the following also applies; Common Expenses and there shall be no adjustment for the Optionor's share of any assets or liabilities of the Condominium Corporation including any reserve or contingency fund to which Seller may have contributed prior to the date of completion.
9. THE OPTION CONSIDERATION: The Optionee agrees to pay the Optionor the sum of $  for this Option to Purchase and the Option Consideration shall be paid as follows:
10.   The entire Option Consideration is non-refundable. The Option Consideration amount shall be applied toward the down payment on the property if and only if Optionee exercises the Option to Purchase.
11.   MONTHLY PAYMENTS - Additional Option Consideration: The Optionee agrees to pay the Optionor, in addition to the terms set out in the Tenant Lease Agreement, the sum of $ on the first day of each month"

 

"(""Additional Option Consideration"").Subject to Paragraph 9 hereof, the Optionor shall have no obligation to repay to the Optionee the Additional Option Consideration if the Optionee defaults pursuant to the Lease, does not exercise the Option as herein provided, and/or does not complete the purchase of the Property. The Optionee acknowledges that rent paid pursuant to the Lease shall NOT be applied to the Purchase Price.
12.   DEFAULT: Optionee agrees and understands that a fundamental condition of this Purchase Option Contract is that all terms and conditions of both the Optionee’s Lease and/or this Purchase Option Contract must not be in default, or expired, or this Purchase Option Contract will be null and void. To further clarify, all covenants of said Lease and this Purchase Option Contract must have been fully performed by the Optionee in order for this Option To Purchase to be valid and enforceable. This includes, but is not limited to, the repairs, maintenance and upkeep of said property, payment or other obligations required under such Lease and or Option to Purchase. Default of any of the terms and conditions of said Lease and or Option to Purchase by the Optionee will result in this Option To Purchase being automatically null and void and any monies paid hereunder as option consideration will be retained by Optionor as liquidated damages and not as a penalty. Default includes, but is not limited to, failure to make any lease or monthly option consideration payments by midnight on the 1st day of the month.
The Optionee agrees that the Optionee’s rights herein are subject to the Optionee complying with all of the terms and conditions of the Lease and of this Purchase Option Contract. If the Optionee defaults pursuant to the Lease, that default shall be deemed to be default pursuant to this Purchase Option Agreement. The Optionee acknowledges that this term is fundamental to this agreement without which the
Optionor would not have entered into this agreement."

   "Optionee’s Initials:  "
"REGISTRATION OF THIS PURCHASE OPTION CONTRACT ON TITLE:
13.   A filing of a caveat against the subject legal title by the Optionee, referring to potential rights under this Option of Purchase, will result in the automatic revocation and cancellation of this Option To Purchase and all monies will be
retained by the Optionor as liquidated damages and not as a penalty. In addition,"
"Optionee will be liable to Optionor for all incidental and consequential damages for slander of title or the wrongful filing of a caveat, including but not limited to a lawyer and his own client costs on a full indemnity basis.
14.   OPTION CREDIT: Upon the closing of the Purchase following the exercise of the Option, the Optionor shall give the Optionee a credit in the amount of
$  (“Option Credit”) for each month the Additional Option Consideration was paid in full and on time.
15.   THIS OPTION TO PURCHASE CONTRACT, OR ANY INTERESTS ARISING FROM OR CONTAINED HEREIN, ARE NOT TRANSFERABLE OR ASSIGNABLE and the
Options To Purchase can only be exercised by the individual(s) signing this Purchase Option Contract.
16.   REPAIRS, MAINTENANCE AND INSURANCE: The Optionee shall be responsible for all repairs, maintenance, costs, service charges, painting improvements, and additions to the property up to   on a per-occasion basis. All repairs that have the potential of exceeding   per occasion must be approved in writing by the Optionor prior to the commencement of any work or purchase of materials related thereto. The Optionor agrees that it is responsible for all amounts over   on a per occasion basis other than those uncovered during the building inspection and/or highlighted in the ""Building Inspection Sign Off Form"" - Schedule A.
17.   The Optionor has disclosed all relevant facts about the property. The Optionor makes no representation about any aspect of neighborhood or other facts or knowledge that are in the public domain of which the Optionor may or may not have knowledge.
18.   Optionee shall take an active role to ensure that the property stays in excellent condition. Optionee agrees that s/he has had adequate opportunity to inspect the condition of the property, the improvements, utilities, electrical, plumbing, appliances or any defects of the property or the neighbourhood. Optionee has the right to paint and decorate the property at his/her discretion
within tasteful guidelines. Optionee agrees to get written acceptance from the"

"Optionor to accept the colour of the paint to be used either inside or outside or before making any alterations or additions to the property. Optionee further agrees that all work that requires a permit from the city is at the Optionee’s expense and responsibility. All work performed on the building either by Optionee or other Contractors or any other parties shall be as an independent contractor or agent of the Optionee and not as an agent or employee of the Optionor. Optionor has no right of supervision of the work performed. Optionee further warrants that s/he will be accountable for any mishaps and/or accidents resulting from such work, and will defend, indemnify and hold the Optionor or his/her agent free from any claims from any other person, corporation, or entity. Optionee further acknowledges and agrees that all improvements, of any kind, to the property belong to the Optionor until such time that the Optionee actually becomes owner of the property pursuant to this Agreement.
19.   ORDINANCES & STATUTES: The Optionee and the Optionor shall comply with all municipal, state/provincial, and federal laws, statutes, and ordinances now in effect, or which shall be enacted in the future, and any violation of such by the Optionee shall be default pursuant to this Purchase Option Contract.
Furthermore, the Optionee and the Optionor shall abide by any and all restrictive covenants and caveats on title.
20.   Optionee has no right to, and shall not cause any lien to be placed against the subject legal title. Optionee will be liable to Optionor for all incidental and consequential damages for slander of title or the wrongful filing of a caveat, including but not limited to solicitor and his own client costs on a full indemnity basis.
21.   ACKOWLEDGEMENTS: The Optionees acknowledge that they have read and understood this Purchase Option Contract, have been given an executed copy of same. The Optionees to this contract further have been advised to seek legal, tax, technical expertise and any other counsel of their choosing concerning this contract prior to signing. This supersedes all prior written or oral agreements. There shall be no further additions or changes to this agreement unless the same
is reduced to writing and signed by both parties."

"22.   SUBJECT TO OTHER AGREEMENTS: The parties to this contract specifically acknowledge and agree that this Purchase Option Contract is subject to and shall be interpreted in accordance with the Renting to Own Payments Agreement executed by the Optionee on the   day of  , 20  and the Lease entered into by the parties on the   day of  ,
20 ."
"23.   BINDING EFFECT: This Purchase Option Contract and the agreements referred to herein shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, successors and assigns.
24.   THIS OPTION is subject to the Optionor becoming the registered owner of said property by  , 20 .
(Handwritten Notes)
1. “I understand that if I am behind on my rent payments, I will be evicted as permitted by state/provincial law, and I forfeit all option considerations and any
rental credits that may have built up.”
2. “I understand that I am responsible for repairs up to $  per repair.”
3. “I understand that if I am late, which is after midnight on the 1st day of the month, on any rent payment or monthly option consideration, my Option to Purchase the property is null and void.”
4. “I understand that if I do not close, refinance, and cash you out of the property on or before the expiration of my option I lose all of my option consideration and built-up funds.”
5. “I understand that I must give   my intent to exercise my option in writing at least 90 days prior to the expiration date of the
option.”"

"Optionor                             Date"
"Optionee                             Date"
"Optionee                             Date"
"US- Purchase Option Contract"
"OPTIONOR:  "
"OPTIONEE:  "
"IN CONSIDERATION of the Optionee meeting all obligations as stated herein, the Optionor hereby grants the Optionee an Option to Purchase under the following terms:
OPTIONEE SHALL HAVE THE OPTION TO PURCHASE the property located at:"
"THIS OPTION WILL EXPIRE WITHOUT NOTICE AND SHALL BE OF NO FURTHER EFFECT IF NOT EXERCISED ON OR BEFORE: , 20 .
1. NOTICE MUST BE DELIVERED TO THE OPTIONOR IN WRITING of Optionee’s intention
to exercise this Option to Purchase at least   days prior to the exercise date stated above. This Option to Purchase is NOT contingent upon Optionee’s ability to obtain financing from a Lender or any other contingency. Optionee understands that TIME IS OF THE ESSENCE for this agreement, and that the Optionee’s failure to exercise their Option in the manner prescribed herein, or the failure to purchase the property by the specified closing date, for any reasons, will result in the immediate cancellation of this Agreement and this Agreement will be deemed null and void by the specified closing date. ALL MONIES paid by the Optionee will be retained by the Optionor as liquidated damages.
2. OPTIONOR AND OPTIONEE AGREE THAT THIS CONTRACT IS NOT an instalment
contract, contract for deed or equitable mortgage, but merely Optionee’s Option to Purchase the above referenced property under the terms stated in this agreement.
3. OPTION PRICE: The option price is $ . The terms of the purchase are as follows:
4. The following items will be prorated at closing:  "


"5. OPTION CONSIDERATION: Optionee has paid the sum of $  as a non- refundable option consideration which shall be applied toward the down payment on the property, if and only if Optionee exercises the Option to Purchase. In the event that the Optionee fails to exercise the Option to Purchase, or defaults under any terms of a lease entered into with the Optionor, this Option to Purchase shall be null and void and all monies will be retained by the Optionor as liquidated damages and
not as a penalty."
   "Optionor’s Initials
Optionee’s Initial "
"6. DEFAULT: Optionee agrees and understands that a fundamental condition of this Option Contract is that all terms and conditions of both the Optionee’s lease and or this Purchase Option Contract must not be in default, or expired, or this Option Contract will be null and void. To further clarify, all covenants of said lease agreement must have been faithfully performed in order for this Option To Purchase to be valid and enforceable. This includes, but is not limited to, the repairs, maintenance and upkeep of said property, payment or other obligations required under such lease. Default of any of the terms and conditions of said lease will result in this Option To Purchase, being automatically null and void and any monies paid hereunder as option consideration will be retained by Optionor as liquidated damages and not as a penalty. “Substantial Default” includes, but is not limited to, failure to make any lease payments by midnight on the 1st day of the month.
Optionor’s Initials
Optionee’s Initials "
"7. RECORDING: A filing of a caveat against the subject legal title by the Optionee, referring to potential rights under this Option of Purchase, will result in the automatic revocation and cancellation of this Option To Purchase and all monies will be retained by the Optionor as liquidated damages and not as a penalty. In addition, Optionee will be liable to Optionor for all incidental and consequential damages for slander of title or the wrongful filing of a caveat, including but not limited to solicitor and his own client costs on a full indemnity basis.
8. OPTION CREDIT: In the event the Optionee exercises the Option a credit of
$ of each monthly payment that is received on or before midnight on"
"the 1st of the month will be applied as additional Option to Purchase consideration towards the down payment. Under NO circumstances will a credit of $  of each monthly payment that is received AFTER midnight on the 1st day of each month be applied towards the down payment.
9. THIS OPTION TO PURCHASE, OR ANY INTEREST THEREIN, IS NOT TRANSFERABLE OR
ASSIGNABLE and the Option To Purchase can only be exercised by the individual(s) signing this Option To Purchase Agreement.
10.  REPAIRS: The Optionee shall be responsible for all repairs, maintenance, costs, service charges, painting improvements, and additions to the property on a per- occasion basis. All repairs that have the potential of exceeding $  per occasion must be approved in writing by the Optionor prior to the commencement of any work or purchase of materials related thereto.
11.  Optionee shall take an active role to ensure that the property stays in excellent condition. Optionee agrees that s/he has had adequate opportunity to inspect the condition of the property, the improvements, utilities, electrical, plumbing, appliances or any latent defects of the property or the neighbourhood. Optionee has the right to paint and decorate the property at his/her discretion within tasteful guidelines. Optionee agrees to get written acceptance from the Optionor to accept the colour of the paint to be used either inside or outside or before making any alterations or additions to the property. Optionee further agrees that all work that requires a permit from the city is at the Optionee’s expense and responsibility. All work performed on the building either by Optionee or other Contractors or any other parties shall be as an independent contractor or agent of the Optionee and not as an agent or employee of the Optionor. Optionor has no right of supervision of the work performed. Optionee further warrants that s/he will be accountable for any mishaps and/or accidents resulting from such work, and will defend, indemnify and hold the Optionor or his/her agent free from any claims from any other person, corporation, or entity. Optionee further acknowledges and agrees that all improvements, of any kind, to the property belong to the Optionor until such time that the Optionee actually becomes owner of the property pursuant to this Agreement.
Optionor’s Initials
Optionee’s Initials "

"12.  ORDINANCES & STATUTES: Optionee shall comply with all municipal, state, and federal laws, statutes, and ordinances now in effect, or which shall be enacted in the future, and any violation of such shall be a complete and material breach of this Purchase Option Agreement. Furthermore, Optionee shall abide by any and all condominium rules, regulations & bylaws, as well as any restrictive covenants and caveats on title. Optionee has no authority to, and shall not cause any lien to be placed against the subject legal title. In addition, Optionee will be liable to Optionor for all incidental and consequential damages for slander of title or the wrongful filing of a caveat, including but not limited to solicitor and his own client costs on a full indemnity basis.
13.  ACKNOWLEDGEMENTS: The undersigned Optionee acknowledges that s/he has read this Option Contract, understands it, agrees to it and has been given a copy. S/he further has been advised to seek legal, tax, technical expertise and any other counsel of their choosing concerning this contract and prior to signing. . This agreement shall constitute the full and complete understanding of the parties and supersedes all prior written or oral agreements. There shall be no further additions or changes to this agreement unless the same is reduced to writing and signed by both
parties."
"Optionor                             Date"
"Optionee                             Date"
"Optionee                             Date"
" Residential Lease with Option"
"THIS AGREEMENT made and entered into on    by and between (landlord/owner), hereinafter referred to as ""Lessor,"" and    (tenant/buyer), hereinafter referred to as ""Lessee.""
Legal Description: To Be Attached
Together with all appurtenances for a period of one year to commence on
through    with the right to four (4) consecutive terms of the original term with Lessee's notification to Lessor in writing thirty (30) days prior to end of term.
1. RENT. Lessees agree to pay, without demand, to Lessors as monthly rent for the demised premises, the sum of    , in which the payments are due on or before the tenth (10th) day of each month. The first payment will be due on or before    .
2. SECURITY & OPTION. Upon the execution of this lease, the Lessees shall pay unto the Lessors, the first month's rent as well as the sum of $100.00 as security for the faithful performance by Lessees of the terms hereof, to be returned to Lessees, without interest, on the full and faithful performance by them of the provisions hereof, plus the sum of $1,000.00 as down payment for the option to purchase the aforementioned property. This sum is nonrefundable.
3. USE. The Lessees shall use the premises hereby leased exclusively for a private residence. Lessees shall be permitted to access the above dwelling for the purpose of showing the property to perspective tenants, contractors, and partners.
4. PERSONAL PROPERTY. All personal property placed or moved in the premises above described shall be at risk of the Lessees or owner thereof, and Lessors shall not be liable for any damage to said personal property, or to the Lessees arising from any act of negligence of any co-tenant or occupants of the building or of any other person whomsoever.
5. COMPLIANCE. The Lessees shall promptly execute and comply with all statutes,
ordinances, rules, orders, regulations and requirements of the federal, state, and city government and of any and all their departments and bureaus applicable to said"

"premises, for the correction, prevention, and abatement of nuisances or other grievances, in, upon, or connected with said premises during said term.
6. FIRE. Lessee will not allow any items on or in the dwelling, which will endanger the habitants or the premises. That in the event the premises are destroyed or so damaged by fire or other unavoidable casualty as to be unfit for occupancy or use, then the rent hereby reserved, or a fair and just proportion thereof, according to the nature and extent of the damage sustained, shall, until the said premises shall have been rebuilt or reinstated, be suspended and cease to be payable, or this lease shall, at the election of the Lessor, thereby be determined and ended, provided, however, that this agreement shall not be construed so as to extend the term of this lease or to render the Lessor liable to rebuild or replace the said premises.
7. ACCEPTANCE. Lessees hereby accept the premises in the condition they are in at the time beginning of this lease and agree to maintain said premises in the same condition, order and repair as they are at the commencing of said term, excepting only reasonable wear and tear. Lessee agrees to pay for all repairs costing less than
$500.00 per incident arising from the use thereof under this agreement, and to make good to said Lessors immediately upon demand any damage to water apparatus, or electric lights or any fixture, appliances or appurtenances of said premises, or of the building, caused by any act of neglect of Lessees, or of any person or persons in the employ or under the control of the Lessees. In the event of any default by Lessor or then in addition to any other remedies available to Lessee at law or in equity Lessee shall have the option to terminate this lease and all rights by giving written notice of intention to terminate, via certified mail.
8. TERMS OF CONTRACT. It is understood and agreed between the parties hereto that time is of the essence of this contract and this applies to all terms and conditions contained herein. Lessees shall have the unqualified right to sublet and/or assign, sell, transfer, and convey any rights which the Lessee or their administrators, successors, executors and heirs may have in this contract to a third party without written notice. Any assignment will release Lessees from any liability, as new assignee will accept all rights, obligations and responsibilities agreed upon in this agreement
between Lessor and Lessees."

"9. NOTICE. It is understood and agreed between the parties hereto that written notice by certified mail or delivered to the premises hereunder shall constitute sufficient notice to the Lessees and written notice by certified mail or delivered to the office of the Lessors shall constitute sufficient notice to the Lessors, to comply with the terms of this contract. The Lessor's mailing address is    .
10.  RIGHTS. The rights of the Lessors under the foregoing shall be cumulative, and failure on the part of the Lessors to exercise promptly any given rights hereunder shall not operate to forfeit any of the said rights.
11.  UTILITIES. The Lessees shall be responsible for the payment of all utility bills (water, electricity, telephone, etc.) and specifically including, but not limited to glass breakage and all doors and screens. The Lessors will be responsible for all structural repairs, meaning thereof, exterior walls, foundation, and to pay all repairs costing greater than $500.00 per incident. In the event Lessor is delinquent on any payments required under this agreement to include repairs and maintenance, Lessee shall have the right to make such payments as necessary to cure defaults or make said repairs on behalf of the Lessor. Any payments made by Lessee will be credited to Lessee on a two-to-one basis (2 to 1). The closing agent will apply said credit toward the purchase price at the time of closing.
12.  REPAIRS. The Lessees will permit the Lessors or their agent, at any reasonable time, to enter said premises or any part thereto for the purpose of exhibiting the same or making repairs thereto.
13.  RECOVERY. If either party of this agreement shall bring legal action for enforcement of said agreement, the prevailing party shall recover the cost of the proceedings including reasonable attorney fees.
14.  EMINENT DOMAIN. If the leased premises, or any part thereof are taken by virtue of eminent domain, this lease shall expire on the date when the same shall be so taken and the rent shall be apportioned as of said date. Lessee shall be entitled to
FULL refund of any option consideration money and security deposits."

"15.  BENEFIT. All covenants and agreements of this lease shall be binding upon and inure to the benefit of the heirs, executors, administrator and assigns of the Lessor and Lessee, without affecting the restrictions imposed by Section 3 hereof.
16.  RIGHT TO EXTEND. Lessee shall have the right to extend the agreement for six (6) months, for an additional fee of $1.00.
17.  CHATTELS. The said Lessees hereby pledge and assign to the Lessors all the furniture, fixtures, goods and chattels of said Lessees which shall or may be brought or put on said premises as security for the payment of the term herein reserved.
18.  VALIDITY. It is expressly agreed between the parties that if any clause of this lease be found unconscionable it shall not affect the validity of the remainder of this lease.
19.  ENTIRE AGREEMENT. Neither party has made any representation or promise, except as contained herein. Any and all modifications to this agreement must be in writing and signed by Lessee/Lessor and/ or assigns.
20.  INSPECTIONS. Real property taxes on the property, both general and special assessments, if any, for the current fiscal year shall be prorated for the close of escrow and be paid by the Lessor. Also, the Lessors shall provide the Lessees with a certificate from a licensed and bonded exterminator showing that there is no evidence of termite infestation in improvements on said property. Should termite eradication be required, the Lessors shall perform the same at their own expense. The Lessees shall examine the leasehold premises to determine that the premises are in good and inhabitable condition, as are the condition of the electrical, plumbing and heating system, and if they are not, said leasehold period shall not commence until the premises are in such inhabitable condition. In addition, the Lessees shall examine said premises and prepare a list of those items damaged at the commencement of the leasehold period. Lessees agree to notify Lessor immediately upon first discovery any signs of serious dwelling problems to include leaking roof, dysfunctional heating/air conditioning systems, spongy floor, crack in foundation, moisture in ceiling, leaking water heater or evidence of termites.
21.  PURCHASE. Lessees shall have the option to purchase said premises for the purchase price of     . This option may be exercised at any time during the lease"

"period upon notice to the Lessors in writing by certified mail. The Lessees shall place with ABC Title Company (title company/attorney), the option payment specified in paragraph (2) above paid by the Lessees to the Lessor in escrow as earnest money towards the purchase of said property. $100.00 (amount) of all rents paid by the Lessee up to the time of the exercise of the option shall be credited to the down payment. Should the Lessee exercise their option, the Lessors shall have ten (10) days to provide Lessees with an updated abstract showing their title to be good, marketable, and insurable. The Lessees shall close the transaction within seven (7) days from the delivery of said abstract. The closing costs incurred with closing escrow shall be paid at the close of escrow as follows: Lessee to pay for their own closing costs; Lessor to pay for their own closing costs. This lease shall terminate upon the closing of the subject property and the Lessee shall not be liable for any rent subsequent to the closing date. All monies put for security shall be returned to the Lessees at that time.
22.  CONTEXT. The terms Lessor and Lessee as herein contained shall include singular and/or plural, masculine, feminine, and/or assigns neuter, heirs, successors, personal representatives, and/or assigns wherever the context so requires or admits.
23. AGREEMENT. This agreement constitutes the entire agreement between the Lessee and the Lessor, as written. No further promises have been made to one another whether it is written or verbal.
24.  RIGHT OF RESCISSION. Lessee has fourteen (14) business days to cancel this agreement. The purpose of this right to cancel option is to allow Lessee time to properly inspect above said property. In the event that Lessee decides to cancel agreement within the allotted time; all deposits and options, consideration, and monies shall be refunded promptly.
25.  DISCLAIMER. Parties in this agreement by their signatures agree not to hold preparer of this document for any error, mistakes, omissions or negligence.
Lessor:   Date "

"Lessor:  Date "
"Lessee:   Date "
"Lessee:   Date "
"State of  County of  "
"The foregoing instrument was acknowledged before me this  day of ,
20 by who is/are personally known to me or who has/have produced  as identification.
Notary:
My Commission Expires:
(Seal)"
"Memorandum of Option"
"On this date, the following parties entered into an agreement in which    acquired an option to purchase an interest in property owned by    .
The property is described as:
Address City State Zip Code
Legal Description: (To be attached.)
1.   The term of this agreement is five (5) years, running through midnight     .
2.  As part of this agreement, John and Jane Seller agree not to further encumber the property, nor sell any interest in the property during the term of this agreement. Any encumbrance placed on the property after this agreement is properly executed and recorded, including leases will be subordinate to this agreement and will be extinguished by the proper execution of this contract.
3.  This agreement will bind heirs, executors, administrators, successors, legal representatives, and assigns of each party to this agreement.
4.  In the event of foreclosure, the owners’ equity at the sale and any right of redemption shall transfer to the Optionee without further compensation and this contract shall serve as conveyance without further action.
Seller:  Date Buyer:  
Seller:  Date Buyer: "

 

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