I'm about to rent out a property for the first time. Would you mind looking over the lease below? I realize that a lot of this varies significantly from jurisdiction to jurisdiction, but I would greatly appreciate any feeback y'all might have.
Thanks!!
Rent to Own Agreement
This Rent to Own Agreement (this "Lease") is made effective as of August 01, 2016 ("Effective Date"), by and between ______________ ("Landlord") and ____________ ("Tenant"). The parties agree as follows:
PREMISES. Landlord, in consideration of the lease payments provided in this Lease, leases to Tenant the real property commonly known as __________________, together with any furnishings, fixtures, personal property, appliances furnished by the landlord for the tenant’s use.
CONDITION OF THE PREMISES. The tenant acknowledges that the premises are provided as-is and that no representations about the condition of the premises or promises to alter or to improve the premises before or during the term of the lease have been made except as contained in this lease.
NOTICE: Michigan law establishes rights and obligations for parties to rental agreements. This agreement is required to comply with the Truth-in-Renting Act. If you have a question about the interpretation or legality of a provision of this agreement, you may want to seek assistance from a lawyer or other qualified person.
TERM. The lease term will begin on August 01, 2016 and will terminate on July 31, 2019. If the Purchaser fails to exercise the option by such time and date, the option will automatically terminate and the Seller will be entitled to retain the non refundable consideration stated below.
LEASE PAYMENTS. Tenant shall pay to Landlord monthly installments of $675.00 per month, payable in advance on the first (1st) day of each month. Lease payments shall be made to Landlord by check or money order at _________________, which location may be changed, in writing by Landlord, with a minimum of seven (7) days advanced notice to Tenant. The tenant shall pay the first monthly installment when the tenant signs the lease. The tenant shall pay the landlord $25.00 for each monthly installment not received by the landlord within five days of its due date and an additional $5.00 for each day thereafter. This increase shall be considered additional rent and shall compensate the landlord for costs incurred because of late payments. The landlord’s right to collect this additional rent shall be in addition to the landlord’s right to take action under other provisions of this lease for the tenant’s default in paying rent. The tenant shall pay all additional rent to the landlord promptly after the due date of the delinquent installment. All rent paid after the due date and payments to cover checks that have been returned for insufficient funds must be paid at the place designated for payment, by cashier’s check, certified check, or money order. If the tenant fails to pay rent or any other sums when due to the landlord, the landlord serves a notice of default on the tenant as required by law, and the tenant fails to remit the amounts due before the notice period expires, the amount of court costs and attorney fees incurred by the landlord in enforcing the landlords remedies and allowed by statute shall be added to the amount of the arrearage.
POSSESSION. Tenant shall be entitled to possession on the first (1st) day of the term of this Lease, and shall yield possession to Landlord on the last day of the term of this Lease, unless otherwise agreed by both parties in writing. At the expiration of the term, Tenant shall remove its goods and effects and peaceably yield up the Premises to Landlord in as good condition as when delivered to Tenant, ordinary wear and tear excepted.
USE OF PREMISES/ABSENCES. Tenant shall occupy and use the Premises as a family residence. No persons other than _________, ________, and _________ shall occupy the premises for more than seven days during the term of this lease without prior written consent from the landlord. Tenant shall notify Landlord of any anticipated extended absence from the Premises not later than the first (1st) day of the extended absence.
VACATION OR ABANDONMENT OF THE PREMISES. If the tenant removes substantially all the tenant’s property from the premises, the landlord may immediately enter and redecorate the premises without abatement of rent, and these acts shall not affect the tenant’s obligations under this lease. If the tenant abandons the premises before the lease expires, all rent for the remainder of the term of the lease shall immediately become due. However, the tenant may not be liable for the total accelerated amount because of the landlord’s obligation to minimize damages, and either party may ask a court to determine the actual amount owed, if any.
PETS. Pets shall not be allowed without the prior written consent of Landlord.
PROPERTY LOSS OR DAMAGE. To the extent permitted by law, the landlord and the landlord’s agents shall not be liable for any damage to property or loss of property that is caused by theft or casualty on the premises. The landlord recommends that the tenant obtain insurance to protect the tenant’s personal property against such loss or damage.
MAINTENANCE, REPAIRS, AND DAMAGE OF PREMISES. Throughout the term of the lease, the tenant shall maintain the premises in good condition and shall allow no waste of the premises or any utilities. The tenant shall be liable for any damage to the premises or to the landlord’s other property that is caused by the acts or omissions of the tenant or the tenants guests. The tenant shall pay, on demand of the landlord, to replace any broken window glass on the premises or any lost or broken keys. Tenant shall keep the driveway and sidewalks free of snow and ice. Tenant shall mow the lawn in accordance with local regulations. Tenant shall keep the gutters and downspouts free of any leaves, needles, or other debris. Tenant must notify Landlord within twenty-four (24) hours of any condition requiring maintenance.
INTERRUPTION OF SERVICES. As long as the premises are habitable and the landlord makes any repairs or improvements within a reasonable period of time, any interruption of services or utilities, inconvenience, or discomfort arising from repairs or improvements to the premises shall not affect this lease, reduce the rent, or be construed as an eviction.
DECORATIONS AND ALTERATION. Other than hanging decorations on the walls with nails or other materials approved by the landlord, the tenant shall not alter or decorate the premises without prior written consent by the landlord. The landlord’s consent to a particular decoration or alteration shall not be deemed consent to future decorations or alterations. The tenant shall not remove any furnishings the landlord furnishes to the tenant, drive nails into the woodwork, or use any adhesive material on the walls without prior written consent from the landlord.
UTILITIES AND SERVICES. Tenant shall be responsible for all utilities and services including electric, gas (including heat), water, trash pick up, telephone, internet, and television in connection with the Premises for the term of this Lease. Tenant must transfer utility accounts into tenant's name immediately after taking possession of the premises.
DESTRUCTION OR CONDEMNATION OF PREMISES. If the Premises are damaged or destroyed by fire or other casualty to the extent that enjoyment of the dwelling unit is substantially impaired, Landlord, in its sole discretion may elect to repair the Premises or terminate the Lease upon thirty (30) days' written notice to Tenant. If the Premises are condemned or cannot be repaired, this Lease will terminate upon twenty (20) days' written notice by either party. The Landlord shall not be liable for any reasonable delay or for providing housing for the tenant during repairs.
HABITABILITY. Tenant, or an authorized agent on Tenant's behalf, has inspected the Premises and fixtures and acknowledges that the Premises are in a reasonable and acceptable condition of habitability for their intended use, and the agreed lease payments are fair and reasonable. If the condition changes so that, in Tenant's opinion, the habitability and rental value of the Premises are adversely affected, Tenant shall promptly provide reasonable notice to Landlord.
HOLDOVER. If Tenant maintains possession of the Premises for any period after the termination of this Lease ("Holdover Period"), Tenant shall pay to Landlord lease payment(s) during the Holdover Period at a rate equal to 150% of the most recent rate preceding the Holdover Period. Such holdover shall constitute a month-to-month extension of this Lease.
CUMULATIVE RIGHTS. The rights of the parties under this Lease are cumulative, and shall not be construed as exclusive unless otherwise required by law.
NON-SUFFICIENT FUNDS. Tenant shall be charged the maximum amount allowable under applicable law for each check that is returned to Landlord for lack of sufficient funds.
ACCESS TO PREMISES. Subject to Tenant's consent, which shall not be unreasonably withheld, Landlord and the Landlord's agents shall have the right to enter the Premises to inspect, repair, alter, or improve the premises. However, Landlord does not assume any liability for the care or supervision of the Premises. As provided by law, in the case of an emergency, Landlord may enter the Premises without Tenant's consent. The tenant shall also allow insurance carriers and representatives, fire department inspectors, police, or local health authorities to inspect the premises to the extent permitted by law. The tenant shall allow the landlord or the landlord's agents to show the premises to prospective tenants at reasonable times during the 60 days before the terms of this lease expires and to prospective purchasers on reasonable notice to the tenant.
DANGEROUS MATERIALS. Tenant shall not keep or have on the Premises any article or thing of a dangerous, flammable, or explosive character that might substantially increase the danger of fire on the Premises, or that might be considered hazardous by a responsible insurance company, unless the prior written consent of Landlord is obtained and proof of adequate insurance protection is provided by Tenant to Landlord.
MECHANICS LIENS. Neither Tenant nor anyone claiming through the Tenant shall have the right to file mechanics liens or any other kind of lien on the Premises and the filing of this Lease constitutes notice that such liens are invalid. Further, Tenant agrees to (1) give actual advance notice to any contractors, subcontractors or suppliers of goods, labor, or services that such liens will not be valid, and (2) take whatever additional steps that are necessary in order to keep the premises free of all liens resulting from construction done by or for the Tenant.
SUBORDINATION OF LEASE. This Lease is subordinate to any mortgage that now exists, or may be given later by Landlord, with respect to the Premises.
PROHIBITIONS. Neither the tenant nor the tenant's guest shall:
a) Install any equipment or appliances that, in the landlord’s opinion, cause an unsafe condition on the premises;
b) Accumulate refuse on or around the premises that might pose a health hazard to the tenant or the tenant’s neighbors;
c) Allow any activity on or around the premises that would result in an increase in fire insurance premiums for the premises;
d) Permit any flammable liquids or explosives to be kept on or around the premises other than minor amount required to run a lawn mower or snow blower.
e) Permit on the premises any act that would injure the landlord’s reputation or interfere with the rights or the quiet enjoyment of other persons;
f) Change or install any locks in the premises or in the building where the premises are located without written consent from the landlord;
g) Bring any waterbeds, floor safes, or other heavy objects on the premises;
h) Bring any animals on the premises without written consent from the landlord,; or i) Permit any laws to be violated on the premises.
OPTION TO PURCHASE. Tenant, upon satisfactory performance of this Lease, shall have the option to purchase the real property described herein for a purchase price of $70,000.00, provided that the Tenant timely executes the option to purchase and is not in default of the Lease Agreement. Thereafter, each of the parties shall promptly execute any and all further instructions or other documents including a Sale Agreement which may be reasonably required for purchase of the real property. The Landlord shall credit towards the purchase price at closing the sum of $200.00 from each monthly lease payment that the Tenant timely made.
TITLE. Landlord agrees to deliver, and Tenant agrees to accept, title to the Premises subject only to (a) a lien for taxes and assessments levied against the Premises, (b) any covenants, conditions, restrictions, easements, right, rights-of-way of record, and (c) such other exceptions as Landlord and Tenant approve in writing. Landlord shall deliver to Tenant a preliminary title report within thirty (30) days after Tenant's exercise of the option.
NOTICE REQUIRED TO EXERCISE OPTION. To exercise the Option to Purchase, the Tenant must deliver to the Landlord, a written notice of Tenants intent to purchase, not less than ninety (90) days prior to the expiration of the Lease Term. In addition, the written notice must specify a valid closing date. The closing date must occur before the original expiration date of the Lease Agreement.
OPTION CONSIDERATION. Nonrefundable option consideration in the amount of $0.00 paid by the Tenant as consideration for this Option to Purchase Agreement, shall be credited to the purchase price at closing if the Tenant timely exercises the option to purchase. If the Tenant doesn't exercise the option to purchase, the Tenant shall forfeit the nonrefundable option consideration.
EXCLUSIVITY OF OPTION. This Option to Purchase Agreement is exclusive and non-assignable and exists solely for the benefit of the named parties above. Should Tenant attempt to assign, convey, delegate, or transfer this option to purchase without the Landlords express written permission, any such attempt shall be deemed null and void.
CLOSING AND SETTLEMENT. Tenant agrees that closing costs in their entirety, including any points, fees, and other charges required by the third-party lender, shall be the sole responsibility of Tenant. The only expense related to closing costs apportioned to Landlord shall be the pro-rated share of the property taxes due at the time of closing, for which Landlord is solely responsible.
FINANCING DISCLAIMER.THE PARTIES ACKNOWLEDGE THAT IT IS IMPOSSIBLE TO PREDICT THE AVAILABILITY OF OBTAINING FINANCING TOWARDS THE PURCHASE OF THIS PROPERTY. OBTAINING FINANCING SHALL NOT BE HELD AS A CONDITION OF PERFORMANCE OF THIS OPTION TO PURCHASE AGREEMENT. THE PARTIES FURTHER AGREE THAT THIS OPTION TO PURCHASE AGREEMENT IS NOT ENTERED INTO IN RELIANCE UPON ANY REPRESENTATION OR WARRANTY MADE BY EITHER PARTY.
DEFAULT AND THE LANDLORD'S REMEDIES. If the tenant defaults on any obligations under this lease or misrepresents any information in the application for this lease, the landlord may, on written notice to the tenant, terminate the lease and enter the premises as permitted by law; the tenant and any other occupants shall surrender the premises to the landlord by the date stated in the notice. If the landlord terminates the lease, the landlord may recover the landlord’s expenses for enforcing the landlord’s rights under the lease and applicable law, including court costs, filing fees, bailiff charges and attorney fees, from the tenant, as permitted by statute, and rent for the rest of the term of the lease shall immediately become due. The tenant may not be liable for the total accelerated amount because of the landlord’s obligation to minimize damages, and either party may ask a court to determine the actual amount owed, if any. Three late rental payments or returned checks within any twelve month period shall constitute grounds for termination of tenancy. If terminated, the Tenant shall lose entitlement to any refund of rent or option consideration. For this Option to Purchase Agreement to be enforceable and effective, the Tenant must comply with all terms and conditions of the Lease Agreement.
ACKNOWLEDGMENTS. The parties are executing this Option to Purchase Agreement voluntarily and without any duress or undue influence. The parties have carefully read this Option to Purchase Agreement and have asked any questions needed to understand its terms, consequences, and binding effect and fully understand them and have been given an executed copy.
ASSIGNABILITY/SUBLETTING. Tenant may not assign or sublease any interest in the Premises, nor assign, mortgage or pledge this Lease.
NOTICE. Notices under this Lease shall not be deemed valid unless given or served in writing and forwarded by mail, postage prepaid, addressed to the party at the appropriate address set forth below. Such addresses may be changed from time to time by either party by providing notice as set forth below. Notices mailed in accordance with these provisions shall be deemed received on the third day after posting.
LANDLORD:
TENANT:
GOVERNING LAW. This Lease shall be construed in accordance with the laws of the State of Michigan.
ENTIRE AGREEMENT/AMENDMENT. This Lease contains the entire agreement of the parties and there are no other promises, conditions, understandings or other agreements, whether oral or written, relating to the subject matter of this Lease. This Lease may be modified or amended in writing, if the writing is signed by both parties.
SEVERABILITY. If any portion of this Lease shall be held to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable. If a court finds that any provision of this Lease is invalid or unenforceable, but that by limiting such provision it would become valid and enforceable, then such provision shall be deemed to be written, construed, and enforced as so limited.
WAIVER. The failure of either party to enforce any provisions of this Lease shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Lease.
BINDING EFFECT. The provisions of this Lease shall be binding upon and inure to the benefit of both parties and their respective legal representatives, successors and assigns.
TENANT:
LANDLORD:
*REAL ESTATE LEASE INSPECTION CHECKLIST *
MICHIGAN RESIDENTS:
You should complete this checklist, noting the condition of the rental property, and return it to the Landlord within seven days after obtaining possession of the rental unit. You are also entitled to request and receive a copy of the last termination inventory checklist which shows what claims were chargeable to the last prior tenants.
Tenant has inspected the Premises and states that the Premises are in satisfactory condition, free of defects, except as noted below:
SATISFACTORY COMMENTS
Bathrooms_______ ______________________________
Carpeting_______ ______________________________
Ceilings_______ ______________________________
Closets_______ ______________________________
Dishwasher_______ ______________________________
Disposal_______ ______________________________
Doors _______ ______________________________
Fireplace_______ ______________________________
Lights_______ ______________________________
Locks _______ ______________________________
Refrigerator_______ ______________________________
Screens_______ ______________________________
Stove_______ ______________________________
Walls_______ ______________________________
Windows_______ ______________________________
Window coverings_______ ______________________________
Date
Tenant:
Acknowledged by Landlord:
*REAL ESTATE LEASE DISCLOSURE OF INFORMATION ON LEAD-BASED PAINT OR LEAD-BASED PAINT HAZARDS *
Lead Warning Statement
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, landlords must disclose the presence of known lead-based paint and/or lead-based paint hazards in the dwelling. Tenants must also receive a federally approved pamphlet on poisoning prevention.
Landlord's Disclosure
(a) Presence of lead-based paint and/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) X Landlord has no knowledge of lead-based paint and/or lead-based paint hazards in the housing.
(b) Records and reports available to the landlord (Check (i) or (ii) below):
(i) _____ Landlord has provided the tenant with all available records and reports pertaining to lead-based paint and/or lead-based paint hazards in the housing (list documents): ______________________________________________
(ii)X Landlord has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the housing.
Tenant's Acknowledgment (initial)
(c) _____ Tenant has received copies of all information listed above.
(d) _____ Tenant has received the pamphlet Protect Your Family From Lead In Your Home.
Certification of Accuracy
The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate.
Submitted July 12, 2016 at 08:44PM by landlord-throw-throw http://ift.tt/29O6f5r RealEstate
No comments:
Post a Comment