need help to write a rent to own agreement

[EDP]

were can I get information about rent to own agreement to some Land I want to sell? Can you help me! Please

 

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<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by EDP:
were can I get information about rent to own agreement to some Land I want to sell? Can you help me! Please <HR></BLOCKQUOTE>

OPTION AGREEMENT
OPTION AGREEMENT

This OPTION AGREEMENT (""this Agreement'') is made as of _________________________________, by and between ___, a _________________________ (hereinafter called ""Optionor'' and __________________, a _________________________ (hereinafter called ""Optionee'').

RECITALS:

This Agreement is entered into with reference to the following facts:

A. Optionor is the owner of all that certain real property (hereinafter called the ""Property''), located in the County of _______________, State of California, described as follows: _________

B. Optionee desires to obtain an option to purchase the Property from Optionor on the terms and conditions set forth herein and Optionor is willing to grant such option to Optionee.

NOW, THEREFORE, in consideration of the mutual covenants and promises of the parties, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

1. Grant of Option to Purchase. Optionor grants to Optionee an option to purchase (this ""Option'') the Property from Optionor for the term and upon all of the terms, covenants and conditions hereinafter set forth.

2. Option Consideration. As consideration for this Option, Optionee has delivered to Optionor the sum of __________ Thousand Dollars ($________), and Optionor acknowledges the receipt thereof.

3. Memorandum of Option to Purchase. Optionor has duly executed, acknowledged and delivered to Optionee a Memorandum of Option to Purchase in the form attached hereto as Exhibit ""A,'' and agrees that Optionee may cause such Memorandum of Option to Purchase to be recorded. Optionee agrees to execute, acknowledge and deliver to Optionor a Quitclaim Deed to the Property promptly at the request of Optionor if Optionee does not exercise the option hereunder if such is necessary to clear Optionor's title. Optionor shall bear any expense of recording such instrument.

4. Term of Option and Exercise. The term of this Option shall commence upon the date of this Agreement and expire at midnight on _______________, 19___. If not exercised during the term of this Option, this Option shall automatically and without further notice, act or documentation by any party expire on the date aforesaid. Optionee may exercise this Option at any time during the term of this Option by giving Optionor written notice of its intention to exercise the Option. [OPTIONAL: In the event this Option is exercised, the consideration paid by Optionee for this Option (as stated in Paragraph 2, above) shall be applied against and be deemed to be a payment credited against the purchase price.] In the event that Optionee does not exercise this Option, the consideration paid by Optionee for this Option may be retained by Optionor without deduction or offset. As soon as reasonably practicable after exercise of this Option, the parties shall execute and cause to be recorded a Notice of Exercise of Option, in the form as Exhibit ""B'' attached hereto.


5. Existing Leases. Optionee acknowledges that the following leases (hereinafter called the ""Leases''), have been entered into between Optionor with the following named tenants. This Option and Optionee's purchase of the Property shall be subject to the rights of the tenants thereunder:

Date of Expiration
Name of Tenant Property Affected of Lease
-------------------- -------------------- ------------------

1. _________________ ____________________ __________________
2. _________________ ____________________ __________________
3. _________________ ____________________ __________________
4. _________________ ____________________ __________________
5. _________________ ____________________ __________________
Optionee acknowledges receipt from Optionor of a copy of each of the Leases and that Optionee has read the same. Optionor agrees not to enter into or permit any extension of the term of any of the Leases or any modification of any terms thereof, or waive or otherwise relinquish any optional right of termination thereof during the term of this Option, or after exercise thereof, without the prior written consent of Optionee.

6. Purchase Price. The purchase price which Optionee agrees to pay for the Property upon the exercise of this Option is the sum of __________ Dollars ($________). Said price payable as follows:

a. __________ Dollars ($________) deposited in escrow upon the opening thereof. [Optional: The consideration paid for the Option shall be credited against the purchase price.]

b. The balance due shall be paid in full on the Closing Date.

7. Escrow. Within ten (10) calendar days after exercise of this Option, Optionee and Optionor shall open an escrow for this transaction at _______________ _______________. The purchase and sale shall be consummated at the aforesaid escrow within __________ (_____) days after the exercise of this Option by Optionee (the ""Closing Date'').

This transaction shall be consummated and the escrow closed in the following manner:

(1) Optionor shall deposit (a) a duly executed and acknowledged Grant Deed conveying the Property to Optionee in the form attached hereto as Exhibit ""C,'' and (b) a duly executed and acknowledged Assignment of Lessor's Interest in Leases in the form attached hereto as Exhibit ""D.''


(2) Optionee shall deposit the portion of the purchase price to be paid pursuant to Paragraph 6, above in cash.

(3) Escrow shall close when the escrow is in a position to issue the title insurance policy described in Paragraph 8, below, showing title to the Property vested of record in Optionee (or its assignee or nominee). Escrow shall be consummated by delivering the cash deposited by Optionee to Optionor after deduction of Optionor's share of escrow costs and prorations. Closing shall be deemed to have occurred when the Grant Deed is recorded.

(4) Real estate taxes and any cash rentals accruing from the Property shall be prorated between the parties as of the Closing Date.

8. Condition of Title Upon Closing Date. Optionor shall deliver marketable title to Optionee on the Closing Date subject only to (i) the then current real estate taxes and assessments constituting liens not then due or payable; and (ii) those exception nos. _____-_____, as shown on that certain preliminary title report issued by _______________, dated __________, attached hereto as Exhibit ""E.'' Optionee's title shall be insured by a [ALTA or CLTA] policy of title insurance insuring that as of the Closing Date the Property is vested of record in Optionee (or its assignee or nominee).

9. Possession. Possession of the Property shall be delivered to Optionee upon the Closing Date, subject to the rights of any tenants under the Leases.

10. Extensions of Option Term. Optionee may extend the term of this Option for a first extension period of __________ (_____) months by paying to Owner additional option consideration in the amount of __________ Dollars ($________), and Optionee may further extend the term of this Option for __________ (_____) additional extension periods of __________ (_____) month(s) each by paying to Owner additional option consideration of __________ __________ Dollars ($________), for each of the __________ extensions; each such payment to be delivered before the expiration of this Option or the expiration of any extension period of this Option that may then be in effect, and by concurrently providing to Owner written notice of Optionee's intent to extend the term of this Option. As soon as practicable after Optionee's election to extend the Option term (and payment of the correspon

 

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