Sample Lease with Option To Purchase

RECEIVED FROM lessee, Winnie the Pooh, referred to hereafter as Tenant, the sum of $xxxx.xx, evidenced by Check No. xxx, as a deposit which, upon acceptance of this Residential Lease With Option to Purchase, the Agreement, shall belong to the lessor of the premises, Donald Duck, hereafter referred to as Owner, and shall be applied as follows:

If the Agreement is not accepted by Owner or his agent within 15 days, the total deposit received shall be refunded. Tenant agrees to lease from Owner the premises located in Salt Lake City, Salt Lake County, Utah, described as Parcel no. 00-00-000-000-0000, located at 1411 South Utah Street, Suite 00, Salt Lake City, UT 84104-3468, upon the following TERMS and CONDITIONS.

1 TERMS
The term of the Agreement shall begin on October 1st, 1999 and continue for a period of 12 months thereafter.
2 RENT
The Rent shall be $xxx.xx per month, payable in advance upon the 5th day of each calendar month to Owner or his agent, at his home address, 1411 South Utah Street, Suite xx, Salt Lake City, UT 84104-3468. If the rent is not paid within five (5) days after due date, Tenant agrees to pay a late charge of $xx.xx. In the event of a returned rent check, Tenant agrees to, within twenty-four (24) hours of notice of insufficient funds, replace said check with certified funds and pay a $xx.xx returned check fee. If check is returned, Owner may require Tenant to make all future payments with cash or cashier's check, and Owner will provided receipt for all such payments.
3 UTILITIES
Tenant shall be responsible for the following utilities and services: Water, Gas, Sewer, and Electricity. The Owner is responsible for the condo fee.
4 USE
The premises shall be used as a residence by the undersigned adult and his significant Other and children, and for no other purpose without the prior written consent of Owner. Occupancy by guests staying over fifteen (15) days will be considered in violation of this provision unless prior written consent is given by Owner. As a resident of these premises, Tenant will be a member of the Wasatch Commons Cohousing Community and will have to follow its bylaws and procedures.
5 ORIENTATION MEETING
Within 2 weeks of signing of this contract, but prior to moving in, Tenant will attend an orientation meeting by the Welcoming Committee of Wasatch Commons Cohousing. It will be explained to him what it means to be a member of a cohousing community. Tenant should also attend three cohousing community functions: one committee meeting, one all-community meeting, and one social function (party or dinner etc.). If there are children in the household newly joining us, a visit to the parent's committee is recommended. In the event that Tenant does not want to incur the obligations associated with cohousing, he or she shall give written notice during this two-week period. In this case, he will receive a refund of his deposit minus $100 processing fee, and this contract shall be null and void.
6 PETS
Renter agrees to abide by the pet policy of the Wasatch Commons Condominium Association.
7 ORDINANCES AND STATUTES
Tenant shall comply with all laws, health codes, and regulations of all municipal, state and federal authorities. Tenant shall also comply with the Bylaws of the Wasatch Commons Condominium Association, and actively participate in the community. Tenant is aware that Wasatch Commons is a cohousing community, and that members are expected to put in a few hours of work per week into the community.
8 ASSIGNMENT AND SUBLETTING
Tenant shall not assign the Agreement or sublet any portion of the premises without prior written consent of Owner.
9 MAINTENANCE, REPAIRS OR ALTERATIONS
Tenant accepts the premises as being in good order and repair, unless otherwise indicated in writing. Tenant shall, at his own expense, maintain the premises in a clean and sanitary manner, including all equipment, appliances, furniture and furnishings therein, and shall surrender the same, at termination, in as good condition as received, normal wear and tear excepted. Tenant shall be responsible for all repairs required for damages caused by his negligence and that of his guests or other occupants. Tenant shall not repaint, or otherwise redecorate or make alterations to the premises without the prior written consent of Owner. Tenant will not remove Owner's fixtures, furniture and/or furnishings from the apartment, for any purpose. When Tenant moves in, Owner shall furnish light bulbs of prescribed wattage for apartments' sockets, thereafter, light bulbs will be replaced at Tenant's expense. Tenant will be responsible for landscaping in the immediate vicinity of the building.
10 ENTRY AND INSPECTION
Tenant shall permit Owner or Owner's agents to enter the premises at reasonable times and upon reasonable notice for the purpose of inspecting the premises or showing the same to prospective tenants or purchasers or for making necessary repairs. In case of emergency no notice need be given.
11 INDEMNIFICATION
If legal action is taken by either party to enforce the Agreement, or to enforce any rights arising out of the breach of the Agreement, or to evict Tenant, guests, or other occupants, the prevailing party shall be entitled to all costs incurred in connection with such action, including reasonable attorney's fees and collection costs, with or without suit.
12 PHYSICAL POSSESSION
If Owner is unable to deliver possession of the premises at the commencement hereof, Owner shall not be liable for any damage caused thereby, nor shall this agreement be void or voidable, but Tenant shall not be liable for any rent until possession is delivered. Tenant may terminate this agreement if possession is not delivered within 15 days of the commencement of the term hereof.
13 DEFAULT BY OWNER
Owner agrees to
  1. properly maintain water, heating, plumbing, electrical service and heat pump;
  2. abide by applicable state and local laws regarding repair;
  3. make reasonable repairs, subject to Tenant's obligation to pay for damages caused by Tenant, or other occupants.
14 DEFAULT BY TENANT
Owner may, upon written notice, terminate Tenants right to occupancy if any of the following conditions occur:
  1. Tenant fails to pay rent or other lawful charges when due.
  2. Tenant fails to reimburse Owner for damages, repairs or plumbing service costs when due.
  3. Tenant, guests or other occupants violate this contract, Owner's rules and regulations, or applicable state and local laws.
  4. Tenant abandons the apartment.
  5. Tenant fails to participate in the activities which the Wasatch Commons All Community Meeting decides to be obligatory for all community members.
  6. Tenant, guests, or other occupants threaten or assault or use abusive or offensive language against other residents, or any agent, employee or representative of Owner.
15 SECURITY DEPOSIT
The Security Deposit set forth above shall secure the performance of Tenant's obligations. Refund of Security Deposit is dependent upon Tenant fulfilling ALL of the following conditions:
  1. Tenant has provided written thirty (30) day notice to Owner prior to date of termination or expiration.
  2. Tenant has no other moneys due.
  3. Tenant has thoroughly cleaned the premises, appliances, and fixtures. Owner will deduct from the Security Deposit all reasonable charges to accomplish cleaning or repair from damage over normal wear and tear.
  4. All individuals using or occupying the premises have surrendered the premises to Owner, and all keys to the premises, mailbox or storage rooms are turned in to Owner.
  5. Tenant supplies Owner with a forwarding address, in writing, in order to send Decurity Deposit.
Tenant shall not have the right to apply the Security Deposit in payment of last month's rent.
16 ATTORNEY'S FEES
In any legal action brought by either party to enforce the terms hereof or relating to the demised premises, the prevailing party shall be entitled to all costs incurred in connection with such action, including a reasonable attorney's fee.
17 WAIVER
No failure of Owner to enforce any part of the Agreement shall be deemed as a waiver, nor shall any acceptance of a partial payment of rent be deemed a waiver of Owner's right to full amount.
18 NOTICES
All notices shall be given in accordance with state laws. Where requirements are not spelled out by law, notice may be given by mailing the same, postage prepaid, to Tenant at the premises or to Owner at the address shown below or at such other places as may be designated.
19 HEIRS, ASSIGNS, SUCCESSORS
This lease is binding upon and inures to the benefit of the heirs, assigns, successors in interest to the parties.
20 TIME
Time is of the essence for the Agreement.
21 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 $xxx.xxx,xx.
22 DISCLAIMER
The parties acknowledge that speculation of availability of financing, purchase costs, and lender's prepayment penalties is impossible. Therefore, the parties agree that these items shall not be conditions of performance of this agreement and the parties agree they have not relied upon any other representations or warranties by brokers, sellers, or other parties.
23 FIXTURES
All improvements, fixtures, attached floor coverings, draperies including hardware, shades, blinds, window and door screens, storm sash, combination doors, awnings, outdoor plants potted or otherwise, trees, and items permanently attached to the real property shall be included, free of liens, unless specifically excluded.
24 PERSONAL PROPERTY
The following personal property, on the premises when inspected by Tenant, shall be included in the purchase price and shall be transferred by a Bill of Sale with Warranties at close of escrow: __________________ _____________ _____________
25 ENCUMBRANCES
In addition to any encumbrances referred to above, Tenant shall take title to the property subject to:
  1. Real Estate Taxes and Assessments not yet due and
  2. Covenants, conditions, restrictions, reservations, rights, rights of way and easements of recor.
The amount of any bond or assessment which is a lien shall be paid by the Owner.
26 SELLER DISCLOSURE
No later than 15 days after exercise of this option to purchase, Owner shall provide to Tenant the following documents which are collectively referred to as the "Seller Disclosures";
  1. a Seller property condition disclosure, signed and dated by the Owner
  2. a commitment for the policy of title insurance
  3. a copy of any leases affecting the Property not expiring prior to Closing
  4. written notice of any claims and/or conditions known to the Owner relating to environmental problems and building or zoning code violations.
27 EXAMINATION OF TITLE
The Tenant has fifteen (15) days from date of receipt of the seller disclosure to examine the title of the property and to report in writing any valid objections thereto. Any exceptions to the title which would be disclosed by examination of the records shall be deemed to have been accepted unless reported within said fifteen (15) days. If Tenant objects to any exceptions to the title, Owner shall use all due diligence to remove such exceptions at his own expense within sixty (60) days thereafter. But if such exceptions cannot be removed within the sixty (60) days allowed, all rights and obligations hereunder may at the election of Tenant, terminate and end, unless Tenant elects to purchase the property subject to such exceptions.
28 CLOSING COSTS
Escrow fees, if any, and other closing costs shall be paid as follows:
29 CLOSE OF ESCROW
Within 30 days from exercise of the option, or upon removal of any exceptions to the title by Owner, as provided above, whichever is later, both parties shall deposit with an authorized escrow holder, to be selected by Owner, all funds and instruments necessary to complete the sale in accordance with the terms and conditions hereof. The representations and warranties herein shall not be terminated by conveyance of the property.
30 PRORATIONS
Rents taxes, premiums on insurance acceptable to Tenant, interest and other expenses of the property to be prorated as of recordation of deed. Security deposits, advance rentals or considerations involving future lease credits shall be credited to Tenant.
31 EXPIRATION OF OPTION
This option may be exercised at any time after February 1st, 2000, and shall expire at midnight, September 30, 2000, unless exercised prior thereto. Upon expiration Owner shall be released from all obligations hereunder and all of Tenants' rights hereunder, legal or equitable, shall cease.
32 EXERCISE OF OPTION
The option shall be exercised by mailing or delivering written notice to Owner prior to the expiration of this option and by an additional payment, on account of the purchase price, in the amount of $xxx.xx for account of Owner to the authorized escrow holder referred to above, prior to the expiration of the option. Notice, if mailed, shall be by certified mail, postage prepaid, to Owner at the address set forth below, and shall be deemed to have been given upon the day shown on the postmark of the envelope in which such notice is mailed. In the event the option is exercised, the $xxxx.xx consideration paid for the option shall be credited upon the purchase price.
33 OFFER AND TIME FOR ACCEPTANCE
Tenant offers to lease the Property together with an option to purchase at the above conditions. If Owner does not accept this offer by September 15, 1999, 5 pm Mountain time, this offer shall lapse.
Tenant's signature:
Tenant's name (typed): Winnie the Pooh
Address:
Phone Number:
34 ACCEPTANCE OF OFFER TO LEASE WITH OPTION TO BUY
Owner accepts the foregoing offer on the terms and conditions specified above.
Owner's signature:
Owner's name (typed): Donald Duck
Address: 1411 South Utah Street, Suite 00
Salt Lake City, UT 84104-3468
Phone Number:
35 DOCUMENT RECEIPT

The undersigned Tenant hereby acknowledges receipt of a copy of this contract bearing all signatures
Dated:
Tewnant's Signature:

The undersigned Owner hereby acknowledges receipt of a copy of this contract bearing all signatures
Dated:
Owner's Signature: