LEASE PURCHASE AGREEMENT
This LEASE PURCHASE AGREEMENT (the “Agreement”) is entered into by and
between______________________ (“Lessor/Seller(s)/Seller(s)”) and
_______________________ (“Lessee/Buyer(s)/Buyers(s)”):
FOR AND IN CONSIDERATION OF THE MUTUAL PROMISES SET FORTH HEREIN AND
OTHER GOOD AND VALUABLE CONSIDERATIONS, THE RECEIPT AND SUFFICIENCY OF
WHICH ARE HEREBY ACKNOWLEDGED, THE PARTIES HERETO AGREE AS FOLLOWS:
1. Terms and Definitions.
The terms listed below shall have the respective meaning given them as set forth adjacent
to each term.
Property: Real property located at___________________________________________.
Purchase Price: shall mean the NET sum of____________________________Dollars.
Existing Mortgage Payoff: shall mean Dollars.
Warranty: The Lessor/Seller is leasing/Selling the Lessee/Buyer the subject property in its
present “AS IS” “Where Is” condition without any implied or express warranty from the
Lessor/Seller/Seller.
2. Proration of Expenses and Payment of Costs.
The Lessee/Buyer shall be responsible for ALL Closing Costs including the Lessor/Seller’s
closing costs.
3. Title.
The Lessor/Seller agrees to convey fee simple marketable property, subject only to normal
and customary exceptions.
The Lessor/Seller represents and warrants that they are the fee simple owner of the
Property, and at Closing, the Lessor/Seller shall deliver to the Lessee/Buyer good and
marketable title to said property by a General Warranty Deed, free and clear of liens,
encumbrances, and defects of title other than customary utility easements and road rights-
of-way of record (“Permitted Exceptions”).
Parties herein agree that the title shall be in the name of ______________________.
4. Conditions.
This Agreement and the rights and obligations of the parties under this Agreement are hereby
made expressly conditioned upon fulfillment (or waiver by the Lessee/Buyer) of the following
conditions:
Lessor/Sellers’ Initials: _________: _________ Lessee/Buyer’s Initials: _________
i. Title Examination.
After the date of execution of this Agreement by the Lessor/Seller, the Lessee/Buyer
shall, at its expense, cause a title examination to be made of the Property. Suppose
such title examination shall show that the Lessor/Seller’s title is not good, marketable, fee
simple, and insurable. In that case, the Lessee/Buyer shall immediately notify the
Lessor/Seller in writing of all such title defects, and exceptions as of the date
Lessee/Buyer learned of the title defects. Lessor/Seller shall have ten (10) days to cure
said noticed defects.
Suppose Lessor/Seller does not cure the defects or objections within ten (10) days of
notice thereof. In that case, the Lessee/Buyer may terminate this Agreement and
receive a return of the Money already paid, if any (notwithstanding that the examination
period may have expired).
If the Lessee/Buyer is to purchase title insurance, the insurance company must be
licensed to do business in the state where the property is located.
The title to the property must be insurable at regular rates, subject only to standard
exceptions and Permitted Exceptions.
ii. Same condition.
Suppose the Property is not in substantially the same condition as the date of the offer,
with reasonable wear and tear expected. In that case, the Lessee/Buyer may terminate
the Agreement and receive a return of the paid Money.
iii. Due Diligence.
The Lessee/Buyer shall have a Due Diligence/Examination period of ___________
(____) days to inspect the property.
The Lessee/Buyer’s, its agents or representatives, at Lessee/Buyer’s expense and at
reasonable times during normal business hours, shall have the right to enter upon the
Property to inspect, examine, testing, and surveying the Property.
The Lessee/Buyer assumes all responsibility for the acts of itself, its agents, or
representatives exercising its rights under this paragraph and agrees to indemnify and
hold the Lessor/Seller harmless from any damages resulting therefrom.
The Lessee/Buyer shall have from the date of acceptance through the end of the
Inspection/Examination period to perform the above inspections, examinations, and
testing to determine if the Property is suitable. Suppose, prior to the expiration of the
Inspection/Examination period, the Lessee/Buyer determines that the property is
unsuitable in the Lessee’s/Buyer’s sole discretion and provides written notice to the
Lessor/Seller thereof. In that case, this Agreement shall terminate, and Lessee/Buyer
Lessor/Sellers’ Initials: _________: _________ Lessee/Buyer’s Initials: _________
shall receive a return of the paid Money.
5. Environmental.
To the best of the Lessor’s/Seller’s knowledge the subject property is not in violation of any
federal, state, or local environmental law.
The Lessor/Seller represents that he or she has at no time received any notice of any
environmental violation from any federal, state, or local environmental agency.
6. Risk of Loss/Damage/Repair.
Until the closing, the risk of loss or damage to the Property, except as otherwise provided
herein, shall be borne of the Lessor/Seller.
In the event the Property is damaged so that the Property cannot be conveyed in
substantially the same condition as it was prior to the Closing, the Lessee/Buyer may elect
to terminate this Agreement, and the paid Money shall be returned to the Lessee/Buyer.
7. Closing.
The Lessor/Seller’s closing documents shall consist of the execution and delivery of a
Warranty Deed, lien waiver, and 1099.
The Lessee/Buyer’s closing documents shall consist of the payment of the Lessee/Buyers
and the Lessor/Sellers closing costs, title insurance, attorney’s fees, and recording costs,
and the payment by the Lessee/Buyer to the Lessor/Seller of the Purchase Price in
accordance with the terms of this contract.
Possession shall be delivered at closing unless otherwise agreed herein.
8. Quit Claim Deed.
Concurrently with the execution of this agreement, the Lessee/Buyer shall execute and
acknowledge a Quit Claim Deed, which will be held by the Lessor/Seller and will remain
unrecorded unless and until the terms in this agreement have been breached.
The Lessor/Seller shall issue a written notice to the Lessee/Buyer within seven days of the
default or breach that they are proceeding to record the Quit Claim Deed in the official
records unless the Lessee/Buyer responds to the notice within the given time disputing the
default/breach.
9. Notices.
Unless otherwise provided herein, all notices and other communications which may be or
are required to be given or made by any party to the other in connection herewith shall be in
writing and shall be deemed to have been properly given and received on the date delivered
in person or deposited in the United States Mail, registered or certified, return receipt
Lessor/Sellers’ Initials: _________: _________ Lessee/Buyer’s Initials: _________
requested, to the address set out below.
10. Entire Agreement.
This Agreement constitutes the sole and entire agreement among the parties hereto, and no
modification of the Agreement shall be binding unless in writing and signed by all parties
hereto.
11. Applicable Law.
This Agreement shall be construed under the laws of the State of Georgia.
12. Power of Attorney.
The Lessee/Buyer hereby appoints __________________________________ as his/her/their
attorney in fact, with limited power to execute and endorse such documents and instruments,
including mortgage Documents, in the Lessee’s/Buyer’s name, as may be necessary to perfect
Lessor’s/Seller’s security interest in the Collateral and to effect the sale of the Collateral as
hereinafter provided, which power of attorney is coupled with an interest and irrevocable.
13. Successors and Assigns.
This Agreement shall bind and inure to the benefit of and be enforceable by the Lessor/Seller,
the Lessee/Buyer, and their respective permitted successors and assigns (including
personal representatives, heirs, and legatees), except that the Parties may not assign any
rights or obligations under this Agreement except to the extent and in the manner expressly
permitted herein.
14. Modification.
Upon written mutual agreement, provisions of this Agreement may be modified at any
time.
Between Lessor/Seller(s) and Lessee/Buyer(s); –
Lessor/Seller:
___________________________
Signature:
______________________________
Date:
__________________________________
Lessee/Buyer:
__________________________ Signature:
______________________________
Date:
__________________________________
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