AGREEMENT FOR THE RENOVATION OF A RENTAL

AGREEMENT FOR THE RENOVATION OF A RENTAL

This AGREEMENT FOR THE RENOVATION OF A RENTAL (hereinafter “this Agreement”) is hereby bargained for, made, and entered into on [DATE] by and between [NAME] (hereinafter referred to as “Contractor”) and [NAME] (hereinafter, whether one or more, referred to as “Owner”).

WITNESSETH:

WHEREAS, Owner holds legal title to the real property (the “property”) situated in [STAT/TERRITORY], and more particularly described as follows: [ENTER LEGAL DESCRIPTION OF THE PROPERTY]; and

WHEREAS, Owner has requested that Contractor renovate the property in accordance with the provisions of this Agreement;

NOW, THEREFORE, in consideration of the foregoing recitals, the agreement contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Owner and Contractor do hereby agree as follows:

 

  1. RENOVATION OF THE PROPERTY.  
  1.  Contractor hereby agrees to renovate the Property in accordance with provisions of this Agreement. 

 

  1.  The repair shall follow the same schedule:
  1.  Foundation repair

Foundation repair shall be fixed and levied on the right and left side of the house bedroom, laundry room, bathroom, and kitchen.

 

The front room floor must be framed, and plywood laid three-quarter inch.

 

  1.  Insulation

Insulation shall be done on the walls of the following rooms: front room, bedroom, bathroom, kitchen area, and attic area. 

 

  1.   Installing sheet rock on the front room, bedroom, laundry room, bathroom, kitchen, mudding tape, and bedding texture spraying.

 

  1.  Exterior painting

Exterior painting shall be done on the front, left, right, and backside of the home,

 

  1.  Fence

Contractor shall build a surrounding fence around the property at the front of the home, left side right side to be ran down to the end of the property line.

 

The right side and left side fence shall run all the way to the backyard to completely infants the property. 

  •  Interior Painting

The interior of the following areas shall be painted: front room, bedroom, laundry room, kitchen, and bathroom.

 

  1.  Bathroom

In the bathroom, you shall install new fixtures, replace, or repair water lines, install sink toilet shower, set tiles for the wall and flooring (optional).

 

  1.  Flooring

You shall install laminate the flooring throughout the property’s front room, bedroom, kitchen, and laundry room. 

 

  1.  Water systems

You shall install new waterlines connecting to the hot water heater. 

 

  1.  Kitchen works

 You shall install kitchen cabinets with knobs and paint them.

 

  1.  Further interior works

You shall install quarter round trim and baseboards at the interior of the property covering areas at the front room, bedroom, bathroom, kitchen, and laundry area. 

 

  1.  Roofing works

You shall install new roof shingles and gutter locations at the right side of the house to divert water away from the property. 

 

  1.  The Renovation Work shall not include the repair, replacement, or remedy of any existing condition of the property, which is not specifically included in the list above, and Contractor shall have no responsibility or obligation with respect thereto.

 

  1. DATE OF COMMENCEMENT AND SUBSTANTIAL COMPLETION.  
  1.  Contractor shall commence the Renovation Work on or before [DATE] (the “Commencement Date”) and shall cause the Renovation Work to be substantially complete on or before [DATE] (hereinafter the “Completion Date”), subject to such extensions of the Completion Date as might occur pursuant to the provisions of this Agreement.  

 

  1.  The Renovation Work shall be deemed completed upon the issuance of a Certificate of Occupancy by the applicable governmental building inspection department, if there is such a department in the jurisdiction in which the Property is located, and, if no such department exists, then upon the reasonable determination by the Contractor that the Renovation Work is substantially complete and ready for occupancy.  

 

  1. OWNER’S REPRESENTATIONS AND WARRANTIES.  

Owner hereby represents and warrants unto Contractor as follows:

  1.  Owner has good, clear, free, unencumbered title to the Property and the unrestricted right and authority to enter into this Agreement;

 

  1.  There are no parties other than Owner in possession of any portion of the Property and there are no disputes with respect to the boundary line or title to the Property;

 

  1.  There is no pending or threatened condemnation proceedings with respect to the Property or any portion thereof;

 

  1.  The performance of the Renovation Work in accordance with the specifications in Section 1.2 of this Agreement will not violate any applicable governmental laws, rules or regulations or any private restrictions, covenants, or other such agreements affecting the Property and will not encroach outside the boundary lines of the Property or within any applicable building setback lines, easements, or rights-of-way;

 

  1.  The Property is free of any environmental hazards or materials or substances which would cause the Property to be in violation of any federal, state, or local environmental laws, rules, or regulations.

 

  1. CHANGES TO SPECIFICATIONS.  
  1.  If Contractor has agreed to renovate the property or complete the Renovation Work in general conformity with specifications in Section 1.2 of this Agreement, then Contractor shall be under no obligation to make any changes, additions, or alterations to the said specifications.  

 

  1.  Contractor may elect to make changes, additions, or alterations to the said specifications upon the request of Owner.  

 

  1.  In the event that Contractor and Owner agree upon changes, additions or alterations to the said specifications, then such agreement shall become effective only upon the execution by both Contractor and Owner of a written change order, in a form which is acceptable to Contractor and which sets forth the changes to be made and the increase in the Consideration to be paid by Owner to Contractor in connection therewith, and the payment by Owner to Contractor of such portion of said increase in the Consideration as shall be required by Contractor.  

 

  1.  Any such increase in the Consideration shall be non-refundable.  

 

  1.  Contractor shall not be obligated to agree to any such changes, additions or alterations to the said specifications and may condition any such agreement upon such matters as Contractor shall, in sole discretion of Contractor, determine, including, but not limited to, an increase in the Consideration, and the approval of such changes by the local building inspection officials, if any.  

 

  1.  In  the event that Contractor agrees to such changes and has not received all of the increase in the Consideration to be paid in connection therewith, then the balance of said increase in the Consideration shall be paid as a part of the final payment of the Consideration in accordance with the provisions of the payment option chosen by Contractor in Section 21 of this Agreement.  

 

  1.  Notwithstanding the foregoing, Contractor shall have the right to make such changes, additions, or alterations to the Plans and Specifications as shall be required by any governmental officials who have jurisdiction or authority over the Renovation Work, or to cause the Renovation Work to be in compliance with any applicable building codes or other applicable governmental laws, rules, or regulations, without notice to or approval by Owner, and to charge to Owner the costs incurred by Contractor in connection therewith, together with Contractor’s proposed percentage of the said costs for Contractor’s overhead and profit, which sums shall be paid by Owner to Contractor in addition to the Consideration, immediately upon Contractor’s invoice to Owner for said sums.

 

  1. DECORATING ALLOWANCE.  
  1.  Contractor shall allow Owner to select some or all the decorating items to be incorporated into the Renovation Work.  

 

  1.  Such items may include, paint colors, roof colors, light fixtures, wallpaper, and floor covering for which Contractor shall establish allowances and costs, subject to Section 21 of this Agreement. 

 

  1.  Owner shall make such selections within a reasonable time after the request by Contractor.  

 

  1.  Subject to Section 21 of this Agreement, if selections of Owner exceed the amount of allowances established by Contractor, then Owner shall pay such portion of any such excess as shall be required by Contractor at the time of making the selections, and the balance, if any, shall be paid together with the final payment of the Consideration.  

 

  1. CONDITION OF THE LAND.  
  1.  Owner hereby affirms that, before signing this Agreement, Owner has personally inspected the property.  

 

  1.  Owner represents, acknowledges, and agrees that Owner has received no representation or warranty from Contractor with respect to the condition of the property and that Contractor shall not in any manner be responsible for the condition thereof.

 

  1.   Owner waives all claims, present and future, against Contractor and Contractor’s agents, employees, successors, assigns, members, owners, managers, partners, officers and contractors based upon or connected with the condition of the property and hereby releases Contractor and Contractor’s agents, employees, successors, assigns, members, owners, managers, partners, officers and contractors from any liability whatsoever therefor.

 

  1. EXTENSION OF THE COMPLETION DATE/DELIVERY OF POSSESSION. 
  1.  The Completion Date may be extended by Contractor for such additional time as Contractor shall determine to be reasonably necessary as the result of: 
  1. any delay in the approval of Owner’s renovation; or 
  2. any delays in the progress of the Renovation Work due to items such as, but not limited to, inclement weather, acts of war or terrorism, changes in the Plans and Specifications, requirements of any building officials or other governing authorities, work stoppages, delays in the delivery of materials, contingencies under this Agreement, if any, the completion of the preoccupancy inspection and any additional work required as the result thereof, and any other matters which might delay the completion of the Renovation Work; or 
  3. as a result of any delay caused by the failure or interruption of systems used by Contractor or systems used by third parties upon whom Contractor relies or any other system where such failures or interruptions are caused, in whole or in part, directly or indirectly, by the inability of such systems to accurately calculate, compare, extract, sequence, display, accept, process, store, reserve, and provide date data in a manner that is consistently correct and accurate, regardless of the date data input, the functions requested, the date data output requested, or the date upon which the date data is input, processed, or output; or 

 

  1. as a result of any damage or destruction to all or any portion of the Property as the result of fire, storm, or other casualty.  

 

  1.  In the event of the delay of the Completion Date pursuant to the foregoing provisions, then the Completion Date shall be that date which has been established in a written notice from Contractor to Owner.  

 

  1.  Pending the substantial completion of the Renovation Work and the payment in full by Owner to Contractor of the Consideration pursuant to Section 21 of this Agreement, possession of the Dwelling shall always be  maintained by Owner subject to the right of Contractor to such possession as is necessary to complete the Renovation Work. 

 

  1. STORAGE OF MATERIALS.  

If Owner provides space within the property or curtilage for the storage of Contractor’s materials, Owner shall be liable for theft, damage, or loss caused by Owner or Owner’s invitees, licensees, or trespassers, if Owner knows or should know of such trespassers.

 

  1. EVIDENCE OF TITLE.  
  1.  Owner represents and warrants that Owner owns valid title to the property.

 

  1.  A report of the status of the title to the Property, in such form as might be acceptable to Contractor, shall be provided by Owner, at the expense of Owner.  

 

  1.  The said title report shall reflect the status of record title to the Property.  

 

  1.  A copy of said report together with legible copies of said exceptions and other such matters shall be delivered to Contractor on or before the Commencement Date.  

 

  1.  The obligations of Contractor hereunder are subject to the approval by Contractor of the form and substance of the title report.

 

  1. TIME IS OF THE ESSENCE.  

TIME IS OF THE ESSENCE with respect to the obligation of Owner to make payments to Contractor toward the Consideration within the time required pursuant to this Agreement.

 

  1. DISCLAIMER.  
  1.  Owner further acknowledges that Owner has not relied upon any advice or representations of Contractor or any person associated therewith relative to 
  1. the legal or tax consequences of this Agreement; 
  2. the structural or other condition of the Property; 
  3. the investment or resale value of the Property as the result of the renovations to be made pursuant to this Agreement; 
  4. subsurface conditions, including radon and other potentially hazardous materials and/or gases; or 
  5. any other matters affecting Owner’s willingness to enter into this Agreement on the terms and conditions herein set forth.  

 

  1.  Owner acknowledges that if such matters are of concern to Owner in the decision to enter into this Agreement, Owner has sought and obtained independent advice relative thereto.  

 

  1. EXISTING IMPROVEMENTS.  
  1.  Contractor has made no assessment of the condition of the existing improvements that comprise the property.  

 

  1.  Contractor shall have no responsibility to correct any defects in the existing improvements comprising the property or make any repairs or alterations thereto, except as specifically set forth in the said specifications in Section 1.2 of this Agreement.  

 

  1.  In the event of any condition of the existing improvements comprising the property which is defective or requires alteration or repair in order to accomplish the renovations or additions to be accomplished pursuant to the said specifications, Owner shall be responsible, at the expense of Owner, to cause such defect or condition to be repaired or otherwise remedied in such manner as will facilitate the completion of the work by Contractor pursuant to the said specifications, comply with all applicable governmental codes and regulations, and as will otherwise be reasonably acceptable to Contractor.

 

  1. CASUALTY LOSS.  

In the event of any damage or destruction to all or any portion of the Property as the result of fire, storm, or other casualty, then Contractor shall have the right, at the election of Contractor, to either 

  1. extend the Completion Date as necessary to permit Contractor to remedy any such damage and complete the Renovation Work, in which event Contractor shall be paid the additional costs and fees (including Contractor’s overhead and profit) as shall be determined by Contractor to be necessary to remedy such damage, or

 

  1. terminate this Agreement, whereupon Owner shall pay to Contractor the balance of the Consideration and other sums owing to Contractor for the portions of the Renovation Work completed as of the occurrence of the damage, including costs incurred by Contractor for materials, supplies, and other items ordered, acquired, or delivered to the Property, including the Contractor’s overhead and profit associated therewith, subject to Section 21 of this Agreement, and Contractor shall be relieved of any obligation to complete the Renovation Work.

 

  1. ARBITRATION.  
  1.  Contractor and Owner acknowledge and agree that this transaction may substantially affects interstate commerce by virtue of the materials and components contained in the Renovation Work.  

 

  1.  Any controversy, claim, or dispute arising out of or relating to this Agreement, or the breach thereof, or the transaction contemplated hereby, shall be settled by binding arbitration, pursuant to the Federal Arbitration Act, 9 USC § 1, et seq., and shall be administered in accordance with the applicable rules any such system as both Contractor and Owner might prefer.  

 

  1.  Judgment on the award rendered by the arbitrators may be entered in any court having jurisdiction thereof.

 

  1. NOTICES.  

Any notices to be given pursuant to the provisions of this Agreement shall be in writing and shall be deemed received by the party to whom given when deposited in the United States Mail, by certified mail, with postage pre-paid, and addressed as follows:  

 

When to Contractor: [ENTER ADDRESS]

 

When to Owner: [ENTER ADDRESS]

 

  1. DEFAULT.  
  1.  By Contractor:  

If this transaction is not concluded because of the material default of Contractor in the performance of the obligations of Contractor pursuant to this Agreement, and if said default is not remedied within a reasonable time after written notice from Owner to Contractor setting forth the details of the default and demanding that the default be remedied, then Owner shall have the right to terminate this Agreement upon payment by Owner to Contractor the portion of the Consideration for all work performed and all costs incurred by Contractor as of the date of termination, whereupon this Agreement shall be deemed terminated and both Contractor and Owner shall be relieved of any further obligations hereunder.  This shall be the sole remedy available to Owner in the event of a default by Contractor.  

 

  1.  By Owner:  

In the event of default by Owner in the performance of the obligations of Owner under this Agreement, and should said default not be remedied within a reasonable time after written notice from Contractor to Owner setting forth the details of the default and demanding that the default be remedied, then, at the election of Contractor, 

  1. Contractor shall retain all sums paid to Contractor by Owner pursuant to this Agreement including, but not limited to, the Advance Payment, any sums with respect to changes in the said specifications in Section 1.2 of this Agreement, any sums with respect to allowance overages, and any other sums, as liquidated damages, whereupon this Agreement shall be deemed terminated and both Contractor and Owner shall be relieved of any further obligations hereunder; or
  2. Contractor shall have the right to retain all sums paid to Contractor, as aforesaid, by Owner, which sums shall be applied toward the actual damages of Contractor, and Contractor shall be entitled to recover from Owner such portion of the balance of the Consideration that Contractor determines to be applicable to the work performed by Contractor, and the entire balance of that portion of the Consideration allocated by Contractor toward Contractor’s overhead and profit, together with damages incurred by Contractor; or
  3. Contractor shall have the right to retain all sums paid to Contractor, as aforesaid, by Owner, and Contractor shall have the right to pursue, in addition to the retainage of said sums, equitable relief against Owner, including the remedy of specific performance together with the recovery of Contractor’s attorney’s fees and costs; or 
  4. Contractor shall have the right to pursue any one or more of the foregoing or any other remedies available to Contractor under applicable law together with the recovery of Contractor’s attorney’s fees and costs and the pursuit of any one or more of said remedies shall not be deemed a waiver of the right to pursue any other remedies.

 

  1. GENERAL PROVISIONS.  
  1.  If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable, that determination will not affect the enforceability of the remaining portions.  

 

  1.   This Agreement shall be binding upon Contractor and Owner, and their respective heirs, executors, administrators, successors, and assigns.

 

  1.  This Agreement shall be governed by and construed in accordance with the laws of [ENTER STATE]

 

  1.  The titles or headings to the paragraphs included herein are for convenience only and shall not add to, reduce, limit, or modify in any manner the content thereof.

 

  1.   The rights of Owner hereunder may not be assigned by Owner without the written consent of Contractor, which consent may be withheld in the sole discretion of Contractor.

 

  1. LIMITED WARRANTY 
  1.  Contractor hereby warrants to Owner that, for and during a Limited Warranty Period agreed by both Contractor and Owner, the Renovated Work will be free from Defects.
  2.  For Contractor to assume liability for the defects, the said defects must not be as a result of Owner’s negligence, action, or inaction. Contractor SHALL NOT be liable for any defect arising from Owner’s negligence, action, or inaction.   
  3.  If the said Defect occurs, Contractor will repair, replace, or pay to Owner the reasonable cost of repairing or replacing any such item.  
  4.  Contractor shall in its sole discretion determine whether to repair, replace, or pay the reasonable cost of repairing or replacing any such item.  
  5.  THE LIABILITY OF CONTRACTOR IS STRICTLY LIMITED TO THE OBLIGATION TO REPAIR, REPLACE, OR PAY THE REASONABLE COST OF REPAIRING OR REPLACING ANY SUCH ITEM, AND ANY RIGHT THAT OWNER MIGHT HAVE TO RECOVER ANY OTHER OR ADDITIONAL DAMAGES IS HEREBY WAIVED AND EXCLUDED.  OWNER ACKNOWLEDGES THAT THE SOLE REMEDY AVAILABLE TO OWNER HEREUNDER IS THE RIGHT TO REQUIRE CONTRACTOR TO REPAIR, REPLACE, OR PAY THE REASONABLE COST OF REPAIRING OR REPLACING ANY SUCH ITEM. 
  6.  Steps taken by Contractor to correct any Defect under this shall not extend the Limited Warranty Period agreed by both the Contractor and Owner.  

 

  1. WAIVER OF WARRANTIES AND CLAIMS.  

OWNER AGREES THAT THE LIMITED WARRANTY IN SECTION 18 IS GIVEN IN LIEU OF ANY AND ALL OTHER WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, HABITABILITY AND WORKMANSHIP, AND IS ALSO IN LIEU OF ANY CLAIMS FOR CONSEQUENTIAL DAMAGES, MENTAL ANGUISH OR DISTRESS, AND FOR DAMAGES BASED UPON NEGLIGENCE, AND OWNER HEREBY EXPRESSLY WAIVES AND DISCLAIMS ALL SUCH OTHER WARRANTIES AND CLAIMS WITH RESPECT TO THE RENOVATION WORK.

 

  1. ENTIRE AGREEMENT.  
  1.  This Agreement constitutes the entire agreement of the parties, and Owner acknowledges that Owner has not relied upon any oral or written statements, undertakings, or representations and that no prior agreement or understanding shall be valid or of any force or effect, unless the same have been fully set forth in this Agreement.  
  2.  The covenants and agreements contained in this Agreement cannot be altered, changed, modified, or added to, except in a written instrument signed by Owner and Contractor.  
  3.  No representation, inducement, understanding, or anything of any nature whatsoever made, stated, or represented by Contractor or on Contractor’s behalf, either orally or in writing (except as specifically set forth in this Agreement), has induced Owner to enter into this Agreement or shall be enforceable in any manner against Contractor.

  • CONSIDERATION
  •  OPTIONS FOR CONSIDERATION

Owner offers Contractor the following options for consideration:

  •  $8,000 for Labor 

This option shall include:

  1. Wages of renovation workers directly employed by Contractor to perform the Renovation Work, including welfare, unemployment compensation, worker’s compensation, social security, and other benefits.  
  2. Payments made by Contractor to all subcontractors in accordance with the requirements of the subcontracts.

  •  $18,000 for both Labor and Materials

The option shall include:

  1. All the provisions of Section 21.1 above,
  2. Costs, including transportation, of materials and equipment incorporated or to be incorporated in the completion of the Renovation Work; all discounts for cash or prompt payment shall accrue to Contractor.

 

  1. Cost of all materials, temporary facilities, equipment, and hand tools not customarily owned by the renovation workers, which are provided by Contractor at the site and fully consumed in the performance of the Renovation Work.
  2. Rental costs for necessary temporary facilities, machinery, equipment, and hand tools used at the site of the property.
  3. Costs of removal of debris from the site.
  4. The Decoration Allowances in Section 5 of this Agreement. 

  •  Payment of Consideration
  1.  Subject to the provisions of Section 21.1 above, Owner shall pay Contractor the Consideration amount on or before [DATE].

 

  1.  The method and place of the said Payment shall be as agreed by both the Owner and Contractor, in writing.  

 

IN WITNESS WHEREOF, the undersigned parties have set their hands and seals to this Agreement on this day [ENTER DATE].

 

By:

 

___________________________________                 _________________________

              CONTRACTOR                                                             SIGNATURE

 

___________________________________                 _________________________

                  WITNESS                                                                SIGNATURE

 

___________________________________                 _________________________

                    OWNER                                                                 SIGNATURE

 

___________________________________                 _________________________

                    WITNESS                                                             SIGNATURE

 

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