WHEREAS, _________________________________________ as landlord/seller (hereinafter “OWNER”) and _____________________________________________ as tenant/buyer (hereinafter “BUYER”) have entered into a certain Lease/Purchase
Agreement dated _____________, 20_______, a copy of which is attached hereto and incorporated by reference as Exhibit “A” (hereinafter “AGREEMENT”), for the lease and sale of certain real property located at _________________________________
______________________________ (hereinafter “PROPERTY”) and
WHEREAS, BUYER is a joint tenant with the OWNER under a certain Lease Agreement dated _____________, 20______, a copy of which is attached hereto and incorporated by reference as Exhibit “B” (hereinafter “LEASE”), and
WHEREAS, BUYER, has offered OWNER a written option dated _________, 20_____ to purchase the Property from OWNER for the sum of $ 23,000
WHEREAS, BUYER has given written notice of his/their option to purchase to OWNER and has made diligent application for an institutional loan, and
NOW, THEREFORE, the parties agrees as follows:
TERMINATION OF AGREEMENT
The AGREEMENT between Buyer and Owner will hereby be terminated after the transfer of property and consideration has been sufficiently paid, and both parties shall be fully released from liability under said agreement.
ASSIGNMENT OF LEASE AND OPTION
BUYER’s rights and obligations under the aforementioned LEASE and OPTION agreements between BUYER and OWNER are hereby assigned to BUYER. OWNER and BUYER agree to release, defend and indemnify BUYER from any and all liability or obligation arising under the LEASE and OPTION agreements.
CLOSING WITH BUYER
OWNER agrees to close escrow directly with, and transfer title to BUYER in accordance with the terms of the OPTION agreement. OWNER agrees to make all necessary efforts and take all reasonable efforts to cooperate with BUYER and/or his lender, mortgage broker, appraiser or other parties involved with BUYER’S loan process, including, but not limited to any documents required to be executed by OWNER for the loan process.
OWNER shall be paid the sum of $ 23,000 in cash (hereinafter “CONSIDERATION”) from the BUYER’s proceeds as consideration for the termination of LEASE/PURCHASE AGREEMENT and assignment of LEASE and OPTION agreements to OWNER. In the event that BUYER does not complete his loan or otherwise does not complete the exercise of the OPTION agreement on or before ______________, 20_____, this BUYOUT AGREEMENT, the cancellation of the LEASE/PURCHASE AGREEMENT and the assignments of the LEASE and OPTION agreements shall become null and void, and all parties will be in the same position as they started before the commencement of this BUYOUT AGREEMENT.
DEFAULT BY OWNER
In the event OWNER fails to comply with the terms of this agreement, including, but not limited to the cooperation with BUYER, his lender, mortgage broker, appraiser or other parties in connection with BUYER’s loan, or if OWNER fails to deliver marketable title as required by the OPTION agreement, OWNER shall be in default of this agreement. At such time, BUYER may, at his option, cancel this BUYOUT AGREEMENT, placing all parties in the same position as they started before the commencement of this BUYOUT AGREEMENT, which shall nullify the cancellation of the LEASE/PURCHASE AGREEMENT and the assignments of the LEASE and OPTION agreements. BUYER may also seek damages against OWNER, including, but not limited to, lost profits, courts costs, attorney’s fees, and consequential damages. At a minimum, OWNER agrees that BUYER’s loss in the event of OWNER’s default will be the CONSIDERATION as stated above.
As security for OWNER’s performance under this BUYOUT agreement, OWNER agrees to execute a Performance Mortgage, Deed of Trust or other customary security instrument, which will recorded as a lien against the Property in an amount equal to the CONSIDERATION as stated above.
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