BUYOUT AGREEMENT
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.
CONSIDERATION
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.
SECURITY AGREEMENT
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.
OWNER’S SIGNATURE
BUYER’S SIGNATURE
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