Lease Option Contract - Posted by P. G. Maroney

Posted by Sean on May 17, 2000 at 08:45:14:

  1. Yes, the entire rental amount is credited towards the purchase price.
  2. No, the Seller cannot back out on the sale.
  3. Many times banks balk at the thought of allowing rental credits – or they’ll only allow whatever credits that the rent exceeds the purchase price. Accordingly getting the financing to purchase the property may be more difficult than you think.

Accordingly I recommend you take the time between now and August to find a qualified buyer to sell the property to and do a double close to get your cash out of the deal.

Lease Option Contract - Posted by P. G. Maroney

Posted by P. G. Maroney on May 17, 2000 at 08:24:33:

Help! Could someone look over this part of my Lease Option Contract and answer a few questions for me?
[1] Does this mean the whole $750.00 rent goes toward my down payment? If this is true then my total down payment will be (2500.00 + 750 X 48 ) $38500.00
This house was appraised in 96 at $93000.00
[2] Can The Lessor refuse to sell, ie back out of the contract?

Copied with OC software so some of the words are misspelled but I think you can understand it.



This LEASE AGREENIENT made and entered this 2’.lth day ofluN. 1996, by and bets’een ******************. as
Trustee for the ************** Revocable Taist, of *** Emerald Isle, *******, hereinafter called .Lessor", and
**********************************, of 609 East Church Street, in Lees½ille, SC 29070, hereinafter called “LESSEES”


In consideration ofthe covenants and agreements of the respective parties herein contained, the LESSOR and LESSEES,
for themselves, their heirs, distributees, executors, personal represetitatives, administrators, legal representatives, and permitted
assigns, do hereby a-4ee as follt}wq

I. PREMISES: LESSOR by these presents do hereby demise and lease unto the LESSEES for all lawful purposes all that
certain premises, together with the building and improvements therein, located at 325 RawIs Drive in the City ofLeesville,
Lexington County, South Carolina, more frilly described as follows:

All that certain piece, parcel, lot or tract of land, together with the improvements thereon, situate, lying and being on the
Northwestern side ofRawis Drive in the Town ofLees’ville, in the County of Lexington and in the State of South
Carolina, said lot being shown and designated as Lot #1 on plat of ‘9RAWLS DR IVE" Subdivision prepared by Jones &
Muip~ dated September 16, 1957, and recorded in the Office of the Clerk of Court for Lexington Count’y’ in Plat Book
~-G, at page 22, said lot being bounded and measures as follows to wit: On the Northwest by property of parties
LLnknown9 as shown on said plat, whereon it measures Ninety-eight (98’) feet, more or less; on the Northeast by Lot
#2, as shown on said plat, whereon it measures One hundred and Ninety-five (195’) feet, more or less; on the Southeast

Rawis Drive, as shown on said plat, whereon it fronts and measures Ninety-eight (98’) feet, more or less; and on the
Southwest by proeprty now or formerly ofWilliani Hall, as shown on said plat, whereon it measures One Hundred
Ninety-three and 5~l0 (1935’) feet, more or less; being more particularly shown and delineated upon a plat prepared for
W. F Maye by McMillan Engineering Co., dated July 2, 1958, and recorded in the Clerk of Court’s Office for Lexington
County in Plat Book 46-C, at page 223.

To have and to hold such property unto the LESSEES, together with all rights and privileges thereunto belonging upon the
following terms and conditions.

  1. TERM: The term ofthis lease shall begin on September 1, 1996, and shall continue until August 31.2000, This lease maybe
    renewed for an additional term ofOne (1) Year upon agreement of the parties Thirty (30) Days prior to the expiration of the original
    lease term.

  2. OPTION TO PURCHASE: LESSOR hereby grant unto the LESSEES the option to purchase the leased premises and all
    improvernents thereon during the period September 1, 1996 through August 31,2000 (or August 31,2001 should the lease be
    extended) for the purchase price of Seventy-six Thousand and No/iQO (~76,000.00) Dollars, with all payments under the lease
    credited toward the purchase price. If LESSEES desire to exercise this purchase option, they shall do so only by written notice
    delivered to the LESSOR during the period above stated and~thi option, if not exercised, shall expire on August 31, 2000 (or
    August 3 I, 2001 should the lease be extended).

LESSOR~ in consideration of the purchase price, shall, at the closing to be held in Lexington, South Carolina, convey said
property in fee simple, except those easemeilts and restrictions ofrecord, to the LESSEES. their heirs and assigns, by warranty
Deed, free ofany encumbrances which adversely afl’ect the marketable title. The costs of Deed preparation and Documentary Taxes
shall be paid by the LESSOR and all other closing costs shall be paid by the LESSEES. Lexington County Property Taxes and
water billings shall be pro-rated to the date ofclosing. If for anv reason the LESSORS are unable at closing to deliver title to the
property insurable by a reputable title company at normal rates without exception as to any matter adversely affecting
marketability, the LESSEES shall promptly notify the LESSOR ofthe objections and LESSOR may have a reasonable amount of
time extension within which to cure such defects, The purchase price of Seventy-six Thousand and NoIiOO ($76,000.00) Dollars
shall be secured by a Promissory Note and Mortgage to the LESSOR by the LESSEES for a period not to exceed Thirty (30) Years
at an interest rate of8.75% per anrium. The Mbitgage term shall be the initial term ofThirty (30) Years, less the number of

years which the property is leased. The monthly payment, inclusive of principal and interest, shall be $597.90, and in addition
LESSEES shall pay to tile LESSOR the sum of$l 52.00 per month for escrow for taxes arid insurance for a total monthly payment
of $750.00 . All payments hereunder shall be on or before the first day of each month …A late charge of$50.00 shall be imposed
upon any payment not received within Fifteen (15) Days ofthe due date.

  1. RENTAL: The LESSEES shall pay unto the LESSOR the sum ofTwo Thousand Five Hundred and no/i00
    ($2,500.00) Dollars as a down payment upon the execution of this Agreement, with rental payable in monthly installments of Seven
    Hundred Fifty and No/lOO ($750.00) Dollars each, payable on or before the first day ofeach month. For aiw payment riot received
    by the 15th day ofthe month, a Fifty ($50.00) Dollar late payment shall be imposed. Until flirtlier notification, LESSEES shall
    make all rental payments to Eva S. Sanders at 157 Emerald Isle, Chapin, South Carolina 29036.

  2. OTHER PAYMENTS: LESSEES shall pay all property taxes due to Lexington County, the City of Lees’ville,
    arid Lexington County School District Number Three (3) and any and all city, county or other ad valorem taxes on assessments
    levied upon the subject property of the LESSEES located on such preinises, and shall provide LESSOR proofofthe payrnent ofall
    such taxes, which payments shall be paid monthly with principal and interest by the LESSEES. LESSEES shall be additionally
    solely responsible for the payment of all utility charges of any kind, including but not limited to, gas, electric, water, sewer, and
    telephone. It shall be the sole responsibility of the LESSEES to provide insurance. coverage upon their personal property utilized
    during the course oftheir occupancy ofthe subject premises. LESSEES shall maintain and repair the premises as required to keep all
    improvements arid parking in a first-class tenable condition, and other charges or expenses which may arise or result from his
    occupancy ofthe rented premises.

  3. CONDITION OP PREMISES: LESSEES have inspected and accepts the leased premises in the same condition they
    are in at the time of the commencement ofthe term ofthis lease.

  4. REPAIR AND CARE OF BUILDING BY LESSEES: LESSEES shall, throughout the term of tl’is lease, at their own
    expenses, maintain in good order and repair the leased premises, including the building and other improvements located thereon.
    Such repairs by the LESSEES shall include as applicable, but are not limited to, repairs to electrical and plumbing systems and
    fixtures, air conditioning and heating systems and fixtures, and mowing ofgrass and care ofshmbs. LESSOR shall maintain pest
    control inspection and treatment ofpremises as required.