Clauses In My Contract
I have been editing my contracts and I found that my Residential Lease w/option to purchase(built in) has only a small clause reguarding the option to purchase. Here it is
5. OPTION TO PURCHASE: Tenant is hereby given an option to purchase the leased premises, the option being exercisable only during the time between _______________________, 20____, and _______________________, 20____, inclusive, for a purchase price of $__________________, payable in cash at closing. Within ___ days after Tenant has exercised this option as herein above provided, the Landlord shall deliver to Tenant a Certificate of Title covering the leased premises, prepared by a reputable attorney whose Certificate of Title is insured by a reputable Title Insurance Company doing business in this state. Said Certificate shall reflect fee simple title to the subject property and shall be subject only to taxes for the current year, easement, rights-of-way of record, and mineral reservations. Closing of the conveyance between Landlord and Tenant shall take place within ________ days of Landlord's delivery to Tenant of an acceptable Certificate of Title as provided herein. All expenses of the sale including survey, attorney's fees, recording fee and any other cost shall be paid by Buyer. Taxes shall be prorated. Upon giving notice of intent to exercise the Option to Purchase, Tenant shall simultaneously deposit earnest money toward the purchase of the home with Landlord in the amount of $______________ which will be applied toward the purchase price at closing. Tenant shall exercise due diligence to obtain financing to purchase the home. If Tenant in good faith is unable to obtain financing then the earnest money shall be returned. In the event the lease is terminated by Landlord for reasons other than failure of Tenant to exercise due diligence to obtain financing then the earnest money shall be returned to Tenant. Otherwise the earnest money shall be retained by Landlord as Option money which is non-refundable.
I will use a lease and seperate option agreement when I L/O to a tenant. The lease w/built in option agreement, I will be using for L/O w/ sellers.
If I can agree on a price w/seller what stops them from later changing the terms of the purchase, or making my purchase difficult. Should I be executing a sales contract at the time of L/O or just adding a few favorable clauses in/or in addition to my option clause? Thanks for any input.
P.S. Anyone have any killer clauses you may have developed from experiance or learned the hard way?
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