RESIDENTIAL OPTION TO PURCHASE AGREEMENT
This Agreement, dated is voluntarily made and entered into between
[swift_name name="name" size="medium"] (hereafter "TENANT(S)”), and,
Shahi Mahmood , (hereafter “LANDLORD”). LANDLORD retains the right to assign this agreement. LANDLORD retains the right and discretion to appoint any representative, intermediary, or consultant to assist, fulfill, or execute any portion of this agreement.
LANDLORD owns/controls certain real property and improvements in Brown County, Indiana, hereafter “the property,” at the address of:
[1969 Upper Schooner Rd, Nashville, IN 47448 / APN ]
- OPTION TO PURCHASE: For valuable consideration of a Non-Refundable Option Consideration Payment and the assurance of TENANT(S) to perform all obligations, terms, and conditions stated herein under this Option To Purchase Agreement, LANDLORD grants to TENANT(S) and TENANT(S) accept from LANDLORD, the exclusive right, option, and privilege, but not obligation, to an Option To Purchase the property. The terms and conditions of this Option To Purchase Agreement, as mutually agreed upon by TENANT(S) and LANDLORD, are as follows:
- Option Purchase Price: $120,000.00 (One Hundred and Twenty Thousand Dollars). This amount is a Pre-
Negotiated and Fixed Purchase Price of the property agreed upon by both parties, pursuant to the TENANT(S) successfully exercising their option to purchase the property within the option term, without default on the terms of this agreement. This option to purchase agreement is Not contingent upon any property market valuation, depreciation, appreciation, or speculation. TENANT(S) acknowledge that real estate values may fluctuate over time. TENANT(S) accept any decline or increase in the current or future valuation of the property.
- Option Term: Months. Time is of the essence for this agreement. The option to purchase
will terminate automatically without notice and become null and void in its entirety if not exercised on or before the expiration date of the option term. The option term begins on June, 1, 2017 and expires on May, 31, 2018 . With prior written approval of LANDLORD, a single option term extension, of six months, may be granted to TENANTS. LANDLORD may receive an additional option consideration payment for granting such extension.
- Exercise Of Option: TENANT(S) may exercise this option to purchase at any time during the option term by:
- Providing written notice to LANDLORD of TENANT(S)’ decision to exercise the option with a minimum of 60 days’ notice prior to expiration of the option term; AND
- Signing a Residential Purchase Agreement/Agreement of Sale and submitting to LANDLORD for review and acceptance, according to the terms herein, AND
- Submitting certified funds to the Settlement Agent as Non-Refundable Earnest Deposit in the amount of 2% of the Purchase Price, upon LANDLORD’s acceptance of the purchase
- Settlement Closing Date: TENANT(S) will close settlement on or before the expiration of the option term. TENANT(S) agree to pay a per diem of $200.00 (Two Hundred Dollars) per day for each day that settlement does not close thereafter. Time is of the essence for this agreement.
- Option Fee: $1,500.00(One Thousand Five Hundred Dollars). The Option Fee is Expressly a
NON-REFUNDABLE OPTION CONSIDERATION (NROC) PAYMENT: NROC funds are due from
TENANT(S) payable to LANDLORD as an Option Consideration Only, and solely in order to secure the Option to Purchase the property. NROC funds are due to LANDLORD before the start of the option term. NROC funds secure the benefits and terms outlined in the option agreement for the option to purchase the property during the option term, notably: (1) The Option Purchase Price of the property is pre-negotiated and fixed during the option term; (2) Any lease payments are fixed during the option term; (3) LANDLORD shall reserve the property at the option purchase price for TENANT(S) exclusive option but not obligation to purchase during the option term, wherein LANDLORD may not sell or lease the property to another party during the option term; and (4) Upon the TENANT(S) successful exercise of option to purchase, LANDLORD will grant the TENANT(S) a purchase credit upon acceptance of purchase agreement, by applying the amount of the option fee paid, to reduce the property purchase price listed on the purchase agreement.
7. IN THE EVENT TENANT(S) FAIL TO EXERCISE THEIR OPTION TO PURCHASE AS NOTED ABOVE; CANCEL THIS AGREEMENT; OR DEFAULT ON ANY TERM OF THE OPTION AGREEMENT, IN ANY WAY, AT ANY TIME, THEN TENANT(S) HEREBY ACKNOWLEDGE AND ACCEPT THAT THE NROC PAYMENT MAY BE COMPLETELY VOID AND FORFEITED BY TENANT(S) AND RETAINED IN FULL BY LANDLORD AS LIQUIDATED DAMAGES.
8. NROC FUNDS ARE NOT RECEIVED/ACCEPTED BY LANDLORD AS A DEPOSIT OR DOWN PAYMENT OF ANY KIND AND ARE NEVER REFUNDABLE UNDER ANY CIRCUMSTANCES. NROC FUNDS ARE A SEPARATE PAYMENT AND NEVER TO BE APPLIED TO ANY FORM OF DEPOSIT, LEASE PAYMENT, OR OTHER MONIES DUE TO LANDLORD.
- Possession: TENANT(S) will take/maintain Leasehold Possession of the property within days after acceptance of this agreement; upon completion of satisfactory tenant application and screening; and full payment of NROC, first month’s rent, and security deposit. This agreement is fully enforceable upon TENANT(S) taking possession. During the option term TENANT(S) may maintain Leasehold Possession only as residential living quarters and may not operate any business from the property without prior written approval from LANDLORD. No nuisance or criminal activity may take place on the property at any
- Rights and Ownership: This agreement, the NROC payment, any security deposit, any monthly rent payment, and any other payments made during the option term are not subject to settlement. Until such time TENANT(S) exercises the option to purchase, TENANT(S) remain as TENANT(S) only, and have no ownership of the property and have no equity, equitable interest, rights, or privileges to the property beyond the terms of any associated lease agreement. Title will not be transferred until the close of settlement. TENANT(S) do not own any portion of the real property, improvements, appliances, mechanical systems, or fixtures, until the deed of conveyance upon close of settlement. TENANT(S) will make no present or future claims to title or equity of the property until the close of settlement. TENANT(S) remain subject to eviction for any default of any lease agreement during the option
- 10-Day Inspection: TENANT(S) may, at their own expense, perform any physical property inspection, termite/pest inspection, survey, appraisal, or any other inspection to TENANT(S) satisfaction within 10 calendar days of the signing of this agreement and prior to possession. Since TENANT(S) will be in possession of and maintaining the property for some time prior to exercising the option to purchase, this option to purchase is Not contingent upon the results of an inspection or appraisal after acceptance and possession. Any differences between the current and future condition of the property are the sole responsibility of the TENANT(S) at all times. If TENANT(S) elect to perform inspections, TENANT(S) agree to provide LANDLORD with the reports of any such inspections, appraisals, or other reviews. TENANT(S) may also choose to waive any such inspections and accept the property in its current and future as-is condition. Upon the expiration of this 10-Day Inspection period or a waiver of such inspection, the TENANT(S) automatically acknowledge and accept the property in its current and future “As-Is” condition.
TENANT(S) Waive 10-Day Review[swift_initials].
- Maintenance: TENANT(S) are wholly responsible for 100% of any and all maintenance, care, and cleaning of the real property and landscaping, at all times during the option term, and all costs of estimates, service calls, parts, labor, and any other related maintenance or cleaning costs that may occur during the option term. TENANT(S) will ensure the landscaping, real property, and all appliances and systems are well maintained and functioning properly during the option
- Repairs: TENANT(S) are responsible for all costs associated with any and all replacement and repair of any defective component of the real property or landscaping. Any replacement or repair due in whole or in part by the actions, omissions, negligence, or accidents of the TENANT(S) or their guests will be the full responsibility of the TENANT(S). The LANDLORD retains the right to determine what may qualify for a repair or replacement under this clause and the right to inspect and validate any claim or work performed. Any replacement or repairs effecting the framing or structural components, mechanical systems, roof, foundation, rough plumbing or electrical, and windows will be completed by properly certified, licensed, and bonded persons. TENANT(S) are responsible for ensuring that any needed permits are completed and approved prior to the replacement or repair. LANDLORD retains the right to reasonably refuse any replacement or repair. Any replacement or repair completed become a portion of the property, must remain as a component of the real property, and therefore belong to the LANDLORD until the close of settlement. TENANT(S) will retain any added value to the property, only upon close of settlement.
- Alterations and Improvements: TENANT(S) must receive prior written approval from LANDLORD before making any alterations or improvements during the option term, to any portion of the real property. Alterations and improvements must be in compliance with all local, county, state, and federal regulations. Any alterations or improvements effecting the framing or structural components, mechanical systems, roof, foundation, rough plumbing or electrical, and windows will be completed by properly certified, licensed, and bonded persons. TENANT(S) are responsible for ensuring that any needed permits are completed and approved prior to initiating alterations and improvements. LANDLORD retains the right to reasonably refuse any alterations and improvements. Any alterations or improvements completed become a portion of the property, must remain as a component of the real property, and therefore belong to the LANDLORD until the close of settlement. TENANT(S) will retain any added value to the property, only upon close of
- Insurance and Property Taxes: LANDLORD will maintain adequate hazard insurance for the property and will be responsible for any property taxes due during the option term. TENANT(S) must maintain a renter’s insurance policy or other similar insurance policy and provide LANDLORD with proof of coverage within 10 business days of acceptance and upon request during the option term. LANDLORD will provide TENANT(S) with a standard One-Year Home Warranty of LANDLORD’s choice for the property to TENANT(S) within 10 business days of LANDLORD’s receipt of the option payment, and an additional or extended policy upon the close of
- Financing: TENANT(S) shall make all reasonable efforts to secure adequate financing to purchase the property before the expiration of this agreement. This option to purchase is Not contingent upon TENANT(S) ability to secure financing from a lender. If TENANT(S) are unable to secure adequate financing and are unable to purchase the property, then this option agreement shall terminate and LANDLORD will retain the option payment as liquidated damages. LANDLORD is not a lender or mortgage broker. LANDLORD makes no representations about TENANT’s ability to obtain financing to exercise the option to purchase and no representations or promises have been made to provide TENANT(S) with any
- Clear Title: LANDLORD will transfer clear and insurable title of the property upon the close of settlement. LANDLORD shall not alter nor encumber the title after the date of acceptance of the option agreement in any manner which may affect the transfer of a clear and insurable title to TENANT(S). A preliminary title report will be provided to TENANT(S) in
- Reports and Disclosures: LANDLORD will provide to TENANT(S) these or equivalent disclosures as applicable, within 10 business days of the signing of this agreement. These forms will remain acceptable and in effect through the close of
- Real Estate Transfer Disclosure Statement / Seller’s Disclosure Statement
- Natural Hazards Disclosure Statement
- Lead-Based Paint Hazards Disclosure (for Pre-1978 housing)
- Water Heater and Smoke Detector Statement of Compliance
- Carbon Monoxide Detector Notice
- Closing/Settlement and Agency Representation: LANDLORD may appoint any qualified/licensed person to represent LANDLORD in any dealings with the property, as LANDLORD deems appropriate. The Residential Purchase Agreement and any other appropriate documents needed to sufficiently initiate, process, and finalize the real estate purchase will be drafted, signed, and executed upon TENANT(S) exercise of their option to purchase the property. Upon TENANT(S) exercise of the option to purchase, the real estate purchase transaction will be processed through the representatives and closing/settlement agent of LANDLORD’s choice. Each party will be responsible to pay their own respective standard fees and expenses at closing
- Option to Purchase Contingencies: LANDLORD will return the full amount of NROC to the TENANT(S), mutually terminate the option and lease agreements, and relinquish TENANT(S) of all obligations therein, Solely upon these conditions: (1) Results and/or review of any inspection reports, appraisal, documents, or disclosures which are unacceptable to TENANT BUYER and unable to be resolved Prior to TENANT(S) taking possession of the property; (2) LANDLORD fails to provide clear and insurable title upon the close of settlement; (3) the property becomes foreclosed upon during the option term; (4) the property is destroyed by natural disaster. NO OTHER CONTINGENCIES EXIST. No Contingencies or Credits will be included in Purchase Agreement/Agreement of
- Notice: It is the sole responsibility of the TENANT(S) to conduct their own due diligence regarding all aspects of the property and this agreement prior to signing this agreement. TENANT(S) acknowledge that they are relying on their own due diligence and LANDLORD has made no representations or warranties concerning the condition of the property or the improvements thereon, any encumbrances which may exist, status of title, the neighborhood, or the value of the property, to induce TENANT(S). Any information provided to TENANT(S) by LANDLORD is for TENANT(S) consideration and action as they deem
- Prohibition of Tenant Assignment and Subletting: TENANT(S) will not sublet any part of the property or assign this agreement without the prior written consent of LANDLORD. The sublet or assignment of this option to purchase by TENANT(S) will result in the automatic termination of this option agreement and void the
- Payment of Attorney Fees in a Lawsuit: In any action or legal proceeding arising from, in relation to, or used to enforce any part of this agreement, other than the circumstances listed below, the prevailing party will not recover reasonable attorney fees and court costs. Should the LANDLORD incur any attorney fees and/or court cost as part of the process to: recover late or missed rent due by TENANT(S), proceed with an eviction of the TENANT(S), or recover costs of repairs and replacement for damages caused by TENANT(S) and their guests; TENANT(S) agree to be liable to pay the reasonable attorney fees, court costs, and relevant expenses incurred by the LANDLORD as part of those proceedings and
- Authority to Receive Legal Papers: LANDLORD and anyone designated by the LANDLORD, are authorized to accept service of process and receive other notices and demands, which may be delivered to the LANDLORD or
- Agency: LANDLORD is a principal to the transaction as an owner or investor or landlord and not acting as TENANT(S) real estate agent, fiduciary, or other representative in this transaction. Should TENANT(S) seek and hire the services of any real estate professionals in relation to this transaction or settlement, the TENANT(S) may pay fees or commissions to those persons at their discretion, in accordance with any separate agreement they may enter into with those other persons, at the full expenses of the TENANT(S). LANDLORD does not provide any legal, tax, or financial services/advice to be relied upon by TENANT(S).
- Breach of Agreement: TENANT(S) failure to comply with ANY clause of the option agreement or any lease agreement, at any time, in any way, or the omission or misrepresentation of any material fact on TENANT(S) rental application or lease agreement, will be considered a breach of agreement/default and may result in: Termination of this agreement; additional fees to be paid to LANDLORD by TENANT(S); termination of tenancy; eviction; negative reporting to the credit bureaus; and/or adverse legal actions against the TENANT(S) and any other inhabitants/occupants. If the option agreement is terminated, LANDLORD also reserves the right to terminate the lease with TENANT(S) as well as rent or sell the property to someone else, or automatically convert any remaining rental period to a month-to-month rental only. Upon any eviction or other termination of tenancy, the option to purchase will become automatically and fully void. As such TENANT(S) will fully forfeit their NROC and any other benefits of the agreement. Allowance for continued tenancy subsequent to any default of the option agreement or lease agreement does not waive in whole or in part the LANDLORD’s right to fully enforce all clauses of the option agreement, LANDLORD’s right to fully void and terminate this option agreement, or LANDLORD’s right to retain in full the NROC. TENANT(S) are always subject to eviction rather than foreclosure. Upon any default, LANDLORD may move to evict TENANT(S) and immediately repossess the property. Upon any default, TENANT(S) fully forfeit their NROC and any other benefits of the
- Recording Prohibited: The recording of this option or any memorandum thereof will result in the automatic revocation of this option and all monies paid to LANDLORD by TENANT(S) shall be retained as Liquidated Damages. In addition, TENANT(S) will be liable for all damages to title, including but not limited to, court costs, attorney’s fees, and other costs for correcting title and other records.
- Governing Law: This agreement shall be construed and enforceable in accordance with the laws of the State of Indiana.
- Severability: If any portion of this agreement shall be held to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable. If a court finds that any provision of this agreement is invalid or unenforceable, but that by limiting or revising any such provision it would become valid and enforceable, then such provision shall be deemed to be written, construed, and enforced as so limited or
- Waiver: The failure of either party to fully enforce any provisions of this agreement shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this
- Entire Agreement: This document constitutes the entire agreement between the parties, and no promises or representations, other than those contained herein and those implied by law, have been made by LANDLORD or TENANT(S). Any modifications to this agreement must be in writing signed and dated by LANDLORD and TENANT(S). No other written or oral agreements, understandings, promises, or interpretations exist. Both TENANT(S) and LANDLORD agree and warrant that only the conditions and terms as set forth herein constitute this
- Binding Effect: This agreement shall be binding and enforceable upon both parties and to their heirs, executors, administrators, successors, agents, or
- Acknowledgement and Acceptance: LANDLORD and TENANT(S) both warrant and represent by the signing of this agreement that they have read and fully understand its provisions and hereby acknowledge and accept its content. TENANT(S) may seek legal, financial, tax, or real estate consultation for review of this agreement prior to signing this
LANDLORD and TENANT(S) will each receive and maintain a mutually signed copy of this agreement.
Signed and agreed on this [swift_date_long].
[swift_initials] I also warrant I am of sober and of sound mind. [swift_date_today]
Primary Email: [swift_email name="email" required]