Option to Purchase
OPTION TO PURCHASE
ARTICLE --OPTION TO PURCHASE It is further agreed for and in consideration of the mutual covenants and agreements contained herein, including the rental payments herein reserved, and the additional valuable consideration in the sum of _____________, that any time during the first year of the term of this Agreement and Lease, the Lessee shall have the option to purchase the Premises and Property at the price of ___________, and during the second year, at the price of ___________. If the Lessee elects to purchase the Premises and Property, he shall give written notice to the Lessor no less than _______ days prior to the expiration of the lease term, or intended purchase date, whichever first occurs in time, signifying his intentions. Lessor shall convey to Lessee, by bargain and sale deed without covenants against grantor, good and marketable title to the Real Property and Premises, subject to all liens, encumbrances, encroachments, easements, rights of way (public or private), boundary agreements, covenants and restrictions of record; to any zoning ordinance or rules which may affect the Real Property and Premises; to any state of facts shown on an accurate survey of the Real Property and Premises; and, to any condition which a reasonable inspection of the Real Property and Premises would reveal. Lessor shall deliver the fully executed Deed to Lessee, and Lessee shall pay to Lessor the full purchase price in certified funds, upon the date of closing herein set forth. Time is of the essence of this agreement of sale. In the event this option is exercised in accord herewith, Lessee may, at Lessee's option, either pay the purchase price in full at time of closing, or, in the alternative, pay ______ percent of the purchase price in cash at the time of closing and for the balance give to Lessor, Lessee's bond and mortgage, in form and content satisfactory to Lessor, repayable in equal quarter annual installments of principal and interest over a term of ______ years. The interest rate shall be equal to the so-called prime rate for preferred commercial borrowers at ________ plus _________ and shall be subject to adjustment on each payment date only to reflect change, if any, in the socalled prime rate. Such mortgage shall be repayable in whole or in part without penalty and the payment of the balance shall hereupon be accelerated to the extent that such prepayment amounts shall be applied to the last mortgage payments, pro tanto. Lessee shall pay all transfer, sales, and mortgage taxes and recording fees. Closing shall take place at ____________________ within _______ days after Lessee notifies Lessor of Lessee's election to exercise the within option to purchase. Real property taxes, sewer and water rents, and other taxes of a recurring nature which are payable annually and shall have been paid by Lessor, shall be pro-rated between Lessor and Lessee as of the closing date of the tax year during which the transfer occurs. Upon transfer of title, this Agreement and Lease shall cease and determine and the Lessor agrees to refund any prepaid rent and if the transfer of title takes place after the stated expiration date, this lease shall be extended on the same terms and conditions. This option and the rights and privileges hereunder shall expire upon the termination of the term of this lease, except for the closing of any transfer scheduled to take place after the termination of this lease. Without previous written consent of the Lessor first had and obtained,
Option to Purchase
neither the Lessee nor the Lessee's legal representatives or successors in interest by operation of law or otherwise, shall assign this option.
Option to Purchase: Lessee shall have the option to purchase the premises upon ninety (90) days prior notice or in the event of destruction of the premises upon thirty (30) days notice during the initial Term or any renewals thereof for the then applicable price set forth in Exhibit ( ) attached hereto. In the event Lessee exercises its option to purchase, Lessee shall thereupon purchase from Lessor and Lessor shall sell and convey by grant deed to Lessee the premises in their then condition, free and clear of all liens, charges and encumbrances other than those which have been incurred by Lessee, if any there be, or imposed as a result of any obligation of Lessee, and other than current taxes not yet delinquent, and thereupon Lessee shall pay to Lessor the entire and full consideration therefor. Rent and taxes shall be prorated as of the closing. Transfer taxes, recording fees on the deed, cost of title policy, charges of escrow and all other closing costs shall be born equally between the parties. Lessor shall pay any real estate brokerage fees, if any, due upon the exercise of this option.
Purchase Option: Lessee shall have the option during the term of this lease, or any extension thereof, to purchase the Premises for the sum of ______ _________________________ dollars ($_________) payable on delivery of deed. This option shall be exercised by Lessee giving to the Lessor written notice of its election to purchase. If prior to the exercise of this option, any portion of the Premises shall be taken by condemnation or eminent domain, this option to purchase shall apply to the remaining portion of the Premises and the aforesaid purchase price shall be reduced by the amount of the award in the condemnation proceedings.
Transfer of Title: In the event of the exercise of an option to purchase under Paragraph(s) ( ) conveyance of a good and merchantable title to the Premises shall be made by the Lessor to the Lessee, or its nominee, by a General Warranty Deed, recordable in form, bearing required transfer or tax stamp, free and clear of all liens and encumbrances; and the purchase price shall be paid to the Lessor on delivery of the deed. Promptly upon notice of the exercise of the option, Lessor shall furnish to Lessee a down-to-date abstract of title or a prepaid title insurance binder and title report of a title company acceptable to Lessee in the amount of the purchase price showing a good and merchantable title in Lessor or thereafter promptly cured by Lessor to show such title; Lessee shall have a reasonable time to examine the title report submitted and title meeting the requirements hereof or otherwise found to be acceptable to Lessee. Current taxes and rent for the month in which the sale and purchase is completed shall be apportioned to the date of closing. In the event of the exercise of the option to lease under Paragraph ( ),
Option to Purchase
Lessor and Lessee shall enter into a further written lease conforming to the terms and provisions of the offer as to which Lessee exercised its option and as Lessor and Lessee may otherwise agree; such instrument shall be prepared and submitted by Lessee to Lessor.
PURCHASE PRICE Lessor: __________________________________ Lessee: __________________________________ Date of Lease: ___________________________
During the Term of this Lease and any extensions thereof the purchase price of the premises shall be:_______________________________________________. This exhibit is attached to the Lease pursuant to Paragraph ( ). Initials Lessor:__________ Exhibit ( ) Lessee:__________