WORK FOR EQUITY REAL PROPERTY POSSESSION AND LEASE AGREEMENT
Sweat Equity Program
Table of Contents
1. PREMISES 3
2. INITIAL TERM 3
3. POSSESSION AND OCCUPANCY 3
4. RENT AND SECURITY DEPOSIT 4
5. CONDITION AND IMPROVEMENTS 4
6. USE 5
7. SMOKE DETECTORS 5
8. MAINTENANCE, REPAIRS 5
9. APPLIANCES 6
10. ALTERATIONS 6
11. RULES AND REGULATIONS 6
11.1 Locks and Burglar Alarms 6
11.2 Utilities 6
11.3 Telephones 6
11.4 Storage 7
11.5 Good Housekeeping Expected of Everyone 7
11.6 Pest control 7
11.7 Furnace maintenance 7
11.8 Kerosene Heaters and Appliances 7
11.9 Waterbeds 7
11.10 Vehicles 7
11.11 Yard care 7
11.12 Gutters 7
11.13 Basements 7
11.14 Septic 7
12. PETS 8
13. PROPERTY LOSS & LIABILITY 8
14. RENTERS’ INSURANCE 8
15. RADON GAS DISCLOSURE AND DISCLAIMER 8
16. FIRE 8
17. RIGHT OF ACCESS 8
18. COMPLIANCE WITH LAWS 9
19. ASSIGNMENT AND SUBLETTING 9
20. BANKRUPTCY 9
21. EMINENT DOMAIN 9
22. ATTORNEYS’ FEES AND COSTS; ARBITRATION 9
23 DEFAULT AND CROSS-DEFAULT 10
24. QUIET ENJOYMENT 10
25. ABANDONMENT OF PREMISES 10
26. INDEMNIFICATION 11
27. HOLDING OVER 11
28. NET LEASE 11
29. LATE PAYMENT PENALTY 11
30. EXCULPATORY CLAUSE 11
31. EVICTION 11
32. FAILURE OF LESSOR TO ACT 12
33. REMEDIES CUMULATIVE 12
34. NO ESTATE IN LAND 12
35. NON-RECORDATION 12
36. LESSOR’S PERMISSION OR CONSENT 12
37. ACCURACY AND RESPONSIBILITY 12
38. SUBORDINATION 13
39. NOTICES 13
40. INDEMNIFICATION 13
41. SEVERABILITY 13
42. GENDER 13
43. COMPLETE AGREEMENT 13
44. ADDENDA 13
45. MISCELLANEOUS 13
EXHIBITS
Lease Rider Exhibit “A”
Premises Inspection and Repair Form Exhibit “B”
Real Estate Purchase Option Agreement Exhibit “C”
Down Payment Assistance Program Exhibit “D”
REAL PROPERTY POSSESSION AND LEASE AGREEMENT
Sweat Equity Program
THIS REAL PROPERTY POSSESSION AND LEASE AGREEMENT, (hereinafter referred to as the “Agreement”) made as of the ______day of______200______, by and between ______. (hereinafter referred to as “lessor”), and:
Lessee 1:______Lessee 2:
Name______Name______
an individual, whose address is: an individual, whose address is:
Address______Address______
City, State, Zip______City, State, Zip______
(hereinafter referred to (and if applicable, collectively) as “lessee”).
In consideration of the rents and mutual covenants herein set forth, lessor and lessee agree:
1. PREMISES. The lessor leases to the lessee and the lessee rents from the lessor the premises described in Exhibit “A” attached hereto, together with all improvements thereon, (herein referred to as the “premises”), under the following terms and conditions.
2. INITIAL TERM. The initial term of this Agreement shall commence on and continue until the dates set forth in Exhibit “A “, unless extended or sooner terminated as hereinafter provided.
3. POSSESSION AND OCCUPANCY.
A. Possession. Should lessor be unable due to a lack of habitability of the premises, to deliver effectual possession of the premises at the commencement of this Agreement, lessor shall not be liable for damages caused thereby, nor shall this Agreement be void or voidable rather lessee shall be liable for the rent notwithstanding possession is delayed.
B. Occupancy. Only upon substantial completion of items set forth in Exhibit "B", shall Tenant occupy the premises. The premises shall be used only as a family residence by the Tenant and by members of the Tenant's immediate family. The premises will not be used or allowed to be used for any unlawful purposes or for any purposes deemed hazardous by the Landlord or Landlord’s insurance company because of fire or other risk and that Tenant will conform with and obey the laws, ordinances, rules, regulations, requirements and orders of all governmental agencies having jurisdiction on said premises and the use and occupancy thereof.
4. RENT.
A. Rent. The lessee agrees to pay to the lessor rent for the premises during the term hereof in monthly installments on the 1st day of each month in advance and without notice which rent shall be payable to lessor in the amount and at the address shown on Exhibit “A” or at such other place as lessor may hereafter specify in writing. The annual rental shall be the amount set forth on Exhibit “A” and which is paid by the # monthly installment amount set forth in Exhibit “A “. Said installment shall be paid for each and every month during the “Term” of this Agreement. MAILING THE RENT BY THE DUE DATE DOES NOT CONSTITUTE PAYMENT. RENTS MUST BE RECEIVED AT THE OFFICE OF THE LESSOR BEFORE 5:00 0‘CLOCK P.M. ON THE DUE DATE OF EACH MONTH TO BE CONSIDERED PAID. MONIES RECEIVED ARE APPLIED FIRST TO CLEAR OUTSTANDING BALANCES, IF ANY, AND THEN TO THE CURRENT RENT. CASH WILL NOT BE ACCEPTED.
5. CONDITION AND IMPROVEMENTS. Lessee accepts premises in its present “AS IS” condition and acknowledges a list of any existing damages or items needing repair, replacement, installation and/or maintenance to the premises was received previously, and Lessee was given the right to inspect the premises in its “AS IS” condition, lessee approved such list and accepts the premises in such state specifically in consideration of the reduced rent or purchase price charged by lessor and with the clear understanding lessee shall undertake directly or through third parties approved by lessor, all such items needing repair, replacement, installation and/or maintenance. Lessee accepts the premises, notwithstanding same is uninhabitable presently and will not be, until such repairs, replacements, installations and/or maintenance are finished by or through lessee. Lessee acknowledges receipt of the “Premises Inspection and Repair Form” (a copy of which is attached as Exhibit “B “) and accepts the responsibility to complete the items on said form, within the time period and deadline set forth in Exhibit "B" and begin same within seven (7) days of lessee’s execution hereof. Lessee accepts all risks attendant with possession of the premises and agrees categorically not to inhabit in any way the premises until the items set forth on Exhibit “B” are accordingly and respectively repaired, replaced, installed and/or maintained all to the approval of lessor and in accordance with applicable law, regulation or ordinance. Lessee waives any and all claims whatsoever against lessor based upon the condition of the premises at the time of the execution of this Agreement and lessee’s possession thereof and shall hold lessor harmless from and against any and all claims, cause of actions, damages, cost, fees or otherwise sustained by lessor as a result of lessee failing to complete the items set forth on Exhibit “B”, timely, completely or in accordance with a workman-like manner or applicable law. Such indemnity shall extend to the acts or failures to act on the part of any third party licensed, invited, permitted or engaged to undertake any such repair, replacement, installation, maintenance or necessary work to the premises and regardless of whether for or without lawful considerations. Lessee understands there are no warranties by Lessor (express of implied) as to habitability of premises.
If lessee completes all repairs, replacements, installation, maintenance or other work set forth on Exhibit “B” and to the complete satisfaction and approval of lessor but notwithstanding, fails to timely execute the Option Agreement as set forth on Exhibit “C’ then lessee shall not be entitled to any remuneration or considerations for the repairs, replacements, installations or maintenance of the premises regardless of the value of or significance to the premises. Lessee understands the reduced rent or purchase price provided lessee is the full and complete consideration for any and all improvements hereunder made or required to be performed by lessee according to the provisions hereof and prior to and during lessee’s possession of the premises.
6. USE. The premises may be used for residential purposes only and shall be occupied only by the lessee as the named individual(s) in the original Application for possession and named on Exhibit “A” attached hereto. The premises shall be used so as to comply with all state, county and municipal laws and ordinances and shall be kept in a clean and orderly condition. Lessee shall not use the premises or permit it to be used for any disorderly or unlawful purpose or in any manner so as to interfere with neighbors. Lessee shall be responsible and fully liable for the conduct of his guests. Acts of guests in violation of this Agreement or lessor’s rules and regulations may be deemed by lessor to be a breach by lessee. Lessee shall not use the premises or occupy same until the repairs, replacements, installations and/or maintenance referenced in Section 5 above and set forth under Section 9 below, are completed, and/or applicable, as otherwise necessary to assure the premises are considered habitable under applicable ______law.
7. SMOKE DETECTORS. Lessee acknowledges the requirement for working smoke detectors in the premises, and agrees to install if necessary and in all events, test all detectors weekly for proper operation, and further agrees to replace any batteries (if so equipped) when necessary. Lessee further acknowledges an ability and understanding of how to test and operate the smoke detector. Lessee also agrees to repair or replace any inoperative smoke detector immediately should it fail to operate properly during any test.
8. MAINTENANCE, REPAIRS. Lessee acknowledges the premises are NOT in good order and repair, and rather requires the repairs, replacements, installations and/or maintenance of items and work as listed specifically on Exhibit “B” attached hereto and by this reference made a part hereof At Lessee’s expenses and at all times before and during possession of the premises and following the date hereof, lessee will complete in a workmanlike manner such items listed on Exhibit “B” in order to bring to a state of habitability and repair and thereafter maintain fully, the premises and other improvements in good condition and repair, including the outside walls, roof and floor of the premises and the surface of the parking areas, sidewalks and driveways. Lessee also agrees to so first complete as is necessary and prior to occupancy, and thereafter to keep, the inside of the premises in good repair, including the plumbing, electrical, wiring, air conditioning and heating equipment and all appliances, and to paint walls if necessary and be responsible for all glass and casualty damage. Any and all work done or to be done by lessee in or about the premises shall only be done by lessee directly and the individual industry thereof or under written contracts or contractor’s proposals by third parties and contractors approved in advance by lessor. Upon any termination of this Agreement, and if lessee does not or cannot exercise the Option Agreement then lessee shall surrender possession of the premises in good and tenantable repair, reasonable, wear and tear excepted. Lessee expressly stipulates and agrees lessor is granting a discount on the option price (if option exercised), in exchange for lessee agreeing to perform and to bear the expense of all repairs. replacements. installations and/or maintenance of the items on Exhibit “B” and to the premises directly or through third parties approved by lessor. as are necessary in lessor’s determination and under applicable law, to place the premises in a state of habitable repair. Lessor shall NOT be responsible for any such required repairs. replacements. installations and/or maintenance of the premises during the term of this Agreement. If lessee’s repair, replacement, installation and/or maintenance responsibilities conflict with any state laws to the contrary, then lessee as allowed by law, agrees expressly to waive and relinquish fully any protections so provided or to the extent so allowed by law. Lessee shall be responsible for damages caused by lessee’s failure to perform completely or in a workmanlike manner, the required repairs, replacements, installations and/or maintenance to and of the premises and for lessee’s negligence and of lessee’s family, invitees, licensees and guests. Lessee shall mow, irrigate and maintain any surrounding grounds, including lawns, shrubbery and gutters, and keep the same clear of rubbish, trash, weeds or leaves if such grounds are part of the premises and are available for the use of lessee. Should lessee fail to do so, lessor, after attempting to notify lessee, may, but is not required to, maintain lawns and/or shrubbery by using a professional yard maintenance company. Lessee agrees to pay the cost of any such yard maintenance as additional rent.
9. APPLIANCES. All appliances of any kind, including but not limited to, window air conditioners, are excluded specifically from this Agreement. Such appliances remain as a convenience to lessee and lessor assumes no responsibility for their operation. No part of the monthly rent is attributable to them upon move-out. Any appliance installed on the premises after the signing of this Agreement shall belong to lessor if this Agreement is terminated and the Option Agreement is not exercised or otherwise if lessee vacates, surrenders or is evicted from the premises.
10. ALTERATIONS. Except the items to be completed on Exhibit “B”, lessee will not make, or allow to be made, any other alterations, repairs, replacements, installations or redecoration of any kind to the premises without prior written permission of lessor; provided, however, and notwithstanding such consent, lessee agrees all alterations including, without limitation, any items affixed to the premises, shall become the property of lessor upon the termination of this Agreement. This includes, but is not limited to, appliances, HVAC systems and units, ceiling fans, mini blinds, carpeting, fencing, lighting fixtures, shrubs, flowers, etc. Removal of these items shall be considered theft subject to civil and criminal prosecution.