SWEET / Mendenhallpage 1 of 7

SWEET / MENDENHALLPage 1 of 7

1st Payment to be made:10 December, 2011

Bank of America Account #:______

Rent to Own Contract,

Lease,

and Lead Based Paint Disclosure Forms

PARTIES

This agreement for the Property is made between Creig Mendenhall (hereafterBuyer/Lessee) and Austin Sweet and Roberta Sweet (hereafter Seller/Lessor), collectively parties or seperatly party.

This contract shall be held to have begun on the sign date of 22 October 2011 (Date of Possesion with the 1st Payment of $835.00 on December 10, 2011.

THE PROPERTY

Street Address: 5006 Addie Drive, Killeen, TX 76542-6211

Property Description: Single Family Dwelling with accompanying land

OPTION TO PURCHASE

Seller grants Buyer the option to purchase property at any point during the term of the contract.

TERM OF CONTRACT

The contract shall be in effect for as long as both parties should desire, or until the property is purchased outright by the buyer (5 years and 1 month from the date of signing), or until the property is sold to a third party (5years and 1 month from the date of signing) by Buyer/Lessee.

TERMINATION OF CONTRACT

The contract may be terminated by either the Buyer/lessee or Seller/Lessor in the following way: The party wishing to terminate the contract shall provide a (90) day written notice to the other party using the “Notice of Contract Termination” Form at the end of this document.

Should the Seller/Lessor choose to terminate the contract, Seller/Lessor shall make monetary reconciliation to Buyer/Lessee for any improvements made to the Property, and completed, in the amount which the improvements cost the Buyer to make plus reasonalble consideration for labor (not to exceed the rate of the lowest third party contractor bid for comparable work).

Should Seller/Lessor decide to terminate the contract. Seller/Lessor should make monetary payment to Buyer/Lessee for the Difference between Mortgage Balance Owed and Appraised Value of Property. Appraised Value will be determined by the average of 3 separate party appraisals (which will be presented to Seller/Lessor as evidence of amount owed) before property will be returned to Seller/Lessor.

Appraised Value on:

Date:______Appraised Value:______Company:______

Name of Mortgage Company:US Bank Home Mortgage

Account Number:

Amount Owed to Mortgage Company:______

A bank account will be set-up for all payments to be made to Seller/Lessor, Buyer/Lessee recommends Bank of America Inc.

Should the Buyer/Lessee choose to terminate the contract, all improvements made to the property shall become forfeit to the Seller/Lessee and shall become the property of the Seller/Lessor. No reconciliation, monetary or otherwise, shall be due to the Buyer/Lessee.

ABANDONMENT

Should the Buyer/Lessee abandon the property prior to the termination of the contract as outlined above and below, any items, articles, possessions, or other types of property left at the Property shall become the property of the Seller/Lessor and no recourse for recovery shall be left to the Buyer/Lessee.

UTILITIES

Buyer/Lessee shall be responsible for all utilites.

MONTHLY PAYMENTS / RENT

Monthly payments/rent made to the Seller/Lessor shall be in the amount of eight hundred thirty-five dollars ($835.00) plus the amount of the home protection plan payment for the duration of this contract. Thereafter the amount of the monthly payments/rent shall be eight hundred thirty-five dollars ($835.00).

Monthly payments shall be made no later than the tenth (10th) day of each month.

Each monthly payment shall be used to by the Seller/Lessor to make mortgage payments, as well as payments for the Home Protection Plan for the duration of this contact.

FAILURE TO PAY

Failure to make the monthly payment/rent for a period of three (3) months shall be grounds for termination of the contract under the same terms as if the Buyer/Lessee were terminating the contract voluntarily.

LATE PAYMENT

Buyer/Lessee shall be responsible for each month’s even if the payment should be late. Late charges shall be applied to the payments in the amount of fifty dollars ($50.00), or a sum equal that which would cover the Seller/Lessor late payment charge to the mortgage company, whichever is greater at the time of the late payment.

HOME PROTECTION PLAN:

Seller/Lessor shall maintain a home protection plan to cover emergency situations that may arise with the maintainence of the home. As permitted by the home protection company Buyer/Lessee shall be an authorized person on the plan.

Buyer/Lessee shall be held responsible for the deductible/up-front-money required by service calls made through the home protection plan. At time of signing deductible is sixty dollars ($60.00), Seller/Lessor shall notify Buyer/Lessee of any change in deductible or policy.

PURCHASE PRICE

Upon the Buyer/Lessee’s decision to purchase the property outright, or to sell to a third party, the purchase price will be determined. The purchase price will be no lower or higher than a sum necessary to cover both: a) the Seller/Lessor’s mortgage on the property, and b) any costs of transferring ownership.

PROFIT GAINED FROM SALE OF PROPERTY

Profit, if any, from the sale of the Property shall be awarded to the Buyer/Lessee as reconciliation for improvements made to the Property.

LOSS ACCRUED FROM SALE OF PROPERTY

Loss, if any, accrued from sale of the Property shall be covered by the Buyer/Lessee ensuring that Seller/Lessor does not owe any loan/lien against the Property after the sale.

PROTECTION AGAINST ADDITIONAL LOAN/LIEN

The Seller/Lessor shall not obtain any additional loans or liens against the Property for the duration of the contract.

FINANCING

The Buyer/Lessee is Solely Responsible for obtaining financing in order to purchase the Property. Seller/Lessormake no representations or warrenties regarding the availability of financing.

CLOSING AND SETTLEMENT

The Seller/Lessor shall not be responsible for closing or settlement costs. Such costs will be covered by the Buyer/Lessee or a third party.

MODIFICATION

Any modification made to the contract shall void this agreement. If modifications are desired / required a new contract shall be issued.

LIABILITY

The Seller/Lessor is not liable for damages that may occur to persons or property during the tenancy of Buyer/Lessee.

The Buyer/Lessee shall be responsible for any damages to the Property resulting from Buyer/Lessee tenancy should the contract be terminated.

a)Obtaining Permits: Buyer/Lessee must notify Seller/Lessor before obtaining permits, or authorize third parties to obtain permits, on behalf of the Seller/Lessor for the purpose of making modifications and repairs to the Property provided that Seller/Lessor is not held liable for debts incurred in obtaining permits.

b)Hiring Contractors: Buyer/Lessee must notify Seller/Lessor before hiring contractors to make modifications and repairs to the Property provided that the Seller/Lessor is not held liable for debts to the contractor(s).

c)Hiring Real Estate Agents: Buyer/Lessee may hire real estate agents for the purpose of selling or subletting the Property provided that the Seller/Lessor is not liable for debt(s) to agents.

d)Procuring a Third Party Buyer: Buyer/Lessee may procure a third party buyer for the Property provided that no claims are made as to any liability of the Seller/Lessor.

Printed Name of Buyer/Lessee: Signature of Buyer/Lessee:

Creig L. Mendenhall______

______

Date

ACKNOWLEDGEMENT

State of Texas

County of (Bell)

On ______before me,______

(insert name and title of the officer)

personally appeared ______,

who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/aresubscribed to the within instrument and acknowledged to me that he/she/they executed the same inhis/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument theperson(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of Texas that the foregoingparagraph is true and correct.

WITNESS my hand and official seal.

Signature ______(Seal)

Printed Name of Seller/Lessor:Signature of Seller/Lessor:

Austin Reed Sweet(By General POA)______

______

Date

Roberta Christine Sweet______

______

Date

ACKNOWLEDGEMENT

State of Texas

County of (Bell)

On ______before me,______

(insert name and title of the officer)

personally appeared ______,

I certify under PENALTY OF PERJURY under the laws of the State of Texas that the foregoingparagraph is true and correct.

WITNESS my hand and official seal.

Signature ______(Seal)

NOTICE OF CONTRACT TERMINATION

I ______, known in the contract as (Circle One):

Seller / Lessor
Buyer / Lessee

hereby give notice of my desire to terminate our contract/agreement as of ______.

(Date)

I agree to abide by all terms and conditions in the contract and further agree that this contract shall terminate as of ninety days (90) after the above date.

Appraised Value on:

Date:______Appraised Value:______Company:______

Name of Mortgage Company:US Bank Home Mortgage

Account Number:______

Amount Owed to Mortgage Company:______

Printed Name of Person Terminating Contract: Signature:

______

Date

ACKNOWLEDGEMENT

State of Texas

County of (Bell)

On ______before me, ______

(insert name and title of the officer)

personally appeared ______,

who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of Texas that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature ______(Seal)

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