|
Lease to trust company with option to extend or purchase. 1. Lessor has this day leased to lessee [_________ trust company] the following described lands located in the city of _________, namely: _________, for a term of _________[e.g., 15] years beginning on _________[year], and ending on _________[year]. 2. Lessee agrees to pay and lessor agrees to accept as rent for the demised premises during the term of this lease the sum of $_____ per month, payable in advance on the _________ day of each month through and including the _________ day of _________[year], and the sum of $_____ per month, payable in advance on the _________ day of each month beginning on _________[year], through and including _________[year]. 3. Lessee agrees that during the terms of this lease it will pay all property and ad valorem taxes and special assessments levied against the leased premises and on any building lessee may elect to construct on the leased premises, and that it will pay all insurance on the buildings on the leased premises or any replacement thereof, and all costs of operation, maintenance and repair of the buildings or any replacement thereof, and all utility charges, including, but not limited to, water, gas, lights, sewer service, telephone and garbage disposal. 4. Lessee covenants that it will: (a). Pay rent at the times and place and in the manner aforesaid. (b). Use and occupy the leased premises in a careful and proper manner. (c). Not use or occupy the leased premises for any unlawful purposes; and will conform to and obey all present and future laws, and ordinances and all rules, regulations, requirements and orders of all governmental authorities or agencies, respecting the use and occupation of the leased premises. (d). Indemnify and save harmless lessor from and against any loss, damage and liability occasioned by, growing out of, or arising or resulting from lessee's occupation of the leased premises, or from any tortious or negligent act on the part of lessee, its agent or employees. (e). Maintain buildings on the leased premises, or any replacement thereof, in the same condition that they now are, or in the condition that they may be placed by the lessee during the term of this lease, ordinary wear and tear excepted, and lessee further agrees that upon the termination of this lease and in the event that the option to extend this lease contained in paragraph 7(a) hereof is not exercised, or upon the termination of the extended period of this lease, and if the option to purchase contained in paragraph 7(b) hereof is not exercised by lessee, the leased premises and the buildings thereon will revert to lessor, free and clear of any claim of lessee. 5. Lessor covenants: (a). That lessor has good and merchantable title to the leased premises, free and clear of all liens and encumbrances, except _________. (b). If lessee shall pay rent as provided herein and shall keep, observe and perform all the other covenants of this lease, lessee shall and may peaceably and quietly have, hold and enjoy the demised premises for the term aforesaid. (c). Lessor agrees that any purchaser, assignee, mortgagee, or pledgee of the lessor's interest in the leased premises, or the lessor's interest in this lease, shall be bound by the terms of this lease and the options contained herein, and the deed held in escrow under the escrow agreement mentioned herein, shall constitute the first and prior claim against the leased premises, subject only to _________[e.g., lessor's prior deed of trust to _________, trustee for _________, dated _________,]. 6. It is further agreed: (a). If lessee shall at any time be in default in the payment of rent herein reserved, or in the performance of any of the covenants, terms and conditions or provisions of this lease, and the lessee shall fail to remedy such default within _________ days after written notice thereof from the lessor, lessor may elect to cancel this lease and retake possession of the demised premises. (b). Lessor hereby grants to lessee the right to demolish all buildings and other structures now located on the leased premises, at the expense of lessee, and in the event that lessee elects to demolish those buildings, lessee agrees that it will construct upon the leased premises a building for _________[e.g., banking] and other purposes, the materials, design, and costs of the building to be determined at the sole discretion of lessee, provided that the building to be erected by lessee shall be at least equivalent in value to the existing buildings on the leased premises. (c). Lessor shall give written notice to all tenants now in possession of any of the leased premises to quit and deliver the premises to lessee on or before the _________ day of _________[year], and lessor covenants that all these tenants will deliver possession to the lessee on or before that date. (d). Lessor agrees that lessee shall be entitled to receive all rents coming due from tenants now in possession of any part of the premises from and after the date of this lease, and lessor agrees to pay to lessee all unearned rentals collected in advance by lessor as of the date of this lease. (e). Lessor agrees to pay to lessee the earned portion of [year] property and ad valorem taxes prorated as of the date of this lease. 7. Options: (a). Lessee, upon the termination of this lease, shall have the right, at its option, to extend this lease for an additional period of _________ years, beginning the _________ day of _________[year], and expiring on the _________ day of _________[year], upon the same terms and conditions as herein set out, except that the monthly rental for such extended period shall be $_____ a month, payable in advance on the _________ day of each month during the term of the extension, provided that the lessee shall give written notice of its intention to exercise this option to extend the lease at least _________ days before the termination of the original term of this lease. (b). In the event that lessee shall exercise its option to extend this lease for an additional period of _________ years as set out in the next preceding paragraph (a) lessee shall have the further option, at any time during the term of the _________ year extension of this lease, to purchase the leased premises from lessor for the sum of $_____, provided that lessee shall give _________ days' notice of its intention to exercise its option to purchase in writing. In the event that lessee shall exercise its option to purchase the leased premises during the term of the _________ year extension of the lease, lessor agrees, upon payment of the purchase price to deliver to lessee a warranty deed with federal revenue stamps attached, conveying the leased premises to lessee absolutely and in fee simple, free and clear of all encumbrances. (c). Lessor has deposited with _________ bank of _________, in escrow, a warranty deed conveying the leased premises to lessee, and federal documentary stamps of face value of $_____. The terms of the escrow agreement with the escrow agent provide that in the event lessee exercises the option to extend this lease, contained in paragraph (a) above, and in the further event that lessee, at any time during the term of the extension of the lease, exercises its option to purchase the leased property, the escrow agent shall deliver to lessee the warranty deed with documentary stamps attached, upon payment to escrow agent of the sum of $_____ for the account of the lessor. In the event that lessee does not exercise its option to extend the original term of this lease, or in the event that lessee does not exercise its option to purchase the leased premises during the extended term of this lease, the warranty deed and documentary stamps shall be returned to lessor.
Browse Real Estate Forms & Mortgage Forms Alphabetically
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Home Courses Real Estate Forms Income Properties For Sale • Forums Real Estate Articles Copyright © 2001 - 2006, Buy Income Properties, Inc. All Rights Reserved. Privacy Policy in Observance.
|