Rent To Own Contract
CONTRACT OF LEASE WITH OPTION TO PURCHASE (RENT-TO-OWN CONTRACT)
KNOW ALL MEN BY THESE PRESENTS:
This Contract of Lease with Option to Purchase (Rent-to-Own Contract) is made, executed and entered into by:
(NAME OF LESSOR/SELLER), of legal age, single/married to (name of spouse), Filipino, and with residence and postal address at (address of seller), hereinafter referred to as the LESSOR/SELLER
(NAME OF LESSEE/BUYER), of legal age, single/married to (name of spouse), Filipino, and with residence and postal address at (address of buyer), hereinafter referred to as the LESSEE/BUYER.
WHEREAS, the LESSOR/SELLER agrees to lease out the property to the LESSEE/BUYER and the LESSEE/BUYER is willing to lease the same;
NOW THEREFORE, for and in consideration of the foregoing premises, the LESSOR/SELLER leases unto the LESSEE and the LESSEE hereby accepts from the LESSOR/BUYER the LEASED premises, subject to the following:
TERMS AND CONDITIONS
1. PURPOSES: The premises hereby leased shall be used exclusively by the LESSEE for residential purposes only and shall not be diverted to other uses. It is hereby expressly agreed that if at any time the premises are used for other purposes, the LESSOR shall have the right to rescind this contract without prejudice to its other rights under the law.
2. TERM: This term of lease is for (number of years) (__) year from (starting date) to (ending date) inclusive. Upon its expiration, this lease may be renewed under such terms and conditions as my be mutually agreed upon by both parties. Written notice of intention to renew the lease shall be served to the LESSOR not later than seven (7) days prior to the expiry date of the period herein agreed upon.
3. RENTAL RATE: The monthly rental rate for the leased premises shall be in (amount in words) (P 00,000.00), Philippine Currency. All rental payments shall be payable to the LESSOR.
4. DEPOSIT: The LESSEE shall deposit to the LESSOR upon signing of this contract and prior to moving in an amount equivalent to the rent for (number of months in words) (__) months or the sum of (amount in words) (P 00,000.00), Philippine Currency. (You can specify further how the deposit shall be utilized. For example: The two (2) months deposit shall be applied as rent for the last two (2) months and the remaining one (1) month deposit shall answer partially for utilities such as water, electricity, CATV, telephone, association dues, for damages and for any other obligation resulting from violation(s) of any of the provision of this contract.)
5. DEFAULT PAYMENT: In case of default by the LESSEE in the payment of the rent, such as when the checks are dishonored, the LESSOR at its option may terminate this contract and eject the LESSEE. The LESSOR has the right to padlock the premises when the LESSEE is in default of payment for One (1) month and may forfeit whatever rental deposit or advances have been given by the LESSEE.
6. SUB-LEASE: The LESSEE shall not directly or indirectly sublet, allow or permit the leased premises to be occupied in whole or in part by any person, form or corporation, neither shall the LESSEE assign its rights hereunder to any other person or entity and no right of interest thereto or therein shall be conferred on or vested in anyone by the LESSEE without the LESSOR’S written approval.
7. PUBLIC UTILITIES: The LESSEE shall pay for its telephone, electric, cable TV, water, Internet, association dues and other public services and utilities during the duration of the lease.
8. FORCE MAJEURE: If whole or any part of the leased premises shall be destroyed or damaged by fire, flood, lightning, typhoon, earthquake, storm, riot or any other unforeseen disabling cause of acts of God, as to render the leased premises during the term substantially unfit for use and occupation of the LESSEE, then this lease contract may be terminated without compensation by the LESSOR or by the LESSEE by notice in writing to the other.
9. LESSOR’S RIGHT OF ENTRY: The LESSOR or its authorized agent shall after giving due notice to the LESSEE shall have the right to enter the premises in the presence of the LESSEE or its representative at any reasonable hour to examine the same or make repairs therein or for the operation and maintenance of the building or to exhibit the leased premises to prospective LESSEE, or for any other lawful purposes which it may deem necessary.
10. EXPIRATION OF LEASE: At the expiration of the term of this lease or cancellation thereof, as herein provided, the LESSEE will promptly deliver to the LESSOR the leased premises with all corresponding keys and in as good and tenable condition as the same is now, ordinary wear and tear expected devoid of all occupants, movable furniture, articles and effects of any kind. Non-compliance with the terms of this clause by the LESSEE will give the LESSOR the right, at the latter’s option, to refuse to accept the delivery of the premises and compel the LESSEE to pay rent therefrom at the same rate plus Twenty Five (25) % thereof as penalty until the LESSEE shall have complied with the terms hereof. The same penalty shall be imposed in case the LESSEE fails to leave the premises after the expiration of this Contract of Lease or termination for any reason whatsoever.
11. JUDICIAL RELIEF: Should any of the parties herein be compelled to seek judicial relief against the other, the losing party shall pay an amount of One Hundred (100)% of the amount clamed in the complaint as attorney’s fees which shall in no case be less than P50,000.00 pesos in addition to other cost and damages which the said party may be entitled to under the law.
12. OPTION TO PURCHASE: For good and valuable consideration, the receipt whereof is hereby acknowledge from the LESSEE/BUYER, the LESSOR/SELLER hereby extends an option to the LESSEE/BUYER to purchase for the amount of (amount in words) (P 0,000,000) on or before (date after which option is closed). Failure of the LESSEE/BUYER to exercise his/its right to purchase within this period shall mean forfeiture and abandonment of his right to purchase. In such case, all payment made during the term of this lease are considered rentals. The LESSEE/BUYER, at his/her/its exclusive option, conditioned on faithful compliance with all payments and undertakings contained herein, may convey his/her/its decision to avail of option to purchase in writing to the LESSOR/SELLER who thereafter shall credit all rental payments up to the __________ (___) month and the initial deposit stated above to down payment.
14. BALANCE AFTER THIS LEASE AGREEMENT: If LESSEE/BUYER complied with all terms and conditions stated above, inclusive of payment of realty taxes, power, water and association dues, the outstanding balance of the LESSEE/BUYER shall be 70% of the total selling price amount equivalent to (amount in words) (P 0,000,000), Philippine currency. The LESSEE/BUYER hereby agrees to execute the Deed of Absolute Sale upon payment in full of the TOTAL PURCHASE PRICE.
15. TRANSFER EXPENSES: Documentary stamp tax, capital gain tax, registration fees, transfer tax, and other necessary expenses connected with the execution and registration of the sale shall be for the account of and paid by the LESSEE/BUYER.
16. TAXES, UTILITIES AND OTHER ASSOCIATION IMPOSITIONS: For the duration of this lease, LESSEE/BUYER shall pay the Realty Taxes. However, should the LESSEE/BUYER not exercise the option to purchase, LESSOR/SELLER shall reimburse the LESSEE/BUYER of all the taxes, exclusive of penalties for delayed payments, if any, it had paid as well as the start-up fund of the Homeowners Association.
This CONTRACT OF LEASE shall be valid and binding between the parties, their successors-in-interest and assigns.
IN WITNESS WHEREOF, the parties have hereunto set their hands, this ____day of ____________ 20___ at ____________, Philippines.
(NAME OF LESSOR/SELLER) (NAME OF LESSEE/BUYER)
WITH MARITAL CONSENT:
Name of Lessor/Seller’s Spouse Name of Lesee/Buyer’s Spouse
SIGNED IN THE PRESENCE OF:
REPUBLIC OF THE PHILIPPINES )
_____________________________ ) SS.
BEFORE ME, a Notary Public for and in the City of ___________________, this ___________________, personally appeared:
Name SSS Nos. / Driverâ€™s License No.
(Name of Lessor/Seller) ____________________________
(Name of Lessee/Buyer) ____________________________
who are known to me and to me known to be the same persons who executed the foregoing instrument and acknowledged to me that the same is their own free act and voluntary act and deed.
This instrument, consisting of (__) pages, including the page on which this acknowledgment is written, has been signed on the left margin of each and every page hereof by the concerned parties and their witnesses, and sealed with my notarial seal.
WITNESS MY HAND AND SEAL, at the place and date above-written.
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Series of 2010.