Cooperative Lease Options - Amazon S3...I recommend using PrePaid Legal as an affordable source. Cooperative Lease Options Workbook ... loan authorization signed so you can confirm

Cooperative Lease Options Wholesaling for Quick & Easy Cash Manual © 2014 Wendy Patton

Cooperative Lease Options Workbook

©2014 by Wendy Patton/Page 2

Control without Ownership Series By Wendy Patton

Cooperative Lease Options Wholesaling for Quick & Easy Cash

Table of Contents

Section 1: First Steps to Cooperative Lease Options ................................................................. 4

Wholesale Options Checklist ...................................................................................................... 5

Ads for Finding Sellers ............................................................................................................... 7

Script: To Qualify Buyers .......................................................................................................... 8

Script: Working with FSBOs the For Rent Ads ........................................................................... 9

Proposal....................................................................................................................................11

Section 2: Documents for You and the Seller to Sign ................................................................13

Federal Lead Hazard Disclosure Requirements for Rental Property Owners and Managers .....14

Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards ..................17

Real Estate Disclosure ..............................................................................................................18

Cooperative Lease Option Agreement ......................................................................................22

Option to Purchase ...................................................................................................................24

Sales Contract ..........................................................................................................................26

Memorandum of Option ............................................................................................................31

Mortgage Authority for YOU ......................................................................................................33

Affidavit of Owner RE: Lien Rights ............................................................................................34

Section 3: Documents for You, the Buyer, and the Seller to Sign ..............................................35

Ads to Find Buyers ....................................................................................................................36

Assignment of Sales Contract and Option Agreement ...............................................................37

Rental Agreement .....................................................................................................................39

Pet Policy/Agreement................................................................................................................45

Mortgage Authority for Buyer ....................................................................................................46

Note: The contracts I use in this course are applicable in all states and have been reviewed by an

attorney but I suggest, before using ANY real estate contract, you have it reviewed by a real

estate attorney in your state. I recommend using PrePaid Legal as an affordable source.



Go to www.gotlegalplans.com



Section 1:

First Steps to Cooperative Lease Options



Wholesale Options Checklist

ADDRESS: OWNER: PHONE #:

Create Folder for this home

Place ads or respond to ads to find a seller

Make a proposal to seller

Draft All Documents, Sales Contract, Option Agreement, Memorandum of Option,

Affidavit of Liens, and Agreement with Seller for cooperative option. Also get the

loan authorization signed so you can confirm payments now and in the future.

Order Pre-Title Work or Confirm Title is Clear (seller to pay)

Check if Taxes are Paid

Check if Mortgage is Up to Date

Maintenance/Work to Be Completed

______________________________________________________________________

______________________________________________________________________

Get a Key or Access

Water Reading (if City H20) for new buyer

Review Title Work

Sign All Documents – except Rental agreement (to be signed by end buyer later)

Get Seller to fill out a Lead Based Paint and Seller’s Disclosure – sign

Advertise the home

Get buyer to sign all documents and rental agreement with seller.

They need to sign the assignment agreement and rental agreement and initial all

other contracts and disclosures (initial lower right corner) Pet agreement needed?

Get a mortgage authorization for the buyer (signed by seller).

Get option fee from buyer at time of signing documents.

Tenant Buyer to get renters insurance?

Buyer to do an inspection?

Buyer set up for credit repair – make this a must if needed.



Buyer working with a lender?

Record Memorandum of Option when buyer is found and deal is finalized (Ok to

leave your name on there)

Checkups – with buyer and seller (optional)

o One Month

o Three Months

o Six Months

o Twelve Months – hopefully closing soon



Ads for Finding Sellers

Under For Rent ads: ______________________________________________________________________ I am looking to buy a home with a rent to own or lease option to buy. Are you open to selling your home too? If so, please let me know and maybe your home will be perfect for me. Also if there are more pictures or anything else you can share with me about it, that would be great. Wendy ______________________________________________________________________ Are you trying to sell your home too? I can help. I work with many buyers in the Metro Detroit area to find a home they can rent now and buy later. It will not cost you a dime. Please let me know if you are interested. Wendy ______________________________________________________________________ As a real estate agent: Are you trying to sell your home too? I can help. I work with many buyers in the Metro Detroit area to find a home they can rent now and buy later. It will not cost you a dime. Please let me know if you are interested. I my name is Wendy and I am a real estate agent with Keller Williams Realty. I can get paid by the buyer. Wendy ______________________________________________________________________ To a real estate agent or rental company: Is the owner of this home willing to sell it also? If so can you send me more information on the home? I am looking for a home on a lease to own or rent with option to buy. Will that be a possibility for your seller? Any pictures or additional information would be great. Thanks, Wendy



Script: To Qualify Buyers

“How did you hear about us?” Find out where your leads are coming from. “Great. Where are you living at now?” “And how long have you lived there?” “You called on the lease option property, right?” “Ok great, what price range did you want to keep your rent in?” Let them answer and then multiple their answer by 3 to 4 times. For example, if they say $1000 then it is $3000 - $4000 they should earn. So I ask… “Ok great, so with that rental range, I assume you make between $3000 - $4000 minimum, is that right?” If they don’t then you might advise them of what they really can afford – we don’t want them or the seller in a bad situation. “Why do you want to move from your current location?” “You called on this rent to own/lease option home, I assume that means you have some credit issues you might need to address, is that right? Maybe a bankruptcy or a foreclosure?” Let them answer this. Sometimes they will explain more than you imagined. Also find out the exact dates of the bankruptcy discharge and the foreclosure sale or the date there was a short sale. These dates affect the time they need to get a mortgage.

If they have been through foreclosure find out why? Bankruptcy – why? If so, what has changed in their situation to make it better now? Snoop a bit, usually they will share with you why but asking questions gives you many answers. “How about your upfront payment – money to “move in” – what range did you want to keep that in?”

“Ok. What’s your timeframe for finding a new place?”

If qualified: “Great….what type of property are you looking for?” (home, how many bedrooms) OK…let me tell you about some of our properties that fit what you’re looking for…and then we can schedule an appointment to see them.

If not qualified: “I am sorry I am not able to help you right now, you will need to have at least $xx to move into one of our lease option homes. Is there any chance you can borrow this from someone?” or ask “Do you know when you might be able to save $x ?”



Script: Working with FSBOs the For Rent Ads

FSBOs (For Sale By Owners) are individuals that are selling their home without the assistance of a realtor. Many investors work with FSBOs in buying deals. In lease options I find that most sellers need or want their cash out. The best way to find a seller for a lease option is not the FSBO section of the newspaper, but the “for rent” section of the newspaper. What you will want to do is to turn the landlord into a seller. Here is how to buy homes on options from owners: Call the ads in the paper in the for rent section, not the for sale section. The reason I do this is that 90%+ of sellers must get their cash out and a large portion of the other 10% won’t consider something creative. It is not because they don’t want to consider something creative, it is just that they would prefer to cash out and be done with the property and also something unique will scare most sellers. Call the ads that are for rent, because the #1 and #2 objections for selling on an option have been resolved. The owner does not need to sell or to cash out of the home AND they are willing to lease the home. This is a script you can use to contact an owner of a rental home. The words in bold are what is said to the owner. Hi, my name is ________I was calling about your home for rent. Giving your name sounds warmer and will help put the owner at ease with you. Can you tell me if it is still available? If yes, continue. When is it available? Can you tell me a little about the home? Let them answer some information about the home or expand some questions from the ad. You are building rapport with the owner. Talk and let them talk. People warm up when they are the ones talking. Listen and sound interested. When was the home built? This question gives you insight to any decorating problems you might be running into. It will tell you if it might need to be updated. If older, ask next question, if not skip. Has the kitchen and bath(s) been updated since it was built?



If it was built in the 70’s, I might ask if the baths or kitchens are yellow/green/brown or if they have been updated since it was built. I am primarily building rapport and leading up the main question. Does it have a garage or basement? Don’t ask questions that are answered in the ad or from their description above. Ask questions applicable to your area of the country, such as, is it in a flood area, does it have central air, has it ever had termites? Whatever might be of interest to you and to find out more about the home. Is the yard fenced? I really don’t care. I am just building rapport. This may prompt them to ask the question on whether or not you have pets. At this point they still think you are the one that will be living there. I don’t change that direction of thought until enough rapport and trust have been developed. They may ask questions as to how many will be living in the home. These are questions I don’t want to lie about, but don’t want to be totally direct on either. If I said, “I don’t know, I am going to rent it to someone else”, you can be sure they will not show you the home. That would kill the trust and rapport immediately. It is hard to say how to handle those questions exactly. Each time these questions come up, you will be answering them differently based on the owner. Here are some ways you could consider handling them: Answer them as if you really were going to live there. Always answer truthfully – just not always completely or early on in the negotiation process. Try to change the subject or slightly avoid the question. Try to answer to your best guess of who might be renting from you later. Deception is not what I am recommending, however, it may sound like that. I am very honest and straightforward with my sellers, but only after they meet me or when I feel that they are open to discussion about the entire situation via phone. Everything is in writing, too. They will know that you are not living there before they sign the documents. It is also in the rental agreement with the seller that you will not be occupying the home. If the home sounds like something you would like to own, then pop The Question. Wow, this home sounds really nice, would you considering selling it? If they say no then say, “Thanks, but I am really looking for something I can buy.” Leave them your name and number to contact you later if they change their mind about selling. If they say maybe or yes: Do you know how much you would want for the home? Start to feel out the owner for the type of terms they would consider. When could I come and look at the home to see if I would be interested in it?



. . . . . . . . . .

. . . . . .. . . .

Your Company Name

Your Addresss

Phone Number

Fax Number

Your Company Name

Proposal

Property Address

Innovative approaches to Leasing/Selling



. . . . . . .. . .

. . . . . . .. . .

Your company, LLC has a program to offer you…

Please review the following options that we can offer you as a Seller and

consider which would serve you best!

Lease with an Option to Buy Your company, LLC can buy your home on a lease to own for $ ________ within 2 years. The rental payment will be $ _________. You would still need to carry your homeowner’s insurance and pay your property taxes until the home is closed. We will not be living in the home but will be selling our option agreement with you for the above price to an end tenant buyer. We will be paid from the buyer’s option fee, which will be $ _______. The option fee paid by the buyer will be credited to the buyer at closing, so you will need consider this in your acceptance of this agreement. Once you agree with the terms, we will send you a formal agreement with these terms and begin our search for the perfect tenant buyer for your home. The tenant buyer will pay repairs below $500 and you will be responsible for repairs above $500. We would like to have all the appliances left with the home (currently there). We are a licensed real estate broker, but not representing either party and we are not being paid a commission. Your rental payments will start when we find someone to place into your home, however, during this time frame you may also market your home for sale. If you sell it before we place someone, then this agreement can be voided by you. Thank you for considering Your company, LLC !

Your Company Name Your Company Address

Your Phone number/fax/email etc.



Section 2:

Documents for You and the Seller to Sign



Federal Lead Hazard Disclosure Requirements for Rental Property Owners and Managers

Many older properties contain lead-based paint, and deteriorated lead-based paint and lead-contaminated dust are serious health hazards. Most children are poisoned by ingesting lead dust from deteriorating lead-based paint. Children exposed to even very low levels of lead experience reduced IQ and attention span, impaired growth, reading and learning disabilities, behavior problems, and hearing loss. These effects can be irreversible. The federal lead hazard disclosure law is designed to provide families with the information they need to make informed housing choices and protect their families from lead poisoning. This fact sheet outlines the responsibilities of rental property owners and their agents under the law. Summary of the Disclosure Law The federal Residential Lead-Based Paint Hazard Reduction Act, 42 U.S.C. 4852d, requires landlords of most residential housing built before 1978 to disclose all available records and reports concerning lead-based paint and/or lead-based paint hazards to tenants at the time of lease or upon lease renewal. In addition, landlords must furnish a lead warning statement and a copy of the brochure Protect Your Family from Lead in Your Home. (Additional requirements apply to property sale transactions.) Failure to disclose is a violation of the U.S. Department of Housing and Urban Development and the U.S. Environmental Protection Agency regulations at 24 CFR Part 35 and 40 CFR Part 745 and can result in a fine of up to $11,000 per violation. Housing Covered under the Law: The law applies to most housing constructed before 1978, with the following exceptions: Housing for the elderly or disabled (unless children under age six reside or are expected to reside there). Zero-bedroom dwellings (e.g., studio and efficiency apartments). Housing found to be lead-based paint free, as determined by a certified lead inspector. Short-term leases (100 days or less, with no renewals or extensions), such as vacation rentals. Who Must Disclose to Tenants: Property owners. Their agents, including property management agents. Agents must ensure that the owner has disclosed all necessary information, or personally ensure compliance with disclosure requirements themselves.



What Must Be Disclosed to Tenants: EPA’s lead hazard information pamphlet, Protect Your Family from Lead in Your Home. Any information about lead-based paint and/or lead-based paint hazards in the property, including the basis for the determination that lead-based paint or hazards exist, the location of lead-based paint or hazards, and the condition of painted surfaces. Any available lead-based paint or lead hazard evaluation reports, including:

o Reports on units in the building other than the unit being leased if the information stems from an effort to evaluate the building as a whole.

o Reports relating to common areas. To certify that Disclosure has occurred, each lease must include, in the language of the agreement, either within the lease or as an attachment, the following acknowledgment statements. These statements must be signed and dated by the owner, tenant, and agent certifying the accuracy of their content. 1. Lead Warning Statement (text of statement specified in HUD and EPA regulations). 2. Statement by the owner disclosing known lead-based paint or lead hazards, or indicating a lack of knowledge. If lead-based paint or hazards exist, the basis for the determination must be included, and the location and condition of painted surfaces. 3. A list of available reports pertaining to lead-based paint or hazards that have been provided to the tenant, or a statement that no reports are available. 4. A statement by the tenant affirming receipt of the EPA pamphlet, the information on known hazards, and the available reports. 5. A statement by the agent that she has informed the owner of his disclosure obligations and that she understands her own obligations to ensure compliance. What Must Be Disclosed to Agents: Any information on known lead-based paint and/or lead-based paint hazards, including the basis for the determination that lead-based paint or hazards exist, the location of lead-based paint or hazards, and the condition of painted surfaces. The existence of any available lead-based paint or lead hazard evaluation reports. When to Disclose to Tenants: Prior to tenant becoming obligated under the lease. Disclosure must occur before a tenant is obligated under a new lease. If a substantial non-refundable deposit is required before that time, disclosure should occur before payment of the non-refundable deposit. Upon lease renewal, if new information on lead-based paint or lead hazards has become available since prior disclosure. Disclosure must occur even if the status changes from a formal lease to a month-to-month agreement. In cases where an open-ended month-to-month agreement is already in place, disclosure must occur when there is a significant change in the agreement, such as a rent increase.



Record-Keeping Requirements: Property owners and agents must retain the certification and acknowledgement for three (3) years. Penalties for Non-Compliance HUD and EPA can seek up to $11,000 per violation in civil money penalties. Criminal penalties are authorized for egregious violators. Tenants can sue owners and agents who knowingly violate the law to recover three (3) times the amount of actual damages incurred, plus attorney’s fees, expert witness fees, and costs. For More Information For information on lead poisoning, lead safe work practices, and lead hazard control, call the National Lead Information Center at 1-800-424-LEAD.

This information is provided with the permission of the Alliance for Healthy Homes, a national nonprofit public interest organization committed to protecting children from lead and other environmental health hazards.

LF236 Rev. 04/04



Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards

Lead Warning Statement Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller’s possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase.

Seller’s Disclosure (a) Presence of lead-based paint and/or lead-based paint hazards (check (i) or (ii) below):

(i) ______Known lead-based paint and/or lead-based paint hazards are present in the housing (explain).________________________________________________________ (ii) _____Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing.

(b) Records and reports available to the seller (check (i) or (ii) below): (i) ______Seller has provided the purchaser with all available records and reports pertaining to leadbased paint and/or lead-based paint hazards in the housing (list documents below). (ii) _____Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the housing.

Purchaser’s Acknowledgment (initial) (c) ________ Purchaser has received copies of all information listed above. (d) ________ Purchaser has received the pamphlet Protect Your Family from Lead in Your Home. (e) Purchaser has (check (i) or (ii) below):

(i) _____ received a 10-day opportunity (or mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards; or (ii) _____waived the opportunity to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards.

Agent’s Acknowledgment (initial) (f) ________ Agent has informed the seller of the seller’s obligations under 42 U.S.C. 4852(d) and is aware of his/her responsibility to ensure compliance.

Certification of Accuracy The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate. ______________________________ ________________________ Seller -- Date Seller -- Date ______________________________ ________________________ Purchaser -- Date Purchaser -- Date ______________________________ ________________________ Agent – Date Agent -- Date



Real Estate Disclosure Also called Seller’s Disclosure or Transfer Disclosure

The prospective buyer and the owner may wish to obtain professional advice or inspections of the property and provide for appropriate provisions in a contract between them concerning any advice, inspections, defects or warranties obtained on the property. The representations in this form are representations of the owner and are not representations of the agent, if fany. This information is for disclosure only and is not intended to be a part of the contract between the buyer and owner. Seller states that the information contained in this Disclosure is correct as of the date below, to the best of the Seller’s current actual knowledge. Date _________Property Address __________________________________________ The condition of the following Property is: N/A, Defective, Not Defective or Unknown 1. Electrical System

a) Air filtration system:

b) Burglar alarm:

c) Cable TV wiring and connections:

d) Ceiling fans:

e) Garage door opener:

f) Inside telephone wiring and jacks:

g) Intercom:

h) Kitchen range hood:

i) Light fixtures:

j) Sauna:

k) Smoke/fire alarm:

l) Switches and outlets:

m) Amp services:

n) Plumbing:

o) Other:



2. Heating and Cooling

a) Attic fan:

b) Central air conditioning:

c) Hot water heater:

d) Furnace heater gas, electric, oil, solar:

e) Fireplace:

f) Humidifier:

g) Ventilation:

h) Propane tank:

The Condition of the Following Property Is: Yes, No or Unknown 3. Foundation & Structure

a) Are there any problems with the foundation?

b) Are there any structural problems with the building?

c) Have any substantial additions or alterations been

made without a requiredd building permit?

d) Are there any violations of zoning, building codes

or restrictive covenants?

e) Are ther moisture or water problems?

f) Is there termite, rodent or insect damage?

g) Is there damage due to wind or flood?

h) Is the property in a flood plain?

i) Is the property located within 1 (one)

nautical mile of an airport?

j) Is there any threat of or pending litigation

regarding the property?

k) Are the furnace, wood stove, chimney/flue

in working order?

4. Roof

a) Age in years

b) Are there any current leaks? c) Is roof currently damaged? d) Is there more than one roof on the structure?

If yes, how many?

Additional comments if necessary (attach additional pages if necessary): 5. Hazardous Conditions

Are there any existing hazards on the property such as methane gas, radioactive material, radon or lead paint in the house or well, or expansive soil, toxic materials, asbestos insulation, landfill, mineshaft or PCBs? If yes, explain:



6. Major Damage

Do you have any actual knowledge if there has ever been any material damage to the property or structures such as movement, shifting, crack in the floors, foundation, walls or ceilings? If yes, give details.

7. Termites/ Insects

Are you aware of any existence of any wood boring insects/termites currently in or on the property or any existing, unrepaired damage caused by same?

8. Water Service

Is there a well on the property? If yes, is it in working order? If no, has it been sealed? If so, when:

9. Sewer Service

Is the property serviced by a municipal sewer? If not, what is the date of installation of the private septic system? Date last pumped? List dates and describe any repairs to the system:

10. Lot

Is there an oil/fuel tank on the property? If yes, where is it located? Is the oil/fuel tank in use? Is the oil/fuel tank underground?

11. Structural

Are you aware of any code violations on the property? If yes, attach explanation. Is the exterior siding synthetic stucco, Exterior Insulating Finish System (EIFS) or hardboard siding? If yes, which type?

12. UFFT/Asbestos

Is there any urea-formaldehyde (UFFT) or asbestos material present? 13. Mold/Mildew

In the course of preparing your property for sale, did you clean up any mold or mildew? If yes, name where and the method of remediation:

14. Radon Gas

Has the property been tested for radon gas? If the property was tested for radon gas, the results of all tests known to seller(s) are attached. Tests disclose level of radon at any time prior to or after the test(s).

15. Roof

Have there ever been any material repairs or replacement made to the roof aas the result of any water problems in the past 5 years? What is the roofing material?



16. Additional comments or explanations: Seller and Buyer hereby acknowledge receipt of this Disclosure Form by signing below.

Seller’s Signature Date

Buyer’s Signature Date

Seller’s Name Date

Buyer’s Name Date



Cooperative Lease Option Agreement

1. The seller/optionor hereafter referred to as “seller”, ____________________ understands that _______________ LLC (buyer/optionee) hereafter referred to as “buyer” will be assigning their interest in the property located at: _________________________.

2. For purposes of this agreement the seller is the owner of the property, buyer is ______________ LLC, and the tenant is the end lease option buyer.

3. The buyer’s responsibilities are: a. To advertise the home to prospective tenants of the home. b. To pay for all such advertising. c. To show the home to any prospective tenants (unless the seller is able

and willing to show the home) and to take all such phone calls on the home.

d. To take the rental application, run the credit report, criminal background check, check the employment history, landlord references, and report back to the seller with all of the information.

e. To do all of the paper work on the lease with option to buy program for the tenant that is selected by the seller.

f. To assist the tenant in signing up for a credit repair program at the buyers expense.

g. To assist the tenant in working with a lender that can assist them in getting approved for a mortgage as quickly as possible.

4. The seller’s responsibilities are: a. To allow the buyer access to the home to show to prospective tenants of

the home. b. To assist in showing the home to any prospective tenant buyers. c. To provide pre-title work or proof of clear title other than the mortgage. d. To keep all mortgage payments current before and during the option

agreement. e. To keep this property out of foreclosure and bankruptcy. f. To repair any items on the property prior to the lease with option begin

date: i. _______________________ ii. _______________________

5. The seller understands that the buyer will receive and can collect the option

fee received on the transaction from the tenant as their compensation for the ‘assignment’ of the transaction. The amount will not exceed $________ and will be credited towards the buyers purchase of this home. Seller will allow for this credit at the closing. There will be an additional amount due to the



buyer from the seller’s settlement statement at closing of $_______. This is payable only if the property closes (consider if you are a Realtor).

6. The seller understands that buyer will find a tenant/optionee for the home mentioned above. This tenant will be renting ‘with the option to buy’ the home and will be assuming the option agreement and sales contract attached to this agreement from the buyer. The tenant will be also signing a rental agreement with the seller. The buyer is not acting as a real estate agent in this transaction but is ‘assigning’ the agreements that will be signed between the buyer and the seller. The seller further understands that: a. The tenant may or may not ever purchase this property. b. The tenant may or may not pay their rent on time or at all. c. The tenant might not fulfill their rental agreement in full. d. The tenant might or could do damage to the above mentioned

home/property. e. The selection of the tenant will be discussed between the buyer and the

seller, but the seller will have the final decision of whether to select or to not select the tenant.

f. That the risk for the agreement once the tenant moves in is the responsibility of the seller.

g. That no promises or commitments have been made to the success of the tenant selected for the home or for this program by the buyer.

h. There will be a rental agreement signed by the seller with the tenant –when the tenant is approved by the seller.

i. The amount of the projected rent will be $________ per month unless agreed upon differently in the rental agreement signed by the seller and the tenant.

We agree to defend, indemnify and hold ________________ LLC, its owners, officers, and employees harmless of any and all events whatsoever relating to the Rental Agreement, Sales Contract, Option Agreement or anything else relating to this transaction.

We are the owners of this property with full rights to offer this property on a lease option to buy and to sell this home with clear title.

Our mortgage payments are current on this property and we commit to keeping them current until the end of the option period or the closing, whichever occurs first.

There are no liens on this property, recorded or not recorded, that will prevent me from offering my home on a lease with option to buy and to transfer title in a final sale.

Both parties agree that if there is a disagreement that arises between the buyer and seller that arbitration will be used to resolve the matter and their decision will be final.

Time is of the essence. ____________________________ _________________________ Seller LLC – member



Option to Purchase

THIS AGREEMENT made this day of , 20 between, , Optionor, and Optionee. IN CONSIDERATION (which will be applied toward purchase price) of the sum of (see attached cooperative lease option agreement) paid by Optionee (the receipt of which is hereby acknowledged by Optionor) the Optionor gives to Optionee the exclusive option, right and privilege of purchasing certain Real property located in the County of and State of , described as: This option is subject to the following terms and conditions: 1) This option is not assignable by Optionee unless Optionor agrees separately and in writing. 2) There shall be additional option consideration of $ per month given to Optionee. The monthly option consideration shall be credit toward the down payment/purchase price of the property. The credit will only apply to months when the rent amount and any outstanding fees owed (in the attached Rental Agreement) are paid on or before the due date and in full. 3) Optionor grants Optionee the right to exercise this option for a period commencing on , 20 and terminating at midnight, , 20 . If not exercised, this option shall expire midnight , 20 , and Optionor shall be released from all obligations hereunder, legal or equitable. The obligation shall cease and the consideration here above receipted for the Optionor, shall be retained by Optionor. 4) If Optionee elects to exercise this option the sale shall take place according to the terms of the attached Sales Contract, which have been signed by Optionee and Optionor this same day. 5) Notice of election to Purchase shall be given by Optionee in writing and mailed to Optionor, at: 6) If there is a pool Optionee agrees to open and close pool each year, and to maintain the pool. 7) OPTIONOR agrees to pay for any and all additional assessments incurred during occupancy and prior to ownership (example but not limited to: water, sewer, sidewalks, or road paving)



8) The option consideration is for the sole purpose of granting the OPTIONEE the exclusive right to purchase the subject property at the stated price and terms. 9) This option to purchase will be terminated and all option consideration forfeited, if payment required on option agreement or any payment required on the rental agreement is late for more than fifteen days past the due date. Optionee understands that Optionor will be required to supply their mortgage company with an accurate record of payment history including all instances of late payments. Optionee understands such information could affect their ability to secure a mortgage 10) This option to purchase shall apply to and bind the heirs, executors, and administrators of the respective parties. 11) EQUITABLE MORTGAGE: This Option to Purchase is not, and shall not be construed as, or interpreted as any form of EQUITABLE MORTGAGE. It is hereby declared that it is not the intent of the parties to create a loan of any nature or to create a mortgage of any kind. In the event that the Optionee hereunder should ever raise such an issue in a court of law or otherwise this Option shall terminate immediately.

12) Optionor agrees to pay for all repairs over $500 and optionee agrees to pay for all repairs under $500. All repairs over $500 need to be discussed and approved in writing by the optionor, unless it is an emergency or the optionee will be responsible for such expense that is not approved. Approval can’t be unreasonably withheld by optionor. Time is of the essence in this agreement. The parties have executed this agreement on the date first above written. Optionor(s): Optionee(s): Witness: Witness:



Sales Contract As with any contract, have your real estate attorney review. They best know what is necessary in your

area. For affordable legal services I recommend going through PrePaid Legal. Go to

www.gotlegalplans.com for more information.

THE UNDERSIGNED hereby offers and agrees to purchase the following land situated in the Of , County, State of ____________, described as follows: (insert lot & sub or metes & bounds - legal description) being known as , together with all fixtures and appurtenances in or on the premises (unless specifically exempted herein), including, by way of example, but not limited to lighting fixtures, shades, venetian blinds, drapery hardware, curtain rods, ventilating fixtures, screens, storm sash, garage door openers (including transmitters), water softener, built-in kitchen equipment, attached mirrors, attached humidifiers and incinerators, awnings, all TV antennas, rotors and controls, landscaping, attached carpeting, attached barbecue unit, if any, now on the premises as well as the following personal property for which a bill of sale shall be given, namely: and to pay therefore, the sum of ($ ) Dollars, Subject to the existing building and use restrictions, easements, and zoning ordinances, if any, upon the following conditions: THE SALE TO BE CONSUMMATED BY- See the attached Option to Purchase Document signed this same day. GENERAL CONDITIONS of sale are printed on the next 2 pages and are incorporated and made part hereof. By: ________________________________ Witness Witness Purchaser Seller __________________________ _____________ LLC, member Date Signature Date ________________________________ Signature Date Signature Date By the execution of this instrument, the Seller acknowledges the receipt of a copy of this

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agreement. Purchaser acknowledges receipt of Seller's signed acceptance of this Agreement. Signature: Dated: _____ General Conditions: a. Evidence of Title: As evidence of title, Seller shall pay for a commitment for a policy of title insurance bearing a date subsequent to the date of acceptance hereof in an amount not less than the purchase price herein and offering to guarantee the title to the premises. The Commitment shall be delivered to Purchaser immediately upon issuance thereof. Purchaser will order title work from the title company of their own choosing. b. Closing Date and Place. If this Offer is accepted by Seller and if title can be conveyed in the condition required thereunder, this sale shall close within ten (10) days after delivery of the commitment for title insurance policy at the Title insurance office, however, if the sale is to be consummated in accordance with a new mortgage, then the date and place of closing will be determined by the lender. (also see attached option agreement for timing of closing) c. Title Objections. If Purchaser objects to title he must notify Seller of the same within ten days of receipt of evidence of title. Seller must rectify all title problems within 30 days of such notice, or must pay the purchaser the amount equal to all option monies applied to purchase, plus any approved improvements that purchaser has made to the property, plus any attorney fees associated with title problems, all within 30 days of notice from purchaser of this contract d. Existing Mortgage. Seller understands that consummation of the sale or transfer of the premises shall not relieve Seller of any liability that Seller may have under any mortgage(s) to which the premises subject, unless otherwise agreed on by the lender or required by law or regulation. e. Encumbrance Removal. Any existing encumbrance on the premises which Seller is required to remove thereunder may be paid and discharged with the purchase money at the time of closing or, at the election of Purchaser and with the consent of Seller, assumed by Purchaser and the amount thereof deducted from the proceeds due to Seller. f. Prorations: (1) Tax Proration. Taxes to be pro-rated at closing and the seller will pay their

portion of taxes used, but not yet paid. (2) Special Assessments: All special assessments which are placed upon the land

prior to closing are the responsibility of the seller, whether they are due and payable immediately or in the future.

g. Valid Offer: This offer is valid until See attached option agreement .



h. Property Inspection: The Purchasers may have the physical condition, structural, plumbing, heating, and electrical systems of the property inspected by a contractor of his own choice within 7 days from the date of acceptance of this offer and at his own expense-. If seller does not receive written notice from the purchaser(s) of their dissatisfaction regarding said inspection within 2 days from date of inspection, then this contingency will be considered satisfied and the sales contract is binding without regard to said report. If the seller does receive written notice, within the time provided, that purchaser(s) are dissatisfied, purchaser(s) at their election may terminate this agreement and all deposited monies shall be returned to purchaser(s). Initials: -__x__ Yes, Purchaser(s) will have inspection. Initials: - _____ No, Purchaser(s) hereby waive said inspection contingency and will rely

on their own examination of the property. The parties hereto have read this page of the agreement and have signed below. Purchasers Sellers __________________________ ________________ LLC, member Signature Date __________________________ Signature Date



i. Sellers Disclosure Statement (1) Purchaser(s) have received and reviewed a Sellers Disclosure Statement for the property prior to executing this contract to purchase the property. Purchaser(s) agree to purchase the property subject to the representations of its condition disclosed in the Disclosure Statement and to accept the property with those representations. Initials: Purchaser(s) ____________ j. Default In the event of default by Purchaser, Seller may, at his option, declare a forfeiture hereunder and retain the option deposit (if any) as full and complete liquidated damages. In the event of default by Seller, the seller must pay damages to the purchaser in the amount equal to all option monies applied, any improvements made to the home or property, and all attorney fees incurred. k. The agreements herein shall bind and inure to the benefit of the executors. administrators, successes and assigns of the respective parties. l. Entire Agreement: Seller and Purchaser acknowledge that they have read the entire contents hereof and are familiar with the provisions contained herein. This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof. All prior agreements between the parties with respect to the subject matter hereof, whether written or oral, are merged herein and shall be of no force and effect. This Agreement may only be changed, modified or discharged by an agreement in writing signed by the party against whom enforcement thereof is sought. m. Time is of the essence. n. Additional Conditions: 1) This Sales contract is part of an option agreement dated .

2) If there are any undisclosed problems with boundary lines, easements, etc. that arise prior to closing on the property, the purchaser may elect to pay whatever cost may be involved in rendering these problems to the purchaser’s satisfaction, and deduct the cost from the purchase price at closing.

3) Seller agrees to pay for all repairs over $500 and purchaser agrees to pay for all repairs under $500. Any repairs over $500 need to be discussed and approved in writing by seller, unless it is an emergency or buyer will be responsible for such expense that is not approved.

4) Seller agrees to change their home owners insurance policy to a rental policy. This is to be completed within 3 days of purchaser taking possession of the property.

5) If seller doesn’t pay their mortgage payment, property insurance or tax payments, then the purchaser has the right to pay the rental amount directly to either of these parties, versus the seller. If any amount paid to either of these parties exceeds the amount due that month, then the additional amount paid by purchaser will be credited at closing to the purchaser – with an additional 50% added as credit. (ie. if the rental amount is $900 and the payment made for mortgage or taxes is $1000 – then the purchaser would be credited at closing $100 + $50 = $150 off the purchase price.

6) Purchaser is a licensed Realtor. (remove line if you are not) 7) Purchaser to put $ down on this property. Check will be written directly



to the realty company that has it listed upon execution of attached rental agreement, this amount will be credited to purchaser at closing. The remaining commission will be paid to the appropriate offices at closing, out of the seller’s proceeds. (Remove if no Realtor involved)

The parties hereto have read this page of the agreement and have signed below. Purchasers Sellers _________________ LLC, member Signature Date Signature Date



check your state/county recording requirements prior to completion of this form –

Memorandum of Option

Optionor, whose address is , and “Optionee”, Your company name or personal

name, whose address is , entered into an option “the Option” dated as of ,

pursuant to which Optionor has agreed to option to Optionee the right to purchase certain real property “the

Property” located in the of , County of , State of _________, more

particularly described as ( insert legal description here).

The Option requires that Optionee shall exercise the Option on, or before, , or the Option

shall expire. While the Option is in effect, Optionor may not assign, convey, lease, sell, transfer, mortgage, or

otherwise encumber the Property or any part thereof, nor shall Optionor do, suffer or permit any act, deed, or

omission which might diminish or encumber the rights of Optionee or the ability of Optionor to perform obligations

in accordance with the terms of Option.

IN WITNESS WHEREOF, the Parties have executed this Memorandum of Option on .

OPTIONOR:

OPTIONEE:

( Your Company Name Here – change Michigan

If you are in a different state)

A Michigan Limited Liability Company

It’s Member

Its Member



STATE OF ???????? )

)SS.

COUNTY OF )

The foregoing Instrument was acknowledged before me this day of , 20__ , by

and .

Notary Public, Your county & State

My Commission Expires:

STATE OF ???????? )

)SS.

COUNTY OF )

The foregoing Instrument was acknowledged before me this day of , 20__ , by

and , Members of , a (your state) Limited

Liability Company, on behalf of the Limited Liability Company.

Notary Public, Your county & State

My Commission Expires:

Drafted by:

Your name and address

When recorded return to:

Your name and address



Mortgage Authority for YOU To whom it may concern DATE I, Sellers name – 1 or 2 names, give, your name, the right to have access to all information regarding my mortgage with you. My mortgage loan number is their loan number. This would include, but not limited to, checking on balances, changing the address for payment coupons and correspondence, payoff requests, etc. Sincerely, Owners Signatures Notary is Recommended



Affidavit of Owner RE: Lien Rights STATE OF ss. COUNTY OF The undersigned, being first duly sworn, deposes and says that they are the owner of the following described property in ______________________ County, ________________State, described as follows: More commonly known as: Tax I.D. No./Property ID: (COMPLETE THIS AFFIDAVIT BY CHECKING THE APPROPRIATE BOX BELOW) Deponent further says that: __________ A. There have been no repairs, alterations, remodeling or new construction on the above described premises in the last ninety (90) days. __________ B. Deponent has contracted for repairs, alterations, remodeling or new construction on the above described premises which have been completed within the last ninety (90) days, Deponent paid for all of said improvements directly to the contractors and there are no unpaid bills or claims for labor or services or material in connection therewith except as follows: ____________________________________________________________________________________________________________________________________________ __________ C. Deponent has contracted with a general contractor for repairs, alterations, remodeling or new construction on the above described premises which have been completed within the last ninety (90) days. The sworn statement of said contractor for improvements, and appropriate supporting waivers of lien, are submitted herewith. Deponent has not been served with any notice that a lien will be claimed on the above described premises for labor performed or material furnished except as follows: ______________________________________________________________ ____________________________________________________________________ __________ D. Deponent has not other liens on said property other than those described here: _____________________________________________________________________ ______________________________________________________________________ DATED:______________________________ SIGNED BY:

____________________________

____________________________ Subscribed and sworn to before me this __________ day of ____________, 20__. Commission Expires: ______________ __________________________________ Notary Public



Section 3:

Documents for You, the Buyer, and the Seller to Sign



Ads to Find Buyers You can put ads for finding buyers or sellers in either the ‘For Rent’ or ‘For Sale’ section. Try them both and see what works best in your area. Use a website if you have one. When you get more than one home you might want to invest in a site. They are reasonable and many internet provides offer them as part of their email packages. Advertising is one of the most expensive parts of real estate investing. Advertise wisely! Be creative on where and when you advertise. Use FREE websites when you can – like Craigslist TIRED OF RENTING?? Interested in renting with an option to buy? We have a beautiful 3 bedroom home in xxxxx town, for $900/month and $4000 option fee. www.MajesticRentals.com (123)456-7890 Land Contract wanted? We have a home available on terms…call for a unique way to buy a home. 3 bedroom home in xxxxx town, for $900/month. (123)456-7890 www.MajesticRentals.com Rent to Own: 3 Bedroom home with basement and garage. $750/month with $2000 option fee. Call today. Credit issues ok. (123)456-7890 www.MajesticRentals.com Lease Option: 4 Bedroom home, fenced yard, pool, garage, and much more. $1750/month with $8000 option fee. Call today. (123)456-7890 www.MajesticRentals.com STOP RENTING – BUY TODAY! We have several homes in the xyz area available on a rent with option to buy. Ranging from $600-1500 per month. Start Building your future now. (123)456-7890 www.MajesticRentals.com Recent Foreclosure or Bankruptcy? We have homes to help you get started over. Lease Option and seller financing available. Credit repair required after you move in. Start Building your future now. (123)456-7890 www.MajesticRentals.com

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Assignment of Sales Contract and Option Agreement

__________________________ LLC, its successors and/or assigns do hereby assign

all rights, title and interest in the Sales Contract and Option Agreements executed on

the property known as __________________________________ by and between

_________________________ LLC and __________________(seller) to

_____________________ (new tenant buyer).

Upon execution of this document, ___________________________ LLC, assigns and

releases all rights to the property and any future payments associated with the above

agreements.

This agreement contains all the representations by each party to the other and

expresses the entire understanding between the parties with respect to the

contemplated transaction.

________I understand that _____________________ LLC can’t guarantee anything

about the home, the seller or the ability of either party to complete the sale of the home.

I have done my own due diligence and am satisfied with the results.

________I have researched the title work myself and am satisfied with the results.

________I am buying the home “AS IS” and will hold __________________ LLC

harmless if there are any problems with the home or with the seller. I have had the right

to inspect the property and I am satisfied with the results.

_______ I understand the home might not appraise for the value at the time of closing

and that I hold the seller and _______________ LLC harmless for any market changes

or appraisal issues.

_______ I have been advised to speak to a mortgage broker and an attorney prior to

signing these documents.

________ I have seen and accepted the sellers disclosure and the lead based paint and

am satisfied with the results.



________ I understand it is my responsibility to make sure the mortgage (if any) that exists

on the property is paid by the seller. If it is not, I need to take immediate action as

outlined in my rental agreement.

I am paying $_________________ for this agreement to be assigned to me. I

understand I will be signing a rental agreement with the owner. This

$________________ will be applied to the purchase price at the time of closing,

should I exercise my option and purchase this home. If I choose not to exercise my

option, or can’t exercise my option to purchase this home, as outlined in the attached

option agreement and sales contract, then I fully understand there is NO refund and I

will forfeit my option money. This option money is for the exclusive right to purchase

_________________ (put address here).

Both parties agree that if there is a disagreement that arises between the buyer and seller, or ______________LLC that arbitration will be used to resolve the matter and their decision will be final.

Time is of the essence.

________________________________________ _________________________________________

____________________ LLC – member Optionee/Buyer



Rental Agreement

As with any contract, have your real estate attorney review. They best know what is necessary in your

area. For affordable legal services I recommend going through PrePaid Legal. Go to

www.gotlegalplans.com for more information.

RECEIVED FROM:

(hereinafter referred to as “resident/Tenant”, the amount of

$ as evidenced by , as a deposit which, upon

acceptance of this Rental Agreement, shall belong to the Owner/Landlord of the premises and/or its agent,

(hereinafter referred to as “Owner”), and shall be applied to the due amount only, as follows:

Rent for the period from to $

Security Deposit $

Other $

TOTAL $

Resident/Tenant hereby offers to rent from the Owner the premises situated in the City of

, County of __________ , State of , commonly known as

“Housing built before 1978 may contain lead-based paint. Lead from paint, paint chips and dust can pose health

hazards if not taken care of properly. Lead exposure is especially harmful to young children and pregnant women.

Before renting pre-1978 housing, landlords must disclose the presence of known lead-based paint and lead-based

paint hazards in the dwelling. Tenants must also receive a federally approved pamphlet on lead poisoning

prevention.”

Add any mold disclosures if required in your area:

TERM

The term hereof shall commence on , 20 , for a period of

, terminating on which shall be due and payable on the 1st day of

month, and continuing thereafter in accordance with the terms and conditions of this lease.

At the completion of said term, Resident/Tenant shall return the keys to the Owner by 1 day after Resident/Tenant

shall be out of possession.

This lease can revert to a month to month agreement if tenant is ever late with rent more than 10 days, at the written

discretion of the landlord.

RENT

Resident/Tenant agrees that the rent shall be $ per month payable in advance, due on the

1st day of each month to Owner or his authorized agent, at the following address

or at such other place as may be designated by Owner from time to time. In the event the rent is

NOT paid on or before the date due, the Resident/Tenant agrees to pay a late charge in the sum of $ 25.00 plus $

5.00 for each additional day such rent shall remain unpaid to compensate Owner for additional time,

effort and expense incurred to collect such rent.

Post marking by a US Postal Office (only) – one day prior to due date will be considered on time.

Initial ______________

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Resident/Tenant further agrees to pay $ 30 for each dishonored bank check. Time is of the

essence and failure to pay rent in accordance with these terms and conditions set forth shall constitute a default of

the entire Rental Agreement.

All Rent or Utilities Owed must be paid by certified funds or cashiers check only, if any rent or

Utilities Payment is ever returned ‘Non-sufficient funds’.

Rent will automatically increase by $25/month if rent is late two times within a 12 month period.

Money received by landlord from tenant shall be applied to tenant’s account in the following manner: first,

to outstanding dishonored check fees; second, to outstanding late fees chargeable to tenant; third, to outstanding

legal fees, or court costs, or both; fourth, to outstanding utility bills that are the tenant’s responsibility; fifth to

damages to the property caused by the tenant, sixth to collection agency fees, seventh to costs for releasing the

property – if applicable, eighth to option fees owed, if any, and lastly, to rent.

Collection Agency Fees: If landlord chooses to use a collection agency to recover money owed from a

resident, the resident agrees to reimburse the collection agency for their actual fee.

UTILITY BILLS

Resident/Tenant agrees and shall be responsible for the payment of any and all utilities, Resident/Tenant

shall make arrangements at his/her expense to initiate service of utilities, including but not limited to electric, gas,

fuel oil, water softner and garbage pickup, no later than the first day of tenancy, and shall pay the utility expense in a

timely fashion. Failure to comply strictly with the terms of this provision shall constitute a default and all rights and

remedies shall accrue to owner thereon as provided by law.

Resident/Tenant agrees to pay for and have the septic tank (if applicable) pumped on each June 1st of

occupancy.

Resident/Tenant agrees to maintain and pay for any rental or owned water softner system on the premises.

Water and Sewer Charges may be billed and paid by the landlord and must be reimbursed by the tenant

within the 10 days of receiving a copy of these bills.

The use or operation of an auxiliary or supplemental heating device shall constitute a safety hazard and

unless written permission for such use is obtained, shall not be permitted.

Resident/Tenant agrees to install and maintain a telephone which must be installed within fourteen (14)

days after tenancy begins. The number must be provided to Owner immediately.

OCCUPANCY

The premises shall be used as a residence with no more than adults and

children, and for no other purpose without the written consent of the Owner. Occupancy by guests staying

overnight 14 days will be considered a breach of this Rental Agreement unless Resident/Tenant obtains

Owner’s written consent.

The premises shall not be used to run a home business without written approval of Owner.

PETS

No pets shall be brought on the premises, either inside or outside, without prior written consent of the

Owner and the completion of a Pet Agreement.

Initial ___________



ENTRY AND INSPECTION

Resident/Tenant shall permit Owner or Owner’s agent to enter the premises at reasonable times and upon

reasonable notice for the purpose of inspecting the premises or showing the same to prospective tenants or

purchasers, or for making necessary repairs. Prior to the expiration of the rental term, Owner hereby reserves the

right to affix a “For Rent” or “For Sale” signs on the premises.

ABANDONMENT

Abandonment shall have occurred if: (1) without notifying the Owner, the Resident/Tenant is absent for

fifteen (15) days while rent is due and substantially all of Resident/Tenant’s possessions have been removed from

the premises. If Resident/Tenant abandons the premises, Owner shall have the right to enter and repossess the

premises and attempt to rent the property at fair market value. Resident/Tenant shall be liable for the entire rent due

for the remainder of the term, and/or the cost of re-renting the premises, including rent lost, the cost of restoration to

the condition at the time it was rented, and reasonable fees for re-renting the property. If Resident/Tenant has left

personal property in the premises, Owner shall remove and restore it and give Resident/Tenant notice of this action.

Resident/Tenant may obtain such personal property from Owner by paying the reasonable moving and storage

expenses, unpaid rent, utilities and damages arising as a direct result of Resident/Tenant’s tenancy/occupancy and

pay other damages of any type whatsoever which arise from any acts or omissions by Resident/Tenant. If

Resident/Tenant fails to claim such personal property within thirty (30) days of notice, Owner shall make reasonable

effort to sell the property left by the Resident/Tenant at its fair market value and set off the proceeds toward any

amount the Resident/Tenant may owe Owner.

ASSIGNMENT AND SUBLETTING

Resident/Tenant shall not assign this Agreement or sublet any portion of the premises without prior written

consent of the Owner.

JOINT AND SEVERAL LIABILITY

It is expressly understood that this Agreement is between the Owner and each signatory jointly and

severally. In the event of default by any one signatory, each and every signatory shall be responsible for all

provisions of this agreement, including the timely payment of the entire rent sums due Owner and payment of

utilities.

MAINTENANCE, REPAIRS OR ALTERNATIONS

Resident/Tenant shall, at his own expense, and at all times, maintain the premises in a clean and sanitary

manner including all fixtures, equipment, appliances, furniture, and furnishings contained therein, and shall

surrender the same, at termination hereof, in the condition received, normal wear and tear excepted.

Resident/Tenant are responsible for changing the furnace filter and the batteries in the smoke detectors on a regular

basis (see additional conditions below). Resident/Tenant shall be responsible for the reasonable out of pocket cost

of repair or replacement of damaged portions of the premises and not a depreciated value.

Resident/Tenant shall not paint, wallpaper or otherwise redecorate or make alterations without the prior

written consent of the Owner. Resident/Tenant shall be responsible for maintaining appropriate window coverings

i.e., blinds, curtains, and/or draperies, and shall not use window coverings such as sheets, towels, etc., unless for

temporary use when regular window dressings are being cleaned or replaced.

Resident/Tenant shall be held responsible for the costs of cleaning and/or repair of any sewer or drains that have

become blocked or impeded by the negligence of the Resident/Tenant or Resident/Tenant’s agents, clerks, servants,

or Resident/Tenant’s visitors. Resident/Tenant agrees that he will not put down sewer or drains the following items:

throw-away diapers, cleansing tissues, cigarette butts, grease, oil, or any other item not intended for such disposal.

Initial ___________



If a telephone and/or cable TV is installed or the existing positions of the same are altered by the service or any

other person (e.g., holes in the walls or stapling of wires on the inside or outside of the premises), then such damage,

if any, shall become the obligation and responsibility of the Resident/Tenant.

Resident/Tenant shall be responsible for any and all repairs of whatsoever nature to the extent of

$ 100 per repair item, and not on an aggregate basis. Overtime charges for labor cost of repair shall not be paid

unless exigent or emergency circumstances exist with respect to heating, plumbing or water use, and shall be subject

to reasonable scrutiny by Owner.

Resident/Tenant shall not install additional appliances in addition to those as enumerated herein without

prior written permission of the Owner, including but not limited to: washer, dryer, air conditioner, dehumidifier,

humidifier, dishwasher etc. If Resident/Tenant causes damage of any items, (i.e., windows, doors, locks, etc., said

items shall be repaired or replaced immediately). If after seven (7) days the Resident/Tenant has not repaired or

replaced the item, the Owner may repair or replace the item and the actual cost shall be charged to the

Resident/Tenant and shall become due and owing immediately.

All repairs must be approved in writing by the Owner if Tenant is to do the repair.

APPLIANCES

The premises are rented with/without appliances. The appliances on the premises include

and are on the premises for the convenience of the Owner. If any such appliance fails to operate,

the Resident/Tenant may either repair the appliance or contact Owner to arrange disposal of such appliance. If

owner is not contacted for any such repair, tenant will be billed for the missing item at move out.

ORDINANCES AND STATUTES

Resident/Tenant shall comply with all statutes, ordinances and requirements of all municipal, state and

federal authorities now in force, or which may hereafter be in force, pertaining to the use of the premises.

Owner/Landlord has the right to immediate eviction of resident/tenant for any illegal activity on the

premises.

LIABILITY OF TENANT

Resident/Tenant shall be responsible for any personal injury or property damage caused by

Resident/Tenant, Tenant’s agents, clerks, servants, invitees and visitors, and property damage caused by the

overflow or escape of water, steam, gas or any other substance resulting from any intentional act of negligence of

Resident/Tenant. Resident/Tenant’s agents, clerks, servants or Resident/Tenant’s visitors.

The Owner shall be released from Liability arising from the loss, damage, or injury to the property of

Resident/Tenant, invitees, and any other person, caused by fire or other casualty for which insurance is carried by

the Resident/Tenant, under a policy which permits waiver of liability and waives the insurer’s rights of subrogation,

to the extent of any recovery by the injured party under the policy.

Tenant(s) is solely and fully responsible for maintaining premises in a safe manner including sidewalks and

access ways to apartment/home. Tenant(s) also responsible for maintaining batteries in smoke detectors and/or

carbon monoxide detectors if applicable.

INSURANCE COVERAGE

Resident/Tenant acknowledges and understands that Owner’s fire, hazard, and liability coverage for injury

or damage to persons or property, both real and personal, does not extend to or on behalf of the Resident/Tenant.

Therefore, Owner requires that Resident/Tenant obtain his/her own insurance coverage against such risk. Tenant’s

insurance policy needs to include liability insurance.

Initial ____________



DEFAULT, LANDLORD REMEDIES

Failure to comply with one or more of the substantive or procedural terms of this Agreement, shall

constitute a default of the entire Agreement. In case of default, Owner shall have the immediate right to possession

by means of self-help or legal process, and such remedy is not intended to be exclusive but rather cumulative and in

addition to any other remedies available under Your State Name law.

ATTORNEY FEES

In the event any legal action is brought by either party to enforce the terms herein or relating to the demised

premises, the Owner shall be entitled to all costs and attorney fees (allowed by statute) incurred in connection with

such action, unless ruled otherwise by the Court.

SECURITY DEPOSITS

You must notify your Landlord in writing within 4 (four) days after you

move of a forwarding address where you can be reached and where you will

receive mail; otherwise your Landlord shall be relieved of sending you an

itemized list of damages and the penalties adherent to that failure. Owner acknowledges receipt of $ as a security deposit for the performance by the

Resident/Tenant of the terms of the Agreement. Owner may use the security deposit for the following purposes in

accordance with the Security Deposit Act.

Reimburse the Owner for actual damages to the rental unit or an ancillary facility that are the direct result of

intentional or negligent conduct of Resident/Tenant.

Pay the Owner for all rent in arrearage under the Rental Agreement, rent due for premature termination of the Rental

Agreement by the Resident/Tenant and for utility bills unpaid by the Resident/Tenant.

The appropriation of all or part of this security deposit shall not be the Owner’s exclusive, but shall be

cumulative, in addition to any other remedies to which Owner is entitled hereunder. In the event that the

Resident/Tenant complies with each and every term of the Agreement and surrenders the premises in accordance

with this Agreement, at the expiration of the term hereof, the security deposit shall be returned to the

Resident/Tenant within thirty (30) days after the premises have been vacated and inspected by the Owner. No

interest shall accrue to Resident/Tenant on any such deposit, and the Owner may commingle the security deposit

with any other security deposit paid by Resident/Tenants to Owner.

Resident/Tenant acknowledges receipt of the Property/Inventory Check In/Out List for the above designated

property. Resident/Tenant further agrees to complete this checklist noting the conditions of the rental property and

hereby agrees to return it to the Owner within seven (7) days after taking possession of the demised premises.

Your security deposit is held by , whose address is:

security deposit shall not, under any circumstances, be applied by Resident/Tenant for payment of the final month’s

rent or any other rent or obligation of Resident/Tenant under this Agreement without the express or written consent

of Owner. In the event of sale or lease of the premises, the Owner shall have the right to transfer the security deposit

to a new Owner requiring such party to assume the responsibility for the return of the security deposit, and the

Owner shall be released from any liability for the return of same. Resident/Tenant shall look solely to the new

Owner for the return of said security deposit. Resident/Tenant shall not assign or encumber the security deposit

described herein.

Initial ______________



NOTICES

Any notice which either party may or is required to give, may be given by mailing the same, by first class

mail, to Resident/Tenant at the premises or to the Owner at the address as listed in this Agreement, or at such other

places as may be designated by the parties from time to time.

The Owner or Agent’s name and address for receipt of communications pursuant to the above is:

WAIVER

Failure of the Owner to enforce any term hereof shall not constitute a waiver, nor shall acceptance of a

partial payment of rent or other money claim be deemed a waiver of the Owner’s right to the full amount due and

owing.

HOLDING OVER

A thirty day written notice must be given to Landlord that tenant intends to vacate the property. This thirty

day notice applies to the regular expiration of the lease as well as any holding over period.

Any holding over after expiration hereof, unless otherwise agreed, shall be construed as a month-to-month tenancy

in accordance with the terms hereof as applicable.

ADDITIONAL TERMS AND CONDITIONS

1) This Rental Agreement can revert to a month to month agreement if the tenant

becomes more than 10 days late on any option payment or rental payment, at the

written discretion of the landlord.

2) Tenant agrees to change the batteries in the smoke detectors and the furnace filters

by September 1st and March 1st each year, or as needed if sooner.

3) I understand that the owner is to pay their mortgage payment each month and to provide me

with proof of such. If there is not proof provided by the due date of my rent for the previous month

that I can make my future rental payments to Lender account

# . I should also contact an attorney if the seller is unable or unwilling to provide

proof of such payment.

The undersigned tenant hereby acknowledges receipt of a copy hereof. Dated: ______________

________________________________________ __________________________________________

Landlord Resident/Tenant

_________________________________________ __________________________________________

Landlord Resident/Tenant

NOTICE: Michigan law establishes rights and obligations for parties to rental agreements.

This Agreement is required to comply with the Truth in Renting Act. If you have a

question about the interpretation or legality of a provision of this Agreement, you may

want to seek assistance from a lawyer or other qualified person. (Put your state law info

here or delete this paragraph if not required)



Pet Policy/Agreement

(Addendum to Rental Agreement)

This agreement is attached to and forms a part of the Rental Agreement dated between , Owners, and , Tenants. Tenants desire to keep a pet(s) named and described as in the dwelling they occupy under the rental agreement referred to above, and because this agreement specifically prohibits keeping pets without the Owner’s written permission, Tenants agree to the following terms and conditions in exchange for this permission: Tenants agree to provide Owner with copy of renters insurance which must include a liability clause to cover any incident with their pet. 1. Tenants agree to keep their pet under control at all times. 2. Tenants agree to keep their pet restrained, but not tethered, when it is outside their dwelling. 3. Tenants agree not to leave their pet unattended for any unreasonable periods. 4. Tenants agree to provide a cage large enough to comfortably accommodate the pet during periods of

tenants absence. 5. Tenants agree to dispose of their pet’s droppings immediately by sealing them in a zip lock bag and

depositing them in the proper container. 6. Tenants agree not to leave food or water for their pet or any other animal outside their dwelling. 7. Tenants agree to keep pet from causing any annoyance or discomfort to others and will remedy

immediately any complaints made through the Owner or Manager. 8. Tenants agree to pay immediately for any damage, loss, or expense caused by their pet, and in

addition, they will add $ as a pet deposit, any of which may be used for cleaning and/or repairs when Tenants vacate. This added deposit or what remains of it when pet damages have been assessed, will be returned to Tenants within days after they prove that they no longer keep this pet.

9. Tenants agree that Owners reserve the right to revoke permission to keep the pet should Tenants break this agreement.

10. Tenant agrees to pay the pet fee of $____/month per dog and $____/month per cat. If additional dogs and/or cats are kept on the premises without the written approval of the owner/representative, all pet deposits may be forfeited and owner has the right to evict the tenant. Monthly pet fee will not be pro-rated should the tenant no longer possess the dog/cat.

11. All animals must have written proof of up-to-date shots and vaccinations and be licensed where applicable. Written proof must be provided to owner/representative within 10 days of acquiring pet.

12. Tenants agree to follow all local ordinances regarding pets, i.e., leash laws, noise ordinances, etc. 13. If tenant does not follow this agreement and is evicted for lack of compliance, then any monies lost

due to this vacancy are owed to the landlord by the tenant. I have read the above Pet Agreement and understand the limitations imposed.

Owner Tenant

Tenant



Mortgage Authority for Buyer To whom it may concern DATE I, Sellers name – 1 or 2 names, give, buyers name, the right to have access to all information regarding my mortgage with you. My mortgage loan number is their loan number. This would include, but not limited to, checking on balances, changing the address for payment coupons and correspondence, payoff requests, etc. Sincerely, Owners Signatures Notary is Recommended