Purchase Option Lease Agreement: Fill & Download for Free

Have you ever been cheated on? Have you ever cheated?Yes, not only I, but our entire family! My parents, my siblngs and all their spouses, all of us were cheated.Whenever we think about that person our blood boils. But we became helpless in the hands of law.So this is how we have been cheated:In 1971-72 our father constructed a house in Visakhapatnam. Because our father did not like to take loan for anything, he and my mother lived a simple life and saved money for their (our) dream house.From drawing the plan to supervise the work of labourers, everything was done by my father himself! being a perfectionist, he did not compromise on any thing.He exhausted all his earned leave for constructing this house.My parents had many dreams of how they would live happily in their own house after my father’s retirement; how they will develop a small garden in small front yard and many more small dreams...The house was build in two portions, each with two bedroomsMy parents decided that until my father’s retirement they would rent both the portions and after my father’s retirement, only back portion would be rented and front portion would be occupied by my parents.Everything went on well until one fateful day my father had decided to give the front portion on a lease to “Kores India Ltd”.Though it was a lease to the company, all negotiations went on personal level.It was rented to a person Narayan Rao. The lease was for the purpose of ‘residence cum office’.As far as I remember he gave it on lease for one year in 1978-79.My father’s retirement month was August 1985. So my father decided to give it on lease until his retirement time.My father clearly told Narayan Rao that he had to vacate the house before his retirement. He agreed for that.So after one year, the lease was again renewed and extended for one more year.This had continued until (approximately) one year prior to my father’s retirement.In 1984, my father refused to extend the lease further as it would end 3-4 months after my father’s retirement.But Narayan Rao literally begged our father to extend the lease for one more year (lease period cannot be a fraction of a year) because his children’s education will get spoiled if they change the house in the middle of the academic year.He promised our father that he will vacate the house in April’1985, so that our parents would have sufficient time for doing any modifications to the house.My father agreed to that in good faith.In April-May 1985 our father came to Visakhapatnam to see that narayana Rao vacates the house.Then Narayana Rao said coolly that vacating the house is not in his hands. Since my father had agreement with “Kores India Ltd” he better take up the matter with the company itself.Until then he was the one who was paying the rent and he was the one who signed on the lease agreements on behalf of the company.My father contacted the company. They said that since my father has another house (back portion), legally he cannot force them to vacate the house. They said they were not going to vacate even after the lease period and my father should extend the lease with revised rent.By then we all came to know that Narayana Rao was aware of all these things previously.Because there was no other option, my father decided to go legally. So he filed a petition in the district court that the company should vacate the house.The court proceedings went on for nearly eight years. During these eight years period, they paid the rent at old rate, because new lease agreement was not made with revised rate. This was a huge financial loss for our parents.In between my mother was diagnosed with cancer. There were periodical chemotherapies. She breathed her last breath in January’89, dreaming until her last day that one day they will shift to the front portion and she would enjoy her dream house.Even in between all the mental agony, my father did not lose his mental strength.At the end eight or eight years, court gave its judgement.The court said “Since Mr. Sastry has filed the petition few months before the expiry of the last lease, his petition is void”(In other words it is not illegal if he does not extend the lease period and ask the tenants to vacate after lease expired, but since he filed the petition before expiry of the last lease it is void)My father had again filed a new petition.The court proceedings went on for many years.By 1998, my father became very tired of all these things. His health also started to deteriorate. His worry was that what would happen to the court case after him.So he decided to sell the house and distribute the money to all his children.But because there is a court case, nobody was ready to purchase the house.The house was in Dwarakanagar (in the fourth street towards right when going from diamond park towards Sankara Matham).It was in center of the city where the land rates in Visakhapatnam are highest.In 1998, the land value itself was around one crore(Ten million) rupees for that land. But because of the court case, our father had to sell the house (the land to be precise) at 25% the value.(The person who purchased had agreed to purchase it along with the court case)This is another huge financial loss!So all the hard earned money and all the efforts in constructing the house went into thrash with just one wrong step.Just for believing one person.....Our father breathed his last breath in 2003.After my retirement in 2010, whenever we went to Dwaraka Nagar we would go to that street and see that house.The house was completely dismantled. Tears would fill our eyes when we saw the house in that state.The scene of our father standing in the scorching heat and supervising the construction would appear before our eyes....The weak face (due to chemotherapy) of our mother would appear before our eyes...A couple years ago when we saw the site, there was a multi story building.So what life lesson one can learn from this whole episode?1. Don’t trust people blindly2. It is better not to give your house on lease to companies.3. It is still better to construct the house when you actually want to live in that house.Second part of the question: “Have you ever cheated?” NO I HAVE NEVER CHEATED ANYBODY.This was our house. Now it is all dismantled and new apartments are constructed there.

5% down on a $5,000,000 deal sounds like it might be a hypothetical question.In the event it's not, you've already received some sound advise on PSA clauses and time consideration. However, I'd like to add to the conversation by suggesting you consider negotiating a purchase option.A purchase option for an amount (sometimes passed through to seller immediately, sometimes not) can be negotiated and included in the PSA, or a mo-to-mo lease agreement.The option amount should/will be much smaller than a deposit into escrow, and the risk is known as the option price paid is the maximum a buyer would be at risk for in a purchase option transaction.

You may be referring to a lease that contains a "guaranteed" option to purchase, usually at a specified price, as opposed to a "right of refusal" or other purchase option structures contained in some leases.