RESIDENTIAL RENT TO OWN AGREEMENT

This Residential rent to own Agreement (hereinafter referred to as the “Agreement”) is made on [INSERT DATE ON WHICH THE AGREEMENT COMES INTO FORCE] (hereinafter referred to as the “Effective Date”) between:

[INSERT NAME OF THE LANDLORD], having registered office at [INSERT ADDRESS OF THE LANDLORD] (hereinafter referred to as the “Landlord” which expression shall, unless repugnant to the context or meaning thereof, means and includes its legal representatives, executors, administrators and permitted assigns); and 

[INSERT NAME OF THE TENANT], having registered office at [INSERT ADDRESS OF THE TENANT] (hereinafter referred to as the “Tenant” which expression shall, unless repugnant to the context or meaning thereof, means and includes its legal representatives, executors, administrators and permitted assigns).

The “Landlord” and the “Tenant” together shall be referred to as “Parties” and individually as a “Party”.

WHEREAS

1. The Landlord is lawful owner of the property located at [INSERT LOCATION OF THE PROPERTY], and desires to rent the property to the Tenant with an option to purchase it as well.
2. The Tenant agrees to accept the given proposal of having the property on rent and purchasing it later, if required.
3. The Landlord and Tenant mutually agree to the terms and conditions outlined in this Agreement, which governs the working relationship between the parties.
4. The parties are duly authorized and have the capacity to enter into this agreement.
5. Both the parties affirm to understand the provisions contained herein and in case either party requires clarification as to one or more provisions, either party has had the right to seek clarifications or sought legal guidance.

NOW, THEREFORE, in consideration of the mutual promises contained herein and intending to, be legally bound, the Parties have agreed as follows:

1. DEFINITIONS
   1. “Landlord” refers to an individual that owns the said property as mentioned in this agreement.
   2. “Tenant” refers to an individual who will have the said property on rent as outlined in this agreement.
   3. “Property” refers to the real estate property located at [INSERT ADDRESS OF THE PROPERTY].
   4. “Confidential Information" means any non-public information, data, documentation, trade secrets, know-how, or any other information disclosed by one party (Landlord) to the other party (Tenant) in connection with this agreement , whether in written, oral, electronic, or any other form, and identified as confidential or which the Parties should reasonably understand to be confidential.
2. DESCRIPTION OF THE PROPERTY
   1. The landlord hereby agrees to rent and sell the property to the tenant. The description of the property. [INSERT DESCRIPTION OF THE PROPERTY]
3. TERM AND TERMINATION
   1. The term of this agreement shall commence on the effective date hereof and shall continue for a period of [INSERT TERM OF THE AGREEMENT], unless terminated earlier or extended as per the terms of this agreement.
   2. Notwithstanding any other provisions herein contained, and without prejudice to any other rights, either party shall have the right to terminate the present Agreement by giving the other party a written notice of [INSERT NOTICE PERIOD TO TERMINATE THE AGREEMENT] days.
   3. The Parties may terminate the agreement if there is a material breach of the terms and failure to resolve such a breach within 30 days of notification.
4. RENTAL PAYMENT
   1. The Tenant agrees to pay the landlord a maximum total of [INSERT RENTAL AMOUNT PAYABLE TO LANDLORD] on a monthly basis. Rental payments shall be made on every first week of the month. All payments under this agreement shall be made in [INSERT FIAT CURRENCY] via [INSERT MODE OF PAYMENT].
   2. In addition to this, the tenant shall be responsible for any other charges such as utilities, maintenance or property taxes.
5. PURCHASE OPTION
   1. The Landlord hereby grants an exclusive right, option and privilege to purchase the rental property at any time during the term of this agreement. The Tenant shall notify the Landlord in writing of the exercise of this option at least ten (10) days prior to the expiration of the initial term of this agreement.
   2. If the tenant chooses not to exercise the purchase option, the term shall terminate as scheduled, and tenant shall vacate the property, as per the agreed terms and conditions.
6. PURCHASE PRICE
   1. The Purchase Price of the rental property shall be [INSERT PURCHASE PRICE]. If the tenant chooses to purchase the property, the purchase price shall be paid as follows [INSERT PAYMENT TERMS SUCH AS IN INSTALLMENTS OR TOTAL]
   2. Upon payment of the purchase price, the landlord agrees to transfer the title and ownership to the tenant through a separate agreement or deed.
7. MAINTENANCE AND REPAIRS
   1. The Tenant accepts the property “as is" on the date of execution of this agreement. The Tenant shall henceforth be responsible for all maintenance and repair upon said property, both interior and exterior. The Tenant shall have the right to make such repairs, maintenance, and improvements as Tenant shall deem necessary proper or desirable. The Tenant shall be solely liable for payment for said improvements and shall hold the Landlord nameless there from, except that any electric, plumbing, heating or cooling system that is out of order or any repairs exceeding [INSERT AMOUNT FOR REPAIRS EXCEEDING A CERTAIN COST] at the commencement of this agreement or within 30 days thereafter will be repaired by the landlord at his/her own expense. If the Landlord cannot or will not make the repairs necessary the Tenant will have the option of either voiding this agreement by written notice to the landlord or making such repairs and, receiving a reimbursement from the next monthly payment or payments due to the Landlord or by receiving a credit against the purchase price.
8. TENANT’S OBLIGATION
   1. The Tenant agrees to pay the monthly rent as specified in this agreement on or before due the due date without any deductions.
   2. The Tenant shall not use the property for any unlawful purpose and agrees to obey all laws, ordinances, rules, regulations, requirements and orders of all Federal, State, and Local governmental authorities, agencies, departments, bureaus, boards or officials, respecting the use of the property.
   3. The Tenant shall maintain the property in a clean and habitable condition and shall promptly report any damages or necessary repairs to the landlord.
   4. The tenant shall allow the landlord reasonable access to the property for inspection, repairs or other valid reasons.
9. LANDLORD’S OBLIGATION
   1. The Landlord shall ensure that the tenant has the right to quiet enjoyment of the property during the term of this agreement.
   2. The landlord shall not unnecessary interfere with the daily activities of the Tenant and shall comply with all the reasonable laws and regulations, that apply to the property.
   3. The landlord agrees to cooperate in good faith in resolving any disputes or concerns raised by the tenant during the term of this agreement.
10. INDEMNIFICATION
    1. Any material breach of this Agreement, or the negligence or willful misconduct of either party, the other party shall indemnify the other party and hold the other party harmless from and against any judgment, damage, liability, or expenses, including reasonable attorney’s fees, arising out of any claim with respect to the breach or alleged breach of such warranty of this agreement or such negligence or willful misconduct; provided that the other party shall have had sole control of the defense of any such action and all negotiations for its settlement or compromise; and, provided further, that no cost or expense shall be incurred for the account of the other party without its prior written consent.
11. FORCE MAJEURE
    1. Neither party shall be held liable for any failure or delay in performing its obligations under this Agreement if such failure or delay is caused by events beyond the reasonable control of the affected party, including but not limited to acts of God, natural disasters (e.g., floods, earthquakes, hurricanes), war, terrorism, riots, labour strikes, governmental actions, epidemics or pandemics, power outages, or other similar events ("Force Majeure Events").The affected party shall promptly notify the other party in writing of the occurrence of a Force Majeure Event, providing reasonable details of the event, its expected duration, and the steps being taken to mitigate its impact. Failure to provide timely notice may result in the affected party forfeiting its rights under this clause. If a Force Majeure Event continues for a period exceeding [INSERT THE NUMBER OF DAYS CONSTITUTING PERIOD EXCEEDING WHICH, IF THE FORCE MAJEURE CONTINUES, EITHER PARTY MAY TERMINATE THE AGREEMENT] days, either party may terminate this Agreement upon written notice to the other party without further liability, except for obligations accrued prior to the Force Majeure Event.
12. APPLICABLE LAW
    1. This Agreement shall be governed by and constructed in accordance with the Laws, rules, orders and regulations of [INSERT THE COUNTRY/STATE OF APPLICABLE LAWS].
    2. The Parties shall resolve all disputes in connection with the validity or interpretation of this Agreement, unless otherwise expressly stated in the Agreement, in the following manner: 
       1. By direct negotiations between the Landlord and Tenant. 
       2. If negotiations between the parties are unsuccessful, the matter shall be referred to the competent court sitting at [INSERT THE COURT WHICH SHALL HAVE EXCLUSIVE JURISDICTION IN CASE OF UNSUCCESSFUL NEGOTIATIONS] which shall have exclusive jurisdiction in all matters arising there from unless otherwise agreed between the Parties in writing.
13. NOTICES
    1. Any notice, request, demand, consent or other communication required or permitted under this Agreement shall be in writing and sent either via email on the email address as provided by the parties and shall be considered sent when the email is sent to the correct email address of the party or shall be given by personal delivery (including courier) by certified mail (confirmed by mail) addressed to the party for which it is intended at the address below and shall be deemed to be given on the day of delivery or transmission if within during normal business hours, or, if after business hours, on the next following Business Day, or if mailed by registered or certified mail, on the day which is seven (7) Business Days after such notice is mailed during normal postal conditions.  In the event of a postal disruption, any notice mailed will be deemed received on the seventh (7th) Business Day following resumption of regular postal service:
       1. If to the Landlord: [INSERT EMAIL ID OR/AND ADDRESS OF LANDLORD]
       2. If to the Tenant: [INSERT EMAIL ID OR/AND ADDRESS OF TENANT]
    2. Either party may change its address/email address for notices and other communications upon notice to the other party in the manner aforesaid.
14. DISPUTE RESOLUTION
    1. The Parties shall endeavor to resolve any differences of opinion which may arise between them with respect to the provisions of this Agreement by negotiation between themselves personally or with the assistance of their attorneys and unless in the opinion of any party, acting reasonably, the matter in dispute is of such significant nature to warrant it being addressed otherwise, no party shall commence any public proceedings until the negotiations have failed to produce a resolution. In furtherance of the provisions of this paragraph, all Parties hereby agree to make themselves available on short notice and to negotiate promptly and in good faith, any matter any party may wish to negotiate.
    2. All disputes arising under this agreement shall be governed by and interpreted in accordance with the Arbitration laws of [INSERT COUNTRY/STATE OF ARBITRATION] , without regard to principles of conflict of laws. The parties to this agreement will submit all disputes arising under this Agreement to Arbitration in [INSERT COUNTRY/STATE OF ARBITRATION] before a single arbitrator .The arbitrator shall be selected by mutual agreement of the parties. The venue of Arbitration proceedings shall be [INSERT NAME OF COUNTRY AND CITY WHERE ARBITRATION SHALL BE CONDUCTED] No party to this agreement will challenge the jurisdiction or venue provisions as provided in this section. The decision of the Arbitrator shall be final and binding upon the parties.
15. MISCELLANOUS
    1. Modifications: Except as otherwise provided herein this Agreement shall not be amended or otherwise modified unless the modification or amendment is done in writing, signed and has been mutually agreed by both the parties.
    2. Language: The language of all communications between the parties pursuant to this Agreement, including notices and reports, will be English.
    3. Severability: If any provision of this Agreement shall, to any extent, be held to be invalid or unenforceable, it shall be deemed to be separate and severable from the remaining provisions of this Agreement, which shall remain in full force and effect and be binding as though the invalid or unenforceable provision had not been included.
    4. Entire agreement: This agreement along with all the Exhibits constitutes the entire understanding and agreement of the parties with respect to its subject matter and supersedes all prior and contemporaneous agreements or understandings, inducements or conditions, express or implied, written or oral, between the parties. This Agreement may be executed in identical duplicate counterparts, each of which shall be deemed an original, and both of which together shall constitute one and the same instrument. 
    5. No Waiver: Any failure or delay of any Party hereto in exercising any right or privilege with respect to this Agreement shall not be construed to be a waiver or to affect the validity of any part of the Agreement and shall not retrain any of the Parties to enforce any of the provisions of the Agreement.
    6. Amendments and Assignments:  Any amendments to this Agreement shall be made, only if, both Parties agree upon such amendment in writing. This Agreement shall not be assigned by either party without the express, written consent of the other party.
    7. Headings: The headings upon the various sections are solely for convenience and reference only and shall not affect the scope, meaning, intent or interpretation of the provisions of this Agreement, nor shall such headings otherwise be given any legal effect.
16. DECLARATION
    1. The parties hereby understand and expressly agree to the provisions laid down in the present agreement and in good faith, undertake that both parties shall follow the terms of this agreement in good conscience in order to secure better growth of both the Parties.

IN WITNESS WHEREOF, the parties, intending to be legally bound, have each executed this agreement as of the effective date.

Signed, sealed and delivered on behalf of Landlord

Name: [INSERT NAME OF LANDLORD/SIGNING AUTHORITY AND DESIGNATION]

Signature:

Date: [INSERT SIGNING DATE OF LANDLORD]

Signed, sealed and delivered on behalf of Tenant

Name: [INSERT NAME OF TENANT/SIGNING AUTHORITY AND DESIGNATION]

Signature:

Date: [INSERT SIGNING DATE OF TENANT]