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Saturday, May 14, 2011
Sample Contract
LEASE-PURCHASE AGREEMENT
This Lease-Purchase Agreement executed this 1st day of March 2010, by and between:
____, of legal age, married, Filipino and with residence and postal address at ___, hereinafter referred to as the LESSOR/VENDOR:
- and -
___, of legal age, single, Filipino and with residence and postal address at ___, hereinafter referred to as the LESSEEE/VENDEE:
W I T N E S S E T H
That the LESSOR/VENDOR is the true and lawful owner of a certain residential house and lot identified at Block 35, Lot 24, Ruby St., Crystal Aire, San Francisco, Gen. Trias, Cavite;
That the LESSOR/VENDOR herein is willing to enter into a Lease-Purchase Agreement with the herein LESSEE/VENDEE, under the following terms and conditions, to wit:
1. This contract shall be for a period of fourteen (15) years commencing from 1 March 2010, unless on an earlier date the foregoing contract is terminated either by full payment of the contract price as agreed upon or other cause/s, as hereunder stipulated. The LESSEE/VENDEE shall pay monthly installments/rents until the cost of the property has been fully paid;
2. The LESSEE/VENDEE shall lease/rent-to-own the subject property and shall pay the amount, and will constitute as monthly amortization, of NINE THOUSAND FIVE HUNDRED PESOS (Php 9,500.00), Philippine Currency; payable to the LESSOR/VENDOR every 1st day of each month for the lifetime of this contract.
Payments shall be made through thirty-six (36) post-dated checks issued in advance by the LESSEE/VENDEE for monthly payments and shall be replenished by the LESSEE/VENDEE not later than three (3) months before the date of the thirty-sixth (36th) check. To ensure replenishment, the LESSEE/VENDEE shall issue an additional post-dated check amounting to One Hundred Thousand Pesos (Php100,000.00) bearing the same date as the thirty-sixth (36th) check to be returned by the LESSOR/VENDOR to the LESSEE/VENDEE upon replenishment by the LESEE/VENDEE of the next set of thirty-six (36) post-dated checks.
Failure by the LESSEE/VENDEE to abide with this provision will be a material breach of this contract and will give the right for the LESSOR/VENDOR to rescind this lease unilaterally upon giving notice to cure or quit as provided for in sections 12, 13, 14, and 15 of this contract.
The LESSEE/VENDEE is hereby allowed to make bulk payments towards the reduction of the term of this Lease-Purchase Agreement.
3. Upon the signing of this contract, the LESSEE/VENDEE, shall pay the LESSOR/VENDOR, the following:
- The amount of ONE HUNDRED TWENTY THOUSAND PESOS (Php 120,000), Philippine Currency, to constitute as non-refundable down payment, payable in twelve (12) equal monthly installments commencing on the 1st day of March 2010. The installments are to be made by way of twelve (12) post-dated checks of TEN THOUSAND PESOS (Php 10,000) each dated every 1st day of each month;
- Should the LESSEE/VENDEE terminate the contract for what ever reason, or if the contract is rescinded due to the fault of the LESSEE/VENDEE, PRIOR to its consummation, all down payments and deposits made shall be forfeited in favor of the LESSOR/VENDOR.
4. The Lessee/Vendee, shall, during the existence of the contract, exercise due care and diligence in the use of the said property and further shall, at the Lessee/Vendee’s cost and expense, keep the same in good and habitable condition;
5. The LESSEE/VENDEE shall be allowed to make structural changes, alterations or improvements in the leased premises without any prior written authority from the LESSOR/VENDOR, HOWEVER, in case of termination of this contract other than full payment of the total contract price or full payment thereof, the improvements introduced which are permanent in nature or character shall become the property of the latter;
6. Until the herein LESSOR/VENDOR regains possession of the subject property, the LESSEE/VENDEE shall defray all the taxes due the government, and all other fees or dues accruing relative to the occupation of the same such as association dues and the like.
The LESSEE/VENDEE shall facilitate the application of utility services including but not limited to electricity, water and telephone if available. The LESSEE/VENDEE shall, at his/her own cost and expense, pay all service/subscription fees and other expenses related to occupancy of the property;
7. In case of failure to pay the monthly dues or failure by the LESSOR/VENDOR to encash any of the checks tendered by the LESEE/VENDEE due to insufficient funds, the LESEE/VENDEE shall pay 10% penalty per month that the monthly due remains unpaid.
The LESSOR/VENDOR has the right to cancel or rescind this agreement unilaterally in the event the LESSEE/VENDEE fails to pay two (2) consecutive monthly rentals, or when the Lessee/Vendee fails to comply with the terms and conditions of this agreement, without need of judicial action;
8. The LESSEE/VENDEE shall abide and shall be subject to all association rules, restrictions and to the Articles and By-Laws of the Crystal Aire Homeowner's Association;
9. Any additional agreement not herein contained that will amend this contract, shall only be valid and binding if the same is in writing and signed by the parties herein or their duly authorized representatives;
10. Upon full payment by the herein LESSEE/VENDEE of the total contract price within the period as herein stipulated or in an earlier date, the herein LESSOR/VENDOR shall execute the Deed of Absolute Sale over the subject property in favor of the former; All government obligations, registry fees, taxes and all other expenses related to the transfer of title to the LESEEE/VENDEE shall be to the account of the LESSEE/VENDEE.
11. The failure on the LESSOR/VENDOR’S part to insist in one or more instances upon the strict performance of any of the covenants and conditions of this lease, or to exercise any right or option therein contained, shall not be construed as a waiver of covenant, condition or option. The contract shall continue to be of full force and effect. The acceptance by the LESSOR/VENDOR of arrears in rent/amortization, or any extension of time and payment shall not be deemed a waiver by the LESSOR/VENDOR of any breach by the LESSEE/VENDEE of any other covenant or condition contained herein. Silence on the part of the LESSOR/VENDOR, shall not be considered as condonation or waiver of any breach or default by the LESSEE/VENDEE of any covenant or condition herein provided. No waiver shall be deemed to have been made by the LESSOR/VENDOR if not reduced in writing;
12. In fulfillment of all obligations wherein the payment of money is involved, including but not limited to taxes, assessments, insurance premiums, reimbursements, fees, costs and other charges, the LESSEE/VENDEE is hereby given a period of thirty (30) days from the date of default within which to make the necessary payment before the LESSOR/VENDOR can exercise its right to recover against the LESSEE/VENDEE and/or exercise its right to rescind the contract;
13. In fulfillment of obligations contained on this contract which involve the performance of an act of an obligation to do, the LESSEE/VENDEE may cure or remedy any such breach or failure by complying wherewith within thirty (30) calendar days of such breach;
14. Default shall automatically take place upon the failure of the LESSEE/VENDEE to pay or perform its obligation during the time fixed herein for such obligation without necessity of demand or, if no time is fixed, after ten (10) calendar days from the receipt of notice or demand from the LESSOR/VENDOR. For purposes of default where demand or notice is required of the LESSOR, the parties hereby expressly agree that notice addressed to the LESSEE delivered at its address in the premises or in its last known address shall be considered sufficient compliance of notice or demand;
15. In the event of default or breach, non-performance or non-observance of any of the terms and conditions of this contract, or even without such breach or default or if the LESSEE/VENDEE shall become dissolved, bankrupt, insolvent or be under a receiver or make an assignment for the benefit of creditors or file any proceeding seeking any judgment, arrangement, postponement, condonation, reduction of LESSEE/VENDEE’S debts, liabilities, or obligations, or if the LESSEE abandons the Premises and the improvements thereon, the LESSOR/VENDOR may, in its absolute discretion, declare this contract cancelled or terminated and require the LESSEE/VENDEE to vacate the Premises. In which event, the LESSOR/VENDOR shall demand the LESSEE/VENDEE to immediately vacate the premises, and the LESSOR/VENDOR shall forfeit in its favor all payments tendered without prejudice to any such other appropriate action as may be legally authorized;
16. Should the LESSOR/VENDOR be compelled to employ legal counsel to enforce all or any part of this contract, the LESSEE/VENDEE agrees to forfeit all payments made to the LESSOR/VENDOR indemnify the same for actual and liquidated damages which in no case shall be less than TWENTY FIVE THOUSAND PESOS ( Php 25,000.00 ) and to pay attorney’s fees that will in no case be less than TWENTY FIVE THOUSAND PESOS
( Php 25,000.00 ), plus cost of suit and other expenses which the law entitles the LESSOR/VENDOR to recover from the LESSEE/VENDEE both the LESSEE/VENDEE and the LESSOR/VENDOR hereby agree that judicial suits shall be brought before proper courts in MANDALUYONG CITY only;
( Php 25,000.00 ), plus cost of suit and other expenses which the law entitles the LESSOR/VENDOR to recover from the LESSEE/VENDEE both the LESSEE/VENDEE and the LESSOR/VENDOR hereby agree that judicial suits shall be brought before proper courts in MANDALUYONG CITY only;
17. Should any provision of this contract be held invalid by any competent court, the same shall apply only to the provisions involved and the remainder thereof remains valid and enforceable;
IN WITNESS WHEREOF, the parties have hereunto set their hands this ____ day of January 2010 in ________________________.
LESSOR/VENDOR
SIGNED IN THE PRESENCE OF
________________________A C K N O W L E D G E M E N T
BEFORE ME, a Notary Public for and in the city of __________________, this _________ day of ______ 2010, personally appeared ___ and
________________________, with Com. Tax Cert. Nos. ___________ and __________ issued in __________________ and ______________ on _________________ and ____________, respectively, who are known to me and to me known to be the same persons who executed the foregoing instrument and they acknowledged to me that the same is their own free and voluntary act and deed.
________________________, with Com. Tax Cert. Nos. ___________ and __________ issued in __________________ and ______________ on _________________ and ____________, respectively, who are known to me and to me known to be the same persons who executed the foregoing instrument and they acknowledged to me that the same is their own free and voluntary act and deed.
I FURTHER CERTIFY that this instrument consisting of four (5) pages including where this acknowledgement is written refers to a Lease-Purchase Agreement, signed by the parties and their instrumental witnesses on each and every page hereof.
WITNESS MY HAND AND NOTARIAL SEAL on the date and place written above.
Doc. No. ______: Page No. ______:
Book No. ______:
Series of 2010
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