REAL ESTATE LEASE
This Lease Agreement (this "Lease") is dated _______________ and effective _________, by and between Dan R. Jacobs ("Landlord"), and The parties agree as follows:
PREMISES. Landlord, in consideration of the lease payments provided in this Lease, leases to Tenant a 3 bedroom, one bath single family residence (the "Premises") located at 2680 Linson, Beaumont, Texas 77703.
TERM. The lease term will begin on _______________ and will terminate on _________________.
LEASE PAYMENTS. Tenant shall pay to Landlord lease payments of $1,195.00, payable in advance on the first day of each month. Lease payments shall be made to Landlord at P. O. Box 93652, Las Vegas, NV 89193-3652, which may be changed from time to time by Landlord.
SECURITY DEPOSIT. At the time of the signing of this Lease, Tenant shall pay to Landlord, in trust, a security deposit of $1,000.00 to be held and disbursed for Tenant damages to the Premises or other defaults under this Agreement (if any) as provided by law. This deposit may be credited under a separate work agreement between Landlord and Tenant, but remain as a deposit until lease termination.
POSSESSION. Tenant shall be entitled to possession on the first day of the term of this Lease, and shall yield possession to Landlord on the last day of the term of this Lease, unless otherwise agreed by both parties in writing. At the expiration of the term, Tenant shall remove its goods and effects and peaceably yield up the Premises to Landlord in as good a condition as when delivered to Tenant, ordinary wear and tear excepted.
USE OF PREMISES/ABSENCES. Tenant shall occupy and use the Premises as a dwelling unit. Tenant shall notify Landlord of any anticipated extended absence from the Premises not later than the first day of the extended absence.
OCCUPANTS. No more than 5 adult person(s) over the age of 16 may reside on the Premises unless the prior written consent of the Landlord is obtained. The only additional adult occupants of the premises are ________________________________
PETS. Up to two non-aggressive breed dogs under 25 pounds will be allowed with a $300.00 deposit (1/2 non-refundable) per dog. If tenant is discovered to have a pet on the property without paying the deposit, an additional recovery fee of $1,500.00 will be charged to the tenant.
SMOKING. Smoking is not allowed anywhere on the property by tenant or guests of the tenant. If smoking is discovered on the property, an additional recovery fee of $2,500.00 will be charged to the tenant.
FURNISHINGS. The lease of the Premises includes the furnishings listed on the attached exhibit. Tenant shall return all such items at the end of the lease term in a condition as good as existed at the beginning of the lease term, normal wear and tear excepted.
PARKING. Tenant shall be entitled to parking privileges. Tenant may not park on grassy areas, and any violation of this subparagraph shall be grounds for loss of security deposit.
STORAGE. Tenant shall be entitled to store items of personal property in the storage areas of the house during the term of this Lease. Landlord shall not be liable for loss of, or damage to, such stored items. Any items, including exempt personal property remaining on the property shall become the property of the Landlord.
PROPERTY INSURANCE. Landlord and Tenant shall each be responsible to maintain appropriate insurance for their respective interests in the Premises and property located on the Premises. Landlord does not and will not maintain any insurance on behalf of the tenant. Tenant must contact an outside insurance agency if tenant wishes to purchase insurance for tenant's personal property.
RENEWAL TERMS. This Lease shall automatically renew for an additional period of 12 months per renewal term, unless either party gives written notice of termination no later than 30 days prior to the end of the term or renewal term. The lease terms during any such renewal term shall be the same as those contained in this Lease. There will be a $45.00 month to month payment due in the absence of a lease renewal.
KEYS. Tenant will be given 2 key(s) to the Premises. If all keys are not returned to Landlord following termination of the Lease, Tenant shall be charged $25.00. If the tenant changes the locks, the Tenant shall supply the Landlord with 2 keys to the Premises within 24 hours. Otherwise Landlord shall have the right to enter the premises and change the locks.
LOCKOUT. If Tenant becomes locked out of the Premises, Tenant will be charged $100.00 to regain entry.
MAINTENANCE. Landlord shall have the responsibility to maintain the Premises in good repair at all times and perform all repairs necessary to satisfy any implied warranty of habitability except that Tenant will be responsible for the first $50.00 of any and all maintenance costs. In addition, all maintenance of dishwasher, garbage disposal, and washer and/or dryer, if installed, will be at the exclusive expense of the tenant. These items are on loan to tenant for the duration of the lease and any extensions. Landlord shall have the right to enter the premises at anytime with telephone notice, or attempted notice to preserve the property and it's contents.
UTILITIES AND SERVICES. Tenant shall be responsible for all utilities and services incurred in connection with the Premises.
TAXES. Taxes attributable to the Premises or the use of the Premises shall be allocated as follows:
REAL ESTATE TAXES. Landlord shall pay all real estate taxes and assessments for the Premises.
PERSONAL TAXES. Landlord shall pay all personal taxes and any other charges which may be levied against the Premises, along with all sales and/or use taxes (if any) that may be due in connection with lease payments.
TERMINATION UPON SALE OF PREMISES. Notwithstanding any other provision of this Lease, Landlord may terminate this lease upon 60 days' written notice to Tenant that the Premises have been sold. Tenant has certain rights under Texas law in the event of this occurrence.
DESTRUCTION OR CONDEMNATION OF PREMISES. If the Premises are partially destroyed by fire or other casualty to an extent that prevents the conducting of Tenant's use of the Premises in a normal manner, and if the damage is reasonably repairable within sixty days after the occurrence of the destruction, and if the cost of repair is less than $5,000.00, Landlord shall repair the Premises and a just proportion of the lease payments shall abate during the period of the repair according to the extent to which the Premises have been rendered untenantable. However, if the damage is not repairable within sixty days, or if the cost of repair is $5,000.00 or more, or if Landlord is prevented from repairing the damage by forces beyond Landlord's control, or if the property is condemned, this Lease shall terminate upon twenty days' written notice of such event or condition by either party and any unearned rent paid in advance by Tenant shall be apportioned and refunded to it. Tenant shall give Landlord immediate notice of any damage to the Premises.
HABITABILITY. Tenant has inspected the Premises and fixtures (or has had the Premises inspected on behalf of Tenant), and acknowledges that the Premises are in a reasonable and acceptable condition of habitability for their intended use, and the agreed lease payments are fair and reasonable. If the condition changes so that, in Tenant's opinion, the habitability and rental value of the Premises are adversely affected, Tenant shall promptly provide reasonable notice to Landlord.
DEFAULTS. Tenant shall be in default of this Lease if Tenant fails to fulfill any lease obligation or term by which Tenant is bound. Subject to any governing provisions of law to the contrary, if Tenant fails to cure any financial obligation within 5 days (or any other obligation within 10 days) after written notice of such default is provided by Landlord to Tenant, Landlord may take possession of the Premises without further notice (to the extent permitted by law), and without prejudicing Landlord's rights to damages. In the alternative, Landlord may elect to cure any default and the cost of such action shall be added to Tenant's financial obligations under this Lease. Tenant shall pay all costs, damages, and expenses (including reasonable attorney fees and expenses) suffered by Landlord by reason of Tenant's defaults. All sums of money or charges required to be paid by Tenant under this Lease shall be additional rent, whether or not such sums or charges are designated as "additional rent". The rights provided by this paragraph are cumulative in nature and are in addition to any other rights afforded by law.
LATE PAYMENTS. For any payment that is not paid within 5 days after its due date, Tenant shall pay a late fee of $50.00, plus $5.00 for each day the payment is late.
DIRECT DEPOSIT: Tenant may elect to have the monthly payment deposited directly into Landlords account each month by ACH (Automated Clearing House) debit or bank draft, in which case a $200.00 discount will be taken from the monthly rental payment of $1195.00, for a net payment of $995.00 per month. The lease completion rebate (described below) shall remain in effect.
LEASE COMPLETION REBATE: At the end of the 12 month lease, an additional rebate of $300.00 shall be mailed to the tenant upon satisfactory inspection of the premises. In order to qualify for this rebate, all 12 monthly payments must have been made by checking account debit with no returns for any reason. This rebate will not apply if there are any arrearages or overdue payments of any type, including insufficient funds.
LEASE PAYMENT PERCENTAGE APPLIED TO PURCHASE PRICE: For the first consecutive 24 months of tenancy, 25% of timely rental payments will be applied to the purchase price of $109,500.00 to be used toward down payment, whether through conventional, VA, HUD mortgage or owner finance. This will amount to $5,970.00 under the terms of this lease. In order to qualify, all 24 monthly payments must have been made by checking account debit with no returns for any reason. This 25% will not apply if there are any arrearages or overdue payments of any type, including insufficient funds.
HOLDOVER. If Tenant maintains possession of the Premises for any period after the termination of this Lease ("Holdover Period"), Tenant shall pay to Landlord lease payment(s) during the Holdover Period at a rate equal to 150 % of the normal payment rate set forth in the Renewal Terms paragraph.
CUMULATIVE RIGHTS. The rights of the parties under this Lease are cumulative, and shall not be construed as exclusive unless otherwise required by law.
NON-SUFFICIENT FUNDS. Tenant shall be charged $25.00 for each check that is returned to Landlord for lack of sufficient funds.
REMODELING OR STRUCTURAL IMPROVEMENTS. Tenant shall be allowed to conduct construction or remodeling (at Tenant's expense) only with the prior written consent of the Landlord which shall not be unreasonably withheld. At the end of the lease term, Tenant shall be entitled to remove (or at the request of Landlord shall remove) any such fixtures, and shall restore the Premises to substantially the same condition that existed at the commencement of this Lease.
ACCESS BY LANDLORD TO PREMISES. Subject to Tenant's consent (which shall not be unreasonably withheld), Landlord shall have the right to enter the Premises to make inspections, provide necessary services, or show the unit to prospective buyers, mortgagees, tenants or workers. In the event Landlord is unable to contact tenant by telephone, Landlord shall have the right to enter the premises after 24 hours. All telephone calls, as well as the number called by landlord to tenant premises, are recorded. However, Landlord does not assume any liability for the care or supervision of the Premises. As provided by law, in the case of an emergency, Landlord may enter the Premises without Tenant's consent. During the last three months of this Lease, or any extension of this Lease, Landlord shall be allowed to display the usual "To Let" signs and show the Premises to prospective tenants.
INDEMNITY REGARDING USE OF PREMISES. To the extent permitted by law, Tenant agrees to indemnify, hold harmless, and defend Landlord from and against any and all losses, claims, liabilities, and expenses, including reasonable attorney fees, if any, which Landlord may suffer or incur in connection with Tenant's possession, use or misuse of the Premises, except Landlord's act or negligence.
DANGEROUS MATERIALS. Tenant shall not keep or have on the Premises any article or thing of a dangerous, flammable, or explosive character that might substantially increase the danger of fire on the Premises, or that might be considered hazardous by a responsible insurance company, unless the prior written consent of Landlord is obtained and proof of adequate insurance protection is provided by Tenant to Landlord.
COMPLIANCE WITH REGULATIONS. Tenant shall promptly comply with all laws, ordinances, requirements and regulations of the federal, state, county, municipal and other authorities, and the fire insurance underwriters. However, Tenant shall not by this provision be required to make alterations to the exterior of the building or alterations of a structural nature.
MECHANICS LIENS. Neither Tenant nor anyone claiming through the Tenant shall have the right to file mechanics liens or any other kind of lien on the Premises and the filing of this Lease constitutes notice that such liens are invalid. Further, Tenant agrees to (1) give actual advance notice to any contractors, subcontractors or suppliers of goods, labor, or services that such liens will not be valid, and (2) take whatever additional steps that are necessary in order to keep the premises free of all liens resulting from construction done by or for the Tenant.
SUBORDINATION OF LEASE. This Lease is subordinate to any mortgage that now exists, or may be given later by Landlord, with respect to the Premises.
ASSIGNABILITY/SUBLETTING. Tenant may not assign or sublease any interest in the Premises, nor assign, mortgage or pledge this Lease, without the prior written consent of Landlord, which shall not be unreasonably withheld.
NOTICE. Notices under this Lease shall not be deemed valid unless given or served in writing and forwarded by mail, postage prepaid, addressed to the party at the appropriate address set forth below. Such addresses may be changed from time to time by either party by providing notice as set forth below. Notices mailed in accordance with these provisions shall be deemed received on the third day after posting.
Dan R. Jacobs
P. O. Box 93652
Las Vegas, NV 89193
Beaumont, TX 77703
Such addresses may be changed from time to time by either party by providing notice as set forth above.
GOVERNING LAW. This Lease shall be construed in accordance with the laws of the State of Texas.
ENTIRE AGREEMENT/AMENDMENT. This Lease contains the entire agreement of the parties and there are no other promises, conditions, understandings or other agreements, whether oral or written, relating to the subject matter of this Lease. This Lease may be modified or amended in writing, if the writing is signed by the party obligated under the amendment.
SEVERABILITY. If any portion of this Lease shall be held to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable. If a court finds that any provision of this Lease is invalid or unenforceable, but that by limiting such provision it would become valid and enforceable, then such provision shall be deemed to be written, construed, and enforced as so limited.
WAIVER. The failure of either party to enforce any provisions of this Lease shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Lease.
BINDING EFFECT. The provisions of this Lease shall be binding upon and inure to the benefit of both parties and their respective legal representatives, successors and assigns.