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RENT TO OWN CONTRACT
This Contract of Lease with Option to Purchase (Rent-to-Own
Contract) made and executed this ____of __________ 20___ Manila,
Philippines by and between.
Filipino, of legal age, single/married to, with post address at
________________________, hereinafter referred to as the LESSOR/SELLER.
__________________________________, Filipino, of legal
age, single/married to, with postal address __________________________,
hereinafter referred to as the LESSEE/BUYER.
THAT, for and in consideration of the payment of rent and
the faithful compliance by the LESSEE/BUYER of all the stipulations and
covenants hereinafter contained, the LESSOR/SELLER has agreed to lease
unto the LESSE /BUYER the premises located at
_______________________________, City of Manila under the following
terms and conditions.
That the premises hereby leased shall be used exclusively by the
LESSE/BUYER for residential purposes only and shall not be diverted
to other uses. It is hereby expressly agreed upon that if at any
time the premises are used for other purposes, the LESSOR/SELLER
shall have the right to rescind this contract without prejudice to
its other rights under the law.
The term of this non–renewable lease is for ______________ months
from _____________________ to ________________ inclusive.
The monthly rate for the leased premises shall be in PESOS:
______________________ [_______________], Philippine currency.
All rental payments shall be made payable to ______________________.
That the LESSEE/BUYER shall deposit with the LESSOR/SELLER upon
signing of this contract and prior to move in an amount equal to ten
percent (10%) of the selling price or the sum of PESOS:
The LESSE/BUYER shall issue, likewise, upon signing of this contract
and prior to move in, Thirty (30) post-dated checks to cover monthly
rental for the months of _________________ to __________________,
each check dated on the _____ day of each month.
DEFAULT IN PAYMENT:
In case of default by the LESSEE/BUYER in the payment of the rent,
such as when the checks are dishonored, the LESSOR/SELLER, at its
option may terminate this contract and eject the LESSEE/BUYER as
hereinafter provided. However, the LESSE/BUYER is given seven (7)
days grace period within which to settle the account from date
rental payment is due. Granting an extension to the aforesaid grace
period may not be deemed as a waiver of LESSOR/SELLER right to
terminate this contract and eject the LESSE/BUYER but in the event
the LESSOR/SELLER so opts to grant a written request for extension,
a penalty equivalent to three (3%) percent per month of the rental
due, with a fraction of a month considered as one month shall be
charged and assessed for delayed payments.
The LESSEE/BUYER shall not directly or indirectly sublet, allow or
permit the leased premises to be occupied in whole or in part by any
person, form or corporation; neither shall the LESSEE/BUYER assign
its rights hereunder to any other person or entity and no right of
interest thereto or therein shall be conferred on or vested in
anyone by the LESSEE/BUYER without LESSOR/SELLER’s written approval.
LESSE’S VISITORS, etc…:
In case of damage to leased premises attributable to the
LESSEE/BUYER, agents and/or visitors, repair of the same shall be
for the account of the LESSEE/BUYER without prejudice to LESSOR/SELLER’s
availment of any other right under the law.
POWER, WATER CONSUMPTION & ASSOCIATION DUES:
Power, water and association dues shall be for the account
of the LESSEE/BUYER.
OTHER PUBLIC UTILITIES:
The LESSEE/BUYER shall pay for its telephone, cable and electrical
services and other public services and utilities.
REPAIR AND MAINTENANCE:
The LESSOR/SELLER shall deliver the leased as is where is. The
LESSEE/BUYER hereby expressly acknowledges that the leased as is
where is. The LESSE/BUYER hereby agrees and binds itself to
undertake at its exclusive expense all minor and major repairs as
may be required to maintain the leased premises in good state of
repair, any provisions of law, present or future, or any stipulation
in this agreement to the contrary notwithstanding.
IMPROVEMENTS, ALTERATIONS AND RENOVATIONS:
The LESSEE/BUYER shall not make any improvements, alternations and
renovations in the leased premises without prior written consent of
both the Association and the LESSOR/SELLER. It is understood that
all permanent improvements shall be owned by the LESSOR/SELLER and
may not be removed without the express and written consent of the
INJURY OR DAMAGE:
The LESSEE/BUYER hereby assumes full responsibility for any damage
which may be caused to the person or property of third person/s
while remaining either casually or on business in any part of the
premises leased. LESSEE/BUYER further binds itself to hold the
LESSOR/SELLER harmless and free from any claim for such injury or
damage. Provided, however, that the LESSOR/SELLER shall make
necessary actions to correct said deficiencies to ensure that
premises are in good and tenantable condition.
DISTURBANCE OF POSSESSION:
Disturbance or discontinuance of possession of the LESSEE/BUYER due
to “force majeure” shall confer nor right of any kind to the
LESSEE/BUYER as against the LESSOR/SELLER, by reason of
inconvenience, annoyance or injury to business arising out of the
necessity of repairing any portion of the leased premises.
The LESSEE/BUYER, shall, at its own expense and risks, comply with
all the laws, ordinances, regulations and orders of any agency of
the government, national or local, affection or pertaining to the
leased premises and to any effects or articles which said
LESSEE/BUYER may have in its possession therein.
ABANDONMENT OF PREMISES:
Should the LESSEE/BUYER abandon the leased premises for a period of
THIRTY (30) DAYS or vacate the premises before expiration of this
Contract of Lease without notifying the LESSOR/SELLER and check
payment for the current month is dishonored, the LESSOR/SELLER’S may
immediately re-enter the leased premises and this lease shall
thereon be automatically terminated.
BREACH OF CONDITIONS:
In case of breach by the LESSEE/BUYER of any of the conditions and
covenants of this lease as herein stipulated, the LESSOR/SELLER at
its option, may forthwith terminate and cancel this lease and the
LESSEE/BUYER shall be liable for any and all damages as a result of
such default and termination. Forfeiture of whatever rental desists
and advances shall apply in case the LESSEE/BUYER violates any of
the provisions in the contract. Forfeiture shall likewise apply
should the LESSEE/BUYER fails to exercise his option to purchase
after the expiration of this contract.
NON-WAIVER OF LESSOR’S RIGHT:
Failure of the LESSOR/SELLER to enforce strict performance by the
LESSEE/BUYER of any of the terms, conditions and covenants of this
agreement shall not be construed as waiver of any right or remedy
that the LESSOR/SELLER’S may have, nor shall it be deemed as a
waiver of any subsequent breach of the terms, conditions, and
covenants contained therein. No waiver by the LESSOR/SELLER of its
rights hereunder shall be deemed to have been made unless expressed
in writing and signed by the LESSOR/SELLER.
EXPIRATION OR CANCELLATION OF LEASE:
At the expiration of the term of this lease or cancellation thereof,
as herein provided, the LESSEE/BUYER will promptly deliver to the
LESSOR/SELLER the leased premises with all corresponding keys and in
as good and tenantable condition as the same is now, ordinary wear
and tear excepted, devoid of all occupants, movable furniture,
articles and effects of any kind. Non-compliance with the terms of
this clause by the LESSEE/BUYER will give the LESSOR/SELLER the
right, at latter’s option, to refuse to accept the delivery of the
premises and to compel the LESSEE/BUYER to pay therefrom at the same
rate as herein provided plus an additional sum equal to Twenty Five
(25%) percent thereof as penalty until the LESSEE/BUYER shall have
complied with terms hereof. The same penalty shall, likewise, be
imposed in case the LESSEE/BUYER shall refuse to leave the leased
premises after the expiration of this Contract of Lease or the
termination for any reason whatsoever.
OPTION TO PURCHASE:
For good & valuable consideration, the receipt whereof is hereby
acknowledge from the LESSEE/BUYER. The LESSOR/SELLER hereby extends
an option to the LESSEE/BUYER to purchase for the amount of
PESOS: ___________________________________________ [P
__________________] of Lease on the 18th month or the
period from 1st to _____ of __________, _______.
The LESSEE/BUYER, at his/her/its exclusive option, conditioned on
faithful compliance with all payments and undertakings contained
herein, may convey his/her/its decision to avail of option to
purchase in writing to the LESSOR/SELLER who thereafter shall credit
all rental payments up to the __________ (___) month and the initial
deposit stated above to down payment.
BALANCE AFTER THIS LEASE AGREEMENT:
If LESSEE/BUYER complied with all terms and conditions stated above,
inclusive of payment of realty taxes, power, water and association
dues, the outstanding balance of the LESSEE/BUYER shall be 70% of
the Total Selling Price amount equivalent to PESOS:
Philippine currency. The LESSEE/BUYER hereby agrees to execute the
Deed of Absolute Sale upon payment in full of the TOTAL PURCHASE
PRICE. Failure of the LESSEE/BUYER to exercise his/its right to
purchase within the period of 30 months from the execution of this
contract shall mean forfeiture and abandonment of his right to
purchase. In such case, all payment made during the term of this
lease are considered rentals.
Documentary stamp tax, capital gain tax, registration fees, transfer
tax, and other necessary expenses connected with the execution and
registration of the sale shall be for the account of and paid by the
TAXES, UTILITIES AND OTHER ASSOCIATION IMPOSITIONS:
For the duration of this lease, LESSEE/BUYER shall pay the Realty
Taxes. However, should the LESSEE/BUYER not exercise the option to
purchase, LESSOR/SELLER shall reimburse the LESSEE/BUYER of all the
taxes, exclusive of penalties for delayed payments, if any, it had
paid as well as the start-up fund of the Homeowners Association.
JUDICIAL RELIEF AND PENALTY:
Should any one of the parties herein be compelled to seek judicial
relief against the other, the losing parties shall pay an amount
equivalent to One Hundred Percent (100%) of the amount claimed in
the compliant as attorney’s fees which shall in no case be less than
P 100,000.00 pesos in addition to other cost and damages which the
said party may be entitled to under the law, to recover from the
other party. Provisions of penal character in this Contract of
Lease shall be considered as cumulative to the relief granted by
RIGHTS AND INTERESTS:
The rights and interests of the LESSOR/SELLER subject under this
instrument shall be fully assignable by the LESSOR/SELLER subject
only to previous written notice thereof to the LESSEE/BUYER.
FORFEITURE OF DEPOSIT:
Forfeiture of whatever rental deposit and advances shall apply to
any of the following:
a. When the LESSEE/BUYER is in default in payment for three
(3) months. In such a case, the LESSOR/SELLER shall have the right to
prohibit entry of the LESSEE/BUYER, visitors, guests and his employees
in the premises and the right to padlock the leased premises until
indebted is satisfied;
b. When LESSEE/BUYER pre-terminates lease with or without
c. When LESSEE/BUYER violates any of the provisions of this
d. When the LESSEE/BUYER fails to exercise his/her option to
The parties agree that all covenant and agreements herein contained
shall be deemed conditions as well as covenants that if default or
breach be made of any such covenants and conditions, then this lease
may be terminated and cancelled and the party in breach shall be
liable for any and all damages, actual and consequential, resulting
from such breach or termination; provided however, that no default
shall be declared under this lease unless the party in default has
given written notice to cure such default within thirty (30) days.
In the event of violation of this contract, other than the
non-payment of rentals, the party in breach must immediately take
remedial steps to cure the breach not later than thirty (30) days.
RIGHT OF ENTRY:
LESSOR/SELLER or its authorized agent/s shall, after giving due
notice to the LESSEE/BUYER, have the right to enter the premises in
the presence of the LESSEE/BUYER or its representative at any
reasonable hour to examine the same or to make repairs therein or
for the operation of regular maintenance of the building or for any
other lawful purpose which it may deem necessary.
This RENT TO OWN CONTRACT (CONTRACT OF LEASE WITH OPTION TO PURCHASE) shall
be valid and binding, between the parties, their successors-in-interest
and assigns. No amendment of the terms of the instrument shall be
effective unless in writing and signed by the parties therein.
IN WITNESS WHEROF, parties herein have affixed their
signatures on the date and place first above written.
SIGNED IN THE PRESENCE OF:
Republic of the Philippines)
BEFORE ME, a Notary Public, this _____ day of
____________, 20___ personally appeared the following to witness:
NAME CTC No.
DATE ISSUED PLACE ISSUED
Known to me to be the same persons who have executed the foregoing,
instrument and acknowledged to me that the same is of their own free
will and voluntary act and deed as well as of the corporation herein
This instrument consisting of ______ (__) pages, including the page on
which this acknowledgement is written, has been signed on the left
margin of each page and every page thereof by the parties and their
instrumental witnesses and sealed with my notarial seal.
IN WITNESS WHEREOF,
I have hereunto set my hand, the day, year and place above written.
Doc. No. ______:
Page No. ______:
Book No. ______:
Series No 20___.
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