Option to Purchase Agreement

This Agreement (the Option Agreement) is made this _ day of______ 20__,

BETWEEN:

Landlord Name: _______________________

Address for Service of any required Notice: _______________________

________________________
(hereinafter called the Landlord)

and

the Tenants as listed below:

1)______________________________ 2)_____________________________

Hereinafter referred to jointly and severally as the Tenants

For the residential unit located at the following address:

Hereinafter referred to as the (Property)

Whereas the Landlord is the owner of the Property;

And whereas the Landlord and Tenants have entered into a lease agreement for
the Property for a term of _______ years (the Lease Agreement).

And whereas the parties have agreed to an Option Fee and a Monthly Option
Payment, as hereinafter defined, to give the Tenants the opportunity to purchase
the Property during the term of the Lease Agreement.

Now therefore for good and valuable consideration, the receipt and sufficiency of
which is duly acknowledged by the parties and in consideration of the mutual
covenants and agreements contained herein, the parties hereby covenant and
agree as follows:

1. The Tenants shall have the right or option to purchase the Property for the
purchase price of $_________________, at any time during the term of
the Lease Agreement, (the Option), provided that written notice is
delivered to the Landlord at least 90 days prior to the end of the Lease
Agreement and further provided that all other terms of this Option
Agreement have been fully complied with.

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2. The Tenants agree to submit the sum of $________________made
payable to the Landlord on the date of signing of this Option Agreement
representing a non-refundable option fee (the Option Fee) to be used
towards the down payment of the purchase price upon exercise of the
Option in Section 1 of this Option Agreement. The parties acknowledge
that this Option Fee is not a rental deposit. No interest shall be payable on
the Option Fee.

3. In the event that the Tenants do not exercise the Option right as set out in
Section 1 of this Option Agreement or if the Tenants default in the
payment of any rent owing under the Lease Agreement, or default in any
of their other obligations under the Lease Agreement, which is not cured
within 30 days after written notice from the Landlord, then the Option Fee
will be forfeited to the Landlord.

4. In addition to the monthly payment due under the Lease Agreement, the
Tenants agree to pay an additional amount of $___________ per month,
(the Monthly Option Payment), on the 1st day of each month,
commencing on the 1st day of ______________, 20__, to be used
towards the down payment of the purchase price upon exercise of the
Option specified in Section 1. In the event that the Tenants do not
exercise the Option as set out in Section 1 of this Option Agreement or if
the Tenants default in the payment of any Monthyl Option Payment or any
rent owing under the Lease Agreement, or default in any of their
obligations under the Lease Agreement, which is not cured within 30 days
after written notice from the Landlord, then all Monthly Option Payments
will be forfeited to the Landlord. No interest shall be payable on the
Monthly Option Payment.

5. The Tenants may not assign, list or advertise for sale or in any way
transfer this Option Agreement without the consent of the Landlord, which
consent may be arbitrarily withheld.

6. The Tenants agree not to register notice of this Option Agreement against
title to the Property. Any attempt to register notice of this Option
Agreement against title to the Property shall result in the immediate
termination of this Option Agreement and the forfeiture of the Option Fee
and the Monthly Option Payments to the Landlord, and the Tenants agree
to remove the notice immediately, at their expense, from title to the
Property.

7. If the Option is exercised in accordance with Section 1 herein, and if the

Tenants are then in compliance with all other terms of this Option
Agreement, then the Tenants agree to pay an additional deposit of
$_________________ on the date of exercise of the Option, which shall

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 be credited towards the purchase price on closing. The Landlord and the
Tenants parties agree to sign the Ontario Real Estate Association
standard form Agreement of Purchase and Sale, upon the Option Price
indicated in Section 1, giving the Tenants lawyer 15 days to conduct all
title and other searches against the Property and the closing is to take
place 30 days after the exercise of the Option by the Tenants. Taxes and
any other expenses payable by the Landlord shall be adjusted on the
closing date, with the Tenant being responsible for the date of closing. The
balance of the Purchase Price, after payment of the Option Fee noted in
Section 2 and the additional deposit noted in this Section 7, shall be paid
by the Tenants by certified cheque or money order on closing, as directed
by the Landlord or the Landlords lawyer.

8. If any provision of this Option Agreement is or becomes invalid, void,

illegal or unenforceable, it shall be considered to be separate and
severable from the remaining portion of this Option Agreement and the
remaining provisions shall remain in force and be binding upon the parties
hereto as though such provision had not been included.

9. This Option Agreement shall constitute the entire agreement between the
parties. There are no other representations, warranties, conditions or
agreements, express or implied, between the parties in connection with
this Option Agreement except as set out specifically herein.

10. The undersigned acknowledge having obtained or been given the

opportunity to obtain independent legal advice prior to signing this Option
Agreement and acknowledge having read and understood all of the terms
of this Option Agreement.

11. The undersigned agree to be bound by this Option Agreement, as of the

date first above written.

12. This agreement shall be governed by the laws of the Province of Ontario.

By:______________________________________________________________
Landlord Date

By:______________________________________________________________
Tenant Date

.
By:______________________________________________________________
Tenant Date