Buyers Information

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Purchase Agreement   |   Rental Program

Property Rental Agreement

This Agreement, made this______day of ____________, 2005 BY and BETWEEN____________________________, whose address is: ______________________________________________ hereinafter called "Owner," and LAND'S END ACQUISITION CORPORATION, whose address is 4786 Homer Spit Road, Homer, AK 99603, hereinafter called the "Agent."

For the good and valuable consideration listed herein, Agent agrees to provide Owner the rental management services outlined in this Agreement. The property subject to this Agreement is located at ________________________________ and is more particularly described as follows: __________________________________________________. The real property described above, together with all personal property including furnishings, appliances, equipment, decorations, fixtures and other appurtenances on or within the real property shall all be subject to this Agreement and shall hereafter be referred to collectively as the "Property."

Section 1. Term of Agreement. Unless and until written notice of cancellation is delivered by either party to the other, this Agreement shall continue indefinitely from the date of this Agreement. This Agreement may be terminated with or without cause by either party at any time, subject to thirty (30) days written notice. Agent may rent the Property beyond the effective date of cancellation if Agent, prior to any notice of cancellation, had confirmed reservations for the Property. In such an event, Agent shall receive full compensation and shall have management rights and authority with respect thereto and during such rental periods as if this Agreement then continued in effect. In the event the Property is sold during the term of this Agreement, the Agreement shall be deemed terminated upon the final closing thereof, provided however, that Owner agrees to include in any real estate sales agreement that such sale shall be subject to all previously confirmed rentals and fee schedules arranged by the Agent.

Section 2. Agency. Pursuant to the terms set forth in this Agreement, Owner hereby employs and appoints Agent, and Agent hereby accepts such employment and appointment, to act exclusively to provide the rental, cleaning, and management services outlined herein for the Property. Owner hereby conveys to Agent all necessary powers, easements and rights of ingress and egress and act on its behalf in order to provide the rental management services described herein.

Section 3. Duties of Agent. During the term of this Agreement, Agent shall provide Owner with management services herein described and shall offer the Property for rental. In order to discharge properly the responsibilities hereby assumed, the Agent shall have the followings rights, duties and obligations.

a) Processing Reservations. Agent shall handle all communications and negotiations with tenants with respect to renting the Property, including but not limited to the following: process requests for information on the Property's amenities, location, configuration of beds, etc.; negotiate rental amounts and discounts; confirm reservations; accept advance deposits and apply to appropriate ledger; register tenants and issue standard rental policies; issue and retrieve keys and re-key interior and exterior access doors as necessary to provide for basic security; process final payment and account for funds from renters.

b) Employees. The Agent shall employ, supervise, discharge, and pay all employees or independent contractors who are reasonably required in the proper management and operation of the Property. Compensation of such employees or independent contractors shall be deducted from the rents collected as set forth in Section 4 of this Agreement, and Agent shall supply Owner with an itemized statement of payments made under this paragraph.

c) Cleaning and Maintenance. Agent shall be responsible for renting the premises in a clean and habitable condition and shall be responsible to take whatever action is necessary to clean the Property after the termination of any rental. All costs, expenses, and fees that arise out of these obligations, except standard cleaning after tenant occupation as described below, shall be the responsibility of the Owner and deducted as a cost as set forth in Section 4 of this Agreement.

Standard cleaning services after tenant occupation includes the following: washing and changing linens; washing blankets on as needed basis; sweeping, vacuuming and mopping floors; dusting and wiping down counter tops, tables, appliances, sink basins, cabinets, window sills and other visible surfaces; sanitizing bathrooms including mirrors, toilets and bathtubs; sanitizing refrigerator, and emptying garbage; snow removal on entry steps and front porch once a day, only as needed.

Standard cleaning services after tenant occupation excludes the following services, some of which would be charged back to the tenant as additional cleaning fees under our typical occupancy agreement: washing dirty dishes; scrubbing outdoor grills; shampooing furniture or carpet; removing stains, removing ashes from fireplace and re-stacking wood; cleaning or replacing water in hot-tub; washing exterior windows; repairing upholstery, wall fabrics, small appliances and the like.

d) Repairs. When the Agent has actual notice that the Property is in need of repair, he shall promptly notify the Owner by mail or telephone of the necessary repairs; provided, however, Agent may undertake to have the repair completed himself as long as the good faith estimated cost of that repair shall not exceed $200, and provided further, that Agent shall, at his sole option, make any repairs necessary when damage to the Property is imminent and notice to Owner cannot be made within a reasonable amount of time. All expenses incurred by the Agent shall be deducted by the Agent from the rents collected, as set forth in Section 4 of this Agreement.

e) Mortgages and Other Expenses. From the rents received the Agent shall pay all operating expenses and such other expenses as requested by the Owner. Payment of mortgages, taxes, insurance and utility expenses shall remain the sole responsibility of the Owner unless expressly written otherwise.

f) Collection of Rents. The Agent shall collect the rents and other income from the Property promptly when such amounts come due, taking all necessary steps to collect same and performing all reasonable acts on behalf of the Owner for the protection of the Owner in collection of such amounts, including the right to institute legal action in the name of the Owner for rental due and possession of space occupied by delinquent tenants.

g) Payment to Owner and Financial Records. All moneys collected by the Agent shall be paid over to the Owner after first deducting out the amounts defined in Section 4 of this Agreement and any ordinary and necessary expenses incurred as a result of this Agreement. Agent shall provide Owner with a monthly statement indicating a net credit due Owner, and shall include remittance along with the monthly statement required above.

Section 4. Compensation of Agent. As a fee for rental and standard cleaning services provided by Agent as described in 3A, 3C, and 3F above, Owner agrees to pay Agent 40% of the gross rental receipts collected after Borough sales taxes and credit card charges, if any, have been deducted. Additionally, Owner agrees to reimburse or pay Agent for expenses as may be incurred by the Agent as a result of this Agreement, including but not limited to what is provided in Section 3B, 3C, 3D, and 3E of this Agreement. These amounts shall be deducted by Agent when the rents are collected by the Agent, as set forth in Section 3C of this Agreement.

Section 5. Duties of the Owner. In order that Agent may fully discharge his duties under this Agreement, Owner shall have the following duties and responsibilities:

a) All household furnishing, including furniture and cooking utensils (hereinafter defined as "furnishing"), but excluding linens, shall be supplied by the Owner. Linens shall be supplied by the Agent, at an initial and annual fee to the Owner. These fees include the replacement of damaged or missing linens.

b) Owner shall provide heat, electricity, water, and sewer and shall be responsible for the payment of all expenses as they may relate to the above or to the Property. These expenses include but are not limited to mortgages, taxes, utilities and insurance.

c) If the Owner desires to sell the Property at any time during the term of this Agreement, Owner shall provide Agent with written notice 30 days prior to the time Owner lists the Property for sale. If Agent has a confirmed reservation with a tenant, Owner agrees to honor that reservation.

d) Owner will provide evidence of homeowner's insurance and be responsible for maintaining said insurance naming the Property as rental property.

e) The Owner shall provide the Property with the following items, all in good working order: smoke detectors; fire extinguisher(s); fireplace tools; flashlight; plunger; vacuum and snow shovel. In the event that the property is not stocked with these items, the Agent will purchase said items and bill Owner for their cost.

Section 5. Notice of Occupancy. Owner must notify Agent in writing or by phone through Agent's standard reservation process of any intent or request to occupy Property. Owner must receive a valid confirmation number from Agent verifying the reservation prior to occupancy. Agent will attempt to accommodate the Owner but can make no guarantee for use of Property; occupancy by Owner will be subject to all confirmed reservations. Owner must provide Agent with a minimum of 24 hour notice of his intent to inspect Property or perform maintenance work on Property, and must make all reasonable efforts to avoid conflict with renters.

Section 6. Agent Liability. Agent shall not be liable for any injury, damage, or loss sustained by Owner or tenant, or any person claiming through tenant, as a result of any accident or occurrence in or upon the Property, except in the case of Agent's direct negligence or willful misconduct. Agent shall not be liable for damages sustained by tenant, or any person claiming through tenant, resulting from the action or inaction of the Owner or any of his agents or employees, whether by negligence or otherwise, or for the failure to provide heat, electricity, water, sewer, or other essential services.

Section 7. Indemnity. The Owner shall indemnify and hold Agent harmless with respect to any and all liability and damages, cost and expenses in connection with any claim for damage or injury whatsoever to persons or property arising out of the use, management, operation, occupation, ownership, maintenance, or control of the Property, including claims made by parties not subject to this Agreement, provided however, the Owner shall not indemnify the Agent against negligence or willful misconduct of the Agent.

Section 8. Insurance. Agent agrees to provide liability insurance for the services described herein in the amount of $1,000,000.00 (1 million dollars) per occurrence and $2,000,000.00 (2 million dollars) in aggregate coverage, by an A rated company. Agent shall not be responsible for lost or stolen property within the Property, although Agent shall pursue due diligence to inventory such items after vacation of each tenant, and to notify Owner of any missing items.

Agent agrees to carry Workers Compensation insurance, or ensure such coverage exists with other subcontractors, covering any and all persons engaged in providing the services listed herein.

Section 9. Representation of Title. Owner represents and warrants to the Agent peaceful possession and exclusive use and that he/she owns the Property described herein, and that he/she has no knowledge of any condition or restraint on his/her ability to enter into this Agreement to allow for short term rentals.

Section 10. Conflict of Interest Agent hereby discloses that it operates an 80 unit hotel and restaurant directly adjacent to the Lodges. Both parties acknowledge and accept the potential conflict of interest which exists with Agent in promoting two similar products, one of which is owned by Agent, and one of which is not. None of the services provided to Owner herein have been offered for competitive bid and Agent makes no representations that services provided herein could not be provided by another vender at a lower cost to Owner.

Section 11. Disputes and Governing Law. Any dispute regarding the term of this Agreement shall be submitted by the parties for arbitration under the rules and regulations of the American Arbitration Association. This Agreement shall be governed by, construed and enforced in accordance with the laws of Alaska.

Section 12. Amendment. The provisions of this Agreement may be modified at any time only by proper execution by both parties. Any such agreement hereafter made shall be ineffective to modify this Agreement in any respect unless in writing and signed by each of the parties.

Section 13. Waiver. Any of the terms or conditions of this Agreement may be waived at any time by the party entitled to the benefit thereof, but no such waiver shall be effective unless in writing, and no such waiver shall effect or impair the right of the waiving party to require observance, performance or satisfaction either of that term or condition as it applies on a subsequent occasion of any other term or condition hereof.

Section 14. Assignment. This Agreement may not be assigned by either party.

Section 14. Parties in Interest. Nothing in this Agreement, whether express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any persons other than the parties to it and their respective successors and assigns, nor is anything in this Agreement intended to relieve or discharge the obligation or liability or any third persons to any party to this Agreement.

Section 15. Further Assurance. During the term of this Agreement, and any right or obligation established hereby, each party shall execute and deliver such other and further documents and instruments, and shall perform such other and further actions, as may be necessary or appropriate to complete the transactions contemplated by this Agreement, and to fulfill the proposes of such transactions.

Section 16. Notices. All written notice to the Owner may be addressed and mailed to the Owner at:

__________________________ Phone:________________(Office)

__________________________ Phone:________________(Home)

__________________________ Phone:________________(Lodge)

Social security # or tax ID:_________________________

 

Land's End Acquisition Corporation
4786 Homer Spit Road
Homer, AK 99603
Phone: (907) 235-0410
Fax: (907) 235-0421

 

Who is Bound. This Agreement is binding upon the parties hereto, their representatives, successors, heirs and assigns.

IN WITNESS THEREOF, the parties hereto have caused this document to be executed in the dates hereinafter written.

Owner ________________________________________

Date ____________________

 

Date ______________________

By________________________
Jon Faulkner, President - Land's End Acquisition Corp., Agent