Forever Lease Structure
Theopetra Network State's Case Study #1 resident is under a standard 1-year lease. Moving forward, all properties will adopt the 'Forever Lease,' set to be open-sourced in Q1 2024. This overview provides key terms but is not the official language of the forthcoming legal document.
Fundamental Lease Terms:
Parties Involved:
Lessor: Theopetra Network State
Lessee: The Resident
Property Details: The property details will be highlighted in the lease agreement.
Occupancy: The lessee is required to occupy the leased space.
Lease Term and Rent:
Term Length: 99 Years
Rent Value: Set at market rate in the event of a turnover.
Rent Increase: Structured as follows:
Standard: 1% Increase per year
If CPI exceeds 12%: Increase rent by 2.5%
If CPI exceeds 16%: Increase rent by 4%
If CPI exceeds 25%: Increase rent by 6%
If CPI exceeds 51%: Maximum increase allowed per state guidelines.
Property Management: A property manager will be selected during the escrow process, prior to the property being purchased. This is approved at the closing packet.
Leverage and Tax Defaults:
Leverage Restrictions: No leverage allowed on the property; violation incurs a 50% market value fee to Theopetra, awarded to the resident.
Governance in the ByLaws will also prevent leverage, as well as title restrictions.
Tax Payment Defaults: If Theopetra Network State misses a tax payment, a violation incurs 30% market value fee to Theopetra, and is awarded to the resident.
Repairs: All maintenance responsibilities of the property fall under Theopetra Network State. The repair approval process is linked here.
Resident Rewards:
Residents earn $YIMBY as stated in the lease agreement at the time of signing. This amount if subject to change, depending on maintenance and what the citizens vote.
The $YIMBY earned would be a gift, not guranteed, with Theopetra Network State not liable for any losses incurred from holding $YIMBY.
State Mandated Disclosures
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