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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