General Lease Terms

Lessor’s

Responsibilities/

Lessee’s Duties

1. Lessor will comply with all appropriate provisions of Federal, State, County, or local statute, code or regulation governing maintenance, construction, use or appearance of the leased premises and the property of which it is a part. Lessee shall comply with all addendums hereto and the rules, regulations, policies and guidelines imposed hereunder and (1) will prevent any person on the premises or apartment community with or without his permission from willfully or wantonly destroying, defacing, damaging, impairing, or removing any part of the structure or dwelling unit or the facilities, equipment or appurtenances or engaging in unlawful conduct and (2) will refrain from interfering with the rights of other Lessees to peaceably enjoy the use and occupancy of the premises and apartment community and shall give Lessor prompt written notice or any accident, dangerous conditions, or defacing occurring on the premises or apartment community.

Condition of Premises: License

2. Lessor covenants and Lessee hereby acknowledges and accepts delivery of the leased premises and all common areas in clean, safe, sanitary and habitable condition in compliance with all applicable laws. Lessor is duly licensed to operate a multi-unit residential dwelling and that such license may be inspected by Lessee during normal business hours at the offices of Lessor as hereinbefore stated in this Lease or at such other place as Lessor may hereafter designate.

Lease Application

3. Lessor tenders and Lessee accepts this Lease based on the representations contained in the Lease Application submitted by Lessee and made a part of this Lease, for the purpose of inducing Lessor to execute this Lease; in the event that any of the representations contained in the Lease Application shall be found to be misleading, incorrect or untrue, said shall be a substantial breach that warrants eviction permitting Lessor to forthwith avoid the tenancy or terminate this Lease and repossess the leased premises, reserving all rights and remedies against Lessee as if a default hereunder had occurred. Lessee and Guarantor, if any, authorizes Lessor to obtain credit reports on Lessee and Guarantor during the application process and for so long as sums are due and owing under the Lease between the parties. Lessor certifies that the use of any such credit report is for the permissible business purpose of investigating the applicant's creditworthiness and obtaining information as to Lessee and/or Guarantor as to the collectibility of sums due and owing under this Lease and for any other permissible business purpose as set forth by law.

Possession

4. In the event of delay in the delivery of possession of said apartment from Lessor to Lessee, (a) rent shall abate until said apartment is delivered; or (b) Lessee may cancel, rescind, or terminate this Lease by notifying Lessor in writing at any time before possession is delivered, in which case, any security deposit or prepaid rent must be returned.

Rules and Regulations

5. The rules and regulations in this Lease are hereafter published as "Community Policies and Guidelines", Rules or Regulations and such other amendments and modifications are as may from time to time be made by the Lessor, shall be part of this Lease; Lessee covenants that said rules and regulations shall be faithfully observed by Lessee, all Occupants and all persons invited by Lessee onto the apartment community.

Restrictions

On Use

6. Lessee will not use or allow to be used said apartment for any disorderly or unlawful purpose, or in any manner offensive to the occupants of other apartments; said apartment shall be kept in clean, safe, and sanitary condition, and will be used for residential purposes only for such persons as are specifically designated by Lessee as Occupants herein; the Premises shall be occupied by no other persons whatsoever; any other proposed occupant must fill out a Lease Application, be subject to Lessor's qualifying criteria and approved by Lessor. A new Lessee must sign a Lease and be subject to all rules, regulations, policies and guidelines, as set forth herein. Nothing shall be done, nor anything brought into said premises, which will increase the rate of fire insurance on said building or on the property. In addition, Lessee will not carry on any business in said apartment. Neither Lessee its occupants, guests or invitees shall use the apartment, apartment community, or surrounding areas for any disorderly, disturbing or unlawful purpose. Lessee, its occupants, guests or invitees shall not engage in any offensive, threatening, abusive or harrassing behavior, either verbal or physical or any form of intimidation or aggression directed at other residents, occupants, guests, invitees and shall not engage in any offensive, threatening, abusive or harrassing behavior, either verbal or physical, or any form of intimidation or aggression directed at other residents, occupants, guests, invitees or directed at management, its agents, employees or vendors.

Subordination

7. This Lease and all of its terms, covenants and provisions are subject and subordinate to any mortgage or Deed of Trust constituting a lien now or hereafter placed upon the property of which the demised premises is a part. Lessee agrees to attorn to and to recognize the mortgagee or trustee or the purchaser at any sale pursuant to the enforcement of any such obligation as Lessor for the balance of the term of this Lease subject to all terms and provisions hereof. Lessee hereby constitutes and approves Lessor as Lessee's attorney-in-fact to execute any such document or certificate for and on behalf of Lessee. Lessor may assign this Lease or any of its rights herein at any time.

Liability

8. Lessor shall not be liable to Lessee, its Occupants or his agents, guests, or invitees for any damage caused to his or their person or property by water, rain, snow, ice, sleet, fire, storms, other acts of God and accidents, or by breakage, stoppage, or leakage of water, gas, heating, and sewer pipes or plumbing on or about, or adjacent to the premises and Lessee does hereby release and discharge Lessor, its representatives, agents, servants, and employees from liability for any injury or damage to the person or property of the Lessee or the members of his household, his agents, guests or invitees, resulting from any cause whatsoever by Lessor, its representatives, agents and employees excluding negligence or violation of law. Lessee shall obtain apartment renters insurance and any claim for damages to property of any Lessee shall be made to said policy of insurance.

Utilities

9. Lessee shall pay utility bills for all items not included in the base rent for the premises when and as the same shall become due and shall make all required deposits with public utility companies. Failure of Lessee to engage and maintain such utilities shall be deemed a substantial breach of lease that warrants eviction. Lessor may at his option convert from master metering to individual metering for each apartment pursuant to applicable law.

Personal

and

Property Risk

10.All personal property placed in the leased premises, storage room, or in any other portion of said building, the apartment community, or any place appurtenant thereto, shall be at the sole risk of Lessee or the parties owning the same, except that Lessor shall be liable for and will reimburse Lessee for any damage to the property of Lessee caused by the negligence or violation of law by Lessor. If any goods, wares or merchandise of Lessee or Lessee's guests shall be placed in the hand or custody of any of the employees of Lessor for safekeeping, or for delivery to said Lessee, or to any person for said Lessee, then such employee shall be deemed the agent of Lessee, and Lessor is hereby expressly released from any and all loss, damage or expense in connection therewith.

No Waiver

11. Lessor's failure to enforce any covenant contained herein shall not be construed as a waiver of that covenant or of any subsequent breach thereof or of this Lease and that the liability of Lessee and each of them shall be joint and several. Lessor shall have the right, at its option, to waive any provision of this Lease. Such waiver, if granted, shall be for the benefit of Lessee only and shall not be deemed to be a general waiver for all lessees. The granting of such a waiver to any other lessees shall not impair or restrict Lessor's rights under the Lease, unless the waiver is for this Lessee specifically or is a general waiver for the benefit of all lessees in this community. Acceptance of rent or other charges due and owing for the use and occupancy of the Premises after issuance of Notice to Quit, the filing of a tenant holding over, breach of lease or wrongful detainer action shall not be construed as an acquiescence of breach or waiver by Lessor to pursue possessory or monetary actions and Lessee consents that Lessor may accept all sums tendered thereafter on account and/or for use and occupancy of the premises, with all Lessor's rights reserved.

Lease Binding on Occupants, Guarantors, Heirs

12. This Lease shall be binding upon and shall inure to the benefit of the successors and assigns of Lessor and the heirs, executors, administrators and to the extent herein permitted, on the assigns of Lessee, but nothing herein contained shall be deemed to require or permit the passing of the leasehold to Lessee's heirs, devises, or personal representatives. All Lessees, and occupants of the Premises and Guarantors shall be jointly and severally liable for all acts and all sums due and owing under the Lease and for the terms and conditions of this Lease and any extension or holdover periods hereunder.

01/99

Quiet Enjoyment

13. Upon Lessee's faithful and full performance of this Lease, Lessee may peacefully and quietly enjoy the premises for the term hereof subject to the terms and conditions of this Lease.

No Accord: Allocation of Payments; Prior Debt

14. No endorsement or statement on any check, draft, money order, or any letter or other document accompanying any check or payment of rent shall be deemed an accord and satisfaction and Lessor may accept such check or payment without prejudice to Lessor's right to recover the balance of such rent or pursue any other charges or remedies in this Lease. All sums that become due under this Lease shall be retroactively due and may, at the Lessor's option, be added to the arrearage for the month or months for which said charges accrue. Once Lessee has become liable for late fees, attorney's fees, or court costs hereunder, all said payments made by Lessee to Lessor shall, at Lessor's option, be applied to those payments furthest in arrears, first to late fees, costs and attorney's fees, then to monthly rent. Should an agreement to pay any of said charges be limited by statute, the parties agree to be bound for payment of charges to the fullest extent permissible by law. Placement of payments in an overnight slot, depository, mail slot, or under the door of the management office shall not be deemed as receipt by Lessor. Acceptance of rent or other payments by Lessor after the effective date of any notice or action to terminate tenancy shall not be a waiver of Lessor's right or action in that regard. All payments tendered by money order shall not be deemed made until actually physically received in hand by Lessor. Lessor will provide to Lessee a written receipt of all cash or money orders paid by Lessee to Lessor for rent, security or otherwise.

Additionally, in the event Lessee owes a prior debt as a result of having been a former resident at a property managed by Southern Management Corporation, at Lessor's option, any sums paid by Lessee to Lessor as a result of this Lease may first be applied to that prior indebtedness.

Lessee shall make all rental payments in full. Payment or receipt of a payment of less than the amount stated in the lease shall be deemed to be nothing more than partial payment made on the account. Under no circumstances shall Lessor's acceptance of any payment constitute an accord and satisfaction. Nor will Lessor's acceptance of any payment forfeit Lessor's right to collect the balance due on the account, despite any endorsement, stipulation, or other statement on any check, draft or money order.

Payment of Rent: Action by Lessor Upon Default

15. Rent is due and payable in full, in advance, on or before the first day of each month ("due date") without a grace period. Time is of the essence. Should Lessee at any time during occupancy of the leased premises fail to timely pay any one of the monthly installments of rent reserved as aforesaid or should Lessee violate any one of the agreements, covenants, terms or conditions of this Lease, or any rules, regulations, policies or guidelines promulgated by Lessor under this Lease or hereafter adopted by Lessor, then in such event Lessor shall have the right to avail itself of all legal remedies including the right to re-enter and take possession of the premises by legal process from the court having jurisdiction over the premises and without any previous demand or notice, except such notice as may be required by any applicable state statute or county ordinance. The covenant to pay rent in a timely manner is independent of any and all claims or causes of action Lessee may have against Lessor and, therefore, if Lessor files legal action to collect rent or other charges due under this Lease, Lessee consents and agrees not to interpose any counter-claim or assert any set-off in said proceedings.

Legal Proceedings and Attorney’s Fees

16. If Lessee shall violate any covenant, term or condition of this Lease, including the covenant to pay rent, and the Lessor shall employ an attorney to file suit or to take other action arising out of the lease or occupancy of the premises, the Lessee shall be liable to pay all costs thereby incurred by the Lessor, including reasonable attorneys fees, as follows:

1) Attorney's fees of not less than $40.00 plus costs for each case filed for non-payment of rent or forcible detainer action plus and Lessor's actual costs and attorneys fees for all other possessory actions including actions for tenant holding over, breach of lease or wrongful detainer filed under Federal, state, county or local law, codes or statutes;

2) Lessor's actual costs and attorneys fees of 20% of the indebtedness for recovery of balances due and owing under the Lease of for occupancy of the premises and for damages to the Premises beyond reasonable wear and tear instituted after Lessee or occupants have quit and/or vacated the premises. In such cases, at Lessor's option, the parties consent to jurisdiction and venue in the courts of the principal place of business of Lessor's managing agent.

Bankruptcy of Leasee

17. In the event Lessee is adjudicated bankrupt or makes an assignment for the benefit of creditors, this Lease, shall at Lessor's option, cease and determine, and said premises shall be surrendered to Lessor, who hereby reserves the right to forthwith repossess the premises in accordance with applicable law.

No Drugs; Unlawful Activity; Other Prohibtions

18. Lessee hereby covenants that neither he nor any occupants, permittees, guests or invitees shall use the premises or any part of the apartment community or surrounding areas for any unlawful purpose including but not limited to the unlawful possession, manufacture or distribution of a controlled dangerous substance, or any apparatus, equipment or paraphernalia related thereto. Possession of guns or weapons upon the premises or any part of the apartment community is strictly prohibited. The parties agree that violation of this provision shall be deemed a substantial and material breach of lease that warrants eviction and that Lessor may terminate this Lease immediately as a result of said breach.

Damage to Premises

19. Lessor shall make necessary repairs to the leased premises and equipment and fixtures belonging thereto whenever they have been damaged by misuse or neglect of the Lessee, his family, servants or visitors, and if Lessor makes said repairs, Lessee agrees to pay the cost of same upon presentation of a bill. Such charges may be substantiated upon written request. At the termination of this tenancy, Lessee shall return the leased premises in the same good order in which they now are, ordinary wear and tear excepted. Lessee shall give the Lessor prompt notice of any defects in or to the water or steam pipes, electric wiring, heating apparatus or any other part of the Leased premises, in order that the same may be repaired with due diligence.

Access by Lessor for Inspection, Maintenance and Servicing

20. Lessor shall retain duplicate keys to all the doors of the premises and shall have access to the premises, in order to inspect the same or to make necessary repairs, alterations or improvements, either in the premises or in said building. Any such work whether requested by Lessee or directed by agent shall be accepted by Lessee as a necessity to the tenancy. The Lessor shall have the right, during the last thirty days of the term hereby created to show the leased premises to prospective Lessees; and during the last ten (10) days of said term shall have access to the leased premises in order to make repairs or redecorate same for the incoming Lessee should it deem this action necessary. The Lessor shall exercise these rights of access only after due notice to the Lessee and without objection by the Lessee, and shall supply such services, except in an emergency only during normal business hours. Normal business hours shall exclude weekends and Federal and State holidays unless otherwise agreed to between the parties but nothing herein shall prohibit the Lessor from entering upon the premises in an emergency or after due notice has been given when the Lessor has good cause to believe the Lessee may have damaged the premises.

Restrictions on Subletting, etc.

21. Lessee covenants that the premises shall be used for residential purposes only, and shall be occupied only by the Lessee and persons as set forth in this Lease and shall be occupied by no other persons whatsoever. The number of occupants shall not exceed the number set forth herein and Lessee shall not sublet, assign, or transfer this Lease, or rent the premises or any part hereof, or suffer or permit the premises or any part thereof to be used by any additional occupant, without the prior written consent of the Lessor, which consent shall not be unreasonably withheld. The Lessee shall not take any roomers or boarders into the premises and shall not permit any guest to live at the Premises in excess of two (2) weeks on the aggregate during any calendar year unless prior written consent is obtained from Lessor. 01/99

Pets

22. LESSEE HEREBY COVENANTS AND AGREES THAT NEITHER HE NOR ANY OCCUPANT OF HIS APARTMENT WILL PERMIT, KEEP, HARBOR, OR BRING UPON THE DEMISED PREMISES OR THE COMMUNITY GROUNDS ANY NON-HOMO SAPIEN ANIMAL OR PETS OF ANY KIND WHATSOEVER WITHOUT PRIOR WRITTEN CONSENT OF LESSOR. Lessee further agrees not to allow or permit occupants, guests, invitees or licensees to bring any such animals of any kind into or upon the leased premises or the community grounds. In the event a pet is permitted and said pet causes property damage, personal injury or death to an individual upon the premises or community grounds, Lessee shall be solely responsible therefore and shall fully indemnify Lessor for all costs, judgements, damages, awards and attorney’s fees caused as a result thereof. In the event Lessor grants permission for Lessee to keep a pet upon the premises nothing herein shall prohibit Lessor from charging a pet fee, in addition to the rent set forth herein.

01/99

Uninhabitability of Premises 23. If the premises is damaged by fire, rain, wind, or other cause beyond control of Lessor, unless the same shall occur for any reason for which Lessee is responsible, the premises shall be repaired within a reasonable time at the expense of Lessor; and in case the damage rendered is so extensive as to render the premises untenantable, the rent shall cease until the premises is repaired. If the premises is totally destroyed without fault of Lessee, rent shall be paid up to the time of destruction, and this Lease shall come to an end. Any claim for abatement of rent, set off from rent due or constructive eviction based on housing code violations or uninhabitability of the premises may only be made during the lease term by a named Lessee provided Lessee first pursues said claim with the appropriate county administrative agency which must declare that said housing code violation that would warrant an abatement, set-off or constructive eviction and that said condition persists after Lessor has had a reasonable opportunity to cure said defect after notice in writing.

Alterations

24. Lessor hereby acknowledges its duty to furnish to Lessee an itemization of any damages charged by Lessor together with a detailed statement of any costs actually incurred by Lessor in connection with damage to the leased premises for which Lessee is charged. Said itemization of damages will be made at the time and in the manner prescribed by applicable law.

Employee Transfer Clause

25. In the event that the Lessee shall experience an involuntary change of employment from the "Washington Metropolitan Area" or the "Baltimore Metropolitan Area" if the community is located in either Baltimore City, Baltimore County, or Howard County (herein defined as a fifty (50) mile radius from the leased premises) or death of the major wage earner before the expiration of the lease term, and upon satisfactory written proof thereof, Lessee upon (a) the giving of one (1) month's written notice from the first of the next month to Lessor of his intention to move, (b) the payment of all rent and miscellaneous charges in arrears, if any, (c) the payment of a sum equal to one (1) month's rent as liquidated damages subsequent to date of vacation, and (d) the payment of any money that shall be due Lessor by virtue of Lessee's violation of any of the terms and provisions of this Lease relating to the actual use of the leased premises, plus any cost to Lessor for painting or otherwise preparing the apartment for reoccupancy, shall be entitled to terminate this Lease and thereby be relieved of any further liability on account of the rent for the unexpired portion of said term.

Military Transfer Clause

26. Notwithstanding any other provision hereof, if a Lessee who is on active duty with the United States military (1) receives permanent change of station orders or temporary duty orders for a period in excess of three (3) months; (2) is discharged or relieved from active duty with the armed forces; or (3) has been ordered to occupy on-base housing, Lessee may terminate this Lease by providing Lessor with thirty (30) days prior written notice along with a copy of said assignment, orders or discharge. Liability of Lessee for rent under the Lease may not exceed: (1) 30 days' rent after written notice and proof of the assignment, orders or discharge is given to Lessor; and (2) the cost of repairing damage to the premises including the cost of painting, maintenance and cleaning prorated based on the number of months the unit is occupied.

Transfer of Security Deposit

27. In the event of the transfer of this building or of the land on which it stands, or the transfer or assignment by Lessor of this Lease, Lessor shall have the right to transfer the security deposit to the transferee, and Lessor shall be released from all liability for the return of the deposit and Lessee shall look solely to the new Lessor for any return thereof.

Condemnation

28. In the event the premises or any part hereof are taken by condemnation by any governmental agency or authority, this Lease shall be terminated at the option of Lessor and Lessee waives any right to damages or to participate in the proceeds or award made by reason thereof.

Cancellation; by Lessee; Abandonment

29. If Lessee shall give such notice to terminate during the initial lease term, then Lessee shall 1)pay the cost of cleaning and repairing the leased premises, plus all administrative expenses and the cost of advertising, and 2) pay any and all charges made by Lessor for damage to the leased premises, ordinary wear and tear excepted; and 3) Lessee shall be and remain liable to Lessor for rent for the remaining period of the initial lease term for which the leased premises is vacant and unrented, it being understood and agreed that Lessor will use its best efforts to let the leased premises to other persons for such remaining period. If the Lessee shall abandon or quit and vacate the leased premises, voluntarily or involuntarily, except as provided herein, Lessee shall remain liable for all charges under this Lease for the balance of the lease term. The Premises may be relet by the Lessor for such rent and upon such terms as the Lessor may deem reasonable and advantageous; in the event of such reletting, the Lessee shall be and remain liable only for the deficiency in rent, any expenses incident to such reletting, any damages which the Lessor may have sustained by virtue of the Lessee's use and occupation of the leased premises, and all costs for redecorating the premises. If the Lessee moves out or abandons the demised premises or is disposed thereof voluntarily or involuntarily, he is to remove all of his personal property from the premises prior to such move-out abandonment or dispossession, then, in that event, any such personal property of any kind whatsoever found upon the leased premises shall be deemed to be abandoned by the Lessee and shall become the property of the Lessor, who in any event shall not be liable to the Lessee for its loss, destruction, or damage thereto.

Action by Lessor Upon Default

30. Should Lessee fail to pay any one of the monthly installments of rent when the same shall become due or should Lessee violate any one of the terms or conditions of this Lease, or any rules and regulations herein, or hereafter adopted, Lessor shall have the right and option to re-enter and take possession of the premises forthwith, by legal process from the Court having jurisdiction over the premises or to terminate this Lease by giving Lessee, personally or by leaving or mailing to the leased premises, a 30-day written notice to quit and/or vacate the premises and this Lease shall terminate upon the last day of the next succeeding month after which said notice is given. In either case, Lessee shall remain fully liable to Lessor for sums equal to the amount of each full month's rent plus other charges set forth herein to the lease termination date or until the premises are re-rented, plus damages. Furthermore, in the event sums remain due and owing under the Lease after Lessee has vacated the premises, Lessee hereby authorizes Lessor to report any and all such delinquencies to any credit reporting agencies at Lessor's option.

Severability

31. If any term, covenant, condition, or provision of this Lease, or the construction thereof to any person or circumstance, shall to any extent be deemed invalid, unenforceable or in conflict with any law or statute, the remainder of this Lease, or the construction of such term or provision to persons or circumstances other than those to which it is held invalid or unenforceable, shall not be affected thereby, and each term, covenant, condition, and provision of this Lease so affected shall be valid and enforced to the fullest extent permitted by law.

Notices

32. All notices authorized or required by the terms of this Lease shall be in writing, signed and be given by regular mail, postage prepaid, or hand delivered to the Lessee at the apartment address herein above provided, or to the Lessor at the address where rent is paid.

Management

33. The fee simple owner of the premises has appointed and designated SOUTHERN MANAGEMENT CORPORATION, as its lawful agent to manage, control and enforce the terms of this Lease, the Addendums attached hereto, and to enforce the said Lease on behalf of and in the name of the Owner. SOUTHERN MANAGEMENT CORPORATION, is assignee of all causes of action arising under this Lease. Any action by SOUTHERN MANAGEMENT CORPORATION, shall be conclusive as to Lessee who has no right to inquire into the extent and terms of SOUTHERN MANAGEMENT CORPORATION's agency for Owner.

Entire

Agreement

34. Lessor and Lessee covenant and agree that this Lease contains the entire agreement of the parties. No oral representations, oral agreements, collateral or other provisions are incorporated herein, other than Addendum A, Addendum B (Policies and Guidelines), and those specified herein, copies of which are attached hereto and receipt of which are hereby acknowledged by Lessee. No oral modifications shall be made to the terms and conditions of this Lease. Lessee acknowledges that prior to the signing of this Lease the Lessor delivered to the Lessee, a copy of the proposed Lease and that the Lessee was given an opportunity to examine said proposed Lease and the premises and that said are acceptable and in good order. This Lease and the attachments hereto have been executed by Lessee under seal and Lessee acknowledges that a copy thereof was delivered to him at the time the Lease was fully executed.








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Southern Management Graduate Hills and
Graduate Gardens Apartment Homes
3424 Tulane Drive
Hyattsville, Md. 20783
Leasing Office: P: 301-422-0147   F: 301-422-8011
Resident Services:   P: 301-422-0148   F: 301-422-2536
E-mail: graduatehills@smcmail.com
Southern Management Corporate Office: 703.902.2000
http://www.southernmanagement.com