The Lease To Own Commercial Property Contract is a specialized agreement used in Australian commercial real estate transactions where parties wish to combine a leasing arrangement with a future purchase opportunity. This document is particularly suitable for businesses seeking to occupy a commercial property immediately while building equity towards ownership, or for property owners wanting to secure a long-term occupant with a commitment to purchase. The agreement typically includes detailed provisions for rental payments, maintenance obligations, option exercise procedures, and purchase price calculations, all compliant with Australian federal and state legislation. It offers flexibility for businesses to transition from tenancy to ownership while providing security for property owners through committed occupancy and eventual sale. The document must comply with various Australian legal requirements, including state-specific property laws, commercial tenancy regulations, and federal tax provisions.
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1. Parties: Identification of the lessor/vendor and lessee/purchaser, including ACN/ABN for companies
2. Background: Context of the agreement, including property details and intention to enter into lease-purchase arrangement
3. Definitions and Interpretation: Defined terms and interpretation rules used throughout the agreement
4. Lease Terms: Core leasing provisions including term, rent, outgoings, and maintenance obligations
5. Purchase Option Terms: Details of the purchase option, including purchase price calculation, exercise period, and mechanism
6. Rent Credit: Specification of how rental payments contribute to the purchase price
7. Property Use and Management: Permitted use, maintenance responsibilities, and property management requirements
8. Insurance and Risk: Insurance requirements, risk allocation, and indemnities
9. Default and Remedies: Events of default, consequences, and remedies for both lease and purchase components
10. Assignment and Subletting: Restrictions and conditions for assignment or subletting
11. Option Exercise Process: Detailed procedure for exercising the purchase option
12. Settlement Provisions: Requirements and process for completion of the purchase
13. Notices: Communication requirements and contact details
14. General Provisions: Standard boilerplate clauses including governing law, entire agreement, and variation
15. Execution: Execution blocks and attestation requirements
1. GST Provisions: Detailed GST treatment if the property is subject to GST
2. Environmental Matters: Special provisions for properties with environmental concerns or compliance requirements
3. Development Rights: Terms regarding property development or modification rights during the lease period
4. Property Manager: Appointment and duties of property manager if applicable
5. Guarantee: Personal or corporate guarantees if required
6. FIRB Approval: Foreign Investment Review Board approval requirements for foreign purchasers
7. Strata Provisions: Special provisions for strata-titled properties
8. Mortgage Requirements: Provisions relating to existing or future mortgages
9. Early Purchase Option: Terms for early exercise of purchase option if permitted
1. Property Details: Detailed description of the property including title particulars, area, and inclusions
2. Lease Terms Schedule: Detailed lease terms including rent review mechanisms and outgoings calculations
3. Purchase Price Calculation: Formula and methodology for calculating final purchase price including rent credits
4. Permitted Use: Detailed description of permitted use and any restrictions
5. Condition Report: Detailed report on property condition at lease commencement
6. Essential Safety Measures: List of safety measures and compliance requirements
7. Fitout and Alterations: Approved or required fitout works and alterations
8. Outstanding Works: Any works to be completed by either party
9. Building Rules and Regulations: Building-specific rules and requirements
10. Plans and Drawings: Property plans, floor plans, and relevant drawings
Authors
Relevant legal definitions
Clauses
Relevant Industries
Commercial Real Estate
Retail
Industrial
Manufacturing
Healthcare
Professional Services
Hospitality
Warehousing and Logistics
Technology
Education
Financial Services
Relevant Teams
Legal
Finance
Real Estate
Operations
Facilities Management
Risk and Compliance
Property Management
Business Development
Asset Management
Treasury
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Commercial Property Manager
Real Estate Director
Legal Counsel
Property Lawyer
Business Development Manager
Facilities Manager
Operations Director
Finance Manager
Property Investment Manager
Asset Manager
Commercial Leasing Manager
Risk Manager
Compliance Officer
Property Development Manager
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