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Lease Option Agreement Contract for Germany

Lease Option Agreement Contract Template for Germany

A German law-governed agreement that combines a property lease with an option to purchase the property during or at the end of the lease term. This document establishes the conditions for both the lease period and the potential purchase, including rent payments, option exercise price, and timing. It complies with German Civil Code (BGB) requirements and includes specific protections required under German property and tenant law. The agreement details maintenance responsibilities, insurance requirements, and conditions for exercising the purchase option, while ensuring compliance with local real estate regulations and notarization requirements where applicable.

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What is a Lease Option Agreement Contract?

The Lease Option Agreement Contract is commonly used in German real estate transactions where parties wish to combine a property lease with a future purchase opportunity. This arrangement allows tenants to occupy and evaluate a property while maintaining the right to purchase it under predetermined terms. The document must comply with German Civil Code (BGB) requirements and often requires notarization for the option component. It typically includes detailed provisions for both the lease period (rent, maintenance, utilities) and the purchase option (price, exercise period, conditions). This type of agreement is particularly useful for tenants who want to secure a future purchase right while building up capital, or for property owners seeking long-term tenants with a serious interest in eventual ownership. The agreement provides security for both parties by establishing clear terms for both the lease period and the potential sale transaction.

What sections should be included in a Lease Option Agreement Contract?

1. Parties: Identification of the lessor/option grantor and lessee/option holder, including full legal names, addresses, and registration details if applicable

2. Background: Context of the agreement, property description, and purpose of combining lease with purchase option

3. Definitions: Key terms used throughout the agreement, including Property, Option Period, Option Price, Lease Term, etc.

4. Lease Terms: Core lease provisions including rent amount, payment terms, lease duration, and commencement date

5. Property Use and Maintenance: Permitted use of property, maintenance responsibilities, and property condition requirements

6. Option Grant: Terms of the option to purchase, including option period, exercise process, and consideration

7. Option Price and Payment: Purchase price when option is exercised, payment terms, and any rent credit arrangements

8. Option Exercise Procedure: Process and requirements for exercising the option, including notice requirements and completion timeframe

9. Insurance and Liability: Insurance requirements and allocation of risks during lease period and option exercise

10. Default and Remedies: Consequences of default under either lease or option provisions, cure periods, and available remedies

11. Termination: Circumstances and procedures for termination of the agreement

12. Governing Law and Jurisdiction: Specification of German law application and jurisdiction for disputes

13. Miscellaneous: Standard provisions including notices, amendments, severability, and entire agreement clauses

What sections are optional to include in a Lease Option Agreement Contract?

1. Utilities and Operating Costs: Detailed breakdown of responsibility for utilities and operating costs - include for commercial properties or when costs are separately charged

2. Subletting and Assignment: Terms regarding subletting rights and assignment restrictions - include for commercial properties or when specifically negotiated

3. Renovation and Alterations: Rules for property modifications - include when renovations are planned or for commercial properties

4. Environmental Provisions: Environmental compliance and responsibilities - include for industrial properties or when environmental concerns exist

5. Property Management: Management responsibilities and arrangements - include for larger commercial properties

6. Option Extension: Terms for extending the option period - include when flexibility in option exercise timing is desired

7. Rent Credit Provisions: Detailed terms for applying rent payments toward purchase price - include when rent credits are part of the deal structure

What schedules should be included in a Lease Option Agreement Contract?

1. Property Description: Detailed legal description of the property, including land registry details and floor plans

2. Inventory List: List of fixtures, fittings, and equipment included in the lease and potential purchase

3. Condition Report: Detailed documentation of property condition at lease commencement

4. Rent Payment Schedule: Detailed breakdown of rent payments, including any scheduled increases

5. Option Price Calculation: Formula or detailed breakdown of how the final purchase price is calculated, including any rent credits

6. Required Repairs: List of any repairs or improvements required during the lease term or before option exercise

7. Energy Certificate: Current energy efficiency certificate as required by German law

8. Building Permits: Copies of relevant building permits and certificates of occupancy

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Germany

Publisher

Ƶ

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions



































Clauses






























Relevant Industries

Real Estate

Property Development

Commercial Property

Residential Property

Construction

Property Investment

Property Management

Legal Services

Financial Services

Relevant Teams

Legal

Real Estate

Property Management

Asset Management

Facilities

Compliance

Operations

Investment

Risk Management

Contract Administration

Relevant Roles

Real Estate Manager

Property Development Director

Legal Counsel

Contract Manager

Asset Manager

Property Manager

Real Estate Agent

Investment Manager

Facilities Manager

Commercial Director

Real Estate Portfolio Manager

Acquisition Manager

Legal Operations Manager

Compliance Officer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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