The Rent To Buy Contract is a sophisticated legal instrument used in Malta when parties wish to combine property rental with a future purchase option. This arrangement is particularly suitable for buyers who need time to arrange financing or prefer a gradual transition to property ownership. The document details both the rental phase and the purchase option, including specific provisions for rent payments, maintenance responsibilities, and the mechanism for exercising the purchase option. It must comply with Maltese property law, including the Civil Code and Private Residential Leases Act, while protecting both parties' interests throughout the rental period and eventual property transfer. The contract typically includes comprehensive schedules covering property details, payment structures, and condition reports, making it a robust framework for this hybrid transaction type.
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1. Parties: Identification of the Property Owner/Seller and Tenant/Buyer with full legal details
2. Background: Context of the agreement, including property overview and parties' intentions
3. Definitions: Key terms used throughout the agreement including Property, Rent Period, Purchase Option, Completion Date
4. Property Details: Comprehensive description of the property including boundaries, inclusions, and exclusions
5. Rental Period Terms: Duration of rental period, monthly payments, and tenant obligations
6. Purchase Option Terms: Final purchase price, credit of rental payments, and option exercise conditions
7. Rent Payments: Payment amount, due dates, method of payment, and allocation towards purchase
8. Maintenance and Repairs: Responsibilities for property maintenance during the rental period
9. Insurance Requirements: Insurance obligations for both parties during rental and transition periods
10. Exercise of Purchase Option: Process and requirements for exercising the purchase option
11. Completion of Sale: Procedures and requirements for finalizing the property purchase
12. Default and Remedies: Consequences of default by either party and available remedies
13. Governing Law: Confirmation of Maltese law application and jurisdiction
14. Signatures: Execution blocks for all parties and witnesses
1. Property Management: Additional terms for property management if involving third-party services
2. Early Purchase Option: Terms for early exercise of purchase option if permitted
3. Subletting Prohibition: Explicit prohibition of subletting if required
4. Property Modifications: Terms regarding permitted and prohibited modifications to the property
5. Death or Incapacity: Provisions for continuation of agreement in case of death or incapacity
6. Assignment Rights: Terms regarding the ability to assign the agreement to third parties
7. Mortgage Provisions: Terms relating to existing or future mortgages on the property
1. Schedule 1 - Property Description: Detailed property description, including plans and photographs
2. Schedule 2 - Payment Schedule: Detailed breakdown of rental payments and purchase price allocation
3. Schedule 3 - Property Condition Report: Initial condition report with photographs and noted defects
4. Schedule 4 - Maintenance Requirements: Detailed maintenance obligations and standards
5. Schedule 5 - Purchase Option Exercise Form: Template form for exercising the purchase option
6. Appendix A - Energy Performance Certificate: Current EPC for the property as required by law
7. Appendix B - Property Title Documents: Copies of relevant title documents and searches
8. Appendix C - Insurance Requirements: Detailed insurance specifications and requirements
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