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Lease Option Agreement Property For Sale Template for Philippines

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Key Requirements PROMPT example:

Lease Option Agreement Property For Sale

"I need a Lease Option Agreement Property For Sale for a commercial building in Makati, Philippines, with a 2-year lease term starting March 1, 2025, and an option to purchase at 鈧15 million, where the monthly rent of 鈧80,000 will be partially credited towards the purchase price if the option is exercised."

Document background
The Lease Option Agreement Property For Sale is a specialized legal instrument used in the Philippine real estate market when a property owner wishes to lease their property while simultaneously granting the lessee an exclusive option to purchase it during or after the lease term. This document is particularly useful in situations where potential buyers need time to arrange financing or want to "try before they buy." It must comply with Philippine property law, including the Civil Code and relevant real estate regulations, and typically includes detailed provisions for both the lease period (rent, maintenance, utilities) and the purchase option (option fee, purchase price, exercise conditions). The agreement provides security for both parties: the owner maintains regular rental income while potentially securing a future sale, and the lessee gains immediate occupancy rights with the exclusive opportunity to purchase the property under pre-agreed terms.
Suggested Sections

1. Parties: Identification and details of the Lessor/Property Owner and Lessee/Potential Buyer

2. Background: Context of the agreement, including property overview and parties' intentions regarding lease and potential sale

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

4. Property Description: Detailed description of the property subject to lease and option, including exact location and specifications

5. Lease Terms: Terms and conditions of the lease including duration, rental amount, payment terms, and maintenance responsibilities

6. Option to Purchase: Details of the purchase option including option period, exercise price, and mechanism for exercising the option

7. Option Fee: Amount and payment terms of the option fee, and whether it will be credited towards the purchase price

8. Exercise of Option: Process and requirements for exercising the purchase option, including notice requirements and timeframes

9. Property Maintenance and Repairs: Responsibilities for maintenance, repairs, and improvements during the lease period

10. Insurance and Risk: Requirements for property insurance and allocation of risk during the lease period

11. Default and Remedies: Consequences of default under either the lease or option provisions and available remedies

12. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes

13. Execution: Signature blocks and execution requirements including notarization provisions

Optional Sections

1. Property Management: Additional section when property management services are included in the agreement

2. Utilities and Services: Detailed section when utility responsibilities need specific allocation

3. Subletting Provisions: Required when subletting is to be allowed or specifically prohibited

4. Home Owners Association: Included when property is part of a managed community with specific rules and regulations

5. Option Extension: Include when parties want to allow for possible extension of the option period

6. Financing Contingencies: Include when purchase option exercise is subject to buyer obtaining financing

7. Property Inspection: Detailed inspection rights and procedures when specific inspection requirements are needed

8. Transfer of Option Rights: Include when transfer or assignment of option rights is to be permitted

Suggested Schedules

1. Schedule A - Property Details: Detailed property description, including lot number, boundaries, and technical specifications

2. Schedule B - Lease Payment Schedule: Detailed breakdown of lease payments, including due dates and amounts

3. Schedule C - Property Condition Report: Detailed assessment of property condition at lease commencement

4. Schedule D - Option Exercise Form: Template form for exercising the purchase option

5. Schedule E - Property Title Documents: Copies of relevant property title documents and certifications

6. Schedule F - Maintenance Schedule: Detailed maintenance responsibilities and schedules

7. Appendix 1 - Property Photos: Photographic documentation of property condition

8. Appendix 2 - Required Insurance: Detailed insurance requirements and specifications

Authors

Alex Denne

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

Relevant legal definitions














































Clauses




































Relevant Industries

Real Estate

Property Development

Construction

Banking and Finance

Insurance

Property Management

Legal Services

Property Investment

Commercial Real Estate

Residential Real Estate

Relevant Teams

Legal

Real Estate Operations

Property Management

Asset Management

Contract Administration

Property Acquisitions

Risk Management

Finance

Compliance

Business Development

Relevant Roles

Real Estate Agent

Property Manager

Legal Counsel

Real Estate Broker

Property Developer

Asset Manager

Financial Advisor

Contract Administrator

Real Estate Investment Manager

Property Acquisition Manager

Leasing Manager

Real Estate Operations Director

Real Estate Attorney

Property Portfolio Manager

Real Estate Transaction Coordinator

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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