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Lease Purchase Contract Template for Philippines

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Key Requirements PROMPT example:

Lease Purchase Contract

"I need a Lease Purchase Contract for a commercial warehouse property in Manila, Philippines, with a 2-year lease period starting March 1, 2025, and an option to purchase at the end of the lease period, including specific provisions for heavy machinery storage and 24/7 access requirements."

Document background
The Lease Purchase Contract serves as a crucial document in Philippine property transactions, offering a hybrid solution between traditional leasing and outright purchase. This agreement type is particularly valuable when buyers need time to secure financing or prefer a trial period before committing to a purchase. The document must comply with Philippine legal requirements, including the Civil Code, Maceda Law, and relevant property and consumer protection regulations. It typically includes detailed terms about the property, lease payments, purchase option, maintenance responsibilities, and conditions for ownership transfer. The Lease Purchase Contract is commonly used in both residential and commercial contexts, providing flexibility while protecting both parties' interests through clear terms and conditions. This document type is especially relevant in the Philippine market where alternative financing arrangements are increasingly popular for property acquisition.
Suggested Sections

1. Parties: Identification of the Lessor-Seller and Lessee-Buyer with complete details including names, addresses, and tax identification numbers

2. Background: Context of the agreement, including brief description of the property and the parties' intention to enter into a lease-purchase arrangement

3. Definitions: Definitions of key terms used throughout the agreement, including 'Lease Period', 'Purchase Price', 'Option Period', etc.

4. Property Description: Detailed description of the property subject to the lease-purchase agreement, including all relevant technical specifications and current condition

5. Lease Terms: Terms and conditions of the lease period, including rental amount, payment schedule, and duration

6. Purchase Option: Details of the purchase option, including the total purchase price, credit of rental payments, and conditions for exercising the option

7. Payment Terms: Comprehensive payment structure, including lease payments, option fees, and purchase price payments

8. Maintenance and Repairs: Responsibilities of each party regarding property maintenance and repairs during the lease period

9. Insurance and Taxes: Requirements for property insurance and responsibility for payment of taxes

10. Default and Remedies: Consequences of default by either party and available remedies

11. Assignment and Subletting: Terms regarding the ability to assign or sublet the property

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

13. Execution: Signature blocks and notarization requirements

Optional Sections

1. Special Conditions: Additional terms specific to unique circumstances of the transaction or property

2. Property Management: Required for commercial properties or when specific management arrangements are needed

3. Environmental Compliance: Necessary for properties where environmental regulations apply

4. Improvements and Alterations: Terms regarding modifications to the property, particularly relevant for commercial properties

5. Right of First Refusal: Optional clause giving the lessee priority rights if the property is offered for sale to third parties

6. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in areas prone to natural disasters

7. Utilities and Services: Detailed provisions about utility responsibilities, relevant for properties with complex utility arrangements

Suggested Schedules

1. Property Details Schedule: Detailed technical description of the property, including boundaries, certificates of title, and zoning information

2. Payment Schedule: Detailed breakdown of all payments including rental payments, option fees, and purchase price installments

3. Condition Report: Detailed report on the condition of the property at the commencement of the lease

4. Maintenance Schedule: List of maintenance responsibilities and schedules for both parties

5. Required Insurance Coverage: Detailed specifications of required insurance coverage

6. Property Rules and Regulations: Specific rules applicable to the property, particularly relevant for properties in managed developments

7. Form of Option Notice: Template for the formal notice to exercise the purchase option

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

Commercial Property

Residential Property

Retail

Manufacturing

Agriculture

Industrial

Office Space

Hospitality

Warehouse and Storage

Relevant Teams

Legal

Real Estate

Property Management

Finance

Operations

Compliance

Risk Management

Business Development

Facilities Management

Contract Administration

Relevant Roles

Real Estate Manager

Property Manager

Legal Counsel

Contract Administrator

Facilities Manager

Asset Manager

Real Estate Broker

Business Development Manager

Finance Manager

Operations Director

Compliance Officer

Risk Manager

Property Developer

Leasing Manager

Commercial Director

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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