��������Ƶ

The Lease With Option To Buy agreement is a specialized contract used in the Philippines when parties wish to combine a property lease with a future purchase opportunity. This arrangement is particularly useful for tenants who need immediate occupancy but require time to arrange financing or assess the property's suitability for long-term ownership. The document is structured to comply with Philippine civil law requirements, including the Civil Code, Rent Control Act, and Maceda Law. It's commonly used in both residential and commercial contexts, providing flexibility while protecting both parties' interests. The agreement typically includes detailed provisions for rent calculation, maintenance responsibilities, option exercise procedures, and purchase price determination, often with portions of rent being credited toward the eventual purchase price.

1. Parties: Identification of the Lessor/Potential Seller and Lessee/Potential Buyer with complete details including legal capacity

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

3. Definitions: Key terms used throughout the agreement, including financial, property-related, and time-period definitions

4. Lease Terms: Core lease provisions including duration, rental amount, payment terms, and periodic increases

5. Property Use and Maintenance: Rights and obligations regarding property usage, repairs, improvements, and maintenance responsibilities

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

7. Option Exercise Process: Detailed procedure for exercising the purchase option, including notices and documentation requirements

8. Financial Terms: Rent allocation, option fee treatment, and how rental payments may apply to purchase price

9. Insurance and Risk: Insurance requirements and allocation of risk during lease period and transition to purchase

10. Default and Remedies: Consequences of default under both lease and option terms, including cure periods

11. Assignment and Subletting: Restrictions and conditions on transferring lease or option rights

12. Termination: Conditions and process for terminating the agreement, both for lease and option components

13. Governing Law and Dispute Resolution: Applicable Philippine laws and dispute resolution mechanisms

14. Notices: Process and requirements for formal communications between parties

15. General Provisions: Standard contract clauses including severability, entire agreement, and amendments