Document background
The Option To Lease Agreement is commonly used in Philippine business and real estate transactions where parties wish to secure future leasing rights while finalizing business plans or conducting due diligence. This document is particularly valuable in competitive real estate markets or when businesses need time to arrange financing or complete internal approvals before committing to a lease. The agreement must comply with Philippine Civil Code requirements and typically includes detailed terms about the option period, consideration, exercise process, and the proposed lease terms. It provides protection for both the property owner, who receives compensation for keeping the property available, and the potential lessee, who gains exclusive rights to lease the property under pre-agreed terms. The document is especially relevant in commercial real estate transactions and requires careful consideration of both property and contract law aspects under Philippine jurisdiction.
