Document background
The Lease To Own Agreement serves as a crucial document in Saudi Arabian real estate transactions where parties wish to combine leasing with eventual ownership. This arrangement is particularly useful for buyers who prefer or need to spread the purchase cost over time while immediately occupying the property. The document must comply with both Saudi civil law and Sharia principles, particularly regarding financial structures and interest (riba) prohibition. It's commonly used in residential and commercial property transactions, providing a detailed framework for the lease period, payment terms, maintenance responsibilities, and the eventual transfer of ownership. The agreement includes specific provisions for property description, payment schedules, purchase option terms, and ownership transfer mechanisms, all aligned with local regulations and Islamic finance requirements.
