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Lease With Option To Buy Contract
"I need a Lease with Option to Buy Contract for a commercial warehouse property in Riyadh, with a 3-year initial lease term starting March 1, 2025, and an option to purchase that can be exercised after 18 months of tenancy, with 50% of paid rent to be credited towards the purchase price."
1. Parties: Identification of lessor/potential seller and lessee/potential buyer, including full legal names, addresses, and relevant identification numbers
2. Background: Context of the agreement, including property overview and parties' intentions regarding lease and potential purchase
3. Definitions: Key terms used throughout the agreement, including Property, Option Period, Purchase Price, and other relevant terminology
4. Property Description: Detailed description of the property, including address, title deed number, and full legal description as per Saudi property registration requirements
5. Lease Terms: Core lease provisions including rent amount, payment terms, duration, and maintenance responsibilities
6. Option to Purchase: Terms of the purchase option, including option period, exercise process, and purchase price calculation
7. Property Handover: Conditions and process for initial property handover for lease and subsequent handover upon purchase
8. Maintenance and Repairs: Responsibilities for property maintenance, repairs, and improvements during the lease period
9. Insurance and Risk: Requirements for property insurance and allocation of risk during lease period
10. Default and Termination: Events of default, remedies, and termination procedures for both lease and option components
11. Governing Law and Dispute Resolution: Confirmation of Saudi law governance and dispute resolution mechanisms compliant with local requirements
1. Utilities and Services: Include when responsibilities for utilities and services need to be explicitly allocated between parties
2. Subletting and Assignment: Include when parties want to address possibility of subletting or assigning rights under the agreement
3. Property Modifications: Include when lessee may need to make modifications to the property during lease period
4. Foreign Ownership Provisions: Include when either party is non-Saudi to address relevant foreign ownership requirements
5. Financing Provisions: Include when purchase option may involve external financing arrangements
6. Property Management: Include for commercial properties requiring specific management arrangements
7. Environmental Matters: Include for industrial or commercial properties with potential environmental concerns
1. Property Details Schedule: Detailed technical description of property, including plans, boundaries, and fixtures
2. Rent Payment Schedule: Detailed breakdown of rent payments, including amounts and due dates
3. Purchase Price Calculation: Formula or method for calculating final purchase price, including credit for rent paid
4. Property Condition Report: Detailed assessment of property condition at lease commencement
5. Permitted Use Schedule: Specific details of permitted uses of the property during lease period
6. Maintenance Schedule: Detailed breakdown of maintenance responsibilities between parties
7. Required Consents and Approvals: List of necessary governmental or regulatory approvals required for lease and sale
Authors
Real Estate
Commercial Property
Residential Property
Retail
Industrial
Hospitality
Manufacturing
Warehousing
Office Space
Agricultural
Healthcare
Education
Legal
Real Estate
Operations
Finance
Compliance
Risk Management
Facilities Management
Corporate Development
Property Management
Asset Management
Investment
Business Development
Real Estate Manager
Property Manager
Legal Counsel
Contract Administrator
Facilities Manager
Chief Financial Officer
Real Estate Development Director
Asset Manager
Operations Manager
Commercial Director
Investment Manager
Corporate Real Estate Manager
Compliance Officer
Risk Manager
Business Development Manager
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