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Commercial Lease To Purchase Agreement

Commercial Lease To Purchase Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Commercial Lease To Purchase Agreement

"I need a Commercial Lease To Purchase Agreement for a warehouse facility in Dubai Industrial City, with a 2-year initial lease term starting March 1, 2025, and an option to purchase at market value plus 5% at the end of the lease term."

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Document background
The Commercial Lease To Purchase Agreement is a sophisticated legal instrument used in the United Arab Emirates when a business entity wishes to lease a commercial property with the future option to purchase it. This arrangement is particularly valuable in the UAE market where businesses may want to establish operations in a location before making a long-term investment commitment. The document combines elements of both lease and sale agreements, complying with UAE Federal Law No. 5 of 1985 (Civil Code), property registration laws, and relevant emirate-specific regulations. It's commonly used for retail spaces, warehouses, office buildings, and industrial facilities, providing flexibility while securing both parties' interests under UAE law. The agreement typically includes detailed provisions for the lease period, purchase option terms, property maintenance, registration requirements, and the eventual transfer of ownership.
Suggested Sections

1. Parties: Identification of the lessor/seller and lessee/purchaser, including full legal names, addresses, and registration details if companies

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

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

4. Lease Terms: Details of the lease arrangement including duration, rent amount, payment terms, and maintenance responsibilities

5. Property Use: Permitted use of the property, restrictions, and compliance with zoning laws

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

7. Exercise of Purchase Option: Process and requirements for exercising the purchase option, including notice requirements and timelines

8. Purchase Price and Payment: Details of the purchase price, credit for lease payments if applicable, and payment terms

9. Property Condition: State of the property, inspections, and any warranties or representations

10. Insurance and Risk: Insurance requirements during lease period and transition to purchase

11. Default and Remedies: Consequences of default under either lease or purchase provisions

12. Registration and Transfer: Requirements for registration of lease and eventual transfer of title

13. Governing Law and Jurisdiction: Specification of UAE law application and jurisdiction for disputes

14. Execution: Signature blocks and execution requirements

Optional Sections

1. Broker Provisions: Include when real estate brokers are involved in the transaction

2. Mortgage Contingency: Include when the purchase is contingent on the lessee obtaining financing

3. Property Management: Include when specific property management arrangements are needed during the lease period

4. Tenant Improvements: Include when the lessee is permitted to make improvements to the property

5. Assignment and Subletting: Include when these rights are to be granted to the lessee

6. Environmental Matters: Include for industrial or potentially contaminated properties

7. Force Majeure: Include specific force majeure provisions beyond standard terms

8. Early Purchase Option: Include when early purchase is permitted before the end of the lease term

Suggested Schedules

1. Property Description: Detailed description of the property including plans and specifications

2. Rent Payment Schedule: Detailed breakdown of rent payments and due dates

3. Purchase Price Calculation: Formula or method for calculating final purchase price, including any rent credits

4. Property Condition Report: Detailed assessment of property condition at lease commencement

5. Permitted Alterations: List of alterations permitted during the lease period

6. Required Insurance: Detailed insurance requirements for both parties

7. Due Diligence Documents: List of required documents for property transfer

8. Service Charges: Breakdown of service charges and maintenance costs

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions












































Clauses









































Relevant Industries

Commercial Real Estate

Retail

Manufacturing

Warehousing and Logistics

Hospitality

Healthcare

Education

Professional Services

Industrial

Technology and IT

Banking and Financial Services

Food and Beverage

Relevant Teams

Legal

Finance

Real Estate

Operations

Facilities Management

Risk and Compliance

Procurement

Business Development

Corporate Affairs

Property Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Real Estate Director

Property Manager

Legal Counsel

Facilities Manager

Operations Director

Commercial Director

Business Development Manager

Finance Manager

Compliance Officer

Risk Manager

Corporate Real Estate Manager

Procurement Manager

Asset Manager

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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