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Lease Agreement Sale Of Property Template for Canada

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Key Requirements PROMPT example:

Lease Agreement Sale Of Property

"I need a Lease Agreement Sale of Property for a commercial warehouse in Toronto, where the tenant will lease for 18 months starting March 2025 with significant tenant improvements allowed, followed by a guaranteed purchase at CAD 2.8 million."

Document background
The Lease Agreement Sale of Property is a sophisticated legal instrument used in Canadian real estate transactions where parties wish to combine a leasing arrangement with a future property purchase. This document is particularly useful in situations where buyers need or prefer to lease a property before completing its purchase, whether for financial, business, or strategic reasons. It typically includes comprehensive terms covering both the lease period and the eventual sale, including rent payments, purchase price, conditions for sale, maintenance responsibilities, and any rent-to-purchase credits. The agreement must comply with both federal and provincial real estate laws, including property transfer regulations, tenant rights, and tax implications. This type of agreement is commonly used in both residential and commercial contexts, offering flexibility while providing legal protection for all parties involved.
Suggested Sections

1. Parties: Identification of the Landlord/Seller and Tenant/Buyer, including full legal names and addresses

2. Background: Context of the agreement, including property details and the intention to lease with future sale

3. Definitions: Key terms used throughout the agreement, including Property, Lease Period, Purchase Price, and Closing Date

4. Lease Terms: Duration of lease, rent amount, payment terms, and other lease-specific conditions

5. Property Description: Detailed description of the property including legal description, fixtures, and inclusions/exclusions

6. Purchase Terms: Purchase price, deposit requirements, and payment structure for the eventual sale

7. Conditions of Sale: Conditions that must be met before the sale can proceed, including financing and inspection requirements

8. Lease-to-Purchase Provisions: Terms governing the transition from lease to purchase, including rent credit towards purchase if applicable

9. Maintenance and Repairs: Responsibilities for property maintenance during the lease period

10. Insurance and Risk: Insurance requirements and allocation of risk during both lease and purchase phases

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

12. Notices: How and where formal notices under the agreement must be delivered

13. Governing Law: Specification of Canadian law and relevant provincial jurisdiction

14. Execution: Signature blocks and execution requirements

Optional Sections

1. Option to Purchase: Used when the sale is structured as an option rather than a firm commitment

2. Rent Credit Structure: Include when a portion of rent payments will be credited toward the purchase price

3. Property Management: Include for properties requiring specific management arrangements during the lease period

4. Environmental Matters: Include for properties with known environmental concerns or requirements

5. Tenant Improvements: Include when specific improvements by the tenant are permitted or required

6. Assignment and Subletting: Include when transfer of lease rights needs to be addressed

7. First Right of Refusal: Include when the tenant has priority rights to purchase if the property is offered for sale to others

8. Co-signer Provisions: Include when a guarantor is required for the lease or purchase

Suggested Schedules

1. Schedule A - Property Details: Detailed property description, including legal description and floor plans

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

3. Schedule C - Purchase Price Calculation: Formula for determining final purchase price, including any rent credits

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

5. Schedule E - Included Fixtures and Chattels: Itemized list of items included in both lease and sale

6. Schedule F - Insurance Requirements: Detailed insurance requirements for both lease and purchase phases

7. Appendix 1 - Property Photographs: Visual documentation of property condition

8. Appendix 2 - Required Repairs: List of repairs to be completed before sale closing

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions













































Clauses






































Relevant Industries

Real Estate

Commercial Property

Residential Property

Retail

Industrial

Hospitality

Healthcare

Professional Services

Manufacturing

Warehousing

Office Space

Relevant Teams

Legal

Real Estate

Finance

Compliance

Risk Management

Facilities Management

Business Development

Property Management

Asset Management

Operations

Investment

Relevant Roles

Real Estate Lawyer

Property Manager

Real Estate Agent

Real Estate Broker

Legal Counsel

Contract Manager

Chief Financial Officer

Business Development Manager

Facilities Manager

Risk Manager

Compliance Officer

Asset Manager

Investment Manager

Property Developer

Leasing Manager

Real Estate Investment Analyst

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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