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The Lease To Own Commercial Property agreement is a sophisticated legal instrument used in German commercial real estate transactions where parties wish to combine a lease arrangement with a future purchase opportunity. This document is particularly suitable when a potential buyer wishes to occupy and use the property immediately but prefers or needs to defer the purchase, either for financial planning purposes or to evaluate the property's suitability for their business over time. The agreement must comply with German property law requirements, including notarization and land registry regulations. It typically includes comprehensive provisions covering the lease period, purchase option mechanics, price determination, maintenance responsibilities, and conditions for option exercise. This type of agreement is common in business expansion scenarios, particularly when companies are entering new markets or establishing new locations in Germany.

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

2. Background: Context of the agreement, including property description and parties' intentions regarding the lease-to-own arrangement

3. Definitions: Definitions of key terms used throughout the agreement, including Property, Commencement Date, Purchase Option, etc.

4. Property Description: Detailed description of the commercial property, including exact address, land registry details, and included fixtures/fittings

5. Lease Terms: Core lease provisions including duration, rent amount, payment terms, and rent adjustments

6. Purchase Option: Detailed terms of the purchase option, including price calculation, exercise period, and execution process

7. Security Deposit: Terms regarding the security deposit, including amount, maintenance, and conditions for return

8. Use of Property: Permitted uses of the property, restrictions, and compliance with zoning laws

9. Maintenance and Repairs: Responsibilities for maintenance, repairs, and improvements

10. Insurance and Liability: Required insurance coverage and allocation of risks

11. Utilities and Operating Costs: Responsibility for utilities, operating costs, and service charges

12. Property Access: Lessor's rights of access and inspection

13. Assignment and Subletting: Restrictions and conditions for assignment or subletting

14. Default and Remedies: Events of default and available remedies for both parties

15. Termination: Grounds for termination and the process thereof

16. Return of Property: Conditions for property return if purchase option is not exercised

17. Notices: Process for giving formal notices under the agreement

18. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction

19. Entire Agreement: Integration clause and relationship to other documents