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Lease With Option To Buy Contract

Lease With Option To Buy Contract Template for Germany

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Key Requirements PROMPT example:

Lease With Option To Buy Contract

"I need a Lease with Option to Buy Contract for a commercial warehouse property in Hamburg, with a monthly rent of €5,000 and purchase option exercisable after 12 months at €750,000, with 50% of paid rent to be credited toward the purchase price. Lease to commence March 1, 2025."

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Document background
The Lease with Option to Buy Contract is utilized when parties wish to establish a lease arrangement that includes the possibility of property purchase during or after the lease term. This document is particularly relevant in the German market where both rental and purchase transactions are heavily regulated. It provides flexibility for tenants who may want to purchase but need time to arrange financing or assess the property's suitability for their long-term needs. The agreement must comply with German Civil Code requirements, including specific form requirements for real estate transactions. It typically includes detailed provisions about property condition, maintenance responsibilities, option exercise procedures, and purchase price mechanisms. This type of contract is commonly used in both residential and commercial contexts, requiring careful consideration of both lease law (Mietrecht) and property purchase regulations.
Suggested Sections

1. Parties: Identification of lessor/potential seller and lessee/potential buyer with full legal names and addresses

2. Background: Context of the agreement and brief description of the property and parties' intentions

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

4. Property Description: Detailed description of the property including exact address, land register details (Grundbuch), and permitted use

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

6. Option to Purchase: Terms of the purchase option including option period, exercise mechanism, and purchase price calculation

7. Exercise of Option: Procedure for exercising the option, including notice requirements and timeline

8. Purchase Price and Payment: Details of the purchase price, any rent credits, and payment terms upon option exercise

9. Property Handover: Conditions for property handover during lease and after purchase option exercise

10. Maintenance and Repairs: Responsibilities for property maintenance during lease period and impact on purchase

11. Insurance and Risk: Insurance requirements and risk allocation during lease period and transfer upon purchase

12. Termination: Conditions for early termination of lease and impact on purchase option

13. Notices: Format and procedure for all formal communications between parties

14. Governing Law: Confirmation of German law application and jurisdiction

Optional Sections

1. Rent Credit Towards Purchase: Include when a portion of rent payments will be credited towards the purchase price

2. Property Management: Include for properties in multi-unit buildings or those requiring specific management arrangements

3. Subletting Provisions: Include if subletting is to be permitted during the lease period

4. Mortgage and Financing: Include if there are specific provisions about existing mortgages or buyer financing requirements

5. Environmental Matters: Include for properties with specific environmental considerations or requirements

6. Development Rights: Include if the property has development potential that affects its value or use

7. Right of First Refusal: Include if the tenant should have additional rights if the owner receives other purchase offers

Suggested Schedules

1. Property Details: Detailed property description, including land register excerpt (Grundbuchauszug) and floor plans

2. Inventory List: List of any furnishings or equipment included in the lease and potential purchase

3. Energy Performance Certificate: Mandatory energy efficiency documentation (Energieausweis)

4. Maintenance Schedule: Detailed breakdown of maintenance responsibilities and schedules

5. Rent Payment Schedule: Detailed breakdown of rent payments and any scheduled increases

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

7. Property Condition Report: Documentation of property condition at lease commencement

8. Building Rules: For properties in multi-unit buildings, the applicable Hausordnung

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
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Relevant Industries

Real Estate

Property Development

Commercial Property

Residential Property

Retail

Industrial

Manufacturing

Hospitality

Agriculture

Logistics

Office Space

Healthcare

Relevant Teams

Legal

Real Estate

Finance

Operations

Business Development

Facilities Management

Asset Management

Property Management

Risk Management

Compliance

Investment

Relevant Roles

Real Estate Manager

Property Manager

Facility Manager

Legal Counsel

Contract Manager

Business Development Manager

Chief Financial Officer

Real Estate Director

Asset Manager

Operations Manager

Expansion Manager

Location Manager

Real Estate Broker

Commercial Director

Investment 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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