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Commercial Lease To Purchase Agreement
"I need a Commercial Lease to Purchase Agreement for a retail space in Kuala Lumpur, with a 2-year initial lease starting March 1, 2025, and an option to purchase the property at a fixed price of RM 2.5 million within the lease period."
1. Parties: Identification of the lessor/vendor and lessee/purchaser with full legal names and details
2. Background: Context of the agreement, including property details and intention to lease with option to purchase
3. Definitions and Interpretation: Key terms used throughout the agreement and rules for interpretation
4. Lease Terms: Core leasing provisions including rent, duration, and permitted use
5. Property Maintenance and Repairs: Responsibilities for maintaining and repairing the property during the lease term
6. Option to Purchase: Terms of the purchase option, including price, exercise period, and mechanism
7. Payment Terms: Details of rent payments, purchase price, and how lease payments may be credited toward purchase
8. Insurance and Risk: Insurance requirements and allocation of risk during lease period
9. Default and Termination: Events of default, consequences, and termination provisions
10. Assignment and Subletting: Restrictions on transfer of rights under the agreement
11. Representations and Warranties: Statements of fact and promises by both parties
12. Costs and Stamp Duty: Allocation of legal costs, stamp duty, and other expenses
13. Notices: Method and addresses for formal communications
14. Governing Law and Jurisdiction: Confirmation of Malaysian law application and jurisdiction
15. Execution: Signature blocks and attestation requirements
1. Break Clause: Optional early termination provisions, included when parties want flexibility to end the lease before the purchase option exercise date
2. Renovation and Alterations: Included when the lessee requires rights to modify the property during the lease term
3. Environmental Matters: Required for properties with potential environmental concerns or specific compliance requirements
4. Service Charge: Needed for properties in commercial complexes with shared facilities
5. Property Manager: Include when a third-party property manager will be involved
6. Right of First Refusal: Optional clause giving lessee priority if owner receives third-party purchase offers
7. Guarantee: Include when additional security is required from a parent company or individual guarantor
1. Property Description: Detailed legal description of the property including lot number, title details, and floor plans
2. Rent and Payment Schedule: Breakdown of rent payments, purchase price, and credit mechanism
3. Condition Report: Initial condition of the property at lease commencement
4. Permitted Use: Detailed description of allowed commercial activities
5. Building Rules and Regulations: If applicable, specific rules governing the use of the property
6. Form of Option Exercise Notice: Template notice for exercising the purchase option
7. Handover Inventory: List of fixtures, fittings, and equipment included in the lease/sale
Authors
Retail
Office Space
Industrial
Warehousing
Manufacturing
Food and Beverage
Healthcare
Education
Technology
Professional Services
Logistics
Entertainment
Automotive
Legal
Finance
Operations
Real Estate
Facilities Management
Risk and Compliance
Treasury
Business Development
Property Management
Asset Management
Chief Executive Officer
Chief Financial Officer
Property Manager
Real Estate Director
Facilities Manager
Legal Counsel
Commercial Director
Operations Manager
Business Development Manager
Finance Manager
Risk Manager
Compliance Officer
Property Investment Manager
Asset Manager
Treasury Manager
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