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Commercial Lease To Purchase Agreement Template for Malaysia

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Key Requirements PROMPT example:

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."

Document background
The Commercial Lease To Purchase Agreement is a sophisticated legal instrument used in Malaysian commercial real estate transactions where parties wish to combine a leasing arrangement with a future purchase option. This document is particularly suitable for businesses seeking to test a location before committing to purchase, or for those requiring time to arrange financing while securing their interest in the property. It must comply with Malaysian property and contract law, including the National Land Code 1965, Contracts Act 1950, and relevant stamp duty regulations. The agreement typically includes detailed provisions on lease terms, maintenance obligations, option exercise procedures, purchase price mechanisms, and conditions for completion. It's commonly used in commercial, industrial, and retail sectors, providing flexibility while protecting both parties' interests throughout the transition from lease to ownership.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

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

Retail

Office Space

Industrial

Warehousing

Manufacturing

Food and Beverage

Healthcare

Education

Technology

Professional Services

Logistics

Entertainment

Automotive

Relevant Teams

Legal

Finance

Operations

Real Estate

Facilities Management

Risk and Compliance

Treasury

Business Development

Property Management

Asset Management

Relevant Roles

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

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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