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Purchase Lease Option Agreement Template for Pakistan

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Key Requirements PROMPT example:

Purchase Lease Option Agreement

"I need a Purchase Lease Option Agreement for a commercial warehouse in Lahore, Pakistan, with a 2-year lease term starting March 2025 and an option to purchase at a fixed price of PKR 25 million, including provisions for heavy machinery installation and 24/7 operations."

Document background
The Purchase Lease Option Agreement is a sophisticated legal instrument used in Pakistani property transactions where parties wish to combine immediate property rental with a future purchase opportunity. This document is particularly relevant when potential buyers need time to arrange financing or want to test the property's suitability before committing to purchase. It integrates requirements from Pakistani contract law, property law, and regional regulations, providing a structured framework for both the lease period and the potential property transfer. The agreement specifies rent payments, maintenance responsibilities, option fees, purchase price, and the mechanism for exercising the purchase option. It's commonly used in both commercial and residential contexts, requiring careful consideration of local property regulations, registration requirements, and stamp duty obligations.
Suggested Sections

1. Parties: Identification and details of the landlord/seller and tenant/buyer

2. Background: Context of the agreement and general intentions of the parties

3. Definitions: Definitions of key terms used throughout the agreement

4. Lease Terms: Duration, rent amount, payment terms, and renewal conditions

5. Property Details: Detailed description of the property subject to lease and option

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

7. Exercise of Option: Process and requirements for exercising the purchase option

8. Lease Obligations: Responsibilities of tenant including maintenance, utilities, and permitted use

9. Landlord Obligations: Responsibilities of landlord including repairs, insurance, and property management

10. Option Fee: Details of the option fee, whether refundable, and how it applies to purchase price

11. Title and Ownership: Warranties regarding property ownership and title clearance

12. Default and Remedies: Consequences of default under either lease or option terms

13. Notices: Process for serving formal notices between parties

14. Governing Law: Specification of Pakistani law as governing law and jurisdiction

15. Execution: Signature blocks and execution requirements

Optional Sections

1. Property Management: Detailed management terms when property requires significant maintenance or is part of a larger complex

2. Subletting Provisions: Include when subletting might be permitted under specific conditions

3. Renovation Rights: When tenant is permitted to make improvements or modifications to the property

4. Multiple Unit Provisions: When the agreement covers multiple units or properties

5. First Right of Refusal: Additional rights if the owner receives other purchase offers during the option period

6. Financing Contingencies: When the purchase option exercise is subject to the buyer obtaining financing

7. Property Development Rights: When the property has development potential that needs to be addressed

8. Agricultural Provisions: Special terms for agricultural land subject to specific Pakistani laws

Suggested Schedules

1. Schedule 1 - Property Description: Detailed legal description of the property including boundaries and registration details

2. Schedule 2 - Rent Schedule: Detailed breakdown of rent payments, increases, and due dates

3. Schedule 3 - Option Price Calculation: Formula or method for determining the final purchase price, including any adjustments

4. Schedule 4 - Permitted Uses: Specific allowed uses of the property during the lease period

5. Schedule 5 - Condition Report: Initial condition of the property at lease commencement

6. Schedule 6 - Maintenance Responsibilities: Detailed split of maintenance and repair obligations

7. Appendix A - Required Documents: List of documents required for option exercise

8. Appendix B - Property Plans: Property maps, floor plans, and relevant drawings

9. Appendix C - Compliance Certificates: Copies of relevant compliance and safety certificates

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

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Relevant Industries

Real Estate

Commercial Property

Residential Property

Industrial

Retail

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Relevant Teams

Legal

Real Estate

Finance

Operations

Compliance

Risk Management

Facilities Management

Property Management

Business Development

Asset Management

Relevant Roles

Real Estate Manager

Property Manager

Legal Counsel

Contract Administrator

Chief Financial Officer

Business Development Manager

Facilities Manager

Asset Manager

Property Investment Manager

Compliance Officer

Real Estate Director

Operations Manager

Risk Manager

Finance Director

Corporate Lawyer

Industries








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