Document background
The Rental Purchase Agreement is a specialized contract used in Pakistan when parties wish to combine rental occupancy with a future purchase arrangement. This agreement type is particularly useful in situations where immediate purchase is not feasible or desired, but there is a clear intention for eventual ownership transfer. The document must comply with various Pakistani legal frameworks including the Contract Act 1872, Transfer of Property Act 1882, and relevant provincial rental laws. It typically includes detailed provisions for both the rental phase (including rent payments, maintenance, and occupancy terms) and the purchase phase (including price calculation, transfer process, and completion requirements). The agreement is commonly used in both residential and commercial contexts, and can be structured to accommodate Islamic finance principles when required. It provides protection for both parties by clearly defining the transition from rental to ownership and how rental payments contribute to the final purchase.
