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Lease With Option To Buy Commercial Property Template for Singapore

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Key Requirements PROMPT example:

Lease With Option To Buy Commercial Property

"I need a Lease With Option To Buy Commercial Property agreement for a retail space in Singapore's Orchard Road area, with a 3-year lease term starting March 2025 and an option to purchase the property at a fixed price of SGD 5.2 million exercisable after the first 18 months."

Document background
The Lease With Option To Buy Commercial Property agreement is a specialized contract used in Singapore when parties wish to combine a commercial lease with a potential future purchase. This arrangement allows tenants to occupy and use the property immediately while securing the right to purchase it at a predetermined price within a specified timeframe. The document is particularly useful for businesses wanting to test a location before committing to purchase, or those needing time to arrange financing. It must comply with Singapore's strict property laws and regulations, including URA guidelines and commercial property requirements.
Suggested Sections

1. Parties: Identification of lessor and lessee with full legal details

2. Background: Context of the lease and option arrangement

3. Definitions: Key terms used throughout the agreement

4. Property Details: Specific description of the commercial property including address and boundaries

5. Lease Terms: Duration, rent, payment terms, and conditions of the lease

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

7. Maintenance and Repairs: Responsibilities for property maintenance

8. Insurance Requirements: Required insurance coverage and responsibilities

9. Termination Provisions: Conditions and process for terminating the agreement

Optional Sections

1. Fit-out Works: Terms for tenant improvements and modifications when tenant requires property modifications

2. Assignment and Subletting: Rights and restrictions regarding transfer of lease rights when transfer rights are important to parties

3. Environmental Compliance: Specific environmental obligations for properties with environmental considerations

Suggested Schedules

1. Property Plan: Detailed floor plan and property boundaries

2. Inventory List: List of fixtures and fittings included in lease/sale

3. Option Exercise Form: Template for exercising the purchase option

4. Building Rules and Regulations: Specific building management requirements

5. Maintenance Schedule: Detailed maintenance responsibilities and schedules

6. Permitted Use Guidelines: Specific allowed uses of the property

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









































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Industries

Civil Law Act (Cap. 43): Primary legislation governing contractual relationships and obligations, including specific requirements for contracts relating to land

Conveyancing and Law of Property Act (Cap. 61): Regulates property transactions and land dealings, including requirements for property transfers and legal formalities

Land Titles Act (Cap. 157): Governs the registration of land titles and dealings with registered land in Singapore

Planning Act (Cap. 232): Controls zoning requirements and permitted usage of commercial properties, including land use restrictions

Building Control Act (Cap. 29): Regulates building safety, maintenance requirements, and building code compliance standards

Stamp Duties Act (Cap. 312): Governs stamp duty obligations for lease and purchase, including Additional Buyer's Stamp Duty (ABSD) considerations

Property Tax Act (Cap. 254): Outlines tax obligations and requirements related to commercial property ownership and transactions

Environmental Public Health Act (Cap. 95): Covers environmental compliance requirements and waste management regulations for commercial properties

Fire Safety Act (Cap. 109A): Specifies fire safety requirements and standards for commercial properties

URA Guidelines: Urban Redevelopment Authority guidelines covering land use restrictions and development controls

BCA Requirements: Building and Construction Authority requirements for building maintenance standards and accessibility

SLA Regulations: Singapore Land Authority regulations governing land ownership rules and property boundaries

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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