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Lease With Option To Buy Contract for Malta

Lease With Option To Buy Contract Template for Malta

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Lease With Option To Buy Contract

"I need a Lease with Option to Buy Contract for a commercial property in Valletta, Malta, where my retail business will lease the space for 3 years starting March 2025, with an option to purchase the property at a pre-agreed price of €500,000 any time after the first 18 months of the lease."

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What is a Lease With Option To Buy Contract?

The Lease With Option To Buy Contract is a specialized agreement used in Malta when parties wish to combine a property lease with a future purchase possibility. This arrangement is particularly useful for tenants who may need time to arrange financing or assess the property's suitability for long-term use, while securing the right to purchase at a predetermined price. The document must comply with Malta's Civil Code, Private Residential Leases Act, and related legislation governing both leases and property sales. It includes detailed provisions for the lease period, purchase option terms, property maintenance, payment structures, and the mechanism for exercising the purchase option. This type of contract is commonly used in both residential and commercial contexts, providing a flexible pathway to property ownership while ensuring legal protection for all parties involved.

What sections should be included in a Lease With Option To Buy Contract?

1. Parties: Identification of the Lessor/Potential Seller and Lessee/Potential Buyer with full legal details

2. Background: Context of the agreement, including property description and parties' intentions regarding lease and potential purchase

3. Definitions: Key terms used throughout the agreement, including Property, Option Period, Purchase Price, and Lease Term

4. Lease Terms: Core lease provisions including duration, rent amount, payment terms, and maintenance obligations

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

6. Property Use and Maintenance: Rights and obligations regarding property use, repairs, and modifications during the lease period

7. Payment Terms: Detailed provisions for rent payments, option fees, and purchase price

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

9. Representations and Warranties: Statements about property condition, ownership, and authority to enter agreement

10. Default and Remedies: Consequences of breach by either party and available remedies

11. Registration and Notices: Requirements for registration of lease and procedures for formal communications

12. Governing Law and Jurisdiction: Confirmation of Maltese law application and jurisdiction

What sections are optional to include in a Lease With Option To Buy Contract?

1. Insurance: Special insurance requirements beyond standard obligations, used when specific risks need coverage

2. Subletting and Assignment: Include when parties want to explicitly address possibility of subletting or assigning rights

3. Environmental Matters: Required for properties with specific environmental concerns or obligations

4. Planning Permits: Include when property requires specific permits or has planning restrictions

5. Break Clauses: Optional early termination provisions, included when parties want flexibility

6. Rent Review: Include when parties want periodic rent adjustments during lease term

7. Property Management: For properties in managed developments or with shared facilities

8. VAT Elections: Include when property transaction may have VAT implications

What schedules should be included in a Lease With Option To Buy Contract?

1. Property Description: Detailed description of property including plans, boundaries, and included fixtures

2. Inventory: List of furniture, appliances, and other items included in lease and potential sale

3. Condition Report: Detailed assessment of property condition at lease commencement

4. Payment Schedule: Breakdown of payments including rent, option fees, and purchase price calculations

5. Permitted Uses: Detailed list of allowed uses of the property

6. Maintenance Schedule: Breakdown of maintenance responsibilities between parties

7. Required Certificates: Copies of energy performance, safety, and other required certificates

8. Form of Option Notice: Template for formal notice to exercise purchase option

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 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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Relevant Industries

Real Estate

Residential Property

Commercial Property

Property Development

Property Management

Legal Services

Financial Services

Construction

Retail

Hospitality

Relevant Teams

Legal

Real Estate

Property Management

Compliance

Finance

Operations

Risk Management

Facilities

Business Development

Asset Management

Relevant Roles

Real Estate Manager

Property Manager

Legal Counsel

Contract Manager

Leasing Manager

Asset Manager

Compliance Officer

Risk Manager

Real Estate Agent

Property Developer

Facilities Manager

Investment Manager

Finance Director

Operations 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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