The Commercial Lease With Option To Purchase is a specialized agreement used in Singapore when a landlord wishes to lease commercial property while giving the tenant the future right to purchase it. This document is particularly useful for businesses seeking to test a location before committing to purchase, or for those requiring time to arrange financing. It combines standard commercial lease provisions under Singapore law with detailed option terms, including the mechanism for exercising the purchase option, price determination, and completion requirements. The agreement must comply with Singapore's property legislation and registration requirements, making it a complex but valuable tool for commercial property transactions.
Commercial Lease With Option To Purchase for Singapore
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Key Requirements PROMPT example:
Commercial Lease With Option To Purchase
"Need a Commercial Lease With Option to Purchase for my retail store in Singapore's Orchard Road area, with a 3-year lease term starting March 2025 and an option to purchase the property at a pre-agreed price of SGD 4.5 million exercisable after the first year."
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1. Parties: Identification of landlord and tenant with full legal details
2. Background: Context of the lease arrangement and property details
3. Definitions: Key terms used throughout the agreement
4. Demise: Formal grant of lease and property description
5. Term and Rent: Duration of lease and rental payment terms
6. Option to Purchase: Terms and conditions of purchase option, including price and exercise period
7. Tenant's Covenants: Obligations of the tenant including maintenance, use, and insurance
8. Landlord's Covenants: Obligations of the landlord including quiet enjoyment and structural repairs
9. Termination Provisions: Circumstances and procedures for ending the lease
1. Break Clause: Early termination options - used when parties want flexibility to end lease early
2. Service Charge Provisions: Details of additional charges for building services - used for multi-tenanted buildings
3. Alterations and Improvements: Rights and restrictions regarding property modifications - used when tenant requires specific fit-out rights
4. Green Lease Provisions: Environmental performance requirements - used for environmentally conscious parties
1. Property Plan: Detailed floor plan and property boundaries
2. Condition Report: Initial state of premises
3. Rent Review Mechanism: Detailed procedures for rent reviews
4. Building Rules and Regulations: Specific rules for property use and management
5. Option to Purchase Terms: Detailed mechanics of purchase option
6. Permitted Use Details: Specific allowed uses of the premises
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