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Commercial Lease Option To Buy Template for Australia

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Key Requirements PROMPT example:

Commercial Lease Option To Buy

"I need a Commercial Lease Option to Buy agreement for a warehouse property in Melbourne, with a 3-year initial lease term starting March 2025, and an option to purchase the property at market value plus 5% any time after the first 18 months of the lease term."

Document background
The Commercial Lease Option to Buy agreement is a sophisticated legal instrument used in Australian commercial property transactions where a tenant wishes to secure both immediate occupancy rights and future purchase rights for a commercial property. This document type is particularly valuable for businesses that want to test a location before committing to purchase, or need time to arrange financing for a future purchase. The agreement provides detailed terms for both the leasing arrangement and the purchase option, including specific conditions for exercising the option, price determination mechanisms, and timeframes. It must comply with Australian property law, retail leasing legislation, and consumer protection requirements, while also addressing tax implications and stamp duty considerations. The document is commonly used in commercial, retail, and industrial property sectors across Australia, offering flexibility for both property owners and business operators.
Suggested Sections

1. Parties: Identification of the landlord/vendor and tenant/purchaser with full legal details

2. Background: Context of the agreement including property details and intention to grant both lease and purchase option

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Grant of Lease: Terms of the lease grant including commencement date and duration

5. Rent and Outgoings: Rental amount, payment terms, outgoings, and review mechanisms

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

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

8. Use of Premises: Permitted use of the premises and any restrictions

9. Maintenance and Repairs: Responsibilities for maintenance, repairs, and improvements

10. Insurance and Risk: Insurance requirements and risk allocation

11. Default and Termination: Events of default, consequences, and termination provisions

12. Assignment and Subletting: Rights and restrictions regarding assignment and subletting

13. Costs and Stamp Duty: Allocation of legal costs, stamp duty, and other expenses

14. Notices: Requirements for giving notices under the agreement

15. General Provisions: Standard provisions including governing law, entire agreement, and variation

Optional Sections

1. Fit-out Works: Details of any agreed tenant fit-out works and conditions - include when premises require modification

2. Environmental Matters: Environmental obligations and compliance - include for properties with potential environmental issues

3. Security Deposit: Terms of any security deposit or bank guarantee - include when additional security is required

4. Option to Renew Lease: Terms for lease renewal if purchase option not exercised - include when flexibility is needed

5. GST Provisions: Detailed GST treatment - include when parties have specific GST requirements

6. Property Manager: Appointment and role of property manager - include when third-party management is involved

7. Development Rights: Rights to develop or modify the property - include when development potential is relevant

Suggested Schedules

1. Schedule 1 - Property Details: Detailed description of the property including title details and plan

2. Schedule 2 - Lease Terms: Key commercial terms of the lease including rent, term, and review dates

3. Schedule 3 - Purchase Option Terms: Detailed terms of the purchase option including price calculation

4. Schedule 4 - Permitted Use: Detailed description of permitted use and any specific conditions

5. Schedule 5 - Outgoings: Detailed list of outgoings and payment responsibilities

6. Appendix A - Plan of Premises: Floor plan or survey plan of the leased premises

7. Appendix B - Condition Report: Detailed report on the condition of the premises at lease commencement

8. Appendix C - Special Conditions: Any special or additional conditions agreed between the parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓÆµ | 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

Retail

Hospitality

Professional Services

Manufacturing

Warehousing and Logistics

Healthcare

Technology

Education

Financial Services

Construction

Industrial

Relevant Teams

Legal

Finance

Operations

Real Estate

Property Management

Risk and Compliance

Business Development

Facilities Management

Corporate Services

Asset Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Commercial Property Manager

Real Estate Director

Legal Counsel

Property Development Manager

Business Development Manager

Operations Manager

Facility Manager

Contract Manager

Risk Manager

Finance Director

Managing Director

Leasing Manager

Asset Manager

Property Portfolio 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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