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The Rental Contract With Option To Buy is a sophisticated legal instrument used in Hong Kong's property market when parties wish to combine a standard rental arrangement with a future purchase opportunity. This document is particularly useful for tenants who need immediate occupancy but require time to arrange financing or assess the property's suitability for long-term ownership. It provides protection for both landlord and tenant by clearly defining the rental terms while establishing a structured path to property ownership. The agreement must comply with Hong Kong's property laws and regulations, including specific requirements for both leasing and property sales. It includes detailed provisions for rental payments, property maintenance, option exercise procedures, purchase price calculations, and completion requirements. This type of agreement is commonly used in both residential and commercial property transactions, offering flexibility while maintaining legal certainty for all parties involved.

1. Parties: Identification and details of the landlord/seller and tenant/potential buyer

2. Background: Context of the agreement, including property details and intention to combine rental with purchase option

3. Definitions: Key terms used throughout the agreement including Property, Rental Period, Option Period, Purchase Price, etc.

4. Rental Terms: Comprehensive terms of the tenancy including rent amount, payment terms, duration, and general obligations

5. Tenant Obligations: Specific responsibilities of the tenant during the rental period including maintenance, permitted use, and restrictions

6. Landlord Obligations: Specific responsibilities of the landlord during the rental period including maintenance, insurance, and statutory compliance

7. Option to Purchase: Detailed terms of the purchase option including price, exercise period, and procedure

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

9. Completion of Purchase: Procedures and requirements for completing the property purchase if option is exercised

10. Deposit and Payments: Details of all financial aspects including rental deposit, purchase option fee, and treatment of payments

11. Property Condition: State and condition of the property, including inventory and agreed improvements

12. Insurance: Insurance requirements for both rental period and transition to purchase

13. Default and Termination: Circumstances and procedures for termination of either rental or purchase option

14. Notices: Requirements for formal communications between parties

15. Governing Law: Confirmation of Hong Kong law governance and jurisdiction