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Lease Option Agreement Template for Ireland

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Key Requirements PROMPT example:

Lease Option Agreement

"I need a Lease Option Agreement for a commercial warehouse in Dublin, with a 3-year lease starting March 2025 and an option to purchase at €2.5M, where my company will be using the space for light manufacturing and distribution."

Document background
The Lease Option Agreement is a strategic legal instrument used in the Irish property market when a potential buyer wishes to secure the right to purchase a property while leasing it initially. This arrangement is particularly valuable in situations where immediate purchase isn't feasible or desirable, such as when a business wants to test a location before committing to purchase, or when a buyer needs time to arrange financing. The document combines standard lease provisions with detailed option terms, ensuring compliance with Irish property law and conveyancing requirements. It typically includes comprehensive details about the property, lease terms, option exercise period, purchase price mechanism, and conditions for both the lease and potential sale. This type of agreement offers flexibility while protecting both parties' interests, making it popular in both commercial and residential property transactions in Ireland.
Suggested Sections

1. Parties: Identification of the Option Grantor (landlord) and Option Holder (tenant) with full legal names and addresses

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

3. Definitions: Defined terms used throughout the agreement, including Option Period, Option Price, Lease Terms, etc.

4. Grant of Lease: Terms of the lease including duration, rent, and maintenance obligations

5. Grant of Option: Specific terms of the option to purchase, including option period and exercise process

6. Option Price: Purchase price and payment terms if the option is exercised

7. Exercise of Option: Procedure for exercising the option, including notice requirements and timelines

8. Completion: Process and requirements for completing the purchase if option is exercised

9. Property Maintenance: Responsibilities for maintaining the property during the lease period

10. Insurance: Insurance requirements for both parties

11. Default and Termination: Circumstances leading to default and termination rights

12. Governing Law: Confirmation of Irish law as governing law and jurisdiction

13. Execution: Signature blocks and execution formalities

Optional Sections

1. Planning Permissions: Required when the property requires specific planning permissions or has planning constraints

2. Break Clause: Optional early termination provisions for either party

3. Assignment and Subletting: Terms for transferring rights under the agreement, if permitted

4. Mortgage Provisions: Required when the property is mortgaged or financing is involved

5. Environmental Matters: Required for properties with environmental considerations or obligations

6. Service Charge: Required for properties in managed developments or with shared facilities

7. VAT Provisions: Required when VAT is applicable to the transaction

Suggested Schedules

1. Property Description: Detailed description of the property including boundaries, title numbers, and maps

2. Lease Terms: Detailed terms of the lease including rent reviews, service charges, and repair obligations

3. Option Terms: Detailed terms of the option including calculation of option price and exercise procedures

4. Condition Schedule: Current condition of the property and any agreed repairs or improvements

5. Permitted Use: Detailed description of permitted uses of the property

6. Title Documents: Copies of relevant title documents and any encumbrances

7. Form of Option Notice: Template notice for exercising the option

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

Commercial Real Estate

Residential Real Estate

Retail

Industrial

Office Space

Hospitality

Agriculture

Healthcare

Education

Technology

Manufacturing

Relevant Teams

Legal

Real Estate

Finance

Operations

Facilities Management

Risk and Compliance

Business Development

Property Management

Asset Management

Investment

Corporate Services

Relevant Roles

Real Estate Manager

Property Director

Chief Financial Officer

Legal Counsel

Property Investment Manager

Facilities Manager

Commercial Director

Operations Manager

Business Development Manager

Risk Manager

Compliance Officer

Asset Manager

Property Portfolio Manager

Real Estate Analyst

Finance Director

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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