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Sale And Leaseback Agreement
"I need a Sale and Leaseback Agreement for our manufacturing facility in Lahore, Pakistan, with a purchase price of PKR 500 million and a 10-year leaseback term starting March 2025, ensuring Shariah compliance and including a purchase option at the end of year 5."
1. Parties: Identification of the Seller/Lessee and Buyer/Lessor with full legal names and addresses
2. Background: Context of the transaction, including property overview and purpose of the sale and leaseback arrangement
3. Definitions: Definitions of key terms used throughout the agreement
4. Sale Provisions: Terms of the sale including purchase price, payment terms, and completion date
5. Property Transfer: Provisions regarding the transfer of title, warranties of ownership, and encumbrances
6. Lease Terms: Essential lease provisions including term, rent, payment schedule, and use of property
7. Maintenance and Repairs: Responsibilities for property maintenance, repairs, and improvements
8. Insurance and Risk: Insurance requirements and allocation of risk between parties
9. Default and Remedies: Events of default under both sale and lease provisions and available remedies
10. Assignment and Subletting: Rights and restrictions regarding assignment of the agreement or subletting the property
11. Representations and Warranties: Statements of fact and guarantees by both parties
12. Governing Law and Jurisdiction: Applicable law and courts having jurisdiction over disputes
13. Notices: Process for giving formal notices under the agreement
14. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments
1. Purchase Option: Terms for lessee to repurchase the property, included when parties agree to a buyback option
2. Islamic Finance Compliance: Specific provisions ensuring compliance with Shariah principles, needed for Islamic finance structures
3. Tax Indemnity: Provisions for tax implications and indemnities, included when significant tax considerations exist
4. Environmental Matters: Environmental warranties and indemnities, needed for industrial or potentially contaminated properties
5. Security Deposit: Terms regarding security deposit or other financial security, included when required by lessor
6. Force Majeure: Provisions for unforeseen circumstances affecting performance, important for long-term arrangements
7. Break Clause: Early termination provisions, included when parties want flexibility to end the arrangement
1. Property Description: Detailed legal description of the property including boundaries, title details, and any included fixtures
2. Purchase Price Breakdown: Itemized breakdown of the purchase price and payment terms
3. Rent Schedule: Detailed rent payment schedule including amounts, dates, and escalation provisions
4. Condition Report: Documentation of property condition at the time of sale and lease commencement
5. Permitted Use: Detailed description of permitted uses of the property during the lease term
6. Maintenance Schedule: Detailed breakdown of maintenance responsibilities between lessor and lessee
7. Required Insurance: Specific insurance requirements including types, coverage amounts, and named insureds
8. Form of Notices: Template forms for various notices required under the agreement
Authors
Real Estate
Banking and Financial Services
Manufacturing
Retail
Healthcare
Hospitality
Industrial
Logistics and Warehousing
Education
Islamic Finance
Commercial Property
Legal
Finance
Real Estate
Treasury
Tax
Risk Management
Operations
Facilities Management
Corporate Development
Islamic Finance
Compliance
Chief Financial Officer
Real Estate Manager
Property Director
Legal Counsel
Finance Director
Corporate Treasurer
Asset Manager
Facilities Manager
Investment Manager
Property Portfolio Manager
Risk Manager
Commercial Director
Operations Director
Islamic Finance Advisor
Tax Manager
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