Document background
The Lease To Own Property Agreement is a specialized contract used in Saudi Arabia when parties wish to combine property leasing with a future purchase arrangement. This document is particularly relevant in situations where immediate property purchase isn't feasible or desired, but there's a clear intention for eventual ownership transfer. It must comply with Saudi Arabia's dual legal framework of civil law and Sharia principles, particularly regarding interest-free financing structures. The agreement includes detailed provisions for lease payments, purchase price determination, property maintenance, ownership transfer procedures, and default remedies. This type of agreement has gained prominence with Saudi Arabia's Vision 2030 initiatives, which aim to increase home ownership and modernize real estate transactions. It's commonly used in both residential and commercial contexts, requiring careful attention to property registration requirements, financing structures, and regulatory compliance.
