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Lease With Option To Buy Commercial Property
"I need a Lease With Option To Buy Commercial Property agreement for a retail space in Riyadh, with a 5-year initial lease term starting March 1, 2025, and an option to purchase that can be exercised after 3 years, including specific provisions for retail signage and customer parking requirements."
1. Parties: Identification of the lessor/potential seller and lessee/potential buyer, including full legal names, addresses, and commercial registration details
2. Background: Context of the agreement, property overview, and parties' intentions regarding lease and potential purchase
3. Definitions: Definitions of key terms used throughout the agreement, including Property, Option Period, Purchase Price, etc.
4. Property Description: Detailed description of the commercial property, including location, boundaries, and permitted uses
5. Lease Terms: Core lease provisions including duration, rent amount, payment terms, and compliance with Shariah principles
6. Option to Purchase: Terms of the purchase option, including option period, exercise process, and purchase price determination
7. Rent and Other Payments: Detailed breakdown of rent, service charges, utilities, and other financial obligations
8. Use of Property: Permitted commercial uses, restrictions, and compliance with local regulations
9. Maintenance and Repairs: Responsibilities for property maintenance, repairs, and improvements
10. Insurance and Liability: Required insurance coverage and allocation of risks
11. Default and Remedies: Events of default under both lease and option terms, and available remedies
12. Termination: Circumstances and procedures for termination of the lease and/or option
13. Governing Law and Dispute Resolution: Application of Saudi law and dispute resolution mechanisms
1. Foreign Ownership Provisions: Required when lessee/potential buyer is a foreign entity, addressing compliance with Foreign Investment Law
2. Shariah Compliance Declaration: Detailed section confirming compliance with Islamic principles, particularly important for financial institutions
3. Property Management: Include when specific property management arrangements are needed for complex commercial properties
4. Alterations and Improvements: Detailed provisions for significant property modifications, particularly relevant for industrial or specialized commercial use
5. Assignment and Subletting: Include when transfer rights are to be granted to the lessee
6. Environmental Compliance: Required for properties with potential environmental impacts or specific industrial uses
7. Force Majeure: Detailed provisions for unforeseen circumstances, particularly relevant in long-term agreements
1. Property Plan: Detailed plans and drawings of the property including boundaries and measurements
2. Rent Payment Schedule: Detailed breakdown of rent payments, including any scheduled increases
3. Option Exercise Terms: Detailed procedures and forms for exercising the purchase option
4. Property Condition Report: Detailed assessment of property condition at lease commencement
5. Permitted Alterations: Specifications of allowed modifications to the property
6. Service Charges Budget: Breakdown of service charges and maintenance costs
7. Required Insurance: Detailed insurance requirements and specifications
8. Building Rules and Regulations: Specific rules governing the use and operation of the property
Authors
Commercial Real Estate
Retail
Industrial
Hospitality
Healthcare
Professional Services
Manufacturing
Logistics and Warehousing
Technology and Data Centers
Banking and Financial Services
Education
Legal
Real Estate
Finance
Operations
Facilities Management
Risk and Compliance
Business Development
Property Management
Corporate Development
Investment
Real Estate Director
Commercial Property Manager
Legal Counsel
Chief Financial Officer
Business Development Manager
Facilities Manager
Operations Director
Property Investment Manager
Compliance Officer
Risk Manager
Corporate Real Estate Manager
Chief Executive Officer
Commercial Director
Expansion Manager
Asset Manager
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