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Lease With Option To Buy Commercial Property Template for Saudi Arabia

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Key Requirements PROMPT example:

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."

Document background
The Lease With Option To Buy Commercial Property agreement is designed for use in Saudi Arabia when a property owner wishes to lease a commercial property while giving the tenant the option to purchase it in the future. This arrangement is particularly useful for businesses seeking to establish operations while maintaining future flexibility and property owners looking to secure long-term tenants with potential buyers. The document must comply with Saudi Arabian real estate laws, commercial regulations, and Shariah principles, making it suitable for various commercial property types from office buildings to industrial facilities. It includes comprehensive provisions for both the lease period and the purchase option, covering rent payments, maintenance obligations, option exercise procedures, and purchase terms. This document type is commonly used in commercial real estate transactions where the tenant wants to test the property's suitability for their business before committing to a purchase.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
















































Clauses









































Relevant Industries

Commercial Real Estate

Retail

Industrial

Hospitality

Healthcare

Professional Services

Manufacturing

Logistics and Warehousing

Technology and Data Centers

Banking and Financial Services

Education

Relevant Teams

Legal

Real Estate

Finance

Operations

Facilities Management

Risk and Compliance

Business Development

Property Management

Corporate Development

Investment

Relevant Roles

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

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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