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Lease To Sell Agreement for United Arab Emirates

Lease To Sell Agreement Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that combines elements of both a lease and a sale agreement. It allows the tenant to occupy and use the property immediately under a lease arrangement while simultaneously working towards purchasing the property. The agreement details the lease terms, purchase conditions, payment structure, and how rental payments contribute to the final purchase price. It ensures compliance with UAE property laws, including registration requirements with relevant authorities, and outlines the process for transitioning from lease to ownership.

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What is a Lease To Sell Agreement?

The Lease to Sell Agreement is a specialized contract used in the United Arab Emirates when parties wish to combine property rental with a future purchase arrangement. This document is particularly useful for buyers who want to secure a property but prefer or need to spread payments over time, or for those who want to occupy the property immediately while finalizing purchase arrangements. The agreement includes comprehensive terms covering both the lease period and the eventual sale, including payment structures, maintenance responsibilities, and purchase completion conditions. It must comply with UAE federal property laws and relevant emirate-specific regulations, particularly regarding property registration and transfer. This type of agreement is commonly used in both residential and commercial property transactions, offering flexibility while ensuring legal protection for all parties involved.

What sections should be included in a Lease To Sell Agreement?

1. Parties: Identification of the Owner/Seller and Tenant/Buyer, including full legal names, emirates ID numbers, and contact details

2. Background: Context of the agreement, including property details and intent to combine lease with future sale

3. Definitions: Key terms used throughout the agreement, including 'Lease Period', 'Purchase Price', 'Completion Date', etc.

4. Property Details: Comprehensive description of the property, including location, size, and registration details

5. Lease Terms: Terms of the lease including duration, rent amount, payment schedule, and maintenance responsibilities

6. Purchase Terms: Details of the purchase arrangement including total purchase price, credit for rent paid, and completion conditions

7. Payment Structure: Breakdown of payments, including rent, purchase price, and how rental payments contribute to the purchase

8. Completion Process: Steps for completing the sale, including registration requirements and transfer procedures

9. Property Condition: Current condition of the property and responsibilities for maintenance during the lease period

10. Default and Remedies: Consequences of default in rent payment or failure to complete purchase

11. Insurance and Risk: Requirements for property insurance and allocation of risk during the lease period

12. Governing Law and Jurisdiction: Specification of UAE law application and jurisdiction for dispute resolution

What sections are optional to include in a Lease To Sell Agreement?

1. Early Purchase Option: Terms for exercising early purchase option before lease expiry, if applicable

2. Property Modifications: Conditions for making alterations to the property during the lease period

3. Assignment and Subletting: Rights and restrictions regarding assignment of the agreement or subletting the property

4. Force Majeure: Provisions for unexpected events affecting contract performance

5. Property Management: Specific arrangements for property management during the lease period

6. Utilities and Services: Detailed arrangements for utility connections and service responsibilities

7. Mortgage Provisions: Terms relating to existing or future mortgage arrangements

What schedules should be included in a Lease To Sell Agreement?

1. Schedule 1 - Property Details: Detailed property specification, including floor plans and boundaries

2. Schedule 2 - Payment Schedule: Detailed breakdown of all payments including rent, purchase installments, and payment dates

3. Schedule 3 - Property Condition Report: Detailed inventory and condition report of the property at lease commencement

4. Schedule 4 - Completion Requirements: List of documents and requirements for completing the sale

5. Appendix A - Property Title Deed: Copy of current property title deed

6. Appendix B - Property Photographs: Current photographs of the property's condition

7. Appendix C - Required Maintenance Schedule: Schedule of required maintenance during the lease period

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Document Type

Contract to Sell

Cost

Free to use

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