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Commercial Lease To Purchase Agreement
"I need a Commercial Lease to Purchase Agreement for a warehouse property in Ontario, with a 3-year lease term starting March 1, 2025, and an option to purchase at market value plus 5% that can be exercised after 18 months of occupancy."
1. Parties: Identification of the landlord/seller and tenant/buyer, including full legal names and addresses
2. Background: Context of the agreement, including property description and intent of the parties to enter into a lease with purchase option
3. Definitions: Key terms used throughout the agreement, including Property, Lease Term, Purchase Option, etc.
4. Lease Terms: Essential lease provisions including rent, term, commencement date, and permitted use
5. Property Description: Detailed description of the leased premises, including address and legal description
6. Rent and Other Payments: Rent amount, payment schedule, security deposit, and other financial obligations
7. Purchase Option: Terms of the option to purchase, including purchase price, option period, and exercise mechanism
8. Option Exercise: Procedure for exercising the purchase option and closing requirements
9. Maintenance and Repairs: Responsibilities for property maintenance, repairs, and improvements
10. Insurance and Liability: Required insurance coverage and allocation of risk
11. Default and Remedies: Events of default under both lease and purchase provisions, and available remedies
12. Assignment and Subletting: Rights and restrictions regarding assignment of lease or purchase option
13. Notices: Requirements for formal communications between parties
14. Governing Law: Specification of applicable Canadian jurisdiction
15. General Provisions: Standard contract clauses including severability, entire agreement, and amendments
1. Environmental Matters: Required when property has potential environmental concerns or specific requirements
2. Tenant Improvements: Used when specific improvements are permitted or required during the lease term
3. Property Management: Included when there are specific management arrangements or requirements
4. Operating Expenses: Detailed when using a triple net lease structure
5. Purchase Price Credit: Used when portion of lease payments will be credited toward purchase price
6. First Right of Refusal: Included when tenant has right to match third-party offers
7. Financing Provisions: Required when specific financing arrangements are part of the transaction
8. Broker Provisions: Included when real estate brokers are involved in the transaction
1. Schedule A - Property Description: Detailed legal description and plans of the property
2. Schedule B - Rent Schedule: Detailed breakdown of rent payments, including any escalations
3. Schedule C - Permitted Uses: Specific allowed uses of the property
4. Schedule D - Building Rules and Regulations: Detailed rules governing property use and operation
5. Schedule E - Environmental Reports: Any environmental assessments or reports
6. Schedule F - Existing Encumbrances: List of current liens, easements, or other encumbrances
7. Schedule G - Tenant Improvement Specifications: Details of approved or required tenant improvements
8. Schedule H - Purchase Price Calculation: Formula for determining final purchase price, including any credits
9. Appendix 1 - Form of Option Exercise Notice: Template for formal notice of option exercise
10. Appendix 2 - Property Condition Report: Baseline condition assessment of the property
Authors
Commercial Real Estate
Retail
Manufacturing
Warehousing and Distribution
Professional Services
Healthcare
Hospitality
Industrial
Technology
Financial Services
Entertainment
Education
Legal
Real Estate
Finance
Operations
Risk Management
Business Development
Facilities Management
Asset Management
Property Management
Investment
Compliance
Corporate Development
Chief Executive Officer
Chief Financial Officer
Real Estate Director
Property Manager
Facilities Manager
Legal Counsel
Corporate Lawyer
Business Development Manager
Operations Director
Finance Manager
Risk Manager
Commercial Property Agent
Asset Manager
Investment Manager
Expansion Director
Contract Administrator
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