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Lease To Own Land Agreement Template for Switzerland

A comprehensive legal agreement governed by Swiss law that combines a property lease with a future purchase option. This document establishes the terms for initially leasing a parcel of land while securing the right and obligation to purchase it at a predetermined price after a specified period. The agreement must comply with both the Swiss Civil Code (ZGB) and Code of Obligations (OR), particularly regarding property transfer and lease regulations. It includes detailed provisions for rent payments, purchase price calculation, property maintenance, and the specific conditions under which the purchase option can be exercised, while ensuring compliance with cantonal property laws and federal regulations.

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What is a Lease To Own Land Agreement?

The Lease To Own Land Agreement is a specialized legal instrument used in Switzerland when parties wish to structure a property acquisition through an initial lease period followed by a purchase. This arrangement is particularly useful when immediate purchase is not feasible or desired, but both parties want to secure future ownership transfer. The document must comply with Swiss federal and cantonal laws, including the Swiss Civil Code (ZGB) and Code of Obligations (OR). It typically includes detailed specifications of the property, lease terms, purchase price calculation (including credit for rent paid), conditions for exercising the purchase option, and requirements for final property transfer. This type of agreement is commonly used in commercial development, agricultural land transactions, and situations where staged property acquisition provides mutual benefits to both parties.

What sections should be included in a Lease To Own Land Agreement?

1. Parties: Identification of the lessor/seller and lessee/buyer with full legal names, addresses, and registration details if applicable

2. Background: Context of the agreement, including property description and parties' intentions regarding lease and future purchase

3. Definitions: Key terms used throughout the agreement, including Property, Lease Period, Purchase Option, and Purchase Price

4. Property Description: Detailed description of the land, including exact measurements, boundaries, and land registry details

5. Lease Terms: Duration of lease, rent amount, payment terms, and maintenance responsibilities

6. Purchase Option Terms: Conditions for exercising the purchase option, including timing and notice requirements

7. Purchase Price and Payment: Total purchase price, credit of rental payments, and payment structure

8. Property Condition and Use: Permitted use of property during lease period and condition requirements

9. Insurance and Risk: Insurance requirements and allocation of risk during lease period

10. Default and Remedies: Consequences of default under either lease or purchase provisions

11. Transfer of Ownership: Process and requirements for final property transfer

12. Representations and Warranties: Statements of fact and promises by both parties

13. Governing Law and Jurisdiction: Confirmation of Swiss law application and jurisdiction

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

1. Agricultural Land Provisions: Required when the property includes agricultural land, addressing BGBB requirements

2. Foreign Ownership Compliance: Required when the lessee/buyer is a foreign person or entity, addressing Lex Koller requirements

3. Environmental Provisions: Required when there are known environmental issues or restrictions on the land

4. Development Rights: Include when the lessee/buyer has rights to develop the land during the lease period

5. Third Party Rights: Required when there are existing easements, rights of way, or other encumbrances

6. Early Purchase Option: Include if the lessee has the right to exercise the purchase option before the end of the lease term

7. Sublease Rights: Include if sublease is permitted during the lease period

What schedules should be included in a Lease To Own Land Agreement?

1. Property Plan: Official land registry extract and property plans

2. Rent Payment Schedule: Detailed schedule of rent payments and how they apply to the purchase price

3. Property Condition Report: Initial condition assessment and documentation of the property

4. Insurance Requirements: Detailed insurance specifications required during the lease period

5. Land Register Extract: Current extract from the land register showing ownership and encumbrances

6. Purchase Price Calculation: Detailed breakdown of purchase price and rent credit calculation

7. Environmental Reports: Any relevant environmental assessments or certifications

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

Jurisdiction

Switzerland

Document Type

Option Agreement

Cost

Free to use

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