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Purchase Lease Option for Nigeria

Purchase Lease Option Template for Nigeria

A Purchase Lease Option agreement under Nigerian law combines a property lease with an option to purchase the property during or at the end of the lease term. This document, governed by Nigerian federal and state property laws, particularly the Land Use Act 1978, establishes the terms of both the lease arrangement and the future purchase option. It details rent payments, option consideration, purchase price, maintenance responsibilities, and the specific conditions under which the purchase option can be exercised. The agreement provides flexibility for both parties while ensuring compliance with Nigerian property transfer and registration requirements.

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Purchase Lease Option

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What is a Purchase Lease Option?

The Purchase Lease Option agreement is a sophisticated legal instrument used in Nigerian property transactions where a potential buyer wishes to lease a property while maintaining the exclusive right to purchase it during or after the lease period. This document type is particularly useful in situations where immediate purchase isn't feasible or desired, but parties want to secure future purchase rights. It combines elements of both lease and purchase agreements, requiring careful consideration of Nigerian land law, particularly the Land Use Act 1978 and relevant state property laws. The agreement typically includes detailed provisions for lease terms, option exercise procedures, purchase price determination, and property maintenance responsibilities. It's commonly used in both commercial and residential contexts, offering flexibility while protecting both parties' interests in the transaction.

What sections should be included in a Purchase Lease Option?

1. Parties: Identification of the property owner/lessor and the tenant/potential purchaser with full legal names and addresses

2. Background: Context of the agreement, including property owner's right to lease and sell the property

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

4. Property Description: Detailed legal description of the property subject to the lease and option

5. Lease Terms: Duration, rent amount, payment terms, and other standard lease provisions

6. Option Grant: Terms of the option to purchase, including the option period and any consideration paid

7. Option Exercise: Process and requirements for exercising the purchase option

8. Purchase Price: Agreed purchase price and any rent credit arrangements

9. Property Maintenance: Responsibilities for property maintenance during the lease period

10. Insurance Requirements: Insurance obligations of both parties during the lease period

11. Default and Remedies: Consequences of default under either the lease or option provisions

12. Assignment and Subletting: Restrictions on transferring lease or option rights

13. Governing Law: Specification of Nigerian law and relevant state jurisdiction

14. Execution: Signature blocks and attestation requirements

What sections are optional to include in a Purchase Lease Option?

1. Rent Credit: Used when a portion of rent payments will be credited toward the purchase price

2. Property Inspection: Include when specific inspection rights or requirements are needed before option exercise

3. Mortgage Provisions: Include when the property has an existing mortgage or financing requirements

4. Environmental Matters: Required for properties with potential environmental concerns or industrial use

5. Development Rights: Include when tenant may make improvements during lease period

6. Option Extension: Used when parties want to include provisions for extending the option period

7. Multiple Properties: Include when the agreement covers more than one property

8. Special Conditions: For unique circumstances specific to the transaction

What schedules should be included in a Purchase Lease Option?

1. Schedule 1 - Property Details: Detailed property description, including land registration particulars and survey plans

2. Schedule 2 - Rent Payment Schedule: Detailed breakdown of rent payments and due dates

3. Schedule 3 - Option Consideration: Details of option payment and any rent credit calculations

4. Schedule 4 - Property Condition Report: Initial condition assessment of the property

5. Schedule 5 - Permitted Uses: Specific allowed uses of the property during lease period

6. Appendix A - Required Maintenance Schedule: Detailed maintenance obligations of both parties

7. Appendix B - Form of Option Exercise Notice: Template for formal notice to exercise purchase option

8. Appendix C - Property Plans: Survey plans, building plans, and other relevant property drawings

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 | Serial Founder & Legal AI Author

Jurisdiction

Nigeria

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions














































Clauses









































Relevant Industries

Real Estate

Commercial Property

Residential Property

Retail

Industrial

Agriculture

Hospitality

Office Space

Manufacturing

Warehousing

Mixed-Use Development

Relevant Teams

Legal

Real Estate

Property Management

Operations

Finance

Compliance

Risk Management

Business Development

Facilities Management

Asset Management

Relevant Roles

Real Estate Manager

Property Manager

Legal Counsel

Contract Manager

Real Estate Director

Commercial Director

Facilities Manager

Asset Manager

Business Development Manager

Operations Manager

Chief Financial Officer

Investment Manager

Property Developer

Compliance Officer

Risk 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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