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The Rental Agreement With Option to Purchase is a specialized legal instrument used in the Philippines when a property owner wishes to rent out a property while giving the tenant the exclusive right to purchase it within a specified period. This arrangement is particularly useful for tenants who need time to secure financing or want to experience living in the property before committing to a purchase, and for property owners who want to secure a potential buyer while earning rental income. The document must comply with Philippine property laws, including the Civil Code, Rent Control Act, and Maceda Law, and typically includes detailed provisions about rental terms, purchase price, option period, and how rental payments may be credited toward the purchase price. It's commonly used in both residential and commercial property transactions, providing flexibility and protection for both parties while establishing a clear framework for a potential property sale.

1. Parties: Identification of the Lessor/Potential Seller and Lessee/Potential Buyer with complete details including names, addresses, and tax identification numbers

2. Background: Context of the agreement, including brief description of the property and the parties' intention to enter into a rental agreement with an option to purchase

3. Definitions: Key terms used throughout the agreement including Property, Rental Period, Option Period, Purchase Price, Rental Payments, Option Fee

4. Property Description: Detailed description of the property including exact location, boundaries, improvements, and certificate of title details

5. Rental Terms: Terms of the lease including rental amount, payment schedule, duration, utilities, maintenance responsibilities

6. Option to Purchase: Terms of the purchase option including option period, purchase price, credit of rental payments, exercise mechanism

7. Security Deposit: Amount, purpose, and terms for return of the security deposit

8. Maintenance and Repairs: Responsibilities of each party for property maintenance and repairs during the rental period

9. Insurance and Taxes: Requirements for property insurance and responsibility for property taxes during rental period

10. Default and Remedies: Events of default under both rental and option terms, and corresponding remedies

11. Assignment and Subletting: Restrictions on assignment of the agreement or subletting the property

12. Governing Law: Specification of Philippine law as governing law and jurisdiction for disputes

13. Notices: Method and addresses for formal communications between parties

14. Entire Agreement: Standard integration clause and amendment provisions