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The Lease with Option to Buy agreement is a sophisticated legal instrument used in Saudi Arabia when parties wish to combine a property lease with a future purchase opportunity. This document is particularly relevant in situations where the potential buyer wishes to occupy and evaluate the property before committing to a purchase, or needs time to arrange financing while securing their interest in the property. The agreement must comply with Saudi Arabian real estate laws, civil code requirements, and Shariah principles, making it distinct from similar agreements in other jurisdictions. It typically includes comprehensive terms covering both the lease period (including rent, maintenance, and use restrictions) and the purchase option (including price determination, exercise period, and transfer procedures). This document type is commonly used in both residential and commercial real estate transactions within Saudi Arabia, providing flexibility while ensuring legal protection for all parties involved.

1. Parties: Identification of the lessor/potential seller and lessee/potential buyer with full legal details

2. Background: Context of the agreement, property details, and general intent of the parties

3. Definitions: Key terms used throughout the agreement, including property, lease period, option period, and purchase price definitions

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

5. Property Use and Maintenance: Permitted use of property, maintenance obligations, and condition requirements

6. Option to Purchase: Terms of the purchase option, including option period, exercise process, and purchase price calculation

7. Exercise of Option: Procedure for exercising the purchase option, including notice requirements and timeframes

8. Purchase Price and Payment: Details of the purchase price, payment terms, and treatment of lease payments in relation to purchase price

9. Property Transfer: Process and requirements for transferring property ownership upon option exercise

10. Representations and Warranties: Statements and guarantees by both parties regarding property condition, ownership, and authority

11. Default and Remedies: Consequences of default under either lease or option terms and available remedies

12. Governing Law and Jurisdiction: Specification of Saudi law application and jurisdiction for disputes

13. Notices: Requirements for formal communications between parties

14. General Provisions: Standard contractual provisions including amendment process, severability, and entire agreement clause