The Commercial Lease Agreement With Option to Purchase is commonly used in Singapore's commercial real estate market when parties wish to combine the flexibility of a lease with a potential future purchase arrangement. This document is particularly useful for businesses that want to test a location before committing to a purchase, or need time to arrange financing for an eventual purchase. The agreement must comply with Singapore's strict property laws and regulations, including requirements under the Land Titles Act and Planning Act. It typically includes detailed provisions about the property's use, maintenance responsibilities, rental terms, and specific conditions under which the purchase option can be exercised. This arrangement provides security for both landlord and tenant while offering a structured path to property ownership.
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1. Parties: Identification and details of the landlord and tenant
2. Background: Context of the lease arrangement and property details
3. Definitions: Key terms used throughout the agreement
4. Demised Premises: Detailed description of the leased property
5. Term of Lease: Duration of the lease period
6. Rent and Other Payments: Rental amount, payment terms, and other financial obligations
7. Option to Purchase: Terms and conditions for exercising the purchase option
8. Use of Premises: Permitted use and restrictions
9. Maintenance and Repairs: Responsibilities for property maintenance
10. Insurance: Required insurance coverage
11. Termination: Conditions for early termination
1. Fit-out Works: Terms for tenant improvements and renovation requirements
2. Assignment and Subletting: Rights and restrictions regarding transfer or subletting of the premises
3. Green Lease Provisions: Environmental sustainability requirements and green building compliance
4. Break Clause: Provisions for early termination options and conditions
1. Floor Plan: Detailed plan showing the layout and boundaries of the premises
2. Inventory List: Comprehensive list of fixtures, fittings, and equipment included in the lease
3. Service Charge Schedule: Detailed breakdown of service charges and other additional costs
4. Purchase Option Terms: Specific terms, conditions, and pricing for exercising the purchase option
5. Building Rules and Regulations: Property management rules and operational guidelines
6. Fit-out Guidelines: Technical specifications and requirements for any renovation or improvement works
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