The Commercial Lease Purchase Agreement is utilized when parties wish to establish a lease arrangement that includes a pathway to ownership. This document is particularly relevant in Singapore's dynamic commercial real estate market, where businesses may want to secure their premises while building up capital for purchase. The agreement typically includes detailed terms about the lease period, purchase option exercise windows, price mechanisms, and property usage conditions. It must comply with Singapore's robust property laws and regulations, including stamp duty requirements and zoning restrictions. This arrangement offers flexibility to businesses while providing security to property owners.
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Key Requirements PROMPT example:
Commercial Lease Purchase Agreement
"I need a Commercial Lease Purchase Agreement for a retail space in Singapore's Orchard Road area, with a 3-year lease term starting March 2025 and an option to purchase at a fixed price of SGD 2.5 million after the first 18 months."
1. Parties: Identification and details of the lessor and lessee
2. Background: Context of the transaction and property details
3. Definitions: Key terms used throughout the agreement
4. Property Description: Detailed description of the property including address and specifications
5. Purchase Price and Payment Terms: Financial terms including purchase price, deposit, and payment schedule
6. Lease Terms: Duration, rent, and lease conditions prior to purchase
7. Option to Purchase: Terms and conditions for exercising the purchase option
8. Representations and Warranties: Statements of fact and promises by both parties
9. Completion: Process and requirements for completing the purchase
1. Fit-out Works: Terms regarding property modifications, used when renovations are planned
2. Assignment and Subletting: Rights to transfer the lease, included when relevant to the transaction
3. Break Clause: Early termination provisions, included when requested by either party
4. Service Charge: Details of additional charges, relevant for properties in managed buildings
1. Property Plans: Floor plans and property drawings
2. Inventory: List of fixtures and fittings included in the transaction
3. Payment Schedule: Detailed breakdown of payment terms and dates
4. Permitted Use: Specific allowed uses of the property
5. Building Rules and Regulations: Applicable building management rules
6. Condition Report: Current state of the property
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