The Commercial Lease With Option To Buy is a specialized agreement used in Singapore when parties wish to establish a commercial tenancy while simultaneously securing the tenant's right to purchase the property during or after the lease term. This document is particularly relevant in situations where businesses want to test a location before committing to purchase, or when they need time to arrange financing. The agreement must comply with Singapore's strict property laws and commercial regulations, including requirements from the Singapore Land Authority and Urban Redevelopment Authority. It typically includes detailed provisions for both the lease period and the purchase option, including pricing mechanisms, exercise periods, and conditions precedent.
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Key Requirements PROMPT example:
Commercial Lease With Option To Buy
"I need a Commercial Lease With Option To Buy agreement for a retail space in Singapore's Orchard Road area, with a 3-year initial lease term starting March 2025 and an option to purchase that can be exercised after 18 months at a pre-agreed price of SGD 4.2 million."
1. Parties: Identification of landlord and tenant, including full legal names and registration details
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. Lease Term: Duration of lease and commencement date
6. Rent and Payment Terms: Rental amount, payment schedule, and method
7. Option to Purchase: Terms and conditions of the purchase option
8. Security Deposit: Amount and terms of security deposit
9. Use of Premises: Permitted use and restrictions
10. Maintenance and Repairs: Responsibilities for property maintenance
1. Break Clause: Early termination provisions - use when parties want flexibility to end lease early
2. Rent Review: Provisions for periodic rent adjustments - recommended for longer lease terms
3. Subletting Provisions: Terms for subletting the premises - include if subletting might be considered
4. Green Lease Provisions: Environmental and sustainability requirements - for green-certified buildings
1. Property Floor Plan: Detailed plan showing the leased premises
2. Inventory List: List of fixtures and fittings included
3. Option to Purchase Terms: Detailed terms of the purchase option including pricing mechanism
4. Building Rules and Regulations: Specific rules applicable to the property
5. Maintenance Schedule: Schedule of maintenance responsibilities
6. Service Charge Schedule: Breakdown of service charges if applicable
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