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Commercial Lease With Option To Buy Template for Singapore

A comprehensive legal agreement governed by Singapore law that combines a commercial lease with an option to purchase the property. The document establishes the terms and conditions for both the lease period and the potential future purchase of the commercial property. It incorporates requirements from Singapore's property laws, including the Conveyancing and Law of Property Act, and addresses specific commercial zoning and usage requirements under Singapore's regulatory framework.

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What is a Commercial Lease With Option To Buy?

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.

What sections should be included in a Commercial Lease With Option To Buy?

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

What sections are optional to include in a Commercial Lease With Option To Buy?

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

What schedules should be included in a Commercial Lease With Option To Buy?

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

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Singapore

Document Type

Option Agreement

Cost

Free to use

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