The Lease with Option to Purchase agreement is widely used in Singapore's property market as a flexible instrument allowing tenants to lease a property while securing the right to purchase it at a predetermined price within a specified timeframe. This document is particularly relevant in situations where potential buyers need time to arrange financing or want to 'test' the property before committing to purchase. The agreement must comply with Singapore's strict property regulations, including those related to foreign ownership, HDB requirements (if applicable), and stamp duty obligations. It typically includes detailed provisions on rental terms, option fees, purchase price, exercise period, and conditions for both the lease and purchase components.
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1. Parties: Identification and details of the lessor and lessee
2. Background: Context of the agreement and property details
3. Definitions: Key terms used throughout the agreement
4. Lease Terms: Duration, rent, payment terms, and maintenance obligations
5. Option to Purchase: Terms and conditions of the purchase option, including price and exercise period
6. Property Use and Restrictions: Permitted use and limitations on property modification
7. Insurance and Liability: Insurance requirements and allocation of risks
8. Termination: Conditions for early termination and consequences
1. HDB Compliance: Required if property is HDB, covering specific HDB requirements
2. Foreign Ownership Provisions: Special provisions for foreign buyers when lessee is a foreign national
3. Renovation Rights: Terms for property modifications when significant renovations are anticipated
1. Property Description Schedule: Detailed description of the property including floor plan and fixtures
2. Inventory List: List of furniture and fittings included in the lease
3. Option Exercise Form: Template for exercising the purchase option
4. Maintenance Schedule: Detailed breakdown of maintenance responsibilities
5. Payment Schedule: Breakdown of rent payments and purchase price components
Relevant legal definitions
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