The Lease Purchase Agreement Commercial Property is commonly used when a potential buyer wants to occupy and use a commercial property immediately but needs time to secure financing or evaluate the property's suitability for their business. This agreement type is particularly relevant in the United States commercial real estate market, where it provides flexibility for both parties while establishing clear terms for both the lease period and potential purchase. The document typically includes detailed provisions for rent payments, purchase price determination, option exercise periods, property maintenance responsibilities, and conditions for transferring ownership.
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1. Parties: Identifies all parties to the agreement, including legal names and addresses
2. Background/Recitals: Sets forth the context and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Property Description: Detailed legal description of the commercial property
5. Purchase Price and Payment Terms: Details of the purchase price, payment schedule, and credit of lease payments
6. Lease Terms: Rental amount, duration, and conditions during the lease period
7. Option to Purchase: Terms and conditions of exercising the purchase option
8. Maintenance and Repairs: Responsibilities for property maintenance and repairs
9. Insurance and Taxes: Requirements for property insurance and responsibility for taxes
10. Default and Remedies: Consequences of default and available remedies
1. Environmental Provisions: Required if property has potential environmental issues or industrial use history
2. Assignment and Subletting: Rights to assign or sublet the property, included when parties want to allow/restrict transfer rights
3. Due Diligence Period: Period for buyer to inspect property, included when buyer needs time to evaluate property condition
4. Financing Contingencies: Conditions related to obtaining financing, included when purchase depends on securing specific financing
1. Property Description Schedule: Detailed legal description and property boundaries
2. Payment Schedule: Detailed breakdown of lease payments and purchase price credits
3. Property Condition Report: Documentation of property condition at lease commencement
4. Insurance Requirements: Detailed insurance specifications
5. Environmental Reports: Any environmental assessments or reports
6. Permitted Use Schedule: Specified allowed uses of the property
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