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Lease To Own Property Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Lease To Own Property Agreement

I need a Lease to Own Property Agreement for a 2-bedroom apartment in Dubai Marina, with a 3-year lease period starting March 1, 2025, monthly payments of AED 12,000, and an option to purchase at AED 2.5 million with 25% of lease payments counted toward the purchase price.

Document background
The Lease To Own Property Agreement is a specialized legal instrument used in the United Arab Emirates when parties wish to combine property rental with a future purchase arrangement. This document is particularly relevant in situations where immediate property purchase isn't feasible or desired, but there's interest in securing future ownership rights. The agreement must comply with UAE federal property laws, relevant emirate-specific regulations, and potentially Sharia law principles. It's commonly used in Dubai's property market and other emirates, providing a structured pathway to property ownership while offering immediate occupancy rights. The document typically includes comprehensive terms covering both the lease period and the eventual purchase, including payment structures, maintenance responsibilities, and specific conditions for ownership transfer. This type of agreement has gained popularity in the UAE's dynamic real estate market as it offers flexibility to both property owners and prospective buyers.
Suggested Sections

1. Parties: Identification of the Property Owner/Seller and the Tenant/Prospective Buyer, including full legal names and details

2. Background: Context of the agreement, including property status and parties' intention to enter into a lease-to-own arrangement

3. Definitions: Key terms used throughout the agreement, including Property, Purchase Price, Lease Payments, Option Fee, etc.

4. Property Details: Comprehensive description of the property including location, size, and registration details

5. Lease Terms: Duration of lease, monthly payments, maintenance responsibilities, and usage conditions

6. Purchase Option: Terms of the purchase option, including option period, exercise process, and purchase price calculation

7. Payment Structure: Breakdown of payments including lease payments, option fees, and how payments contribute to the purchase price

8. Transfer of Ownership: Process and conditions for transferring property ownership upon exercise of purchase option

9. Maintenance and Repairs: Responsibilities for property maintenance, repairs, and improvements during the lease period

10. Insurance and Risk: Requirements for property insurance and allocation of risk during the lease period

11. Default and Termination: Consequences of default by either party and conditions for agreement termination

12. Governing Law and Jurisdiction: Specification of UAE law application and dispute resolution procedures

Optional Sections

1. Sharia Compliance: Section specifying compliance with Islamic finance principles, required if the agreement needs to be Sharia-compliant

2. Property Management: Detailed management terms for properties in managed communities or buildings

3. Renovation Rights: Terms for property modifications during the lease period, important for properties requiring renovation

4. Sub-letting Provisions: Terms regarding sub-letting rights, if permitted under the agreement

5. Early Purchase Option: Terms for early exercise of the purchase option, if applicable

6. Property Association Rules: Reference to community or building rules, required for properties in managed communities

7. Mortgage Arrangements: Terms relating to existing or future mortgage arrangements, if applicable

Suggested Schedules

1. Schedule 1 - Property Details: Detailed property specification, including floor plans, boundaries, and included fixtures

2. Schedule 2 - Payment Schedule: Detailed breakdown of all payments including lease payments, option fees, and purchase price calculations

3. Schedule 3 - Property Condition Report: Initial condition assessment of the property with photographs and descriptions

4. Schedule 4 - Maintenance Responsibilities: Detailed list of maintenance and repair responsibilities for each party

5. Schedule 5 - Required Insurance: Specific insurance requirements and coverage details

6. Appendix A - Property Title Documents: Copies of relevant property ownership and registration documents

7. Appendix B - Property Rules and Regulations: Applicable community or building rules and regulations

8. Appendix C - Form of Transfer Documents: Template documents required for final property transfer

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions








































Clauses






























Relevant Industries

Real Estate

Property Development

Banking & Financial Services

Property Management

Legal Services

Insurance

Construction

Property Investment

Islamic Finance

Relevant Teams

Legal

Real Estate

Finance

Compliance

Risk Management

Sales

Business Development

Property Management

Asset Management

Investment

Operations

Relevant Roles

Real Estate Manager

Property Developer

Legal Counsel

Real Estate Agent

Property Manager

Financial Controller

Compliance Officer

Investment Manager

Asset Manager

Sales Director

Business Development Manager

Contract Manager

Risk Manager

Islamic Finance Specialist

Property Valuation Expert

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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