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Business Lease Purchase Agreement
"I need a Business Lease Purchase Agreement for a manufacturing facility in Ontario, with a 3-year initial lease term starting January 2025 and a purchase option that can be exercised after 24 months, including specific provisions for heavy machinery and environmental compliance."
1. Parties: Identification of the lessor/seller and lessee/buyer, including full legal names and addresses
2. Background: Context of the agreement, including the property's current ownership and the parties' intention to enter into a lease-purchase arrangement
3. Definitions: Definitions of key terms used throughout the agreement
4. Property Description: Detailed description of the business property subject to the lease-purchase agreement
5. Lease Terms: Duration of lease, renewal options, and lease payment amounts and schedules
6. Purchase Option: Terms and conditions of the purchase option, including purchase price and how lease payments apply to purchase
7. Payment Terms: Detailed payment structure for both lease and purchase components, including deposit requirements
8. Use of Property: Permitted uses of the property during the lease period
9. Maintenance and Repairs: Responsibilities for property maintenance, repairs, and improvements during the lease period
10. Insurance and Liability: Insurance requirements and allocation of risks between parties
11. Default and Remedies: Events of default and available remedies for both parties
12. Assignment and Subletting: Rights and restrictions regarding assignment and subletting
13. Notices: Process for giving formal notices between parties
14. Governing Law: Specification of applicable Canadian law and jurisdiction
15. Execution: Signature blocks and execution requirements
1. Environmental Matters: Required when the property has potential environmental concerns or compliance requirements
2. Property Management: Included when specific property management arrangements are needed during the lease period
3. Tenant Improvements: Used when the agreement allows for or requires specific improvements by the lessee
4. Right of First Refusal: Included when the lessee is granted additional rights to purchase if certain conditions occur
5. Due Diligence Period: Added when the lessee requires time to investigate the property before committing to the purchase option
6. Financing Contingencies: Included when the purchase option is contingent on the lessee obtaining financing
7. Property Tax Treatment: Required when special tax arrangements or allocations are needed
8. Operating Expenses: Detailed when there are complex arrangements for sharing operating expenses
9. Early Purchase Option: Included when the lessee has the option to purchase before the end of the lease term
1. Schedule A - Property Description: Detailed legal description of the property, including plans and specifications
2. Schedule B - Lease Payment Schedule: Detailed breakdown of lease payments, including amounts and due dates
3. Schedule C - Purchase Price Calculation: Formula for determining final purchase price, including credit for lease payments
4. Schedule D - Permitted Uses: Detailed list of permitted business uses for the property
5. Schedule E - Initial Property Condition Report: Documentation of property condition at lease commencement
6. Schedule F - Insurance Requirements: Detailed insurance specifications and minimum coverage requirements
7. Schedule G - Environmental Reports: Any environmental assessments or reports relevant to the property
8. Appendix 1 - Required Forms: Standard forms for notices, exercise of options, or other formal communications
9. Appendix 2 - Maintenance Standards: Detailed maintenance and repair standards for the property
Authors
Commercial Real Estate
Retail
Manufacturing
Warehouse and Distribution
Professional Services
Healthcare
Hospitality
Industrial
Technology
Agriculture
Automotive
Legal
Finance
Real Estate
Operations
Risk Management
Facilities Management
Corporate Development
Property Management
Procurement
Business Development
Compliance
Chief Financial Officer
Real Estate Director
Property Manager
Business Development Manager
Legal Counsel
Commercial Lease Administrator
Facilities Manager
Risk Manager
Operations Director
Finance Manager
Corporate Real Estate Manager
Business Owner
Asset Manager
Procurement Manager
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