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Rental With Option To Buy Agreement Template for Switzerland

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Key Requirements PROMPT example:

Rental With Option To Buy Agreement

"I need a Rental With Option To Buy Agreement for a commercial warehouse in Zurich, with a 2-year rental period starting March 1, 2025, and an option to purchase that can be exercised after 18 months, with 50% of paid rent to be credited towards the final purchase price."

Document background
The Rental With Option To Buy Agreement is a specialized legal instrument used in Switzerland when a property owner wishes to rent out a property while giving the tenant the exclusive right to purchase it within a specified period. This document is particularly useful in situations where immediate purchase isn't feasible or desired, but there's mutual interest in a potential future sale. It provides flexibility while protecting both parties' interests under Swiss law. The agreement must comply with federal and cantonal requirements for both rental and property purchase transactions, including specific formalities required by the Swiss Code of Obligations. It's commonly used in both residential and commercial contexts, offering a structured path to property ownership while maintaining clear rental terms during the interim period. The document includes comprehensive details about property condition, rental terms, purchase price calculation, option exercise procedures, and all necessary legal compliance elements.
Suggested Sections

1. Parties: Identification of the landlord/seller and tenant/potential buyer, including full legal names, addresses, and any registration numbers for legal entities

2. Background: Context of the agreement, including property details and the parties' intention to enter into a rental agreement with a purchase option

3. Definitions: Definitions of key terms used throughout the agreement, including Property, Option Period, Purchase Price, and other relevant terms

4. Rental Terms: Core rental provisions including rent amount, payment terms, duration, and rental obligations

5. Property Use and Maintenance: Specifications for permitted use of the property and maintenance responsibilities of both parties

6. Option to Purchase: Detailed terms of the purchase option, including option price, exercise period, and mechanism for exercising the option

7. Purchase Price and Payment: Specification of the final purchase price, payment terms, and any rent credits applied to the purchase

8. Exercise of Option: Procedure for exercising the option, including notice requirements and completion timeframe

9. Representations and Warranties: Standard representations and warranties from both parties regarding their capacity and the property's condition

10. Default and Remedies: Consequences of default under either the rental or option aspects of the agreement

11. Insurance and Risk: Requirements for property insurance and allocation of risk during the rental period

12. Termination: Circumstances and procedures for terminating the agreement, both for the rental and option aspects

13. Notices: Requirements for formal communications between the parties

14. Governing Law and Jurisdiction: Specification of Swiss law as governing law and jurisdiction for disputes

Optional Sections

1. Mortgage Contingency: Terms regarding the tenant/buyer's ability to secure financing, used when the purchase option is contingent on mortgage approval

2. Property Improvements: Terms governing any improvements the tenant may make to the property and how these affect the purchase price, used when improvements are anticipated

3. Assignment and Subletting: Terms regarding the tenant's ability to assign or sublet, used when these rights are being granted or specifically restricted

4. Foreign Ownership Compliance: Additional provisions required when the tenant/potential buyer is not a Swiss resident

5. Rent Credit Structure: Detailed terms of how rental payments are credited toward the purchase price, used when rent-to-own features are included

6. Property Management: Terms regarding property management during the rental period, used for larger properties or when specific management arrangements are needed

Suggested Schedules

1. Schedule 1: Property Description: Detailed description of the property including address, land register details, and included fixtures and fittings

2. Schedule 2: Rental Payment Schedule: Detailed breakdown of rental payments, including due dates and payment methods

3. Schedule 3: Property Condition Report: Detailed inventory and condition report of the property at the commencement of the rental

4. Schedule 4: Purchase Price Calculation: Breakdown of the purchase price, including any adjustments and rent credits

5. Appendix A: Property Plans: Official plans and drawings of the property

6. Appendix B: Building Regulations: Relevant building regulations and restrictions affecting the property

7. Appendix C: Insurance Requirements: Detailed insurance requirements for both rental and purchase phases

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

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Relevant Industries

Real Estate

Property Development

Banking and Financial Services

Legal Services

Insurance

Property Management

Construction

Residential Housing

Commercial Property

Retail

Hospitality

Industrial

Relevant Teams

Legal

Real Estate

Property Management

Operations

Facilities Management

Risk and Compliance

Finance

Asset Management

Business Development

Investment

Contract Administration

Relevant Roles

Real Estate Manager

Property Manager

Legal Counsel

Contract Manager

Asset Manager

Facilities Manager

Real Estate Agent

Property Developer

Commercial Director

Operations Manager

Risk Manager

Compliance Officer

Finance Manager

Investment Manager

Portfolio Manager

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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