Lease To Purchase Contract

Lease To Purchase Contract Template for Denmark

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Document background

The Lease To Purchase Contract is a specialized legal instrument used in Danish property transactions where parties wish to combine a leasing arrangement with a future purchase option. This document is particularly valuable when a prospective buyer needs or wishes to occupy a property immediately but requires time before completing the purchase, whether for financial, practical, or strategic reasons. The agreement provides security for both parties: the owner maintains rental income while securing a potential buyer, and the tenant gains immediate occupancy while securing the right to purchase at a pre-agreed price. Under Danish law, this contract must carefully balance the requirements of both leasing and property purchase regulations, including compliance with the Danish Rent Act, Property Purchase Act, and related legislation. The document typically includes comprehensive terms covering rent payments, maintenance obligations, purchase price determination, option exercise procedures, and conditions for eventual property transfer.

Suggested Sections

1. Parties: Identification of the lessor/seller and lessee/buyer, including full legal names, addresses, and registration numbers if applicable

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

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

4. Property Description: Detailed description of the property including address, land registry details, and included fixtures/fittings

5. Lease Terms: Terms of the lease including duration, rent amount, payment schedule, and maintenance responsibilities

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

7. Purchase Price and Payment: Total purchase price, credit for rent paid, payment structure, and closing costs

8. Condition of Property: Current state of the property, required maintenance, and responsibility for repairs

9. Insurance and Risk: Insurance requirements during lease period and transition of risk upon purchase

10. Default and Remedies: Consequences of default under either lease or purchase provisions

11. Assignment and Subletting: Restrictions on transfer of rights under the agreement

12. Notices: Method and addresses for formal communications between parties

13. Governing Law and Jurisdiction: Confirmation of Danish law application and jurisdiction

14. Signatures: Execution blocks for all parties and witnesses if required

Optional Sections

1. Mortgage Contingency: Include when the purchase option is contingent on the buyer obtaining mortgage financing

2. Property Management: Include when specific property management arrangements are needed during the lease period

3. Environmental Provisions: Include when the property has known environmental issues or requires specific environmental warranties

4. Tenant Improvements: Include when the lessee is permitted to make improvements to the property and detail how these will be handled at purchase

5. Early Purchase Option: Include when the option to purchase can be exercised before the end of the lease term

6. Right of First Refusal: Include when the lessee has rights regarding third-party purchase offers

7. Property Use Restrictions: Include when there are specific restrictions on property use during the lease period

Suggested Schedules

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

2. Schedule B - Rent Payment Schedule: Detailed breakdown of rent payments, due dates, and payment methods

3. Schedule C - Property Condition Report: Detailed assessment of property condition at commencement of lease

4. Schedule D - Purchase Price Calculation: Formula for calculating final purchase price including rent credits

5. Schedule E - Maintenance Responsibilities: Detailed allocation of maintenance and repair responsibilities

6. Appendix 1 - Property Photographs: Photographic evidence of property condition at lease commencement

7. Appendix 2 - Land Registry Extract: Current extract from the Danish Land Registry

8. Appendix 3 - Energy Performance Certificate: Mandatory energy performance certificate for the property

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