Document background
The Purchase Lease Option Agreement is primarily used in situations where a potential buyer wishes to secure the right to purchase a property while initially leasing it, common in both commercial and residential real estate transactions in Denmark. This arrangement provides flexibility for tenants who may want to eventually own the property but need time to arrange financing or assess the property's suitability for their long-term needs. The document must comply with Danish property law, including the Danish Contracts Act (Aftaleloven) and the Danish Rent Act (Lejeloven), while incorporating specific provisions for property registration and transfer. It typically includes detailed terms about the lease period, rent payments, maintenance obligations, option exercise conditions, purchase price determination, and any rent credits toward the purchase price. The agreement is particularly valuable in the Danish market where property transactions often require careful structuring to address both immediate occupancy needs and future ownership possibilities.
