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Lease Sale Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Lease Sale Agreement

"I need a Lease Sale Agreement for a commercial property in Hong Kong's Central district, where my company will purchase the property for HKD 50 million and immediately lease it back to the seller for 5 years starting March 2025, with an option for the tenant to extend for an additional 3 years."

Document background
The Lease Sale Agreement is a specialized legal instrument used in Hong Kong property transactions where the parties wish to execute both a property sale and establish an immediate landlord-tenant relationship. This arrangement is particularly common in commercial real estate transactions where the buyer seeks to acquire the property for investment purposes while the seller wishes to continue occupying the premises as a tenant. The document must comply with Hong Kong's property law framework and includes detailed provisions for both the sale transaction (purchase price, completion mechanics, warranties) and the lease arrangement (term, rent, maintenance obligations). The agreement is structured to ensure a seamless transition from the sale completion to the commencement of the lease, addressing both immediate transfer of ownership and ongoing property occupation rights and obligations.
Suggested Sections

1. Parties: Identification of the seller/landlord and buyer/tenant, including full legal names, addresses, and company details if applicable

2. Background: Context of the transaction, including property details and intention to combine sale and lease arrangements

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Sale Terms: Details of the sale transaction including purchase price, payment terms, and completion requirements

5. Lease Terms: Core lease provisions including term, rent, payment schedule, and permitted use

6. Property Condition and Warranties: Representations about the property's condition and any warranties provided by the seller

7. Completion and Handover: Process and requirements for completing the sale and commencing the lease

8. Maintenance and Repairs: Responsibilities for property maintenance and repairs during the lease period

9. Insurance and Liability: Insurance requirements and allocation of risks between parties

10. Default and Termination: Consequences of default and conditions for termination of either the sale or lease components

11. Assignment and Subletting: Restrictions and conditions for transferring rights under the agreement

12. Governing Law and Jurisdiction: Specification of Hong Kong law as governing law and jurisdiction for disputes

13. Notices: Process and requirements for formal communications between parties

Optional Sections

1. Renovation and Alterations: Include when the buyer/tenant has specific rights or restrictions regarding property modifications

2. Property Management: Include for properties in managed buildings or complexes with specific management requirements

3. Special Usage Conditions: Include when there are specific restrictions or requirements for property usage

4. Option to Purchase: Include when offering the tenant an option to purchase the property after a certain period

5. Break Clause: Include when early termination options are being provided

6. Government Rent and Rates: Include specific arrangements for payment of government charges if different from standard practice

7. Fit-out Period: Include when a rent-free period is granted for initial renovations

8. Environmental Obligations: Include when specific environmental compliance or sustainability requirements apply

Suggested Schedules

1. Property Description: Detailed description of the property including floor plans and boundaries

2. Inventory List: List of fixtures, fittings, and furniture included in the sale and lease

3. Payment Schedule: Detailed breakdown of payment terms for both sale and lease components

4. Building Rules and Regulations: Applicable building management rules and regulations

5. Condition Report: Detailed report on the condition of the property at handover

6. Maintenance Schedule: Schedule of maintenance responsibilities and frequencies

7. Permitted Alterations: Specific alterations permitted during the lease term

8. Form of Transfer Deed: Template for the formal property transfer document

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

Commercial Property

Retail

Hospitality

Industrial

Manufacturing

Professional Services

Healthcare

Education

Financial Services

Technology

Relevant Teams

Legal

Real Estate

Finance

Operations

Compliance

Risk Management

Corporate Secretariat

Facilities Management

Property Management

Asset Management

Investment

Business Development

Relevant Roles

Real Estate Director

Property Manager

Legal Counsel

Commercial Director

Chief Financial Officer

Facilities Manager

Asset Manager

Investment Manager

Property Developer

Corporate Lawyer

Finance Director

Operations Director

Compliance Officer

Risk Manager

Company Secretary

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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