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Lease With Option To Buy Commercial Property
"I need a Lease with Option to Buy Commercial Property agreement for a retail space in Kuala Lumpur's business district, with a 3-year initial lease starting March 1, 2025, and an option to purchase the property within the first 24 months at a pre-agreed price of RM 2.5 million."
1. Parties: Identification of the landlord/seller and tenant/potential buyer, including registration numbers for companies
2. Background: Context of the agreement, property overview, and general intent of parties
3. Definitions: Definitions of key terms used throughout the agreement
4. Demise: Formal grant of lease and description of the leased premises
5. Lease Term: Duration of lease, commencement date, and any renewal provisions
6. Rental: Rent amount, payment terms, review mechanisms, and security deposit requirements
7. Option to Purchase: Terms of the purchase option, including price, exercise period, and mechanism
8. Property Use: Permitted use of premises and restrictions
9. Maintenance and Repairs: Responsibilities for property maintenance, repairs, and improvements
10. Insurance: Required insurance coverage for both parties
11. Assignment and Subletting: Restrictions on transfer of rights
12. Termination: Grounds and procedure for termination of lease
13. Exercise of Option: Detailed procedure for exercising the purchase option
14. Completion of Sale: Process and requirements for completing the property purchase
15. Representations and Warranties: Statements of fact and promises by both parties
16. Governing Law: Confirmation of Malaysian law governance and jurisdiction
17. Execution: Signature blocks and attestation requirements
1. Break Clause: Optional early termination provisions, included when parties want flexibility to end lease early
2. Service Charge: Include when property is part of larger complex with shared services
3. Environmental Matters: Required for properties with specific environmental concerns or requirements
4. Planning and Zoning: Include when property has specific planning restrictions or requirements
5. Alterations: Detailed provisions about permitted structural changes, included for properties likely to need modification
6. Guarantee: Include when additional security is required from a parent company or individual
7. Option Extension: Provisions for extending the option period, included when flexibility might be needed
8. Pre-emption Rights: Include when parties want rights of first refusal for additional property areas
1. Schedule 1: Property Description: Detailed description of property including lot number, title details, and floor plans
2. Schedule 2: Rental Schedule: Detailed breakdown of rent payments, review dates, and escalation provisions
3. Schedule 3: Condition Report: Initial condition of property and any existing defects
4. Schedule 4: Purchase Price Calculation: Formula or fixed price for property purchase and any adjustments
5. Schedule 5: Permitted Use: Detailed description of allowed commercial activities
6. Schedule 6: Service Charges: Breakdown of service charges if applicable
7. Appendix A: Property Plans: Floor plans, site maps, and relevant drawings
8. Appendix B: Form of Option Notice: Template for exercising the purchase option
9. Appendix C: Title Documents: Copies of relevant title documents and encumbrances
Authors
Real Estate
Retail
Manufacturing
Hospitality
Healthcare
Professional Services
Technology
Education
Logistics
Banking and Finance
Food and Beverage
Warehousing
Corporate Services
Legal
Finance
Real Estate
Operations
Facilities Management
Risk Management
Corporate Development
Administrative
Procurement
Compliance
Property Management
Chief Executive Officer
Chief Financial Officer
Real Estate Director
Property Manager
Facilities Manager
Legal Counsel
Commercial Director
Operations Manager
Finance Manager
Business Development Manager
Risk Manager
Procurement Manager
Company Secretary
Asset Manager
Investment Manager
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