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Master Lease With Option To Purchase
"I need a Master Lease with Option to Purchase agreement for a commercial warehouse property in Cape Town, South Africa, with a 3-year initial lease term starting March 2025 and an option to purchase that can be exercised after 18 months, with 30% of paid rent to be credited towards the purchase price."
1. Parties: Identification of the Lessor/Seller and Lessee/Potential Purchaser with full legal details
2. Background: Context of the agreement, including property details and parties' intentions regarding lease and potential purchase
3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement
4. Property Description: Detailed description of the leased property, including physical address and legal description
5. Lease Terms: Core lease provisions including duration, rental amount, payment terms, and annual escalations
6. Option to Purchase: Terms of the purchase option, including purchase price, option period, and exercise procedures
7. Security Deposit: Details of security deposit requirements, handling, and conditions for return
8. Maintenance and Repairs: Responsibilities of each party regarding property maintenance and repairs
9. Insurance and Risk: Requirements for property insurance and allocation of risks
10. Utilities and Services: Responsibility for utilities, services, and related charges
11. Use of Property: Permitted uses of the property and any restrictions
12. Exercise of Purchase Option: Process and requirements for exercising the purchase option
13. Transfer of Property: Procedures and obligations regarding property transfer upon exercise of purchase option
14. Breach and Termination: Consequences of breach and termination provisions
15. Notices and Domicilia: Communication procedures and official addresses for notices
16. General Provisions: Standard legal provisions including entire agreement, variation, and governing law
1. Rental Credit: Used when a portion of rental payments will be credited toward the purchase price
2. Property Management: Include when a property manager will be involved in managing the lease
3. Special Improvements: Used when specific improvements are permitted or required during the lease term
4. Sub-letting: Include when sub-letting is permitted under specific conditions
5. First Right of Refusal: Used when giving the tenant additional rights to purchase if the option expires
6. Financing Contingencies: Include when purchase option exercise is subject to financing conditions
7. Multiple Units: Used when the lease covers multiple units with different terms
8. Operating Expenses: Include for triple net leases where tenant pays operating expenses
1. Schedule A - Property Description: Detailed legal description of the property including diagrams and plans
2. Schedule B - Rental Payment Schedule: Detailed breakdown of rental payments, escalations, and due dates
3. Schedule C - Purchase Price Calculation: Formula and terms for determining final purchase price including any rental credits
4. Schedule D - Property Condition Report: Detailed assessment of property condition at lease commencement
5. Schedule E - Maintenance Schedule: Detailed breakdown of maintenance responsibilities
6. Schedule F - Permitted Improvements: List of improvements tenant is permitted to make
7. Schedule G - Insurance Requirements: Detailed insurance requirements for both parties
8. Appendix 1 - Property Photos: Photographic record of property condition
9. Appendix 2 - Compliance Certificates: Copies of relevant compliance certificates
10. Appendix 3 - Rules and Regulations: Building or complex rules if applicable
Authors
Real Estate
Commercial Property
Residential Property
Retail
Industrial
Agriculture
Hospitality
Office Space
Manufacturing
Logistics
Healthcare
Education
Legal
Real Estate
Finance
Operations
Facilities Management
Risk and Compliance
Property Management
Asset Management
Investment
Business Development
Acquisitions
Portfolio Management
Property Manager
Real Estate Attorney
Legal Counsel
Chief Financial Officer
Facilities Manager
Real Estate Agent
Property Developer
Asset Manager
Operations Director
Commercial Director
Leasing Manager
Property Portfolio Manager
Risk Manager
Compliance Officer
Investment Manager
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