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The Residential Lease With Option To Buy agreement is designed for use in South Africa when a property owner wishes to lease their residential property while simultaneously granting the tenant an exclusive right to purchase the property within a specified period. This hybrid agreement is particularly useful in situations where potential buyers need time to arrange financing or want to "test" the property before committing to a purchase. The document must comply with South African property law, including the Rental Housing Act and Alienation of Land Act, while providing clear terms for both the lease period and the purchase option. It includes comprehensive provisions for rental payments, maintenance obligations, option exercise procedures, and purchase terms, making it suitable for both individual property owners and property management companies operating in the South African market.

1. Parties: Identification of the Lessor/Seller and Lessee/Potential Buyer, including full legal names, identification numbers, and contact details

2. Background: Context of the agreement, including property ownership and parties' intention to enter into both lease and option arrangements

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules for interpreting the document

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

5. Lease Terms: Core rental provisions including duration, rental amount, payment terms, and annual escalation

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

7. Option Exercise Process: Detailed procedure for exercising the option, including notice requirements and timeframes

8. Security Deposit: Amount, payment terms, and conditions for return of the security deposit

9. Maintenance and Repairs: Responsibilities of both parties regarding property maintenance and repairs during the lease period

10. Insurance and Risk: Requirements for insurance coverage and allocation of risk during the lease period

11. Utilities and Services: Responsibility for payment of utilities, municipal services, and other ongoing costs

12. Use of Property: Permitted use of the property and any restrictions during the lease period

13. Default and Remedies: Consequences of default by either party and available remedies

14. Termination: Circumstances under which the agreement can be terminated and the consequences

15. Notices: How formal notices must be given between parties

16. General Provisions: Standard legal clauses including governing law, jurisdiction, and entire agreement provisions