Option To Lease Agreement Template for Austria

The Option To Lease Agreement is a crucial document in Austrian real estate transactions, typically used when a potential tenant has serious interest in a property but requires time to finalize their decision or meet certain conditions before committing to a full lease. This document is particularly relevant in commercial real estate scenarios where due diligence, board approvals, or financing arrangements may be necessary before finalizing a lease commitment. The agreement provides protection for both parties: the potential tenant secures their right to lease the property while completing their internal processes, while the property owner receives consideration and commitment from the potential tenant. Under Austrian law, the agreement must clearly specify the option period, exercise mechanisms, and fundamental terms of the proposed lease to be enforceable.

1. Parties: Identification of the option grantor (property owner) and option holder, including full legal names, registration numbers for companies, and addresses

2. Background: Context of the agreement, including property details and the parties' intention to enter into an option arrangement

3. Definitions: Key terms used throughout the agreement, including 'Option Period', 'Property', 'Lease Terms', 'Exercise Notice', etc.

4. Grant of Option: Clear statement granting the option to lease the property, including exclusivity provisions if applicable

5. Option Period: Specification of the duration for which the option can be exercised

6. Option Fee: Details of any consideration paid for the option and whether it's refundable or applied to future rent

7. Exercise of Option: Procedure for exercising the option, including notice requirements and formalities

8. Lease Terms: Summary of key terms of the lease that will come into effect upon exercise of the option

9. Property Access: Rights of the option holder to access/inspect the property during the option period

10. Representations and Warranties: Standard warranties regarding property ownership, authority to grant option, and property condition

11. Termination: Circumstances under which the option agreement may be terminated

12. Governing Law: Confirmation of Austrian law as governing law and jurisdiction

13. Notices: Process for serving formal notices under the agreement

14. Execution: Signature blocks and execution requirements