The Lease With Option To Purchase agreement is a specialized legal document used in Australian property transactions where a property owner wishes to lease their property while giving the tenant the exclusive right to purchase it under specified conditions. This arrangement is particularly useful in situations where a potential buyer needs time to arrange financing or wants to "try before they buy." The document must comply with both federal and state-specific legislation, including property law, consumer protection, and tenancy regulations. It combines standard lease provisions with detailed option terms, purchase conditions, and property transfer mechanisms. This type of agreement is commonly used in both residential and commercial contexts, requiring careful consideration of property valuation, option fees, purchase price mechanisms, and tenant/purchaser rights.

1. Parties: Identifies and defines all parties to the agreement - Landlord/Vendor and Tenant/Potential Purchaser

2. Background: Contextual information explaining the purpose of the agreement and the parties' intentions

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

4. Property Details: Detailed description of the property including address, lot number, and title particulars

5. Lease Terms: Core lease provisions including term, rent, payment terms, and review mechanisms

6. Tenant Obligations: Comprehensive list of tenant responsibilities including maintenance, insurance, and permitted use

7. Landlord Obligations: Detailed landlord responsibilities and warranties regarding the property

8. Option to Purchase: Terms of the purchase option including option fee, exercise period, and purchase price determination

9. Exercise of Option: Process and requirements for exercising the purchase option

10. Property Transfer Terms: Conditions and process for the property transfer if the option is exercised

11. Insurance and Risk: Insurance requirements and risk allocation during both lease and option periods

12. Default and Termination: Consequences of default and termination rights for both lease and option

13. Notices: Requirements for giving valid notices under the agreement

14. General Provisions: Standard boilerplate clauses including governing law, entire agreement, and variation