Lease Option Agreement Property For Sale Template for Germany

The Lease Option Agreement Property For Sale is a strategic legal instrument used in German real estate transactions when parties wish to combine a property lease with a future purchase opportunity. This document type is particularly useful when a potential buyer needs time to arrange financing or evaluate the property through actual usage before committing to a purchase, or when a property owner wants to secure a potential buyer while maintaining rental income. The agreement must comply with German property law requirements, including mandatory notarization under the Beurkundungsgesetz. It includes detailed provisions for both the lease period (including rent, maintenance, and utility responsibilities) and the purchase option (including price, exercise period, and conditions). This document type is commonly used in both commercial and residential property transactions in Germany and must address specific requirements of German property registration (Grundbuchordnung) and real estate transfer tax (Grunderwerbsteuergesetz).

1. Parties: Identification of the property owner/lessor and the tenant/potential purchaser, including full legal names, addresses, and registration details if applicable

2. Background: Context of the agreement, including the owner's willingness to lease and potentially sell the property, and the tenant's interest in leasing with an option to purchase

3. Definitions: Key terms used throughout the agreement, including 'Property', 'Lease Period', 'Option Period', 'Purchase Price', 'Option Fee'

4. Property Description: Detailed description of the property including address, land register details, size, and included fixtures and fittings

5. Lease Terms: Terms of the lease including rent amount, payment schedule, duration, and maintenance responsibilities

6. Option Grant: Terms of the option to purchase, including the grant of exclusive right to purchase within the option period

7. Option Period: Duration of the option period and conditions for exercise or expiration

8. Purchase Price and Payment Terms: Agreed purchase price, payment structure, and any rent credits applied to purchase

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

10. Property Condition and Inspections: Current condition of the property, inspection rights, and responsibilities for maintenance

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

12. Representations and Warranties: Statements and guarantees made by both parties regarding the property and their capacity to enter the agreement

13. Default and Remedies: Consequences of default under either the lease or option provisions and available remedies

14. General Provisions: Standard legal provisions including notices, amendments, governing law, and severability