The Lease To Own Document (Mietkauf) is essential for transactions where parties wish to combine property rental with a future purchase option under German law. This arrangement is particularly useful when buyers need time to accumulate funds or establish credit worthiness before completing a property purchase. The document is commonly used in both residential and commercial real estate sectors in Germany, providing a structured path to property ownership while maintaining the security of a standard lease arrangement. It must comply with various German legal requirements, including the Civil Code (BGB), consumer protection laws, and financial regulations. The agreement includes detailed provisions for rental payments, purchase price calculations, maintenance responsibilities, and the specific conditions under which the purchase option can be exercised.

1. Parties: Identification of the lessor/seller and lessee/buyer, including full legal names, addresses, and registration details if applicable

2. Background: Context of the agreement, including property details and purpose of the lease-to-own arrangement

3. Definitions: Key terms used throughout the agreement, including technical and legal terminology

4. Property Description: Detailed description of the property including address, land registry details, and specific inclusions/exclusions

5. Lease Terms: Rental period, monthly payments, deposit requirements, and standard lease conditions

6. Purchase Option Terms: Details of the purchase option, including purchase price calculation, credit for rental payments, and option exercise period

7. Payment Terms: Payment schedule, method of payment, and allocation between rent and purchase price components

8. Maintenance and Repairs: Responsibilities for property maintenance, repairs, and improvements during the lease period

9. Insurance and Risk: Requirements for property insurance and allocation of risk during the lease period

10. Exercise of Purchase Option: Process and conditions for exercising the purchase option, including notice requirements and closing procedures

11. Default and Termination: Consequences of default, termination rights, and procedures

12. Transfer of Ownership: Process and conditions for final property transfer upon exercise of purchase option

13. Representations and Warranties: Standard representations and warranties from both parties

14. Notices: Communication requirements and contact details for formal notices

15. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction for disputes