The Residential Lease Agreement With Option To Purchase is designed for situations where a property owner wishes to lease a residential property while simultaneously granting the tenant an option to purchase the property during or at the end of the lease term. This arrangement, governed by German law, provides flexibility for both parties and can be particularly useful in cases where immediate purchase is not feasible but desired in the future. The document must comply with German residential tenancy laws (including the BGB provisions) and real estate transaction requirements. It combines standard residential lease provisions (such as rent, maintenance, and utility arrangements) with detailed purchase option terms (including price, exercise period, and conditions). The agreement requires careful structuring to ensure all mandatory legal requirements are met, including potential notarization of the purchase option components.

1. Parties (Vertragsparteien): Identification and details of the landlord/potential seller and tenant/potential buyer

2. Background (Präambel): Context of the agreement and general intent of the parties

3. Definitions (Definitionen): Key terms used throughout the agreement

4. Property Description (Objektbeschreibung): Detailed description of the rental property including address, size, and included fixtures

5. Lease Terms (Mietbedingungen): Core lease provisions including duration, rent amount, and payment terms

6. Operating Costs (Betriebskosten): Breakdown of additional costs and utilities, allocation between parties

7. Security Deposit (Kaution): Terms regarding the security deposit amount, payment, and return conditions

8. Purchase Option Terms (Kaufoption): Detailed terms of the purchase option including price, exercise period, and conditions

9. Maintenance and Repairs (Instandhaltung und Reparaturen): Responsibilities for property maintenance and repairs

10. Use of Property (Nutzung der Mietsache): Permitted uses and restrictions on property use

11. Insurance (Versicherung): Required insurance coverage for both parties

12. Termination (Kündigung): Conditions and procedures for terminating the lease agreement

13. Exercise of Purchase Option (Ausübung der Kaufoption): Process and requirements for exercising the purchase option

14. Governing Law (Geltendes Recht): Specification of German law application and jurisdiction

15. Severability (Salvatorische Klausel): Standard clause on the validity of remaining provisions if others are invalid