Lease Agreement With Option To Purchase Template for Denmark

The Lease Agreement With Option to Purchase is a specialized legal instrument used in Danish property transactions where parties wish to combine immediate occupancy through a lease with the possibility of future ownership. This document is particularly useful in situations where a potential buyer needs time to arrange financing, wants to test the property's suitability before committing to purchase, or desires to build equity through rent payments. The agreement must comply with Danish property law, including the Lease Act (Lejeloven) and Purchase Act (Købeloven), while addressing both the immediate leasehold relationship and the conditional future sale. It includes detailed provisions for rent payments, maintenance obligations, option exercise procedures, and purchase price determination, along with necessary consumer protections required under Danish law. This type of agreement is commonly used in both residential and commercial property transactions in Denmark, offering flexibility while protecting the interests of both parties.

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

2. Background: Context of the agreement, including brief description of the property and the parties' intention to enter into a lease with purchase option

3. Definitions: Definitions of key terms used throughout the agreement, including 'Property', 'Lease Period', 'Option Period', 'Purchase Price', etc.

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

5. Lease Terms: Core lease provisions including duration, rent amount, payment terms, and deposit requirements

6. Purchase Option Terms: Detailed terms of the purchase option, including option period, purchase price or calculation method, and exercise procedure

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

8. Insurance and Liability: Requirements for property insurance and allocation of liability between parties

9. Utilities and Operating Costs: Responsibility for utility payments and other operating costs during the lease period

10. Option Exercise Procedure: Detailed process for exercising the purchase option, including notice requirements and completion timeframe

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

12. Termination: Conditions and procedures for termination of the lease and/or purchase option

13. Notices: Requirements for formal communications between parties

14. Governing Law and Jurisdiction: Confirmation of Danish law application and jurisdiction for disputes

15. Signatures: Execution blocks for all parties and witnesses if required