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Lease With Option To Buy Commercial Property
"I need a Lease with Option to Buy Commercial Property agreement for a 3-story retail building in Jakarta, with a 5-year initial lease starting March 2025 and an option to purchase at market value plus 10% during the final year of the lease term, including provisions for subletting two floors."
1. Parties: Identification of the lessor/property owner and lessee/potential buyer, including complete legal names, addresses, and registration numbers for companies
2. Background: Context of the agreement, brief description of the property, and parties' intentions regarding lease and potential purchase
3. Definitions: Definitions of key terms used throughout the agreement, including Property, Lease Period, Option Period, Purchase Price, etc.
4. Property Details: Detailed description of the leased property, including address, boundaries, certificates, and permitted use
5. Lease Terms: Lease duration, rent amount, payment terms, security deposit, and other basic lease conditions
6. Option to Purchase: Terms of the purchase option, including option period, purchase price or price determination mechanism, and exercise procedure
7. Property Maintenance and Repairs: Responsibilities for maintenance, repairs, and improvements during the lease period
8. Insurance and Risk: Insurance requirements and allocation of risks during the lease period
9. Exercise of Option: Detailed procedure for exercising the purchase option, including notice requirements and completion timeframe
10. Representations and Warranties: Statements of fact and promises by both parties regarding their capacity, authority, and the property's condition
11. Default and Remedies: Events of default under both lease and option terms, and corresponding remedies
12. Termination: Circumstances and procedures for terminating the agreement
13. Governing Law and Dispute Resolution: Choice of law and dispute resolution mechanisms
1. Property Management: Required for larger commercial properties with shared facilities or complex management requirements
2. Environmental Compliance: Necessary for properties where environmental regulations are significant considerations
3. Operating Expenses: Detailed breakdown of operating expenses and allocation between parties, necessary for triple net leases
4. Subletting and Assignment: Include when subletting or assignment rights are to be granted
5. Renovation and Improvement Rights: Required when significant modifications to the property are contemplated
6. Foreign Investment Provisions: Necessary when either party is a foreign entity, addressing compliance with Indonesian foreign investment laws
7. Transfer of Employees: Required when the property includes ongoing business operations with employees
8. Intellectual Property Rights: Necessary when the property includes business-specific fixtures or branding elements
1. Property Description Schedule: Detailed technical description of the property, including floor plans, boundaries, and certificates
2. Rent Payment Schedule: Detailed breakdown of rent payments, including escalation rates and payment dates
3. Purchase Price Calculation: Formula or mechanism for determining the final purchase price, including adjustments
4. Condition Report: Detailed report on the condition of the property at lease commencement
5. Permitted Use Schedule: Detailed description of permitted commercial activities and use restrictions
6. Maintenance Schedule: Detailed breakdown of maintenance responsibilities and schedules
7. Required Licenses and Permits: List of necessary operational licenses and permits for the property
8. Insurance Requirements: Detailed specification of required insurance coverage
9. Property Handover Checklist: List of items and conditions for property handover at lease end or purchase completion
Authors
Property
Lease Period
Commencement Date
Termination Date
Option Period
Option Notice
Purchase Price
Deposit
Security Deposit
Rent
Operating Expenses
Permitted Use
Building
Common Areas
Service Charges
Certificate of Ownership
Right to Build (HGB)
Business Day
Force Majeure
Completion Date
Default Event
Maintenance Charges
Insurance Requirements
Occupancy Date
Option Exercise Date
Payment Date
Relevant Authority
Utilities
Working Hours
Building Rules
Environmental Requirements
Handover Date
Improvement Works
Land Certificate
Notarial Deed
Operating License
Property Tax
Registration Fee
Stamp Duty
Substantial Damage
Transfer Date
Zoning Requirements
Lease Term
Rent and Payment
Security Deposit
Option to Purchase
Purchase Price
Option Exercise
Property Use
Maintenance and Repairs
Utilities and Services
Insurance
Property Tax
Assignment and Subletting
Alterations and Improvements
Environmental Compliance
Health and Safety
Force Majeure
Default and Remedies
Termination
Property Access
Quiet Enjoyment
Representations and Warranties
Indemnification
Confidentiality
Notices
Registration Requirements
Regulatory Compliance
Property Management
Common Areas
Building Rules
Dispute Resolution
Governing Law
Severability
Entire Agreement
Amendment
Waiver
Time of Essence
Counterparts
Legal Costs
Survival
Retail
Office Space
Industrial
Hospitality
Healthcare
Education
Warehousing and Logistics
Manufacturing
Food and Beverage
Technology
Professional Services
Entertainment and Recreation
Legal
Finance
Real Estate
Operations
Facilities Management
Risk and Compliance
Business Development
Property Management
Asset Management
Investment
Treasury
Chief Executive Officer
Chief Financial Officer
Real Estate Director
Property Manager
Facilities Manager
Legal Counsel
Commercial Director
Operations Manager
Finance Manager
Business Development Manager
Risk Manager
Compliance Officer
Asset Manager
Investment Manager
Regional Director
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