Sale And Leaseback Contract for Ireland

Sale And Leaseback Contract Template for Ireland

This document governs the simultaneous sale of a property and its lease back to the original owner under Irish law. It combines elements of a property sale agreement and a commercial lease, detailing both the transfer of ownership and the ongoing landlord-tenant relationship. The agreement covers crucial aspects including purchase price, lease terms, maintenance responsibilities, insurance requirements, and specific provisions under Irish property law and tax regulations. It provides security for both parties while enabling the seller to unlock capital while maintaining operational use of the property.

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What is a Sale And Leaseback Contract?

The Sale And Leaseback Contract is a strategic financial instrument used when a property owner wishes to release capital from their real estate assets while retaining operational use through a long-term lease arrangement. This document type, governed by Irish law, is particularly relevant in scenarios where companies seek to improve their balance sheet position or require significant capital injection while maintaining business operations. The contract must comply with Irish property law, including the Land and Conveyancing Law Reform Act 2009 and various tax regulations. It includes detailed provisions for both the property sale and the subsequent lease arrangement, covering aspects such as purchase price, lease terms, maintenance obligations, insurance requirements, and specific conditions for both parties. The document is commonly used in commercial real estate transactions and requires careful consideration of both immediate transaction terms and long-term lease implications.

What sections should be included in a Sale And Leaseback Contract?

1. Parties: Identification of the Seller/Future Tenant and Buyer/Future Landlord

2. Background: Context of the transaction, including property details and commercial rationale

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Sale Agreement: Terms and conditions of the property sale

5. Purchase Price and Payment Terms: Details of consideration and payment structure

6. Completion Requirements: Conditions and requirements for completing the sale

7. Lease Terms: Key terms of the leaseback arrangement

8. Rent and Other Payments: Rental amount, payment terms, and additional charges

9. Duration and Renewal: Term of the lease and any renewal options

10. Property Maintenance and Repairs: Responsibilities for maintenance and repairs under the lease

11. Insurance Requirements: Insurance obligations for both parties

12. Representations and Warranties: Statements of fact and assurances from both parties

13. Default and Remedies: Consequences of breach and available remedies

14. Governing Law and Jurisdiction: Application of Irish law and jurisdiction

15. Notices: Process for formal communications between parties

16. General Provisions: Standard boilerplate clauses including severability, entire agreement, etc.

What sections are optional to include in a Sale And Leaseback Contract?

1. VAT Elections: Required if the property transaction is subject to VAT

2. Environmental Provisions: Required for properties with environmental concerns or specific requirements

3. Planning Permissions: Required if specific planning conditions affect the property

4. Break Clauses: Optional provisions for early termination of the lease

5. Asset Management: Required for properties requiring specific management arrangements

6. Development Rights: Required if future development of the property is contemplated

7. Service Charge Provisions: Required for multi-let properties or those with common areas

8. Alterations and Improvements: Required if specific arrangements for property modifications are needed

What schedules should be included in a Sale And Leaseback Contract?

1. Property Description: Detailed description of the property including maps and plans

2. Title Documents: List of relevant title documents and encumbrances

3. Lease Terms: Detailed lease provisions and conditions

4. Completion Requirements: Detailed list of documents required for completion

5. Service Level Requirements: Specific maintenance and service standards if applicable

6. Rent Review Provisions: Detailed mechanism for rent reviews

7. Permitted Use: Detailed specifications of permitted use of the property

8. Form of Transfer Deed: Template transfer deed to be executed at completion

9. Condition Survey: Survey of property condition at the time of sale

10. Equipment Inventory: List of included equipment or fixtures if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Ireland

Publisher

Genie AI

Document Type

Contract to Sell

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Banking and Financial Services

Retail

Manufacturing

Logistics and Warehousing

Healthcare

Hospitality

Office Space and Commercial Property

Industrial

Education

Relevant Teams

Legal

Finance

Real Estate

Operations

Treasury

Tax

Risk Management

Facilities Management

Corporate Development

Property Management

Relevant Roles

Chief Financial Officer

Real Estate Director

Property Manager

Legal Counsel

Commercial Director

Treasury Manager

Facilities Manager

Risk Manager

Corporate Finance Manager

Asset Manager

Investment Director

Operations Director

Tax Manager

Company Secretary

Finance Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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