Sale Leaseback Agreement for Ireland

Sale Leaseback Agreement Template for Ireland

A Sale Leaseback Agreement under Irish law is a sophisticated commercial arrangement where a property owner sells their property to an investor or financial institution while simultaneously entering into a lease agreement to continue occupying and using the property as a tenant. This document combines elements of both a property sale agreement and a commercial lease, structured in compliance with Irish property law, landlord-tenant legislation, and tax regulations. It details the terms of sale, purchase price, lease duration, rental payments, maintenance responsibilities, and various other obligations of both parties, while ensuring compliance with Irish registration requirements and commercial law principles.

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What is a Sale Leaseback Agreement?

The Sale Leaseback Agreement is a strategic financial and property management tool commonly used in Irish business transactions. It enables property owners to unlock capital from their real estate assets while retaining operational use of the property. This document type is particularly relevant when companies seek to improve their balance sheet position, require capital for business expansion, or wish to restructure their property holdings while maintaining operational continuity. The agreement must comply with Irish property law, including the Land and Conveyancing Law Reform Act 2009 and relevant landlord-tenant legislation. It includes comprehensive provisions for both the sale transaction and the subsequent lease arrangement, covering areas such as purchase price, lease terms, maintenance obligations, insurance requirements, and various operational considerations. This document is typically used in commercial contexts but can also be adapted for other property types, subject to relevant regulatory requirements.

What sections should be included in a Sale Leaseback Agreement?

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

2. Background: Context of the transaction, including property description and commercial intent of the arrangement

3. Definitions: Defined terms used throughout the agreement

4. Sale Agreement: Terms of the property sale, including purchase price, deposit, and completion arrangements

5. Property Transfer Provisions: Detailed provisions regarding the transfer of title, including warranties and representations

6. Leaseback Terms: Core terms of the leaseback arrangement, including lease duration, rent, and payment terms

7. Tenant Covenants: Obligations of the tenant (former owner) under the lease

8. Landlord Covenants: Obligations of the landlord (new owner) under the lease

9. Insurance and Maintenance: Requirements for property insurance and maintenance responsibilities

10. Assignment and Subletting: Provisions governing the ability to assign or sublet the property

11. Default and Remedies: Consequences of default by either party and available remedies

12. Termination: Circumstances and procedures for terminating the agreement

13. Notices: Requirements for formal communications between parties

14. Governing Law: Confirmation of Irish law as governing law and jurisdiction

What sections are optional to include in a Sale Leaseback Agreement?

1. Break Clause: Optional provisions allowing early termination under specific circumstances

2. Purchase Option: Right for tenant to repurchase the property under specified conditions

3. Rent Review: Mechanisms for periodic rent adjustments, if not using fixed increases

4. Service Charge Provisions: For properties with common areas or shared services

5. Environmental Provisions: Specific environmental warranties and obligations, particularly for industrial properties

6. Planning Permissions: Specific provisions regarding existing or required planning permissions

7. VAT Election: Optional VAT treatment of the transaction

8. Alterations and Improvements: Rights and procedures for making changes to the property

9. Change of Control: Provisions dealing with changes in corporate ownership of either party

What schedules should be included in a Sale Leaseback Agreement?

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

2. Purchase Price Calculation: Breakdown of purchase price and payment terms

3. Lease Terms: Detailed lease conditions including rent calculations and payment schedules

4. Condition Survey: Initial property condition report and photographs

5. Permitted Use: Detailed description of allowed property uses

6. Service Charge Schedule: Breakdown of service charges and calculation methodology

7. Form of Transfer Deed: Template deed for property transfer

8. Existing Encumbrances: List of existing rights, obligations, or restrictions affecting the property

9. Required Insurance: Detailed insurance requirements and specifications

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

Commercial Property

Retail

Industrial

Manufacturing

Healthcare

Hospitality

Financial Services

Logistics

Education

Office Space

Warehousing

Agricultural

Relevant Teams

Legal

Finance

Real Estate

Operations

Facilities Management

Risk Management

Treasury

Tax

Corporate Development

Property Management

Relevant Roles

Chief Financial Officer

Real Estate Director

Property Manager

Legal Counsel

Commercial Director

Facilities Manager

Asset Manager

Treasury Manager

Operations Director

Risk Manager

Finance Director

Property Portfolio Manager

Business Development Director

Corporate Finance Manager

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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