The Lease Agreement With Option to Purchase is a specialized legal instrument used in Malaysian property transactions where parties wish to combine a standard lease with a future purchase option. This document is particularly useful when a potential buyer wishes to occupy and evaluate a property before committing to purchase, or when they need time to arrange financing. It provides protection for both parties: the landlord secures a tenant while maintaining the possibility of a sale, while the tenant gains occupancy rights and a guaranteed option to purchase at a predetermined price. The agreement must comply with Malaysian property and contract laws, including the National Land Code 1965 and Contracts Act 1950. It typically includes detailed terms about the lease period, rental payments, option fee, purchase price, condition for exercising the option, and the process for completing the sale if the option is exercised.

1. Parties: Identification of the landlord/vendor and tenant/purchaser with full legal names and addresses

2. Background: Context of the agreement, including property ownership status and parties' intentions regarding lease and potential purchase

3. Definitions: Key terms used throughout the agreement including Property, Lease Term, Option Period, Purchase Price, etc.

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

5. Property Use and Maintenance: Permitted use of property, maintenance obligations, and property care requirements

6. Option to Purchase: Terms of the purchase option, including option fee, exercise period, and purchase price

7. Exercise of Option: Process and requirements for exercising the purchase option

8. Completion of Purchase: Requirements and process for completing the property purchase if option is exercised

9. Insurance and Liability: Insurance requirements and liability allocation between parties

10. Default and Termination: Events of default, remedies, and termination provisions for both lease and option

11. Notices: Method and addresses for formal communications between parties

12. Governing Law: Specification of Malaysian law as governing law and jurisdiction