The Lease And Sale Agreement is a specialized legal instrument used in the Philippines when parties wish to combine a property lease with a future purchase option. This document is particularly useful in situations where the potential buyer wishes to occupy and use the property immediately but prefers or needs to defer the full purchase until a later date. It provides a structured approach to property acquisition while offering immediate possession through a lease arrangement. The agreement must comply with Philippine property laws, including the Civil Code of the Philippines, Property Registration Decree, and relevant local government regulations. It typically includes comprehensive terms covering both the lease period (such as rental payments, maintenance obligations, and use restrictions) and the eventual sale (including purchase price, payment terms, and transfer conditions). This type of agreement is commonly used in commercial real estate transactions, business expansions, and situations where parties want to establish a trial period before completing a full property purchase.

1. Parties: Identification of the Lessor-Seller and Lessee-Buyer, including complete legal names, addresses, and tax identification numbers

2. Background: Context of the agreement, including property description and parties' intentions regarding lease and subsequent sale

3. Definitions: Definitions of key terms used throughout the agreement, including specific Philippine legal terminology

4. Lease Terms: Duration of lease period, rental amount, payment terms, and conditions preceding the sale

5. Sale Terms: Purchase price, payment structure, and conditions for exercising the purchase option

6. Property Details: Comprehensive description of the property, including legal description, boundaries, and improvements

7. Representations and Warranties: Statements of fact by both parties regarding their capacity, property condition, and ownership

8. Covenants: Ongoing obligations of both parties during the lease period and through to sale completion

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

10. Insurance and Risk: Requirements for property insurance and allocation of risk during lease and sale transition

11. Default and Remedies: Events of default and corresponding remedies for both lease and sale portions

12. Registration and Taxes: Responsibilities for property registration, transfer taxes, and other governmental fees

13. Governing Law: Specification of Philippine law as governing law and relevant jurisdictional matters

14. Execution: Formal signing section with notarization requirements per Philippine law