The Lease To Own Agreement is a specialized contract used in the Philippines when parties wish to combine a property lease with a future purchase option. This arrangement is particularly useful for buyers who need time to arrange financing or prefer a gradual approach to property ownership, while allowing sellers to secure a committed buyer while earning rental income. The document must comply with Philippine legal requirements, including the Civil Code, Rent Control Act, and Maceda Law, making it essential for both residential and commercial property transactions. It typically includes detailed provisions for rental payments, purchase price determination, option exercise periods, maintenance responsibilities, and the eventual transfer of property ownership. This type of agreement has gained popularity in the Philippine real estate market as it provides flexibility for buyers while offering security to sellers.

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' intention to enter into a lease-to-own arrangement

3. Definitions: Key terms used throughout the agreement, including technical, financial, and legal terminology

4. Property Description: Detailed description of the property, including location, boundaries, and certificate of title details

5. Lease Terms: Duration of the lease period, monthly rental amounts, and payment schedules

6. Purchase Option: Terms and conditions for exercising the purchase option, including total purchase price and credit for rental payments

7. Payment Terms: Detailed payment structure, including rent payments, option fees, and purchase price payments

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

9. Insurance and Taxes: Requirements for property insurance and responsibility for real property taxes

10. Default and Remedies: Consequences of default on rental payments or other obligations, including cure periods and termination rights

11. Property Transfer: Process and requirements for transferring property title upon exercise of purchase option

12. Representations and Warranties: Statements of fact and promises by both parties regarding the property and their capacity to enter the agreement

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

14. Miscellaneous: Standard contract provisions including notices, amendments, and severability