Lease With Option To Buy Contract Template for Philippines

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Key Requirements PROMPT example:

Lease With Option To Buy Contract

"I need a Lease with Option to Buy Contract for a commercial property in Makati City, Philippines, with a 2-year lease term starting March 1, 2025, and an option to purchase the property at a pre-agreed price of 15 million pesos at any time during the lease period."

Document background
The Lease With Option To Buy Contract is a specialized legal instrument used in the Philippines when a property owner wishes to lease their property while giving the tenant the exclusive right to purchase it during or after the lease period. This arrangement is particularly useful for tenants who want to eventually own the property but need time to arrange financing or assess the property's suitability for their long-term needs. The document must comply with Philippine property laws, including the Civil Code, Maceda Law, and local real estate regulations. It includes detailed provisions for both the lease period (rent, maintenance, utilities) and the purchase option (price, exercise period, conditions), making it more complex than standard lease agreements. This type of contract is commonly used in both residential and commercial property transactions, providing flexibility for both parties while establishing clear terms for the potential future sale.
Suggested Sections

1. Parties: Identifies and provides full details of the Lessor/Potential Seller and Lessee/Potential Buyer

2. Background: Explains the context of the agreement and the parties' intentions regarding the lease and potential purchase

3. Definitions: Defines key terms used throughout the agreement

4. Property Description: Detailed description of the property subject to lease and potential purchase

5. Lease Terms: Specifies the duration of the lease, rental amount, payment terms, and frequency

6. Security Deposit: Details the amount, payment, and conditions for return of the security deposit

7. Option to Purchase: Specifies the terms and conditions of the purchase option, including purchase price and how rental payments may be credited

8. Option Period: Defines the timeframe during which the purchase option can be exercised

9. Exercise of Option: Procedures and requirements for exercising the purchase option

10. Maintenance and Repairs: Responsibilities of each party for property maintenance and repairs

11. Utilities and Expenses: Allocation of responsibility for utilities, taxes, and other expenses

12. Insurance: Required insurance coverage and responsibilities

13. Default and Remedies: Consequences of default under either the lease or purchase option terms

14. Governing Law: Specifies Philippine law as governing law and relevant jurisdictions

15. Notices: Methods and addresses for formal communications between parties

16. General Provisions: Standard contract clauses including severability, entire agreement, and amendments

Optional Sections

1. Property Management: Include when a property manager or management company is involved in maintaining the property

2. Subletting: Include when subletting is to be permitted or specifically prohibited

3. Pet Policy: Include when pets are allowed or when specific pet restrictions apply

4. Improvements and Alterations: Include when the lessee is permitted to make specific modifications to the property

5. Environmental Matters: Include for properties with known environmental issues or specific environmental requirements

6. Common Areas: Include for properties that are part of a larger complex with shared facilities

7. Parking: Include when specific parking arrangements need to be detailed

8. Force Majeure: Include when parties want specific provisions for unforeseen circumstances

9. Mortgage Details: Include when the property has an existing mortgage that affects the purchase option

Suggested Schedules

1. Schedule A - Property Details: Detailed property description, including lot number, boundaries, and technical specifications

2. Schedule B - Rent Payment Schedule: Detailed breakdown of rental payments, due dates, and payment methods

3. Schedule C - Purchase Price Calculation: Formula for determining final purchase price, including any rental credit calculations

4. Schedule D - Property Inventory: List of fixtures, fittings, and contents included in the lease and potential sale

5. Schedule E - Maintenance Schedule: Detailed breakdown of maintenance responsibilities and schedules

6. Appendix 1 - Property Photos: Documentary photographs of the property's condition at lease commencement

7. Appendix 2 - Required Insurance: Detailed insurance requirements and specifications

8. Appendix 3 - Property Rules: Any specific rules or regulations applicable to the property

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

Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Property Development

Legal Services

Financial Services

Insurance

Property Management

Construction

Housing Development

Commercial Property

Residential Property

Relevant Teams

Legal

Real Estate

Property Management

Facilities

Compliance

Finance

Risk Management

Operations

Acquisitions

Asset Management

Relevant Roles

Real Estate Agent

Property Manager

Legal Counsel

Real Estate Attorney

Property Developer

Leasing Manager

Asset Manager

Financial Advisor

Contract Administrator

Real Estate Broker

Property Acquisition Manager

Facilities Manager

Real Estate Investment Manager

Compliance Officer

Title Officer

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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