Lease With Option To Purchase Template for Philippines

The Lease with Option to Purchase agreement is a sophisticated legal instrument used in the Philippines when parties wish to combine a property lease with a potential future sale. This document is particularly useful when a potential buyer wishes to occupy and evaluate a property before committing to a purchase, or when they need time to arrange financing while securing their interest in the property. The agreement must comply with Philippine property law, including the Civil Code, Rent Control Act, and Maceda Law, making it essential for transactions in both residential and commercial sectors. It includes comprehensive provisions for the lease period, purchase option terms, payment structures, and property maintenance responsibilities, while protecting both parties' interests under Philippine jurisdiction. This document type is commonly used in various contexts, from residential property transactions to commercial real estate deals, and requires careful consideration of both lease and sale aspects under Philippine legal requirements.

1. Parties: Identification of the Lessor/Potential Seller and Lessee/Potential Buyer with complete details as required under Philippine law

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

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

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

5. Lease Terms: Duration of lease, rental amount, payment terms, and periodic increases if any

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

7. Payment Terms: Structure of payments, including rent, option fee, and purchase price payment terms

8. Rights and Obligations: Detailed responsibilities of both parties during the lease period

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

10. Insurance and Taxes: Requirements for property insurance and responsibility for property taxes

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

12. Termination: Conditions and procedures for termination of the agreement