Commercial Lease Purchase Agreement for Singapore

Commercial Lease Purchase Agreement Template for Singapore

A Commercial Lease Purchase Agreement under Singapore law is a hybrid legal instrument that combines elements of both a lease and a purchase agreement. It enables a tenant to lease a commercial property with an option to purchase it at a predetermined price during or at the end of the lease term. This agreement is governed by Singapore's property and contract laws, including the Civil Law Act and Land Titles Act, and must comply with regulations set by authorities such as the Singapore Land Authority and Urban Redevelopment Authority.

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What is a Commercial Lease Purchase Agreement?

The Commercial Lease Purchase Agreement is utilized when parties wish to establish a lease arrangement that includes a pathway to ownership. This document is particularly relevant in Singapore's dynamic commercial real estate market, where businesses may want to secure their premises while building up capital for purchase. The agreement typically includes detailed terms about the lease period, purchase option exercise windows, price mechanisms, and property usage conditions. It must comply with Singapore's robust property laws and regulations, including stamp duty requirements and zoning restrictions. This arrangement offers flexibility to businesses while providing security to property owners.

What sections should be included in a Commercial Lease Purchase Agreement?

1. Parties: Identification and details of the lessor and lessee

2. Background: Context of the transaction and property details

3. Definitions: Key terms used throughout the agreement

4. Property Description: Detailed description of the property including address and specifications

5. Purchase Price and Payment Terms: Financial terms including purchase price, deposit, and payment schedule

6. Lease Terms: Duration, rent, and lease conditions prior to purchase

7. Option to Purchase: Terms and conditions for exercising the purchase option

8. Representations and Warranties: Statements of fact and promises by both parties

9. Completion: Process and requirements for completing the purchase

What sections are optional to include in a Commercial Lease Purchase Agreement?

1. Fit-out Works: Terms regarding property modifications, used when renovations are planned

2. Assignment and Subletting: Rights to transfer the lease, included when relevant to the transaction

3. Break Clause: Early termination provisions, included when requested by either party

4. Service Charge: Details of additional charges, relevant for properties in managed buildings

What schedules should be included in a Commercial Lease Purchase Agreement?

1. Property Plans: Floor plans and property drawings

2. Inventory: List of fixtures and fittings included in the transaction

3. Payment Schedule: Detailed breakdown of payment terms and dates

4. Permitted Use: Specific allowed uses of the property

5. Building Rules and Regulations: Applicable building management rules

6. Condition Report: Current state of 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

Jurisdiction

Singapore

Publisher

Genie AI

Cost

Free to use
Clauses
Industries

Civil Law Act (Cap. 43): Primary legislation governing contractual relationships and obligations, including requirements for contracts relating to land/property transactions in Singapore

Land Titles Act (Cap. 157): Regulates land ownership and registration, including requirements for transfer of title, encumbrances and caveats in Singapore's land system

Planning Act (Cap. 232): Controls zoning regulations, permitted usage of commercial properties, and development controls under Singapore's urban planning framework

Conveyancing and Law of Property Act (Cap. 61): Establishes rules regarding property transactions and legal requirements for property transfer in Singapore

Stamp Duties Act (Cap. 312): Governs applicable stamp duties, including Additional Buyer's Stamp Duty (ABSD) and Seller's Stamp Duty (SSD) for property transactions

Building Control Act: Regulates building safety requirements and maintenance obligations for commercial properties in Singapore

Fire Safety Act: Establishes fire safety requirements and standards for commercial properties in Singapore

Environmental Public Health Act: Sets health and safety requirements for commercial properties to maintain public health standards

Goods and Services Tax Act: Determines GST implications and requirements for commercial property transactions in Singapore

Building Maintenance and Strata Management Act: Governs management and maintenance requirements for strata-titled developments in Singapore

Singapore Land Authority (SLA) Regulations: Regulatory guidelines issued by SLA governing land ownership, usage, and transactions in Singapore

Urban Redevelopment Authority (URA) Guidelines: Planning guidelines and requirements issued by URA for commercial property development and usage

Building and Construction Authority (BCA) Requirements: Technical standards and requirements for building construction and maintenance issued by BCA

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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