Lease With Option To Buy Contract Template for United Arab Emirates

The Lease With Option To Buy Contract is a specialized agreement used in the UAE real estate market when a property owner wishes to lease their property while giving the tenant the exclusive right to purchase it at a later date. This document is particularly relevant in the UAE's dynamic property market, where both local and expatriate residents may prefer this arrangement for financial or strategic reasons. The agreement must comply with UAE federal laws, including the Civil Code and relevant emirate-specific regulations (such as Dubai or Abu Dhabi property laws). It typically includes detailed provisions for property maintenance, registration requirements with relevant authorities (such as RERA in Dubai), and specific mechanisms for exercising the purchase option. This type of contract is especially useful in situations where immediate purchase isn't feasible or desired, but parties want to secure future purchase rights while establishing a current landlord-tenant relationship.

1. Parties: Identification of lessor/potential seller and lessee/potential buyer, including full legal names, addresses, and relevant identification numbers

2. Background: Context of the agreement, including property ownership confirmation and parties' intentions regarding lease and potential sale

3. Definitions: Key terms used throughout the agreement, including Property, Option Period, Purchase Price, and other relevant definitions

4. Property Description: Detailed description of the leased property, including address, size, and registration details

5. Lease Terms: Core lease provisions including duration, rent amount, payment terms, and maintenance responsibilities

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

7. Exercise of Option: Procedure for exercising the purchase option, including notice requirements and timeframes

8. Payment Terms: Detailed payment structures for both lease payments and purchase option, including treatment of lease payments towards purchase price

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

10. Insurance and Risk: Insurance requirements and allocation of risk during lease period

11. Default and Remedies: Consequences of default under either lease or option terms

12. Registration: Requirements for registering both lease and potential sale with relevant authorities

13. Governing Law and Jurisdiction: Confirmation of UAE law application and jurisdiction

14. Notices: Process for formal communications between parties

15. General Provisions: Standard contractual provisions including entire agreement, amendments, and severability