Lease Option Agreement Template for Germany

The Lease Option Agreement (Mietvertrag mit Kaufoption) is a sophisticated legal instrument used in German property transactions where parties wish to combine immediate property occupation with a future purchase opportunity. It is particularly useful for tenants who want to secure a property purchase right while having time to arrange financing or assess the property's suitability for their needs. The document incorporates comprehensive lease terms governed by German tenancy law, including rent, maintenance obligations, and usage rights, alongside detailed option provisions specifying the future purchase price, option exercise period, and conditions. This agreement type is commonly used in both commercial and residential contexts, requiring careful drafting to ensure compliance with German property law, including any necessary notarization requirements and registration with relevant authorities.

1. Parties: Identification of the lessor/option grantor and lessee/option holder, including full legal names, addresses, and registration details if companies

2. Background: Context of the agreement, including property description and parties' intention to enter into both lease and option arrangements

3. Definitions: Key terms used throughout the agreement, including 'Option Period', 'Purchase Price', 'Property', 'Lease Term', etc.

4. Lease Terms: Core lease provisions including rent amount, payment terms, duration, and use of property

5. Option Grant: Explicit grant of the option to purchase, including the option period and conditions for exercise

6. Option Exercise: Process and formal requirements for exercising the option, including notice requirements

7. Purchase Price and Payment: Agreed purchase price for the property if option is exercised, including any adjustments or credits from lease payments

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

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

10. Default and Remedies: Consequences of default under either lease or option provisions

11. Assignment and Transfer: Restrictions on transfer of lease or option rights

12. Notices: Format and method of delivering formal notices between parties

13. Governing Law: Confirmation of German law application and jurisdiction

14. Execution: Signature blocks and execution requirements