Rental Contract With Option To Buy Template for Germany

The Rental Contract With Option To Buy is a sophisticated legal instrument used in German property transactions where parties wish to combine immediate occupancy through rental with a future purchase opportunity. This document type is particularly relevant in situations where potential buyers need time to arrange financing or want to test the property's suitability before committing to purchase. It must comply with German rental law (particularly BGB §§ 535-548) and property purchase regulations, including notarization requirements. The agreement typically includes detailed provisions for both the rental phase (including rent, maintenance, and utilities) and the purchase option (including price, exercise period, and execution process). This document type is commonly used in both residential and commercial property transactions in Germany, offering flexibility while ensuring legal certainty for all parties involved.

1. Parties: Identification of landlord/potential seller and tenant/potential buyer with full legal names and addresses

2. Background: Context of the agreement, including property details and purpose of the arrangement

3. Definitions: Key terms used throughout the agreement, including Property, Commencement Date, Option Period, etc.

4. Property Description: Detailed description of the rental property including address, size, and registered land details

5. Rental Terms: Core rental provisions including rent amount, payment terms, and duration

6. Security Deposit: Details of the required deposit, its management and return conditions

7. Maintenance and Repairs: Responsibilities for property maintenance and repair allocation between parties

8. Option to Purchase: Terms of the purchase option, including price or price determination mechanism

9. Option Exercise Period: Timeframe and conditions for exercising the purchase option

10. Purchase Process: Steps to be followed when exercising the option, including notarization requirements

11. Rent Credit: Any rental payments to be credited towards the purchase price

12. Insurance: Required insurance coverage for both rental period and potential purchase

13. Termination: Conditions under which the agreement can be terminated by either party

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