Lease Purchase Agreement (Real Estate) Template for India

The Lease Purchase Agreement (Real Estate) is a specialized legal instrument used in Indian property transactions where immediate outright purchase isn't preferred or possible. This document type serves as a bridge between traditional leasing and property purchase, offering occupants a path to ownership while providing property owners with steady income and a committed buyer. It's particularly relevant in scenarios where buyers need time to arrange financing or prefer to test the property before commitment. The agreement must comply with Indian property law, including the Transfer of Property Act, state-specific stamp duty requirements, and registration regulations. It typically includes detailed provisions for rent payments, purchase price determination, option exercise periods, and the treatment of lease payments as purchase price credits. The document's structure reflects the complexity of Indian real estate transactions while protecting both parties' interests throughout the lease-to-purchase transition.

1. Parties: Details of the lessor/seller and lessee/purchaser, including full legal names, addresses, and registration details if companies

2. Background: Context of the agreement, including property ownership status and intention to enter into a lease-purchase arrangement

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

4. Property Details: Comprehensive description of the property subject to the agreement

5. Lease Terms: Terms and conditions of the lease including duration, rent amount, payment schedule, and maintenance responsibilities

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

7. Rent Credits: Specification of how rental payments will be credited towards the purchase price

8. Payment Terms: Detailed payment structure including lease payments, option fee, and purchase price payments

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

10. Insurance and Taxes: Obligations regarding property insurance and payment of property taxes

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

12. Assignment and Transfer: Rights and restrictions regarding assignment or transfer of the agreement

13. Notices: Process and requirements for serving notices under the agreement

14. Governing Law: Specification of Indian law as governing law and jurisdiction details

15. Execution: Signature blocks and execution requirements