Land Lease Purchase Agreement Template for Nigeria

The Land Lease Purchase Agreement is a specialized legal instrument used in Nigerian real estate transactions where immediate purchase is not feasible or desired. This hybrid agreement provides a pathway to ownership while allowing immediate occupancy and use of the land. It must conform to the Land Use Act of 1978, which vests all land in the state governors, and requires various governmental consents and registrations. The document is particularly useful for commercial developments, agricultural projects, and industrial establishments where significant capital investment is planned but immediate purchase is not optimal. It includes detailed provisions for lease payments, purchase option exercise, property use restrictions, and maintenance obligations, while ensuring compliance with both federal and state land laws. The agreement protects both parties' interests during the lease period and establishes clear conditions for the eventual transfer of ownership.

1. Parties: Identification of the lessor/vendor and lessee/purchaser with full legal names and addresses

2. Background: Context of the agreement, including property overview and transaction rationale

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Description: Detailed legal description of the land, including boundaries, measurements, and registration details

5. Lease Terms: Duration of lease, rent amount, payment terms, and maintenance obligations

6. Purchase Option: Terms and conditions for exercising the purchase option, including purchase price and deadline

7. Payment Structure: Details of lease payments, purchase price, deposit requirements, and how lease payments apply to purchase price

8. Conditions Precedent: Conditions that must be met before the agreement becomes effective

9. Title and Registration: Confirmation of title, required governmental consents, and registration procedures

10. Representations and Warranties: Statements of fact and promises by both parties regarding their capacity and the property

11. Covenants: Ongoing obligations of both parties during the lease period and through to purchase

12. Property Use and Maintenance: Permitted use of property and maintenance responsibilities

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

14. Default and Remedies: Consequences of breach and available remedies

15. Termination: Circumstances under which the agreement may be terminated

16. Governing Law: Specification of Nigerian law as governing law and relevant jurisdiction

17. Dispute Resolution: Process for resolving disputes between parties

18. Notices: Method and addresses for formal communications between parties

19. General Provisions: Standard legal provisions including severability, entire agreement, and amendments