Lease Agreement With Option To Purchase Template for New Zealand

The Lease Agreement With Option To Purchase is a specialized legal document used in New Zealand when a property owner wishes to lease their property while giving the tenant the exclusive right to purchase it under specified conditions. This arrangement is particularly useful for tenants who want to secure a future purchase right but need time to arrange financing or assess the property's suitability for their long-term needs. The document must comply with New Zealand property law and includes detailed provisions for both the lease period (rent, maintenance, terms) and the purchase option (price, exercise period, conditions). It's commonly used in both residential and commercial contexts, offering flexibility while protecting both parties' interests. The agreement must adhere to various New Zealand legislation including the Residential Tenancies Act, Property Law Act, and Land Transfer Act.

1. Parties: Identifies and defines the Landlord/Vendor and Tenant/Purchaser with their full legal names and addresses

2. Background: Explains the context of the agreement, including property ownership and parties' intentions regarding lease and potential purchase

3. Definitions: Defines key terms used throughout the agreement including Property, Commencement Date, Option Period, Purchase Price, etc.

4. Lease Terms: Details the fundamental lease conditions including term, rent amount, payment frequency, and review mechanisms

5. Property Use and Maintenance: Specifies permitted use of property, maintenance responsibilities, and property care obligations

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

7. Exercise of Option: Specifies the process and requirements for exercising the purchase option

8. Purchase Terms: Outlines the terms that will apply if the purchase option is exercised, including settlement process

9. Rent Credit: Specifies if and how any rental payments will be credited toward the purchase price

10. Insurance and Risk: Details insurance requirements and risk allocation during both lease and option periods

11. Default and Remedies: Describes events of default and available remedies under both lease and option arrangements

12. General Provisions: Contains standard clauses including notices, entire agreement, governing law, and dispute resolution