Document background
The Lease Purchase Contract is a sophisticated legal instrument used in Pakistan when parties wish to combine property leasing with a future purchase arrangement. This document is particularly useful in situations where immediate outright purchase is not preferred or possible, but there is a clear intention for eventual ownership transfer. It incorporates elements from both lease agreements and sale contracts, structured to comply with Pakistani legal requirements including the Contract Act 1872, Transfer of Property Act 1882, and where applicable, Islamic finance principles. The agreement typically includes detailed provisions for property usage, maintenance responsibilities, payment structures, purchase price determination, and the specific conditions under which the purchase option can be exercised. It's commonly used in both commercial and residential property transactions, and can be adapted for various types of properties and business arrangements while ensuring compliance with local registration and taxation requirements.
