Commercial Lease With Option To Buy Template for Singapore

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Key Requirements PROMPT example:

Commercial Lease With Option To Buy

"I need a Commercial Lease With Option To Buy agreement for a retail space in Singapore's Orchard Road area, with a 3-year initial lease term starting March 2025 and an option to purchase that can be exercised after 18 months at a pre-agreed price of SGD 4.2 million."

Document background
The Commercial Lease With Option To Buy is a specialized agreement used in Singapore when parties wish to establish a commercial tenancy while simultaneously securing the tenant's right to purchase the property during or after the lease term. This document is particularly relevant in situations where businesses want to test a location before committing to purchase, or when they need time to arrange financing. The agreement must comply with Singapore's strict property laws and commercial regulations, including requirements from the Singapore Land Authority and Urban Redevelopment Authority. It typically includes detailed provisions for both the lease period and the purchase option, including pricing mechanisms, exercise periods, and conditions precedent.
Suggested Sections

1. Parties: Identification of landlord and tenant, including full legal names and registration details

2. Background: Context of the lease arrangement and property details

3. Definitions: Key terms used tHRoughout the agreement

4. Demised Premises: Detailed description of the leased property

5. Lease Term: Duration of lease and commencement date

6. Rent and Payment Terms: Rental amount, payment schedule, and method

7. Option to Purchase: Terms and conditions of the purchase option

8. Security Deposit: Amount and terms of security deposit

9. Use of Premises: Permitted use and restrictions

10. Maintenance and Repairs: Responsibilities for property maintenance

Optional Sections

1. Break Clause: Early termination provisions - use when parties want flexibility to end lease early

2. Rent Review: Provisions for periodic rent adjustments - recommended for longer lease terms

3. Subletting Provisions: Terms for subletting the premises - include if subletting might be considered

4. Green Lease Provisions: Environmental and sustainability requirements - for green-certified buildings

Suggested Schedules

1. Property Floor Plan: Detailed plan showing the leased premises

2. Inventory List: List of fixtures and fittings included

3. Option to Purchase Terms: Detailed terms of the purchase option including pricing mechanism

4. Building Rules and Regulations: Specific rules applicable to the property

5. Maintenance Schedule: Schedule of maintenance responsibilities

6. Service Charge Schedule: Breakdown of service charges if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Clauses
Industries

Conveyancing and Law of Property Act (Cap. 61): Primary legislation governing property transactions, legal requirements for property transfers, and regulations concerning lease agreements and property rights in Singapore

Land Titles Act (Cap. 157): Legislation regulating the registration of land titles and dealing with ownership and transfer of property rights in Singapore

Planning Act (Cap. 232): Controls land use and development, ensuring compliance with zoning regulations for commercial properties

Building Control Act (Cap. 29): Regulates building works and safety standards, ensuring compliance with building codes for commercial properties

Stamp Duties Act (Cap. 312): Governs stamp duty payments for property transactions with special provisions for commercial properties

Building Maintenance and Strata Management Act: Regulations relevant to properties that are part of strata-titled developments

Fire Safety Act: Legislation ensuring compliance with fire safety regulations for commercial properties

Environmental Protection and Management Act: Legislation governing environmental compliance requirements for commercial properties

Singapore Land Authority (SLA): Key regulatory body overseeing land ownership and administration in Singapore

Urban Redevelopment Authority (URA): Regulatory body responsible for land use planning and conservation in Singapore

Building and Construction Authority (BCA): Regulatory body overseeing building and construction standards in Singapore

Option to Purchase Requirements: Specific legal requirements and procedures for including and executing an option to purchase in a commercial lease agreement

Commercial Zoning Compliance: Requirements for ensuring the property meets commercial zoning regulations and permitted usage

Property Tax Obligations: Tax requirements and obligations specific to commercial property leasing and purchase options

GST Implications: Goods and Services Tax considerations for commercial property transactions and lease agreements

Registration Requirements: Legal requirements for registering both the lease agreement and the option to purchase with relevant authorities

Tenant and Landlord Rights: Legal framework defining the rights, obligations, and responsibilities of both tenants and landlords in commercial lease agreements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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