Document background
The Commercial Lease To Purchase Agreement is a specialized legal instrument used in South African commercial property transactions where parties wish to combine a lease arrangement with a future purchase option. This document is particularly useful for businesses wanting to secure a property while building up capital or testing the suitability of the location before commitment to purchase. It must comply with South African property law, including the Alienation of Land Act, Consumer Protection Act, and relevant commercial lease regulations. The agreement typically includes detailed provisions for both the lease phase (including rental terms, maintenance, and use restrictions) and the purchase option (including price determination, exercise periods, and transfer procedures). This type of agreement provides flexibility for commercial tenants while offering property owners a committed long-term arrangement with a defined exit strategy.
