Commercial Lease Purchase Proposal
I. Executive Summary
This Commercial Lease Purchase Proposal outlines the terms and conditions under which the Tenant will lease the commercial property with an option to purchase it. The primary objective of this proposal is to provide a comprehensive understanding of the financial, legal, and logistic components involved in this lease-purchase agreement. The proposal addresses the lease period, monthly rent, purchase price, payment breakdown, and both parties' legal obligations.
II. Property Description
The commercial property in question is located at 123 Business Ave, Cityville. This prime location offers the following features:
Feature | Description |
|---|
Total Area | 5,000 square feet |
Office Spaces | 10 |
Conference Rooms | 2 |
Restrooms | 4 |
Parking Spaces | 20 |
Additional Amenities | High-speed internet, air conditioning, security system |
III. Lease Terms
A. Lease Duration
The initial lease period will be for three years, commencing on January 1, 2024, and ending on December 31, 2026, with an option to renew for an additional two years upon mutual agreement.
B. Monthly Rent
The amount charged for the monthly rent has been established at a total of five thousand dollars. This payment must be submitted by the first day of each respective month.
C. Payment Structure
Rent payments will be made via electronic transfer to the Landlord's designated bank account. The Tenant may also choose to pay bi-annually or annually, with prior written notice to the Landlord.
IV. Purchase Option
A. Purchase Price
The purchase price for the property is set at $600,000 if the option is exercised within the first year of the lease. If the option is exercised in the subsequent years, the purchase price will be subject to an annual increment of 3%.
B. Timelines
The Tenant is permitted to make use of the purchase option at any point throughout the lease. To do so, the Tenant must furnish the Landlord with a written notice no less than ninety days in advance, indicating their intention to exercise the purchase option.
C. Conditions
The Tenant must be in good standing under the lease agreement at the time of exercising the purchase option. All due payments, including rent and other charges, must be up to date.
V. Financial Considerations
A. Cost Breakdown
Item | Cost |
|---|
Monthly Rent | $5,000 |
Security Deposit | $10,000 |
Annual Maintenance Fee | $2,000 |
Taxes (Annual) | $4,500 |
B. Deposits
A security deposit equivalent to two months' rent ($10,000) is required upon signing the lease agreement. This deposit is refundable at the end of the lease term, provided there are no damages or outstanding payments.
C. Maintenance
The Tenant is responsible for routine maintenance of the property. Structural repairs will be the responsibility of the Landlord. An annual maintenance fee of $2,000 will be collected from the Tenant.
VI. Legal Considerations
A. Lease Agreement
Both parties will enter into a formal lease agreement that outlines all terms and conditions as specified in this proposal. Legal counsel is recommended for both parties to review the lease agreement.
B. Obligations
The Tenant agrees to comply with all local, state, and federal laws and regulations. The Landlord must ensure the property is fit for commercial use and meets all building codes and safety regulations.
VII. Signature Section
By signing below, both parties acknowledge and agree to the terms and conditions outlined in this Commercial Lease Purchase Proposal.
Jackson King
Tenant
[YOUR NAME]
Landlord
Purchase Proposal @ Template.net
