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Land Lease To Own Contract Template for Germany

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Key Requirements PROMPT example:

Land Lease To Own Contract

"I need a Land Lease To Own Contract for a 5-hectare agricultural property in Bavaria, Germany, with a 3-year lease period starting March 1, 2025, where 75% of monthly lease payments will count towards the final purchase price, and the contract should include specific provisions for organic farming requirements."

Document background
The Land Lease To Own Contract is a specialized agreement used in German real estate transactions where parties wish to combine a lease arrangement with a future purchase option. This document type is particularly useful when a potential buyer cannot immediately purchase a property but wants to secure the right to do so while occupying the property as a tenant. The agreement must comply with German legal requirements, including notarization under the Beurkundungsgesetz and registration with the Grundbuchamt. It typically includes comprehensive terms covering both the lease period and the eventual purchase, including how lease payments are credited toward the purchase price, maintenance responsibilities, and conditions for exercising the purchase option. This contract type is commonly used in both commercial and residential real estate transactions, as well as for agricultural land, and must conform to specific provisions of the German Civil Code (BGB) regarding both lease agreements and property purchases.
Suggested Sections

1. Parties: Identification of the lessor/seller and lessee/buyer with full legal names and addresses

2. Background: Context of the agreement, including property history and parties' intentions regarding the lease-to-own arrangement

3. Definitions: Key terms used throughout the agreement, including Property, Lease Period, Purchase Option, and Purchase Price

4. Property Description: Detailed description of the land, including cadastral details, boundaries, and total area

5. Lease Terms: Duration of lease, rent amount, payment schedule, and maintenance responsibilities

6. Purchase Option: Terms for exercising the purchase option, including notice requirements and deadline

7. Purchase Price and Calculations: Total purchase price, credit of lease payments, and remaining balance calculations

8. Payment Terms: Payment structure for both lease and purchase phases, including deposit requirements

9. Property Use and Restrictions: Permitted uses of the property during the lease period and any restrictions

10. Maintenance and Repairs: Responsibilities for property maintenance, repairs, and improvements during the lease period

11. Insurance and Risk: Required insurance coverage and allocation of risk during lease period

12. Default and Remedies: Consequences of default in lease payments or breach of contract terms

13. Transfer of Ownership: Process and conditions for final property transfer upon exercise of purchase option

14. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction

15. Notarization: Requirements for notarial authentication as per German law

Optional Sections

1. Existing Buildings: Details about any existing structures on the property, their condition and included fixtures - used when the land has buildings

2. Agricultural Provisions: Special terms for agricultural land use and maintenance - included for agricultural properties

3. Environmental Conditions: Environmental assessments and responsibilities - included when environmental concerns exist

4. Development Rights: Terms regarding future development or construction - used when development is contemplated

5. Third-Party Rights: Existing easements, rights of way, or other encumbrances - included when applicable

6. Mineral Rights: Terms regarding mineral or subsurface rights - included for properties with valuable subsurface rights

7. Early Purchase Option: Terms for early exercise of purchase option - included when early purchase is allowed

Suggested Schedules

1. Property Plan: Detailed site plan and property boundaries

2. Land Registry Extract: Current extract from the German Land Registry (Grundbuch)

3. Payment Schedule: Detailed breakdown of lease payments and purchase price calculations

4. Property Condition Report: Documentation of property condition at lease commencement

5. Insurance Requirements: Detailed insurance specifications and coverage requirements

6. Permitted Use Details: Specific terms and conditions of permitted property use

7. Purchase Option Exercise Form: Template form for exercising the purchase option

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºìÐÓÖ±²¥ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions








































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Relevant Industries

Real Estate

Agriculture

Commercial Property Development

Residential Property Development

Industrial Property

Forestry

Urban Development

Rural Development

Construction

Property Investment

Relevant Teams

Real Estate

Legal

Property Management

Asset Management

Contract Administration

Business Development

Investment

Operations

Risk Management

Facilities Management

Property Development

Transaction Services

Relevant Roles

Real Estate Manager

Property Development Director

Legal Counsel

Contract Manager

Land Management Officer

Property Investment Manager

Real Estate Agent

Agricultural Land Manager

Commercial Property Manager

Asset Manager

Facilities Manager

Property Portfolio Manager

Real Estate Transaction Manager

Land Development Manager

Industries








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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