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Rajah Lehal

From Lease to Purchase

March 02, 2016

Links from this article: Read the article here.

A lease may have an option to purchase clause. For example, a lease may have a minimum rent provision along with a payment to be held in escrow for the purchase of the property. The escrow payment is not minimum rent.

County commissioners originally wanted to purchase the hangar that they leased, but could not since it was bond financed until 2020. Along with the monthly rent, the commissioners agreed to deposit an amount into an escrow agreement to go towards the purchase of the hangar.

Read the article here.Take away:

  • Parties can enter into an agreement to purchase, along with a commercial lease agreement, provided that the parties comply with the terms of the lease.

Written by Rajah. Rajah Lehal is Founder and CEO of Clausehound.com. Rajah is a legal technologist and technology lawyer who is, together with the Clausehound team, capturing and sharing lawyer expertise, building deal negotiation libraries, teaching negotiation in classrooms, and automating negotiation with software.