The commercial lease purchase is a particular process through which the tenant has the option of not only renting the commercial property or equipment in question but also can purchase it from the lessor. However, this is not mandatory and the lessee can also choose to only rent the property. Essentially, this is profitable to business firms as they can not only rent the equipment required but can also secure it for exclusive production purposes by reserving the option to purchase it after the completion of the stipulated period. The commercial lease purchase must consist of mutual agreed terms by both lessor and the lessee.
Sample Commercial Lease Purchase:
The Commercial Lease Purchase has been created for the following parties:
- Lessor: SANDY Co. Ltd
- Lessee: MONT Corp.
This is in effect of the 500 computer keyboards to be supplied to the lessee for specific commercial purposes. The supply has been delivered on 5.6.2011
Duration of Lease: 3 years
Date of commencement of the lease: 5.6.2011
- The lessee has opted to purchase the equipment supplied after the completion of the stipulated rental period.
- The lessee must provide quarterly rental payments of $230 till purchase has been completed.
- A security deposit of $5000 has been made which will be adjusted after the purchase has been made. Only 25% of the security deposit is refundable.
- Separate charges/ penalties will be charged in case of any damage done to property before the purchase has been done.
- The lessee is liable to change the purchase option within the 3 year rental period.