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Lease Option Assignment for Philippines

Lease Option Assignment Template for Philippines

This document facilitates the transfer of rights and obligations under a lease option agreement from the current holder (Assignor) to a new party (Assignee) in the Philippines. It is governed by Philippine law, particularly the Civil Code of the Philippines and relevant real estate regulations. The document outlines the terms of assignment, including consideration, representations and warranties, and the original lessor's consent. It ensures compliance with local property laws while protecting the interests of all parties involved in the transfer of lease option rights. The agreement includes provisions for the assignment of both the lease and the purchase option components, making it a crucial instrument in Philippine real estate transactions.

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What is a Lease Option Assignment?

The Lease Option Assignment document is essential in Philippine real estate transactions where a party holding a lease with an option to purchase wishes to transfer their rights to another party. This document type is commonly used in commercial, residential, and industrial property contexts where the original lease option holder cannot or chooses not to exercise their rights. It must comply with Philippine property law, including the Civil Code of the Philippines and relevant real estate regulations. The document typically includes detailed information about the original lease option agreement, the property involved, consideration for the assignment, and necessary consents. It's particularly important in the Philippine context where property transactions require strict documentation and often notarization. The assignment must address both the lease and option components while ensuring all local legal requirements are met.

What sections should be included in a Lease Option Assignment?

1. Parties: Identification of the Assignor (current lease option holder), Assignee (new lease option holder), and Original Lessor

2. Background: Details of the original lease option agreement, property description, and circumstances leading to the assignment

3. Definitions: Definitions of key terms used throughout the agreement, including 'Lease Option', 'Assignment Date', 'Property', etc.

4. Assignment: Core terms of the assignment, including rights and obligations being transferred

5. Consideration: Details of payment or other consideration for the assignment

6. Effective Date: Specification of when the assignment takes effect

7. Assignor's Representations and Warranties: Assignor's declarations regarding their right to assign, status of lease payments, etc.

8. Assignee's Covenants: Assignee's commitments to comply with original lease option terms

9. Original Lessor's Consent: Documentation of the original lessor's approval of the assignment

10. Governing Law: Specification of Philippine law as governing law and relevant jurisdiction

11. Execution: Signature blocks and execution requirements

What sections are optional to include in a Lease Option Assignment?

1. Security Deposit Transfer: Terms for transferring any existing security deposit, used when there is a security deposit under the original lease

2. Broker Provisions: Details of any broker involvement and commissions, included when brokers are involved in the assignment

3. Option Exercise Terms: Specific provisions about how and when the option can be exercised, included when the original option terms need modification

4. Due Diligence: Provisions for the assignee's investigation period, included when the assignee requires time to verify property condition or documents

5. Indemnification: Mutual or one-way indemnification provisions, included when additional protection is needed

6. Notice Requirements: Detailed notice procedures, included when specific communication protocols are needed

7. Assignment Conditions: Any specific conditions that must be met before the assignment becomes effective, included when there are prerequisites to assignment

What schedules should be included in a Lease Option Assignment?

1. Schedule A - Property Description: Detailed legal description of the property including boundaries, certificates of title, and any relevant surveys

2. Schedule B - Original Lease Option Agreement: Copy of the complete original lease option agreement being assigned

3. Schedule C - Payment Schedule: Details of any remaining payments under the lease option and assignment payment terms

4. Schedule D - Consent Documentation: Written consent from the original lessor and any other required parties

5. Schedule E - Property Condition Report: Current condition of the property if relevant to the assignment

6. Schedule F - Outstanding Obligations: List of any outstanding obligations under the original lease option

7. Appendix 1 - Required Notices: Copies of any required notices given to relevant parties regarding the assignment

Authors

Alex Denne

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

Jurisdiction

Philippines

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions



































Clauses




































Relevant Industries

Real Estate

Commercial Property

Retail

Industrial

Residential Property

Agriculture

Hospitality

Office Space

Manufacturing

Warehousing

Mixed-Use Development

Relevant Teams

Legal

Real Estate

Compliance

Property Management

Corporate Services

Facilities Management

Risk Management

Operations

Business Development

Asset Management

Relevant Roles

Real Estate Manager

Property Manager

Legal Counsel

Real Estate Attorney

Contract Administrator

Property Developer

Asset Manager

Compliance Officer

Real Estate Broker

Business Development Manager

Facilities Manager

Legal Operations Manager

Risk Manager

Corporate Real Estate Manager

Portfolio 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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