Rent Option Clause Samples
The 'Rent – Option' clause establishes the tenant's right to lease a property with the added possibility of purchasing it at a later date, typically under pre-agreed terms. In practice, this clause outlines the conditions under which the tenant may exercise the purchase option, such as the timeframe for making the decision and any portion of rent that may be credited toward the purchase price. Its core function is to provide flexibility for tenants who may wish to buy the property in the future, while giving landlords a potential buyer and continued rental income, thus addressing uncertainty for both parties.
Rent Option. The Base Monthly Rental payable by Tenant during the option period shall be an amount equal to 102% of the Base Monthly Rental payable during the final month of the Lease Term, and shall be increased annually on each anniversary thereafter, by an amount equal to 2.00% of the Base Monthly Rental for the preceding year.
Rent Option. 22.1 The LESSOR herein grants in favor of the LESSEE an irrevocable option of leasing approximately 20,000 square meters of land adjacent to the Leased Property and indicated for reference in the plan annexed herein as Attachment "A-2" (hereinafter the "Adjacent Land or Option") for which the LESSOR agrees to carry out the construction of a building, on the basis of the specifications agreed upon by the LESSOR and the LESSEE. The rent Option of the Adjacent Land shall be in effect during the first five (5) years of the initial term hereof and may be exercised in two phases by the LESSEE, each one for approximately 10,000 square meters of land, marked for reference in the plan that is annexed herein as Attachment "A-2", and also marked in the same plan as Phase 1 and Phase 2 (hereinafter referred to as "Phase 1", and "Phase 2", respectively). The option granted herein shall be subject to the following terms:
22.1.1 The rent option of Phase 1 for the future construction of an expansion to the Leased Property shall be granted without any counterclaim for an initial term of two (2) years, beginning on the Date of Commencement of the Lease.
22.1.2 Upon termination of the second year of the Date of Commencement of the Lease, the LESSEE, at its choice, shall extend the term for the rent option of Phase 1 without performing any construction whatsoever of an industrial shell for an additional period of three (3) years, against payment to the LESSOR of the amount of $5,380.00 Monthly Dollars; said amount shall increase annually on every anniversary date of the Date of Commencement of the Lease, at the annual rate of two percent (2%).
22.1.3 The option to lease Phase 2, the Adjacent Land (or Option) for the eventual construction of an expansion of the Leased Property shall be granted with no consideration whatsoever for an initial term of three (3) years beginning on the Date of Commencement of the Lease. At its own choice, the LESSEE may extend the term of the option with respect to Phase 2 after said date, and for the remainder of the Initial Term of the Lease with without any need to perform any construction whatsoever, by paying LESSOR the amount of $5,380.00 Monthly Dollars, additional to the amount
Rent Option