This office lease provision states that at the end of the fifth (5th) year of the lease, the tenant shall have an option to purchase the building in which the premises is located at fair market value.
Keywords: Massachusetts provision, purchase option, types Description: The Massachusetts provision setting out a purchase option is a legal mechanism that allows parties involved in a contractual agreement, typically a lease or a rental agreement, to include a clause that grants the tenant or lessee the right to purchase the property at a predetermined price within a specific time frame. There are different types of Massachusetts provisions setting out a purchase option, each tailored to meet specific needs. These include: 1. Lease Purchase Option: This type of provision combines a traditional lease agreement with an option to purchase the property. It allows the tenant to use their lease payments as credit towards the eventual purchase of the property. The purchase price is agreed upon in advance, and the tenant usually has a set period, typically one to three years, to exercise the option. 2. Right of First Refusal: This provision grants a tenant or lessee the first opportunity to purchase the property if the landlord decides to sell. If the landlord receives an offer from a third party, they must notify the tenant and give them the chance to match or surpass the offered terms within a specified timeframe. 3. Lease Renewal with Purchase Option: This provision allows tenants to renew their lease agreement with the additional ability to purchase the property at a later date. It provides flexibility for tenants who may not be ready to buy immediately but want the option down the line. The purchase price and time frame are usually negotiated during the lease renewal process. 4. Lease-Option Agreement: This type of provision grants the tenant both the right to lease the property for a specified time period and an option to purchase it at a later date. The tenant pays an upfront option fee for the right to exercise the purchase option within a predetermined period. If the option is exercised, a portion of the rent paid during the lease period may be credited towards the purchase. The Massachusetts provision setting out a purchase option offers various opportunities for tenants and lessees to eventually become property owners. It provides a structured framework that protects the rights and interests of all parties involved in the transaction.
