Process of purchase of leased land from lessor by lessee

The process of purchase of leased land from lessor by lessee may vary depending on the terms and conditions of the lease agreement, the type of lease, the laws of the state and the consent of the parties involved. However, here are some general steps to consider:

• Review the lease agreement and check if it contains any clause or option that allows the lessee to purchase the leased land from the lessor at a predetermined price or formula, or at the end of the lease term. This is known as a lease-purchase or a lease-option agreement.

• If there is no such clause or option in the lease agreement, then the lessee will have to negotiate with the lessor and obtain his consent to sell the leased land. The lessee will have to make an offer to the lessor and agree on the purchase price and other terms and conditions of the sale.

• The lessee will have to obtain a legal title report or a title search on the leased land to verify the ownership, encumbrances, liens, easements and other issues that may affect the transfer of title. The lessee will also have to conduct a survey, inspection and appraisal of the leased land to determine its physical condition and market value.

• The lessee will have to prepare a purchase agreement or a contract of sale with the lessor, which will include all the essential details of the transaction, such as the purchase price, earnest money deposit, closing date, contingencies, warranties, representations, etc. The purchase agreement will have to be signed by both parties and witnessed by a notary public or an attorney.

• The lessee will have to arrange for financing for the purchase of the leased land, either through a bank loan, a mortgage, a personal loan or any other source of funds. The lessee will have to provide proof of income, credit history, assets and liabilities to the lender and obtain a loan approval letter or a commitment letter.

• The lessee will have to pay for various fees and charges associated with the purchase of the leased land, such as stamp duty, registration fees, transfer taxes, legal fees, title insurance fees, appraisal fees, inspection fees, etc. The lessee will also have to obtain a no objection certificate (NOC) from the lessor or any other authority that may have an interest in the leased land.

• The lessee will have to close the transaction and complete the transfer of title of the leased land from the lessor to himself. The closing will involve signing and exchanging various documents, such as deed of conveyance, mortgage deed, promissory note, settlement statement, etc. The closing will also involve paying the balance of the purchase price to the lessor and receiving the possession of the leased land from him.