The Building Lease Agreement is a crucial document in Hong Kong's property market, used when a property owner (landlord) grants a tenant the right to occupy and use a building or premises for a specified period. This agreement is particularly important given Hong Kong's dense urban environment and complex property regulations. The document must comply with Hong Kong's legal framework, including the Landlord and Tenant (Consolidation) Ordinance, Buildings Ordinance, and relevant property laws. It typically includes detailed provisions on rent, tenure, maintenance responsibilities, permitted use, insurance requirements, and building management regulations. The agreement is essential for protecting both parties' interests and ensuring clear understanding of their respective rights and obligations throughout the lease term.
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1. Parties: Identification and details of the landlord and tenant, including their respective addresses and registration numbers if companies
2. Background: Context of the lease agreement, including brief description of the property and purpose of the lease
3. Definitions: Definitions of key terms used throughout the agreement
4. Demise: Formal grant of the lease, specifying the exact premises being leased
5. Term and Commencement: Duration of the lease and its start date
6. Rent and Payment Terms: Rental amount, payment schedule, and method of payment
7. Deposits and Advanced Payments: Details of security deposit, advance rent, and other required payments
8. Use of Premises: Permitted use of the premises and any restrictions
9. Tenant's Covenants: Obligations and responsibilities of the tenant
10. Landlord's Covenants: Obligations and responsibilities of the landlord
11. Insurance: Required insurance coverage and responsibilities
12. Maintenance and Repairs: Responsibilities for maintaining and repairing the premises
13. Utilities and Services: Arrangements for utilities, services, and associated costs
14. Assignment and Subletting: Rules regarding transfer of lease rights or subletting
15. Termination: Conditions and procedures for ending the lease
16. Governing Law: Specification of Hong Kong law as governing law
17. Execution: Signature blocks and execution formalities
1. Break Clause: Optional provision allowing early termination under specific conditions
2. Rent Review: Mechanism for periodic rent adjustments, typically included in longer leases
3. Renovation and Alterations: Specific provisions regarding modifications to the premises, important for commercial leases
4. Green Lease Provisions: Environmental and sustainability requirements, increasingly common in modern commercial leases
5. Force Majeure: Provisions for unforeseen circumstances affecting lease obligations
6. Option to Renew: Terms for extending the lease beyond its initial term
7. Building Management: Specific provisions relating to building management rules and regulations, relevant for multi-tenant buildings
8. Car Parking: Provisions for car parking rights and associated terms
9. Signage Rights: Terms regarding external signage, important for commercial premises
1. Schedule 1 - Property Description: Detailed description of the premises, including floor plans and measurements
2. Schedule 2 - Rent Payment Schedule: Detailed breakdown of rent payments, including due dates and amounts
3. Schedule 3 - Building Rules and Regulations: Comprehensive list of building rules and management regulations
4. Schedule 4 - Inventory: List of fixtures, fittings, and furniture included in the lease
5. Schedule 5 - Service Charges: Breakdown of service charges and management fees
6. Appendix A - Floor Plans: Detailed floor plans and architectural drawings of the premises
7. Appendix B - Handover Condition Report: Documentation of the premises' condition at the start of the lease
8. Appendix C - Fitting Out Guidelines: Specifications and requirements for any tenant improvements or modifications
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