The Commercial Property Rental Agreement is a fundamental legal document used in Hong Kong for leasing commercial real estate, including office spaces, retail units, industrial properties, and other business premises. This agreement is essential when a property owner (landlord) wishes to rent their commercial property to a business tenant, establishing legally binding terms under Hong Kong law. The document incorporates key provisions required by Hong Kong legislation while allowing for commercial flexibility, covering crucial aspects such as rent, tenure, maintenance obligations, permitted use, and other commercial terms. Unlike residential tenancies, commercial leases in Hong Kong have fewer statutory restrictions, enabling more negotiation freedom between parties.
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1. Parties: Identifies and provides full details of the landlord and tenant, including registration numbers for companies
2. Background: Brief context of the agreement and property letting
3. Definitions: Defines key terms used throughout the agreement
4. Demise: Specifies the exact premises being leased and any included facilities or areas
5. Term: Details of the lease duration, commencement date, and any option to renew
6. Rent and Payment Terms: Specifies rent amount, payment schedule, payment method, and late payment consequences
7. Security Deposit: Details of the security deposit amount, payment, holding, and return conditions
8. Government Rent, Rates, and Management Fees: Allocation of responsibility for various property-related charges
9. Permitted Use: Specifies allowed business activities and any restrictions on property use
10. Repairs and Maintenance: Defines responsibilities for property maintenance, repairs, and alterations
11. Insurance: Required insurance coverage for both parties
12. Utilities and Services: Responsibilities for utility connections, payments, and service charges
13. Landlord's Covenants: Landlord's obligations and warranties
14. Tenant's Covenants: Tenant's obligations and warranties
15. Termination: Conditions and procedures for early termination
16. Default and Remedies: Consequences of breach and available remedies
17. Assignment and Subletting: Rules regarding transfer of lease or subletting the premises
18. Notices: Procedures for formal communications between parties
19. Governing Law: Confirms Hong Kong law governs the agreement
1. Break Clause: Optional provision allowing early termination under specific conditions
2. Rent Review: Include when periodic rent adjustments are desired during the term
3. Renovation Period: Include when initial rent-free fitting out period is granted
4. Property Management: Include for properties in multi-tenant buildings with shared facilities
5. Exclusive Use: Include when tenant requires exclusivity for their business type in the building
6. Option to Purchase: Include when granting tenant right to purchase the property
7. Force Majeure: Include specific provisions for unforeseen circumstances like pandemics
8. Environmental Compliance: Include for properties with specific environmental requirements
9. Signage Rights: Include when specific signage rights are being granted
1. Schedule 1 - Property Details: Detailed description of premises, including floor plans and measurements
2. Schedule 2 - Rent Calculation: Breakdown of rent, including any turnover rent calculations
3. Schedule 3 - Condition Survey: Initial condition report of the premises
4. Schedule 4 - Fixtures and Fittings: Inventory of landlord's fixtures and fittings
5. Schedule 5 - Building Rules: Building management rules and regulations
6. Schedule 6 - Service Charges: Breakdown of service charges and calculation method
7. Appendix A - Plans: Floor plans, location plans, and any relevant drawings
8. Appendix B - Handover Condition: Photographs and description of premises condition at handover
9. Appendix C - Permitted Alterations: Pre-approved alterations or tenant improvement works
Relevant legal definitions
Clauses
Relevant Industries
Retail
Office
Industrial
Hospitality
Healthcare
Education
Financial Services
Technology
Manufacturing
Logistics
Food and Beverage
Professional Services
Entertainment
Automotive
Warehouse and Storage
Relevant Teams
Legal
Finance
Operations
Facilities Management
Real Estate
Risk and Compliance
Procurement
Business Development
Property Management
Administration
Corporate Services
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
Real Estate Manager
Facilities Manager
Property Manager
Legal Counsel
Commercial Director
Operations Manager
Finance Director
Business Development Manager
Procurement Manager
Risk Manager
Compliance Officer
Store Manager
Branch Manager
Regional Manager
Asset Manager
Property Investment Manager
Company Secretary
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