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New Lease Agreement for Hong Kong

New Lease Agreement Template for Hong Kong

A comprehensive legal agreement governed by Hong Kong law that establishes the terms and conditions for the rental of property between a landlord and tenant. This document incorporates specific requirements under Hong Kong's Landlord and Tenant (Consolidation) Ordinance and related legislation, detailing rent payments, security deposits, maintenance obligations, and other essential terms. The agreement ensures compliance with local property laws while protecting the interests of all parties involved, including provisions for management fees, utilities, and other obligations specific to Hong Kong's property market.

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What is a New Lease Agreement?

The New Lease Agreement is a fundamental legal document used in Hong Kong's property market to establish a formal landlord-tenant relationship. It is essential when a property owner (landlord) wishes to grant a lease to an occupier (tenant) for a specified term. The document must comply with Hong Kong's legal requirements, particularly the Landlord and Tenant (Consolidation) Ordinance, and includes crucial provisions regarding rent, deposits, maintenance obligations, and rules for property use. This New Lease Agreement is typically used at the commencement of a new tenancy and should be stamped within 30 days of execution as per Hong Kong's Stamp Duty Ordinance. The agreement serves as the primary reference point for both parties' rights and obligations throughout the lease term.

What sections should be included in a New Lease Agreement?

1. Parties: Identification and details of the landlord and tenant, including full legal names and addresses

2. Background: Brief context of the lease arrangement and property ownership

3. Definitions: Key terms used throughout the agreement including Property, Term, Rent, and other important defined terms

4. Demise: The formal grant of the lease and specification of the property being leased

5. Term: Duration of the lease, including start and end dates

6. Rent and Payment Terms: Rent amount, payment schedule, method of payment, and late payment provisions

7. Deposit: Security deposit amount, terms of holding and return conditions

8. Tenant's Covenants: Core obligations of the tenant including maintenance, permitted use, and conduct restrictions

9. Landlord's Covenants: Core obligations of the landlord including quiet enjoyment and structural repairs

10. Utilities and Outgoings: Responsibility for utilities, management fees, government rent, and rates

11. Insurance: Required insurance coverage and responsibilities of each party

12. Termination: Circumstances and procedures for early termination and consequences

13. Assignment and Subletting: Restrictions on transfer of the lease or subletting the property

14. Notices: How formal notices must be given between parties

15. Governing Law: Confirmation of Hong Kong law as governing law and jurisdiction

16. Execution: Signature blocks and execution formalities

What sections are optional to include in a New Lease Agreement?

1. Special Conditions: Additional terms specific to the property or circumstances, used when there are unique features or requirements

2. Break Clause: Optional early termination rights, included when parties want flexibility to end the lease early

3. Rent Review: Mechanism for adjusting rent during the term, used in longer leases

4. Management Company Provisions: Required when the property is part of a managed building or complex

5. Renovation and Alterations: Detailed provisions about permitted modifications, used when significant alterations are anticipated

6. Car Parking: Terms related to parking facilities, included when parking spaces are part of the lease

7. Air-Conditioning: Special provisions for central air-conditioning services and charges, used in commercial buildings

8. Guarantor Provisions: Required when there is a guarantor for the tenant's obligations

What schedules should be included in a New Lease Agreement?

1. Schedule 1 - Property Description: Detailed description of the leased premises including floor plan and boundaries

2. Schedule 2 - Inventory: List of furniture, fixtures, and equipment included in the lease

3. Schedule 3 - House Rules: Building or estate rules and regulations

4. Schedule 4 - Fitting Out Guidelines: Specifications for any permitted renovations or alterations

5. Schedule 5 - Service Charges: Breakdown of management fees and other service charges

6. Appendix A - Handover Condition: Photos and description of the property condition at handover

7. Appendix B - Approved Plans: Floor plans and approved layouts of the premises

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Hong Kong

Document Type

Employee Handbook

Cost

Free to use

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