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Novation Of Tenancy Agreement
"I need a Novation of Tenancy Agreement for my Hong Kong commercial office space, where my company (ABC Trading Limited) will transfer our existing 5-year lease to XYZ Corporation effective March 1, 2025, with the landlord's consent already obtained."
1. Parties: Identifies the Landlord, Outgoing Tenant (Original Tenant), and Incoming Tenant (New Tenant), including full legal names and addresses
2. Background: Recitals explaining the existing tenancy agreement, its key terms, and the intention to novate the tenancy from the Outgoing Tenant to the Incoming Tenant
3. Definitions: Defines key terms used in the agreement, including 'Existing Tenancy Agreement', 'Effective Date', 'Property', and other relevant terms
4. Novation: Core clause establishing the novation, transfer of rights and obligations, and release of the Outgoing Tenant
5. Effective Date: Specifies when the novation takes effect and the timing of the transfer of responsibilities
6. Landlord's Consent: Explicit statement of the Landlord's consent to the novation and any conditions attached
7. Existing Tenancy Terms: Confirmation that all other terms of the original tenancy agreement remain unchanged
8. Security Deposit: Arrangements for the transfer or replacement of the security deposit
9. Representations and Warranties: Standard warranties from all parties regarding their capacity and authority to enter into the agreement
10. Governing Law and Jurisdiction: Specifies Hong Kong law as governing law and Hong Kong courts' jurisdiction
11. Execution: Signature blocks for all parties and execution formalities
1. Outstanding Obligations: Used when there are specific arrangements regarding any outstanding rent, utilities, or other payments due under the existing tenancy
2. Condition of Property: Include when there needs to be a formal acknowledgment of the property's condition at the time of transfer
3. Costs: Include when there is a need to specify how stamp duty and legal costs will be allocated between the parties
4. Guarantor: Required when the original tenancy had a guarantor or when the incoming tenant is providing a new guarantor
5. Assignment of Contracts: Include when there are additional contracts (e.g., utility agreements, maintenance contracts) that need to be transferred
6. Break Clause: Include if the parties wish to modify or clarify any existing break clause provisions
7. Confidentiality: Include when parties wish to keep the terms of the novation confidential
1. Schedule 1 - Original Tenancy Agreement: Copy of the existing tenancy agreement being novated
2. Schedule 2 - Property Details: Detailed description of the property including any fixtures and fittings
3. Schedule 3 - Outstanding Payments: List of any outstanding rent, utilities, or other payments and their status
4. Schedule 4 - Inventory: Current inventory list of furnishings and equipment if applicable
5. Appendix A - Consent Documents: Any required third-party consent documents (e.g., mortgagee consent)
6. Appendix B - Property Inspection Report: Current condition report of the property at the time of novation
Authors
Real Estate
Commercial Property
Residential Property
Retail
Hospitality
Office Space Management
Industrial
Education
Healthcare
Professional Services
Legal
Real Estate
Property Management
Facilities Management
Operations
Finance
Compliance
Risk Management
Administrative Services
Corporate Services
Property Manager
Legal Counsel
Real Estate Manager
Facilities Manager
Commercial Director
Operations Manager
Tenant Relations Manager
Asset Manager
Property Administrator
Leasing Manager
Company Secretary
Contract Manager
Risk Manager
Compliance Officer
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