The Pre-Lease Agreement is a crucial document in Hong Kong's property market, typically used when parties have agreed in principle to a lease arrangement but need time to finalize details or meet certain conditions before executing the final lease. This document is particularly valuable in commercial property transactions where significant due diligence, fit-out works, or regulatory approvals may be required. The agreement provides security to both landlord and tenant by documenting their commitments while allowing flexibility for final negotiations. It includes essential information such as property details, proposed commercial terms, conditions precedent, timelines, and any specific requirements for lease execution. While not as detailed as the final lease, the Pre-Lease Agreement creates legally binding obligations under Hong Kong law regarding certain key terms and the parties' commitment to proceed with the lease, subject to specified conditions.
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1. Parties: Identification of the potential landlord and tenant, including full legal names and addresses
2. Background: Context of the agreement, including brief description of the property and parties' intention to enter into a lease
3. Definitions: Key terms used throughout the agreement, including 'Property', 'Lease Commencement Date', 'Term', etc.
4. Property Details: Specific description of the premises to be leased, including address and any included fixtures/fittings
5. Lease Terms: Key terms to be included in the final lease, including proposed rent, term, and permitted use
6. Conditions Precedent: Conditions that must be satisfied before the parties are obligated to enter into the final lease agreement
7. Deposit: Details of any initial deposit required, payment terms, and conditions for refund
8. Timeline: Key dates including due diligence period, lease execution deadline, and proposed commencement date
9. Binding Effect: Clarity on which provisions are legally binding and which are subject to final lease negotiation
10. Termination Rights: Circumstances under which either party may terminate the pre-lease agreement
11. Governing Law and Jurisdiction: Confirmation that Hong Kong law governs and Hong Kong courts have jurisdiction
1. Due Diligence: Detailed provisions regarding the tenant's right to conduct property inspections and reviews - include when significant due diligence is expected
2. Landlord's Works: Details of any modifications or improvements the landlord agrees to make before lease commencement - include when property modifications are planned
3. Break Rights: Any pre-agreed break options to be included in the final lease - include for longer term leases
4. Building Rules: Reference to any specific building regulations or restrictions - include for properties in managed buildings
5. Broker Provisions: Terms regarding real estate broker or agent involvement and commissions - include when brokers are involved
6. Rent Free Period: Details of any agreed rent-free period - include when this forms part of the commercial terms
1. Schedule 1 - Property Description: Detailed description of the property including floor plans and measurements
2. Schedule 2 - Commercial Terms: Summary of key commercial terms including rent, term, and payment details
3. Schedule 3 - Condition Precedent Checklist: List of all conditions that must be satisfied before lease execution
4. Schedule 4 - Timeline: Detailed timeline of key dates and deadlines
5. Appendix A - Property Plans: Floor plans and location maps of the property
6. Appendix B - Form of Final Lease: Draft or template of the proposed final lease agreement if already available
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Commercial Property
Retail
Financial Services
Professional Services
Technology
Manufacturing
Hospitality
Healthcare
Education
Non-Profit Organizations
Logistics
Co-working Spaces
Relevant Teams
Legal
Real Estate
Operations
Finance
Procurement
Facilities Management
Risk Management
Compliance
Corporate Development
Administration
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
Real Estate Director
Facilities Manager
Property Manager
Legal Counsel
Corporate Lawyer
Real Estate Lawyer
Operations Manager
Project Manager
Commercial Director
Procurement Manager
Business Development Manager
Finance Manager
Asset Manager
Property Consultant
Leasing Manager
Risk Manager
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