A Commercial Lease Agreement is a fundamental legal instrument used in Malaysian commercial property transactions to establish a binding relationship between a property owner (landlord) and a business tenant. This document is essential when leasing any commercial space, including offices, retail outlets, industrial facilities, or warehouses. It must comply with Malaysian property law, particularly the National Land Code 1965 and relevant state regulations. The agreement typically includes detailed provisions on rent, tenure, maintenance obligations, permitted use, insurance requirements, and termination conditions. It serves to protect both parties' interests while ensuring clarity in their commercial relationship and compliance with local legal requirements. This type of agreement is particularly important in Malaysia's dynamic commercial property market, where clear documentation of rights and obligations is crucial for business operations.
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1. Parties: Identification of the landlord and tenant with full legal names, registration numbers for companies, and addresses
2. Background: Brief context of the lease arrangement and property ownership
3. Definitions: Definitions of key terms used throughout the agreement
4. Demise: Specific details of the property being leased and the grant of lease
5. Term and Renewal: Duration of lease, commencement date, and renewal terms
6. Rent and Payment Terms: Rental amount, payment schedule, and method of payment
7. Security Deposit: Amount, payment terms, and conditions for return of the security deposit
8. Permitted Use: Specified allowed uses of the premises
9. Maintenance and Repairs: Responsibilities of both parties regarding property maintenance
10. Utilities and Outgoings: Responsibility for utility payments and other operating costs
11. Insurance: Required insurance coverage for both parties
12. Landlord's Covenants: Obligations and promises of the landlord
13. Tenant's Covenants: Obligations and promises of the tenant
14. Termination: Grounds and procedures for termination of the lease
15. Assignment and Subletting: Conditions under which the tenant may assign or sublet the premises
16. Governing Law: Specification of Malaysian law as governing law
17. Notices: Process and addresses for serving formal notices
18. Execution: Signature blocks and execution formalities
1. Break Clause: Early termination options - include when parties want flexibility to end lease early
2. Fit-out Works: Regulations for initial tenant improvements - include when premises require modification
3. Service Charge: Details of service charge for common areas - include for multi-tenant buildings
4. Green Lease Provisions: Environmental and sustainability requirements - include for green buildings
5. Covid-19 Provisions: Specific provisions related to pandemic situations - include if relevant to parties
6. Option to Purchase: Tenant's right to purchase property - include if agreed between parties
7. Guarantee: Terms of any guarantee - include when tenant provides corporate/personal guarantee
1. Schedule 1 - Property Description: Detailed description of premises including floor plans and measurements
2. Schedule 2 - Rent Review Provisions: Detailed mechanism for rent reviews during the lease term
3. Schedule 3 - Building Rules and Regulations: Specific rules governing the use of the building and common areas
4. Schedule 4 - Inventory: List of landlord's fixtures and fittings included in the lease
5. Schedule 5 - Service Charge Items: Detailed breakdown of service charge components and calculations
6. Appendix A - Floor Plans: Architectural plans and drawings of the leased premises
7. Appendix B - Handover Condition Report: Documentation of property condition at lease commencement
Relevant legal definitions
Clauses
Relevant Industries
Commercial Real Estate
Retail
Office Space
Industrial
Hospitality
Healthcare
Education
Manufacturing
Warehousing
Technology
Professional Services
Banking and Finance
Relevant Teams
Legal
Real Estate
Facilities Management
Finance
Operations
Risk Management
Procurement
Corporate Services
Administration
Business Development
Relevant Roles
Property Manager
Facilities Manager
Real Estate Director
Chief Financial Officer
Legal Counsel
Operations Manager
Business Development Manager
Asset Manager
Commercial Director
Procurement Manager
Risk Manager
Company Secretary
Managing Director
Leasing Manager
Property Administrator
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