The Land Lease Agreement is a crucial legal instrument in Malaysian property transactions, used when a landowner (lessor) grants another party (lessee) the right to use and occupy land for a specified period in exchange for rent. This document type is essential in Malaysia's property landscape, where land leasing is common practice for various purposes including commercial development, agricultural use, and industrial operations. The agreement must comply with the National Land Code 1965 and relevant state land rules, making it particularly important to include specific provisions required by Malaysian law. It typically contains detailed terms about property use, development rights, maintenance obligations, and lease termination conditions, while also addressing unique aspects of Malaysian land law such as restrictions on foreign ownership and state authority requirements.
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1. Parties: Identification and details of the lessor and lessee, including registration numbers for companies or NRIC for individuals
2. Background: Context of the lease arrangement and brief description of the property
3. Definitions: Definitions of key terms used throughout the agreement
4. Demise: Formal grant of lease and description of the leased property
5. Term and Possession: Duration of lease, commencement date, and possession details
6. Rent and Payment Terms: Rental amount, payment schedule, and method of payment
7. Security Deposit: Amount, payment terms, and conditions for return of security deposit
8. Use of Premises: Permitted use of the property and any restrictions
9. Maintenance and Repairs: Responsibilities of parties for maintenance and repairs
10. Insurance: Required insurance coverage and responsibilities
11. Assignment and Subletting: Restrictions and conditions for assignment or subletting
12. Termination: Grounds and procedure for termination
13. Governing Law: Confirmation of Malaysian law as governing law
14. Dispute Resolution: Process for resolving disputes between parties
1. Development Rights: Used when lessee is permitted to develop the land, including construction rights and obligations
2. Agricultural Provisions: Required when the land is used for agricultural purposes, including crop rights and farming obligations
3. Environmental Obligations: Included when there are specific environmental considerations or requirements
4. Right of First Refusal: Optional clause giving lessee first right to purchase property or extend lease
5. Utilities and Services: Detailed provisions about utility responsibilities when relevant to the property type
6. Force Majeure: Provisions for unforeseen circumstances affecting the lease
7. Option to Purchase: Included when lessor offers lessee the option to purchase the property during the lease term
1. Property Description Schedule: Detailed description of the property including lot number, title details, and site plan
2. Rental Payment Schedule: Detailed breakdown of rent payments, including any scheduled increases
3. Condition Report: Documentation of property condition at commencement of lease
4. Permitted Use Details: Specific details of permitted activities and restrictions on the property
5. Maintenance Schedule: Detailed breakdown of maintenance responsibilities between parties
6. Special Conditions: Any additional terms or conditions specific to the lease
7. Plans and Drawings: Property plans, building plans, or development plans if applicable
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Relevant Roles
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