The Lease Contract Agreement is a fundamental legal instrument used in Malaysia for formalizing property rental arrangements between landlords and tenants. This document is essential for both residential and commercial property leases, ensuring compliance with Malaysian legislation including the National Land Code 1965, Contracts Act 1950, and relevant state-specific regulations. It serves to protect the interests of all parties by clearly defining the terms of the lease, rental obligations, maintenance responsibilities, and conditions for termination. The agreement is particularly important in the Malaysian context where property relationships are governed by a combination of federal laws, state regulations, and common law principles. It should be properly stamped under the Stamp Act 1949 to be legally enforceable and admissible in Malaysian courts.
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1. Parties: Identification of the landlord and tenant with full legal names, identification numbers, and addresses
2. Background: Brief context of the lease arrangement and property ownership
3. Definitions: Key terms used throughout the agreement defined for clarity and legal certainty
4. Demised Premises: Detailed description of the leased property including address and boundaries
5. Term and Possession: Duration of lease, commencement date, and possession terms
6. Rent and Payment Terms: Rental amount, payment schedule, method of payment, and late payment consequences
7. Security Deposit: Amount, payment terms, and conditions for return of the security deposit
8. Utilities and Outgoings: Responsibility for utility payments, maintenance fees, and other charges
9. Maintenance and Repairs: Obligations of both parties regarding property maintenance and repairs
10. Use of Premises: Permitted use of the property and restrictions
11. Insurance: Insurance requirements for both parties
12. Termination: Grounds and procedure for early termination
13. Landlord's Covenants: Obligations and promises of the landlord
14. Tenant's Covenants: Obligations and promises of the tenant
15. Governing Law: Specification of Malaysian law as governing law and jurisdiction
1. Renovation and Alterations: Terms for making changes to the property - include for commercial leases or when renovations are anticipated
2. Option to Renew: Terms for lease renewal - include when offering tenant renewal rights
3. Subletting and Assignment: Terms for transferring lease rights - important for commercial properties
4. Quiet Enjoyment: Landlord's guarantee of tenant's undisturbed use - common in residential leases
5. Green Clause: Environmental and sustainability requirements - relevant for modern commercial properties
6. Force Majeure: Provisions for unforeseen circumstances - particularly relevant post-COVID
7. Pet Clause: Terms regarding keeping pets - relevant for residential properties where pets are allowed
8. Furniture and Fittings: Include for furnished properties with detailed inventory
1. Schedule 1 - Property Details: Detailed description of property including floor plan and boundaries
2. Schedule 2 - Inventory List: Detailed list of furniture, fixtures, and fittings (for furnished properties)
3. Schedule 3 - Service Charges: Breakdown of service charges and maintenance fees
4. Schedule 4 - House Rules: Building or development rules and regulations
5. Schedule 5 - Condition Report: Initial condition of the property with photographs
6. Appendix A - Special Conditions: Any additional terms specific to this lease
7. Appendix B - Maintenance Schedule: Regular maintenance responsibilities and schedules
8. Appendix C - Utilities Reading: Initial meter readings for utilities
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