The Simple Commercial Lease Agreement is a fundamental legal document used in Malaysia when a property owner (landlord) agrees to rent out commercial space to a business tenant. This document is essential for formalizing commercial tenancy arrangements and ensuring compliance with Malaysian property and contract law. It provides a comprehensive yet straightforward framework covering crucial aspects such as rent, tenure, maintenance obligations, and permitted use of the premises. The agreement is designed to protect both parties' interests while maintaining clarity and enforceability under Malaysian jurisdiction. It's particularly suitable for standard commercial leasing arrangements where complex provisions such as turnover rent or extensive service charge mechanisms are not required. The document incorporates relevant provisions from key Malaysian legislation including the National Land Code 1965 and Contracts Act 1950.
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1. Parties: Identifies and provides full details of the landlord and tenant, including registration numbers for companies
2. Background: Brief context about the property and purpose of the lease
3. Definitions: Defines key terms used throughout the agreement
4. Demise: Specifies the property being leased and the term of the lease
5. Rent and Payment Terms: Details the rent amount, payment schedule, and method of payment
6. Security Deposit: Specifies the security deposit amount and terms of its handling
7. Tenant's Covenants: Lists the tenant's obligations including maintenance, permitted use, and compliance with regulations
8. Landlord's Covenants: Lists the landlord's obligations including quiet enjoyment and structural repairs
9. Insurance: Specifies required insurance coverage and responsibilities
10. Utilities and Services: Details responsibility for utility payments and service charges
11. Assignment and Subletting: Conditions under which the tenant may or may not transfer the lease or sublet
12. Termination: Circumstances and procedures for ending the lease
13. Governing Law: Specifies Malaysian law as governing law and jurisdiction
14. Execution: Signature blocks and execution details
1. Option to Renew: Include when offering the tenant the option to extend the lease term
2. Break Clause: Include when either party has the right to terminate early under specific conditions
3. Rent Review: Include for longer leases where rent will be reviewed periodically
4. Fit-out Works: Include when tenant is permitted to perform initial renovation or fitting out
5. Service Charge: Include for properties in multi-tenanted buildings with shared services
6. Green Lease Provisions: Include when parties agree to environmental sustainability measures
7. Force Majeure: Include specific provisions for unforeseen circumstances affecting the lease
1. Schedule 1: Property Description: Detailed description of the premises including floor plans and measurements
2. Schedule 2: Inventory: List of fixtures, fittings, and equipment included in the lease
3. Schedule 3: Building Rules and Regulations: Specific rules for the use and operation of the property
4. Schedule 4: Service Charges: Breakdown of service charges and calculation method
5. Schedule 5: Permitted Use: Detailed description of allowed commercial activities
6. Schedule 6: Fit-out Guidelines: Technical specifications and requirements for any tenant improvements
7. Appendix A: Plans and Drawings: Floor plans, location plans, and other relevant drawings
Relevant legal definitions
Clauses
Relevant Industries
Retail
Office Space
Food & Beverage
Healthcare
Professional Services
Manufacturing
Warehousing
Technology
Education
Financial Services
Entertainment
Hospitality
Relevant Teams
Legal
Real Estate
Facilities Management
Operations
Finance
Procurement
Compliance
Property Management
Asset Management
Risk Management
Relevant Roles
Property Manager
Real Estate Manager
Facilities Manager
Legal Counsel
Business Owner
Operations Director
Chief Financial Officer
Commercial Director
Leasing Manager
Asset Manager
Company Secretary
Procurement Manager
Real Estate Director
Compliance Officer
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