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Commercial Property Lease Agreement Template for Malaysia

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Key Requirements PROMPT example:

Commercial Property Lease Agreement

"I need a Commercial Property Lease Agreement for a retail space in Kuala Lumpur's Bukit Bintang area, with a 3-year term starting March 1, 2025, including provisions for franchise operations and extended trading hours."

Document background
The Commercial Property Lease Agreement is a fundamental document used in Malaysian commercial real estate transactions to establish a legally binding relationship between property owners and business tenants. This document is essential when any business entity seeks to lease commercial space in Malaysia, whether for retail, office, industrial, or other commercial purposes. The agreement must comply with Malaysian legal requirements, including the National Land Code 1965, Contracts Act 1950, and relevant state legislation. It covers crucial aspects such as rental terms, security deposits, maintenance obligations, permitted use, and termination conditions. The document serves as a comprehensive framework to protect both landlord and tenant interests while ensuring smooth commercial property operations within the Malaysian legal context.
Suggested Sections

1. Parties: Identification of the landlord and tenant, including full legal names, registration numbers for companies, and addresses

2. Background: Context of the lease arrangement and brief description of the property

3. Definitions: Definitions of key terms used throughout the agreement

4. Demised Premises: Detailed description of the leased property and any included fixtures and fittings

5. Term and Renewal: Duration of the lease and any renewal options

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. Utilities and Outgoings: Responsibility for utilities, service charges, and other outgoings

9. Use of Premises: Permitted use of the premises and any restrictions

10. Maintenance and Repairs: Responsibilities of both parties regarding maintenance and repairs

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: Circumstances and procedures for termination of the lease

15. Governing Law: Specification of Malaysian law as the governing law

16. Execution: Signature blocks and execution requirements

Optional Sections

1. Option to Purchase: Include when the tenant is given the option to purchase the property during the lease term

2. Fit-Out Works: Include when the tenant is permitted to carry out improvement works or modifications

3. Assignment and Subletting: Include when the tenant may be allowed to assign or sublet the premises

4. Break Clause: Include when either party is given the option to terminate the lease early under specific conditions

5. Green Lease Provisions: Include for environmentally conscious arrangements with specific sustainability requirements

6. Change of Control: Include when restrictions on change in tenant's ownership structure are needed

7. Force Majeure: Include when specific provisions for unforeseen circumstances are required

8. Guarantee: Include when a guarantor is required for the tenant's obligations

Suggested Schedules

1. Schedule 1 - Property Plan: Detailed floor plan and location map of the premises

2. Schedule 2 - Inventory: List of fixtures, fittings, and equipment included in the lease

3. Schedule 3 - Service Charges: Breakdown of service charges and calculation method

4. Schedule 4 - Building Rules: Rules and regulations for use of the building and common areas

5. Schedule 5 - Fit-Out Guidelines: Technical specifications and requirements for any permitted modifications

6. Schedule 6 - Handover Condition: Documented condition of premises at commencement of lease

7. Schedule 7 - Permitted Use: Detailed description of allowed business activities

8. Appendix A - Registration Documents: Copies of relevant company registration documents and authorizations

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



























Clauses

































Relevant Industries

Real Estate

Retail

Food & Beverage

Professional Services

Healthcare

Financial Services

Technology

Manufacturing

Education

Hospitality

Logistics

Entertainment

Relevant Teams

Legal

Real Estate

Operations

Finance

Facilities Management

Risk & Compliance

Business Development

Property Management

Asset Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Property Manager

Facilities Manager

Real Estate Director

Legal Counsel

Operations Manager

Business Development Manager

Finance Manager

Asset Manager

Leasing Manager

Commercial Director

Risk Manager

Compliance Officer

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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