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Preliminary Lease Agreement Template for Philippines

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Key Requirements PROMPT example:

Preliminary Lease Agreement

"I need a Preliminary Lease Agreement for a commercial warehouse property in Manila, Philippines, with special provisions for environmental compliance and a 60-day due diligence period before converting to a formal lease."

Document background
The Preliminary Lease Agreement is a crucial document used in Philippine real estate transactions when parties wish to formalize their intent to enter into a lease arrangement while finalizing details or conducting due diligence. This document serves as a bridge between initial negotiations and the final lease agreement, providing legal protection for both parties during this interim period. It typically includes essential terms such as property description, proposed rental rates, security deposit requirements, and conditions that must be met before proceeding to a formal lease. The agreement is particularly useful in commercial transactions where detailed due diligence is required, or when either party needs to secure additional approvals or complete certain actions before committing to a long-term lease. Under Philippine law, this preliminary agreement is binding and enforceable, subject to the provisions of the Civil Code and relevant property legislation.
Suggested Sections

1. Parties: Identification of the Lessor and Lessee with complete details including addresses and tax identification numbers

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

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

4. Property Details: Detailed description of the property including exact location, measurements, and current condition

5. Term and Commencement: Duration of the preliminary lease and conditions for commencement

6. Rental Amount and Payment Terms: Specified rental amount, payment schedule, and method of payment

7. Security Deposit and Advance Rent: Details of required security deposit and advance rent payments

8. Conditions Precedent: Conditions that must be met before the formal lease agreement is executed

9. Due Diligence: Rights and obligations regarding property inspection and verification

10. Representations and Warranties: Standard declarations by both parties regarding their capacity and authority

11. Termination: Circumstances under which the preliminary lease can be terminated

12. Governing Law: Specification of Philippine law as governing law

13. Execution: Signature blocks and execution formalities

Optional Sections

1. Fit-out Period: Terms for any renovation or modification period, used when the property requires tenant improvements

2. Broker Involvement: Details of any broker or agent involvement and associated fees, included when a broker facilitated the transaction

3. Option to Lease: Terms for converting the preliminary lease into a formal lease, included when there's a specific option period

4. Environmental Compliance: Environmental requirements and certificates, necessary for industrial or commercial properties

5. Parking Rights: Details of parking arrangements, included for commercial buildings or properties with parking facilities

6. Common Areas: Rights and obligations regarding common areas, included for properties in multi-tenant buildings

7. Construction/Renovation Clause: Details of any pending construction or renovation work, included when property is under development

Suggested Schedules

1. Schedule A - Property Details: Detailed technical description of the property including floor plans and measurements

2. Schedule B - Payment Schedule: Detailed breakdown of all payments including security deposit, advance rent, and other fees

3. Schedule C - Property Photos: Current photographs documenting the condition of the property

4. Schedule D - Due Diligence Requirements: List of documents and verifications required for due diligence

5. Schedule E - Building Rules: Applicable building rules and regulations if property is in a managed building

6. Appendix 1 - Required Permits: List of permits and certificates required before formal lease execution

7. Appendix 2 - Form of Formal Lease: Draft or template of the intended formal lease agreement

Authors

Alex Denne

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

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Relevant Industries

Real Estate

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Relevant Teams

Legal

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Relevant Roles

Real Estate Manager

Property Manager

Facilities Manager

Legal Counsel

Corporate Lawyer

Real Estate Broker

Business Development Manager

Operations Director

Chief Financial Officer

Real Estate Director

Leasing Manager

Asset Manager

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Company Secretary

Risk Manager

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