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Basic Commercial Lease Agreement Template for Malaysia

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Key Requirements PROMPT example:

Basic Commercial Lease Agreement

"I need a Basic Commercial Lease Agreement for a retail space in a shopping mall in Kuala Lumpur, with a 3-year term starting March 1, 2025, including specific provisions for operating hours and common area maintenance charges."

Document background
The Basic Commercial Lease Agreement serves as a fundamental legal document for leasing commercial property in Malaysia. It is designed for use when a property owner (landlord) wishes to lease commercial space to a business tenant under Malaysian law. The agreement incorporates essential provisions required by Malaysian legislation, including the National Land Code 1965, Contracts Act 1950, and relevant local authority regulations. This document is particularly suitable for straightforward commercial leasing arrangements where parties seek a clear, comprehensive agreement without overly complex terms. It covers key aspects such as lease duration, rental payments, maintenance obligations, and permitted use of the premises, while ensuring compliance with Malaysian legal requirements and commercial practices.
Suggested Sections

1. Parties: Identification of the landlord and tenant with full legal names and registration/identification numbers

2. Background: Brief context of the lease arrangement and property details

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

4. Demise: The formal grant of lease and specification of the premises being leased

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: Details of security deposit amount, payment, and conditions for return

8. Utilities and Outgoings: Responsibility for payment of utilities, assessments, and other charges

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

10. Maintenance and Repairs: Responsibilities of landlord and tenant for maintenance and repairs

11. Insurance: Required insurance coverage and responsibilities

12. Default and Remedies: Events of default and consequences, including termination rights

13. Assignment and Subletting: Restrictions on assignment and subletting of the premises

14. Governing Law: Specification of Malaysian law as governing law

15. Notices: Process for giving notices under the lease

Optional Sections

1. Guarantor Provisions: Include when there is a guarantor for the tenant's obligations

2. Fit-Out Works: Include when tenant will be conducting initial fit-out works

3. Option to Purchase: Include if tenant is given an option to purchase the property

4. Break Clause: Include if early termination options are to be provided

5. Service Charge: Include for properties with common areas or shared facilities

6. Green Lease Provisions: Include for environmentally conscious arrangements

7. Trading Requirements: Include when specific trading hours or conditions are required

8. Exclusivity Clause: Include when tenant is granted exclusive rights for certain business activities

Suggested Schedules

1. Schedule 1 - Property Description: Detailed description of the premises including floor plans and boundaries

2. Schedule 2 - Rent Review Provisions: Detailed mechanism for rent reviews if applicable

3. Schedule 3 - Service Charge Items: List of services covered under service charge if applicable

4. Schedule 4 - Fit-Out Guidelines: Technical specifications and requirements for any fit-out works

5. Schedule 5 - Building Rules: Rules and regulations for use of the building or complex

6. Schedule 6 - Condition Report: Initial condition of the premises with photographs

7. Appendix A - Plans and Drawings: Floor plans, location plans, and other relevant drawings

8. Appendix B - Handover Form: Template for property handover documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 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

Retail

Office Space

Industrial

Hospitality

Healthcare

Education

Technology

Professional Services

Manufacturing

Logistics

Food and Beverage

Entertainment

Banking and Finance

Relevant Teams

Legal

Real Estate

Operations

Finance

Facilities Management

Risk and Compliance

Property Management

Asset Management

Corporate Services

Administration

Relevant Roles

Property Manager

Real Estate Manager

Legal Counsel

Corporate Lawyer

Facilities Manager

Operations Director

Chief Financial Officer

Business Owner

Commercial Director

Leasing Manager

Asset Manager

Property Administrator

Compliance Officer

Risk Manager

Finance Manager

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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