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Development Lease Agreement

Development Lease Agreement Template for Malaysia

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Key Requirements PROMPT example:

Development Lease Agreement

"I need a Development Lease Agreement for a 5-acre commercial property in Kuala Lumpur, with construction starting March 2025 and specific provisions for green building certification and environmental compliance."

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Document background
The Development Lease Agreement is a crucial document in Malaysian property development, commonly used when a landowner wishes to grant development rights to a developer without transferring ownership of the land. This agreement type is particularly relevant in situations involving long-term development projects where the developer requires secure tenure to undertake significant construction work and obtain financing. The document must comply with Malaysian legal requirements, including the National Land Code 1965, Town and Country Planning Act 1976, and relevant state legislation. It typically includes detailed provisions for development phases, payment structures, regulatory compliance, and eventual property handover, making it essential for major construction and development projects in Malaysia.
Suggested Sections

1. Parties: Identification of the lessor and lessee with full legal names and details

2. Background: Context of the development lease, including property details and development intention

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Grant of Lease: Terms of the lease grant, including duration and purpose

5. Development Rights and Obligations: Detailed rights and responsibilities regarding the development project

6. Development Timeline: Key milestones, completion dates, and development phases

7. Rent and Other Payments: Financial terms including rent, development premiums, and other charges

8. Security Deposit: Details of security deposit requirements and terms

9. Representations and Warranties: Statements of fact and assurances from both parties

10. Regulatory Compliance: Obligations regarding permits, approvals, and compliance with laws

11. Insurance and Indemnity: Insurance requirements and indemnification provisions

12. Default and Termination: Events of default, remedies, and termination procedures

13. Assignment and Subletting: Rights and restrictions regarding transfer of interests

14. Dispute Resolution: Procedures for resolving disputes between parties

15. General Provisions: Standard boilerplate clauses including notices, governing law, etc.

Optional Sections

1. Environmental Protection: Required when development has significant environmental impact or requires EIA

2. Strata Development: Include when development involves subdivision into strata titles

3. Government Guarantees: Needed when one party is a government entity providing certain guarantees

4. Special Development Conditions: For projects with unique requirements or restrictions

5. Profit Sharing: When parties agree to share development profits

6. Step-In Rights: Required when financiers need right to take over project upon default

7. Community Obligations: When development includes public facilities or community commitments

8. Force Majeure: Detailed force majeure provisions for high-risk developments

Suggested Schedules

1. Property Description: Detailed legal description of the land, including title particulars

2. Development Plans: Approved architectural plans, layouts, and specifications

3. Development Schedule: Detailed timeline of construction phases and milestones

4. Payment Schedule: Breakdown of all payments, including rent, premiums, and deposits

5. Required Approvals: List of all regulatory approvals and permits required

6. Technical Specifications: Detailed construction and development specifications

7. Form of Performance Bond: Template for required performance bond or guarantee

8. Insurance Requirements: Detailed insurance specifications and coverage requirements

9. Environmental Requirements: Environmental standards and compliance requirements

10. Handover Conditions: Specifications for property condition upon completion

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions












































Clauses



































Relevant Industries

Real Estate Development

Construction

Commercial Property

Residential Property

Infrastructure Development

Urban Planning

Industrial Development

Mixed-use Development

Retail Development

Hospitality

Relevant Teams

Legal

Real Estate

Development

Construction

Property Management

Compliance

Finance

Risk Management

Environmental

Planning

Relevant Roles

Real Estate Director

Development Manager

Legal Counsel

Property Manager

Project Manager

Construction Manager

Land Acquisition Manager

Compliance Officer

Planning Director

Chief Development Officer

Contract Manager

Risk Manager

Financial Controller

Environmental Compliance 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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