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Leasehold Contract Template for Malaysia

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Key Requirements PROMPT example:

Leasehold Contract

"I need a Leasehold Contract for a commercial retail space in Kuala Lumpur, starting from March 1, 2025, with a 3-year term and an option to renew for two additional years, including specific provisions for shopping mall operations and maintenance charges."

Document background
The Leasehold Contract serves as a fundamental legal instrument in Malaysian property transactions, essential for establishing formal tenancy arrangements in both commercial and residential contexts. This document is required whenever a property owner (lessor) grants possession of their property to another party (lessee) for a defined period while retaining ownership. The contract must comply with Malaysian legal requirements, particularly the National Land Code 1965, Contracts Act 1950, and relevant state-level regulations. It typically includes comprehensive details about the property, rental terms, maintenance responsibilities, and various covenants binding both parties. The document is crucial for protecting the interests of all parties involved and ensuring legal enforceability of the lease arrangement under Malaysian law.
Suggested Sections

1. Parties: Identification of the lessor and lessee with full legal names, registration numbers (if companies), and addresses

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

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

4. Demise: The formal grant of the lease and its duration

5. Rent and Payment Terms: Detailed rent amount, payment schedule, and method of payment

6. Security Deposit: Amount, payment terms, and conditions for return of the security deposit

7. Tenant's Covenants: Core obligations of the tenant including maintenance, permitted use, and compliance with regulations

8. Landlord's Covenants: Core obligations of the landlord including quiet enjoyment and structural maintenance

9. Insurance: Required insurance coverage for both parties

10. Termination: Circumstances and procedures for early termination

11. Assignment and Subletting: Restrictions and conditions for transferring or subletting the property

12. Notices: Process for serving formal notices between parties

13. Governing Law: Confirmation of Malaysian law as governing law and jurisdiction

Optional Sections

1. Utilities and Services: Include when utilities are not included in rent or when specific service arrangements need to be detailed

2. Renovation and Alterations: Include for commercial properties or when significant modifications are anticipated

3. Option to Renew: Include when offering the tenant the right to extend the lease term

4. Break Clause: Include when either party wants the right to terminate early under specific conditions

5. Service Charge: Include for properties in managed buildings or complexes

6. Green Lease Provisions: Include for environmentally conscious arrangements or green buildings

7. Pest Control: Include for food & beverage premises or when specific pest control responsibilities need to be assigned

8. COVID-19 or Force Majeure Provisions: Include when specific pandemic or force majeure protections are required

Suggested Schedules

1. Schedule 1 - Property Details: Detailed description of the property including lot number, floor area, and boundaries

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

3. Schedule 3 - House Rules: Building or development rules and regulations

4. Schedule 4 - Maintenance Schedule: Detailed breakdown of maintenance responsibilities between landlord and tenant

5. Schedule 5 - Rental Payment Schedule: Detailed breakdown of rent payments, especially if there are rent reviews or stepped increases

6. Appendix A - Floor Plan: Drawings or plans of the leased property

7. Appendix B - Photographs: Documentation of property condition at commencement of lease

8. Appendix C - Relevant Permits: Copies of necessary permits, certificates of fitness, or other regulatory approvals

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

Real Estate

Commercial Property

Residential Property

Retail

Hospitality

Industrial

Office Space

Food & Beverage

Healthcare

Education

Manufacturing

Warehousing

Agriculture

Relevant Teams

Legal

Real Estate

Operations

Facilities Management

Finance

Compliance

Risk Management

Corporate Services

Business Development

Property Management

Asset Management

Relevant Roles

Property Manager

Real Estate Manager

Facilities Manager

Legal Counsel

Contract Administrator

Business Development Manager

Operations Director

Chief Financial Officer

Asset Manager

Compliance Officer

Real Estate Agent

Property Developer

Leasing Manager

Corporate Services Manager

Risk 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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