The Standard Commercial Lease Agreement is a fundamental legal instrument used in Hong Kong's commercial property market for establishing lease arrangements between property owners and business tenants. This document is essential when any business entity seeks to lease commercial space in Hong Kong, whether for retail, office, or other commercial purposes. It encompasses critical elements required under Hong Kong law, including specific provisions mandated by the Landlord and Tenant (Consolidation) Ordinance and related legislation. The agreement addresses key aspects such as rent determination, security deposits, maintenance obligations, and statutory compliance, while incorporating local market practices and customs unique to Hong Kong's commercial property sector. It serves as a comprehensive framework for protecting both landlord and tenant interests while ensuring compliance with local regulatory requirements.
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1. Parties: Identification of the landlord and tenant with full legal names and addresses
2. Background: Context of the lease agreement and brief description of the premises
3. Definitions: Definitions of key terms used throughout the lease agreement
4. Demise: The formal grant of lease, specifying the premises being leased
5. Term and Possession: Duration of the lease and possession arrangements
6. Rent and Payment Terms: Rent amount, payment schedule, and method of payment
7. Security Deposit: Amount, payment terms, and conditions for return of the security deposit
8. Government Rent, Rates, and Management Fees: Responsibility for statutory charges and building management fees
9. Permitted Use: Specified permitted business activities and use restrictions
10. Tenant's Covenants: Tenant's obligations including maintenance, repair, and compliance with regulations
11. Landlord's Covenants: Landlord's obligations including structural repairs and quiet enjoyment
12. Insurance: Required insurance coverage and responsibilities
13. Assignment and Subletting: Restrictions and conditions on transfer of lease rights
14. Termination: Circumstances and procedures for early termination
15. Default and Remedies: Events of default and available remedies
16. Execution: Signature blocks and execution formalities
1. Break Clause: Optional provision allowing early termination under specific conditions
2. Rent Review: Mechanism for periodic rent adjustments, used in longer-term leases
3. Fitting Out Works: Provisions regarding initial tenant improvements and renovations
4. Option to Renew: Terms for lease renewal, if granted
5. Right of First Refusal: Tenant's right to match third-party offers for the premises
6. Green Lease Provisions: Environmental and sustainability requirements, increasingly common in modern commercial leases
7. Force Majeure: Provisions dealing with unforeseen circumstances preventing performance
8. Turnover Rent: Additional rent based on tenant's business revenue, common in retail leases
1. Schedule 1 - Property Details: Detailed description of the premises including floor plans and boundaries
2. Schedule 2 - Rent Payment Schedule: Detailed breakdown of rent payments and due dates
3. Schedule 3 - Condition Report: Documentation of premises condition at commencement of lease
4. Schedule 4 - Building Rules and Regulations: Specific rules governing the use of the building and common areas
5. Schedule 5 - Fitting Out Guidelines: Technical specifications for permitted renovations and improvements
6. Schedule 6 - Service Charges: Breakdown of management fees and other service charges
7. Appendix A - Plans and Drawings: Floor plans, layout drawings, and location maps
8. Appendix B - Handover Inventory: List of fixtures, fittings, and equipment included in the lease
Relevant legal definitions
Clauses
Relevant Industries
Retail
Office Space
Food and Beverage
Professional Services
Financial Services
Technology
Healthcare
Industrial
Logistics
Entertainment
Education
Hospitality
Relevant Teams
Legal
Operations
Finance
Facilities Management
Real Estate
Administration
Procurement
Risk Management
Compliance
Property Management
Business Development
Corporate Affairs
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
Facilities Manager
Real Estate Manager
Property Manager
Legal Counsel
Corporate Lawyer
Operations Director
Business Development Manager
Store Manager
Office Manager
Finance Director
Procurement Manager
Commercial Director
Expansion Manager
Asset Manager
Company Secretary
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