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Lease Novation Agreement
"I need a Lease Novation Agreement for our Mumbai office space, where my company will exit the lease and transfer it to another tech company effective March 1, 2025, with the existing landlord's approval already secured."
1. Parties: Identifies the three key parties: Original Lessee (Outgoing Tenant), New Lessee (Incoming Tenant), and Lessor (Landlord)
2. Background: Recitals explaining the existing lease arrangement and the intention to novate
3. Definitions: Defines key terms used throughout the agreement, including 'Effective Date', 'Existing Lease', 'Premises', etc.
4. Novation: Core clause documenting the transfer of rights and obligations from Original Lessee to New Lessee
5. Release of Original Lessee: Clause confirming the release of the Original Lessee from future obligations
6. Assumption by New Lessee: New Lessee's acceptance of all lease obligations going forward
7. Lessor's Consent: Formal documentation of the Lessor's agreement to the novation
8. Effective Date: Specifies when the novation takes effect
9. Representations and Warranties: Standard warranties from all parties regarding their capacity and authority to enter into the agreement
10. Governing Law and Jurisdiction: Specifies Indian law as governing law and sets jurisdiction for disputes
11. Execution: Signature blocks for all parties
1. Security Deposit Transfer: Required when there is a security deposit being transferred from Original to New Lessee
2. Outstanding Payments: Include when there are any pending rent or other payments to be settled
3. Condition of Premises: Used when parties want to document the current state of the premises
4. Assignment of Maintenance Contracts: Include if there are any maintenance or service contracts that need to be transferred
5. Broker/Agent Provisions: Required if any brokers or agents were involved in arranging the novation
6. GST Provisions: Include if the lease involves GST-registered parties and GST implications
7. Registration Requirements: Include specific provisions about registration if the original lease was registered
1. Schedule 1 - Existing Lease: Copy or key details of the original lease agreement being novated
2. Schedule 2 - Property Details: Detailed description of the leased premises including address and any parking spaces or common areas
3. Schedule 3 - Rent and Payment Details: Current rent amount, payment schedule, and any escalation clauses
4. Schedule 4 - Inventory: List of any furniture, fixtures, or equipment included in the lease
5. Schedule 5 - Outstanding Amounts: Details of any pending payments or adjustments between parties
6. Appendix A - Required Notices: Forms of any notices required under the agreement
7. Appendix B - Handover Certificate: Template for documenting the physical handover of the premises
Authors
Real Estate
Commercial Property
Retail
Manufacturing
Information Technology
Banking and Financial Services
Healthcare
Education
Hospitality
Logistics and Warehousing
Professional Services
Telecommunications
Legal
Real Estate
Facilities Management
Operations
Finance
Compliance
Administration
Property Management
Corporate Services
Risk Management
Legal Counsel
Property Manager
Facilities Manager
Real Estate Manager
Operations Director
Commercial Director
Chief Financial Officer
Corporate Counsel
Lease Administrator
Asset Manager
Property Administrator
Business Operations Manager
Compliance Officer
Real Estate Director
Legal Operations Manager
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