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Corporate Lease Agreement for Malaysia

Corporate Lease Agreement Template for Malaysia

A comprehensive legal document governed by Malaysian law that establishes the terms and conditions for the lease of commercial property between corporate entities. This agreement outlines the rights, obligations, and responsibilities of both the landlord and tenant, including rent payments, maintenance responsibilities, permitted use of the premises, and other crucial terms. It incorporates specific requirements under Malaysian property law, including compliance with the National Land Code 1965 and relevant state-level regulations, while addressing commercial needs such as fit-out provisions, service charges, and building management requirements.

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What is a Corporate Lease Agreement?

The Corporate Lease Agreement is a fundamental document used in Malaysian commercial real estate transactions when a business entity wishes to lease commercial property from another corporate entity. This document is essential for establishing a legally binding tenancy relationship in compliance with Malaysian property and contract law. It typically includes comprehensive provisions covering rental terms, security deposits, maintenance obligations, permitted use, and service charges. The agreement must align with the National Land Code 1965 and other relevant Malaysian legislation while addressing specific commercial requirements such as fit-out works, building rules, and insurance obligations. This type of agreement is particularly important for businesses establishing or expanding their physical presence in Malaysia, whether for office space, retail outlets, or industrial facilities.

What sections should be included in a Corporate Lease Agreement?

1. Parties: Identification of the landlord and tenant, including registration numbers for companies

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

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

4. Demised Premises: Detailed description of the leased property and common areas

5. Lease Term: Duration of lease, commencement date, and any option for renewal

6. Rent and Payment Terms: Rental amount, payment schedule, and method of payment

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

8. Service Charges: Additional charges for building services and maintenance

9. Utilities and Outgoings: Responsibility for utility payments and other operating costs

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

11. Maintenance and Repairs: Responsibilities of both parties for maintenance and repairs

12. Insurance: Required insurance coverage for both parties

13. Assignment and Subletting: Conditions under which the tenant may assign or sublet

14. Landlord's Covenants: Obligations and warranties of the landlord

15. Tenant's Covenants: Obligations and warranties of the tenant

16. Default and Remedies: Events of default and corresponding remedies

17. Termination: Conditions and procedures for early termination

18. Notices: Method and addresses for serving notices

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

20. Boilerplate Clauses: Standard clauses including severability, entire agreement, etc.

What sections are optional to include in a Corporate Lease Agreement?

1. Fit-Out Works: Details of any permitted renovations or modifications - include when tenant will be performing initial fit-out

2. Car Parking: Allocation and terms of parking spaces - include when parking is available

3. Signage Rights: Rights and restrictions regarding external and internal signage - include for retail or visible office spaces

4. Break Clause: Provisions for early termination rights - include when specifically negotiated

5. Green Lease Provisions: Environmental and sustainability requirements - include for green buildings or when specifically required

6. Force Majeure: Provisions for unforeseen circumstances - include when specifically requested or in high-risk situations

7. Pest Control: Specific provisions for pest control responsibilities - include for food & beverage or retail premises

8. Trading Hours: Specified hours of operation - include for retail or specific use premises

9. Building Rules: Specific building regulations and requirements - include for multi-tenant buildings

What schedules should be included in a Corporate Lease Agreement?

1. Schedule 1 - Property Details: Detailed description of premises including floor plans and measurements

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

3. Schedule 3 - Service Charge Items: Itemized list of service charge components

4. Schedule 4 - Building Rules and Regulations: Detailed building rules and regulations

5. Schedule 5 - Fit-Out Guidelines: Technical specifications and guidelines for fit-out works

6. Schedule 6 - Handover Condition: Condition report of premises at handover

7. Schedule 7 - Permitted Alterations: List of pre-approved alterations permitted during tenancy

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

9. Appendix B - Inventory List: List of landlord's fixtures and fittings

10. Appendix C - Form of Bank Guarantee: Template for bank guarantee if required instead of cash deposit

Authors

Alex Denne

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

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Rental Agreement

Cost

Free to use
Relevant legal definitions




































Clauses

































Relevant Industries

Commercial Real Estate

Retail

Office Space

Industrial

Manufacturing

Technology

Professional Services

Banking and Finance

Healthcare

Education

Logistics and Warehousing

Hospitality

Food and Beverage

Relevant Teams

Legal

Finance

Operations

Facilities Management

Real Estate

Procurement

Risk and Compliance

Corporate Services

Administration

Business Development

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Real Estate Manager

Facilities Manager

Legal Counsel

Property Manager

Operations Director

Finance Director

Commercial Director

Procurement Manager

Corporate Services Manager

Asset Manager

Leasing Manager

Risk Manager

Compliance Officer

Business Development 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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