The Lease Renewal Agreement is a crucial document used when parties wish to extend an existing lease arrangement in Malaysia. It serves as a formal continuation of the landlord-tenant relationship, incorporating both existing and new terms while ensuring compliance with Malaysian property laws, particularly the National Land Code 1965 and the Contracts Act 1950. This document is essential when the original lease term is approaching expiration and both parties agree to continue their relationship under either the same or modified terms. The agreement typically includes updated rental rates, the new lease duration, any revised terms, and confirmations of existing conditions. It provides legal certainty and protection for all parties while maintaining the continuity of the lease relationship.
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1. Parties: Identification of the landlord and tenant with their full legal names, registration/identification numbers, and addresses
2. Background: Recitals detailing the original lease agreement, its date, and the parties' intention to renew the lease
3. Definitions: Definition of key terms used in the agreement, including references to terms defined in the original lease
4. Renewal Term: Specification of the new lease period, including commencement and expiry dates
5. Rent and Payment Terms: Details of the renewed rental amount, payment schedule, and any adjustments from the original lease
6. Security Deposit: Confirmation of existing security deposit or requirements for additional deposit
7. Continuation of Original Terms: Confirmation that all other terms and conditions from the original lease remain in effect
8. Amendments to Original Terms: Clear statement of any modifications to the original lease terms
9. Execution: Signature blocks for all parties and witnesses
1. Renovation and Maintenance: Include when there are specific agreements about property improvements or maintenance responsibilities for the renewal period
2. Option to Renew: Include when parties agree to include an option for further renewal beyond this renewal term
3. Insurance Requirements: Include when there are changes to insurance obligations or new insurance requirements
4. Guarantor Confirmation: Include when the original lease had a guarantor who needs to confirm continued guarantee for the renewal period
5. Green Lease Provisions: Include when parties agree to incorporate environmental sustainability requirements
6. Covid-19 or Force Majeure Provisions: Include when parties want specific provisions for pandemic or other force majeure events
1. Schedule 1 - Property Details: Detailed description of the leased property including address and any included fixtures/fittings
2. Schedule 2 - Rent Schedule: Detailed breakdown of rent payments, including any progressive increases during the renewal term
3. Schedule 3 - Special Conditions: Any specific terms or conditions unique to this renewal
4. Appendix A - Original Lease Agreement: Copy of the original lease agreement for reference
5. Appendix B - Property Condition Report: Updated condition report of the property at the time of renewal
6. Appendix C - Authorized Modifications: List of any approved alterations or improvements to be made during the renewal term
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