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Building Lease Agreement for Philippines

Building Lease Agreement Template for Philippines

A Building Lease Agreement under Philippine law is a legally binding contract between a lessor (building owner) and lessee (tenant) that establishes the terms and conditions for the rental of a building or portion thereof. This document is governed by the Civil Code of the Philippines and various local property laws, including the Rent Control Act where applicable. It details the rights and obligations of both parties, including rent payment terms, maintenance responsibilities, security deposits, utilities, permitted use of the premises, and termination conditions. The agreement must comply with Philippine property laws, local government regulations, and building codes while providing clear remedies for potential breaches.

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What is a Building Lease Agreement?

The Building Lease Agreement is a fundamental legal document used in the Philippine real estate market to formalize the relationship between property owners and tenants. This agreement is essential when any party wishes to lease a building or portion of a building for commercial, residential, or mixed-use purposes. The document must comply with the Civil Code of the Philippines, particularly Articles 1643-1753 governing lease contracts, as well as relevant local government regulations and building codes. A comprehensive Building Lease Agreement includes detailed provisions for rent payments, security deposits, maintenance obligations, insurance requirements, and dispute resolution mechanisms. It serves to protect both the lessor's property interests and the lessee's right to use the premises, while ensuring compliance with Philippine property laws and regulations. The agreement is particularly important in urban areas like Metro Manila, Cebu, and other major business districts where commercial and residential leasing activities are prevalent.

What sections should be included in a Building Lease Agreement?

1. Parties: Identification and details of the Lessor and Lessee, including complete legal names, addresses, and tax identification numbers

2. Background: Context of the lease arrangement and brief description of the property

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

4. Property Description: Detailed description of the leased premises, including exact location, floor area, and included facilities

5. Lease Term: Duration of the lease, commencement date, and renewal provisions

6. Rent and Security Deposit: Rental amount, payment terms, security deposit requirements, and adjustment mechanisms

7. Utilities and Operating Expenses: Responsibilities for utility payments and other operating expenses

8. Use of Premises: Permitted use of the property and any restrictions

9. Maintenance and Repairs: Responsibilities of both parties regarding property maintenance and repairs

10. Alterations and Improvements: Rules regarding modifications to the property

11. Insurance and Liability: Insurance requirements and allocation of risks

12. Default and Remedies: Events of default and available remedies for both parties

13. Termination: Conditions and procedures for lease termination

14. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes

15. Notices: Process for sending formal notices between parties

16. Execution: Signature blocks and execution requirements

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

1. Broker Representation: Required if a real estate broker was involved in the transaction

2. Subletting and Assignment: Include if subletting or assignment rights are to be granted to the lessee

3. Force Majeure: Detailed provisions for unforeseen events, particularly relevant post-COVID

4. Environmental Compliance: Required for properties in environmentally sensitive areas or with specific environmental requirements

5. Building Rules and Regulations: Include if the building has specific rules that need to be incorporated into the lease

6. Parking Rights: Include if parking spaces are part of the lease

7. Signage Rights: Include for commercial leases where tenant signage is permitted

8. Common Areas: Required for buildings with shared facilities

9. Fit-out Period: Include if tenant will be performing initial improvements

10. Option to Purchase: Include if lessee is granted an option to purchase the property

What schedules should be included in a Building Lease Agreement?

1. Schedule A - Property Floor Plan: Detailed floor plan of the leased premises

2. Schedule B - Inventory of Fixtures and Fittings: List of all fixtures, fittings, and equipment included in the lease

3. Schedule C - Service Charges Breakdown: Detailed breakdown of service charges and other additional costs

4. Schedule D - Building Rules and Regulations: Complete set of building rules and regulations

5. Schedule E - Fit-out Guidelines: Technical specifications and guidelines for tenant improvements

6. Schedule F - Handover Form: Form to document the condition of the property at handover

7. Schedule G - Maintenance Schedule: Schedule of regular maintenance responsibilities

8. Appendix 1 - Required Permits and Certificates: Copies of all relevant building permits and certificates

9. Appendix 2 - Insurance Requirements: Detailed insurance specifications and requirements

10. Appendix 3 - Form of Bank Guarantee: Template for bank guarantee if required as security

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

Philippines

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions


























































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Relevant Industries

Real Estate

Commercial Property

Retail

Office Space

Industrial

Hospitality

Healthcare

Education

Manufacturing

Warehousing

Professional Services

Food and Beverage

Technology

Banking and Finance

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Compliance

Risk Management

Administration

Procurement

Property Management

Asset Management

Business Development

Contracts Administration

Relevant Roles

Property Manager

Real Estate Manager

Facilities Manager

Legal Counsel

Corporate Lawyer

Real Estate Broker

Building Administrator

Asset Manager

Operations Manager

Chief Financial Officer

Finance Director

Compliance Officer

Risk Manager

Business Development Manager

Administrative Manager

Procurement Manager

Real Estate Developer

Property Consultant

Leasing Manager

Contract Administrator

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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