The Fixed Term Lease agreement is a fundamental document in Philippine property law, used when a property owner (lessor) grants temporary possession and use rights to a tenant (lessee) for a defined period. This document type is essential for both residential and commercial property transactions in the Philippines, requiring compliance with the Civil Code of the Philippines, the Rent Control Act, and various local government regulations. It should be used whenever a definite term lease arrangement is desired, providing security for both parties through clear documentation of rent, duration, obligations, and conditions. The agreement must be properly executed and, for terms exceeding one year, registered with the Register of Deeds to be enforceable against third parties. Special attention should be paid to specific Philippine requirements such as tax registration and local government permits.
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1. Parties: Identification and details of the Lessor and Lessee, including complete legal names, addresses, and tax identification numbers as required by Philippine law
2. Background: Context of the lease agreement, including brief description of the property and parties' intention to enter into a fixed-term lease
3. Definitions: Definitions of key terms used throughout the agreement
4. Property Description: Detailed description of the leased premises, including exact location, boundaries, and total area
5. Term and Commencement: Specific start and end dates of the lease, including any conditions for commencement
6. Rent and Payment Terms: Rental amount, payment schedule, method of payment, and consequences of late payment
7. Security Deposit and Advance Rent: Amount of security deposit and advance rent, terms for holding and return
8. Utilities and Other Charges: Responsibility for utility payments and other operational costs
9. Use of Property: Permitted use of the property and any restrictions
10. Maintenance and Repairs: Responsibilities of each party for maintenance, repairs, and improvements
11. Insurance and Liability: Insurance requirements and allocation of risks
12. Default and Remedies: Events of default and corresponding remedies available to either party
13. Termination: Grounds for termination and process for ending the lease
14. Return of Property: Conditions for returning the property at lease end
15. Governing Law: Specification of Philippine law as governing law and jurisdiction
16. Execution: Signature blocks and notarization requirements
1. Subletting and Assignment: Include when subletting or assignment might be permitted under specific conditions
2. Alterations and Improvements: Include for commercial leases or when significant modifications are anticipated
3. Force Majeure: Include specific provisions for extraordinary events, particularly relevant post-COVID
4. Option to Renew: Include when parties want to specify terms for lease renewal
5. Right of First Refusal: Include when giving lessee priority rights to purchase or lease additional space
6. Pest Control: Include for residential leases or food-service commercial properties
7. Common Areas: Include for properties in multi-unit buildings or complexes
8. Parking: Include when parking spaces are part of the lease
9. Signage Rights: Include for commercial leases where exterior or interior signage is relevant
10. Environmental Compliance: Include for industrial or commercial properties with potential environmental impacts
1. Schedule 1 - Property Floor Plan: Detailed floor plan showing the leased premises and measurements
2. Schedule 2 - Inventory of Fixtures and Fittings: List of all fixtures, fittings, and furniture included in the lease
3. Schedule 3 - Property Condition Report: Detailed documentation of property condition at commencement of lease
4. Schedule 4 - House Rules: Building or property rules and regulations
5. Schedule 5 - Utility Meters: Initial meter readings and meter numbers for utilities
6. Schedule 6 - Maintenance Schedule: Schedule of regular maintenance activities and responsibilities
7. Schedule 7 - Fit-out Guidelines: Guidelines for any permitted modifications or improvements
8. Appendix A - Required Permits and Certificates: Copies of relevant permits, certificates, and registrations
9. Appendix B - Insurance Requirements: Detailed insurance requirements and minimum coverage amounts
10. Appendix C - Payment Schedule: Detailed breakdown of all payments including rent escalations if applicable
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