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Land Lease Agreement for Philippines

Land Lease Agreement Template for Philippines

A comprehensive legal document governed by Philippine law that establishes the terms and conditions under which a landowner (lessor) grants the right to use and occupy a specific parcel of land to another party (lessee) for a defined period in exchange for rent. The agreement complies with the Civil Code of the Philippines and other relevant local legislation, including specific provisions for foreign lessees where applicable. It covers essential elements such as property description, lease duration, rental terms, permitted use, maintenance obligations, and conditions for termination, while ensuring adherence to local zoning regulations and property laws.

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What is a Land Lease Agreement?

The Land Lease Agreement serves as a crucial legal instrument in the Philippines for transactions involving the temporary transfer of land use rights. It is essential for businesses, individuals, and organizations seeking to lease land without transferring ownership, particularly given the Philippines' strict regulations on land ownership, especially for foreign entities. This document is commonly used in commercial, agricultural, and industrial contexts, ensuring compliance with the Civil Code of the Philippines, local government regulations, and specific sector requirements. The agreement typically includes detailed property descriptions, lease terms, payment schedules, use restrictions, and maintenance responsibilities, while accounting for unique Philippine legal requirements such as notarization and local government permits.

What sections should be included in a Land Lease Agreement?

1. Parties: Identifies and provides complete details of the Lessor and Lessee, including their legal capacity to enter into the agreement

2. Background: Explains the context of the lease arrangement and confirms the Lessor's ownership of the property

3. Definitions: Defines key terms used throughout the agreement to ensure clear interpretation

4. Property Description: Detailed description of the leased property including exact location, boundaries, and total area

5. Term and Renewal: Specifies the duration of the lease and any renewal options

6. Rent and Payment Terms: Details the rent amount, payment schedule, security deposit, and payment methods

7. Rights and Obligations of the Lessor: Outlines the landlord's responsibilities and rights under the agreement

8. Rights and Obligations of the Lessee: Specifies the tenant's responsibilities and rights under the agreement

9. Permitted Use: Clearly defines how the property may be used and any restrictions on use

10. Maintenance and Repairs: Allocates responsibilities for property maintenance and repairs between parties

11. Utilities and Taxes: Specifies responsibility for payment of utilities, real property taxes, and other charges

12. Insurance: Details required insurance coverage and responsibilities

13. Default and Remedies: Describes events of default and available remedies for both parties

14. Termination: Specifies grounds and procedures for early termination

15. Governing Law: Confirms Philippine law as governing law and jurisdiction

16. Execution: Formal closing and signing section including notarization requirements

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

1. Assignment and Subletting: Include when the parties want to address the possibility of transferring the lease or subletting the property

2. Improvements and Alterations: Include when the lessee is permitted to make modifications to the property

3. Environmental Compliance: Include for properties where environmental regulations are significant concerns

4. Force Majeure: Include to address unforeseeable circumstances preventing performance

5. Right of First Refusal: Include if the lessee is granted priority rights to purchase the property

6. Agricultural Provisions: Include if the property is agricultural land, incorporating requirements from the Agricultural Land Reform Code

7. Foreign Ownership Compliance: Include if the lessee is a foreign entity to ensure compliance with foreign ownership restrictions

8. Zoning Compliance: Include specific provisions about zoning requirements if the property is in a specially regulated zone

What schedules should be included in a Land Lease Agreement?

1. Property Plan: Detailed plan or survey of the property including boundaries and measurements

2. Property Title: Copy of the property title and tax declaration

3. Rent Payment Schedule: Detailed breakdown of rent payments, including escalation rates if applicable

4. Permitted Alterations: Specific alterations or improvements permitted under the lease

5. Condition Report: Detailed report of the property's condition at the start of the lease

6. Insurance Requirements: Detailed specifications of required insurance coverage

7. Building Rules and Regulations: If applicable, rules governing the use of the property

8. Environmental Certificates: Any required environmental clearances or certificates

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














































Clauses






































Relevant Industries

Real Estate

Agriculture

Commercial Development

Industrial

Retail

Education

Healthcare

Hospitality

Manufacturing

Logistics

Construction

Religious

Non-Profit

Government

Relevant Teams

Legal

Real Estate

Operations

Finance

Compliance

Facilities Management

Business Development

Property Management

Asset Management

Contract Administration

Risk Management

Corporate Services

Relevant Roles

Real Estate Manager

Property Manager

Legal Counsel

Corporate Lawyer

Land Development Officer

Facilities Manager

Operations Director

Chief Financial Officer

Business Development Manager

Asset Manager

Compliance Officer

Contract Administrator

Real Estate Director

Land Acquisition Manager

Property Development Manager

Leasing 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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