Document background
The Commercial Lease Extension Letter is a crucial document in Pakistani commercial property practice, used when both parties wish to continue their landlord-tenant relationship beyond the initial lease term. This document is particularly important in Pakistan's commercial real estate sector, where it must comply with the Transfer of Property Act 1882, provincial rent laws, and stamp duty requirements. The letter typically comes into play several months before the expiration of the existing lease, allowing businesses to maintain continuity in their operations while potentially negotiating updated terms. It serves as a more streamlined alternative to creating an entirely new lease agreement, maintaining the fundamental terms of the original lease while incorporating any agreed modifications to rent, duration, or other conditions.
