The Lease Addendum is a crucial document used in Hong Kong's property market when parties need to modify an existing lease without creating an entirely new agreement. It's commonly used when circumstances require changes to original lease terms, such as rent adjustments, tenure extensions, or alterations to property usage. The document must comply with Hong Kong's property laws, particularly the Landlord and Tenant (Consolidation) Ordinance, and requires proper execution by all parties. A Lease Addendum helps maintain legal clarity while being more cost-effective than drafting a new lease. It's particularly relevant in dynamic market conditions where lease terms may need adjustment during the tenancy period, and can be used for both commercial and residential properties in Hong Kong.
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1. Parties: Identification of landlord and tenant as named in the original lease
2. Background: Reference to the original lease including date, premises details, and reason for modification
3. Definitions: Key terms used in the addendum, including reference to definitions in original lease
4. Effective Date: Specification of when the modifications take effect
5. Modifications: Clear statement of each change being made to the original lease
6. Confirmation of Other Terms: Statement that all other terms of the original lease remain unchanged and in full force
7. Governing Law: Confirmation that Hong Kong law governs the addendum
8. Execution: Signature blocks for all parties
1. Rent Adjustment: Include when modifications involve changes to rent amount or payment terms
2. Term Extension: Include when modifying the lease duration
3. Property Modifications: Include when changes involve alterations to the premises or permitted use
4. Additional Covenants: Include when adding new obligations for either party
5. Broker Representation: Include when a broker is involved in negotiating the modification
6. Consideration: Include when there is specific consideration for the modification beyond continued performance
1. Schedule of Modifications: Detailed list of specific changes to lease terms, particularly useful for multiple modifications
2. Floor Plan: Include when modifications involve changes to the premises area or configuration
3. Revised Rent Schedule: Detail of new rent amounts and payment dates if rent terms are modified
4. Condition Report: Documentation of property condition when modifications involve premises alterations
5. Consent Documents: Any required third-party consents (e.g., mortgagee consent)
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