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Commercial Building Lease Agreement for Malaysia

Commercial Building Lease Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the terms and conditions for leasing commercial building space. This document outlines the rights and obligations of both landlord and tenant, including rent payments, maintenance responsibilities, permitted use, and compliance with local regulations. It incorporates specific requirements under Malaysian property law, including the National Land Code 1965 and relevant commercial property regulations, while addressing practical aspects such as security deposits, service charges, and building management requirements.

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What is a Commercial Building Lease Agreement?

The Commercial Building Lease Agreement is a fundamental document used in Malaysian commercial property transactions to establish a legally binding relationship between property owners and business tenants. This agreement is essential when leasing any commercial space in Malaysia, whether for retail, office, or other business purposes. It must comply with Malaysian property laws, including the National Land Code 1965, Contracts Act 1950, and relevant state-specific regulations. The document covers crucial aspects such as lease duration, rental terms, maintenance obligations, permitted use restrictions, and dispute resolution mechanisms. It's particularly important in Malaysia's dynamic commercial property market, where both local and international businesses require clear, comprehensive lease terms that protect their interests while ensuring compliance with local legal requirements.

What sections should be included in a Commercial Building Lease Agreement?

1. Parties: Identification of landlord and tenant with full legal names, registration numbers, and addresses

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

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

4. Demise: Formal grant of lease and specification of the premises

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

6. Rent and Payment Terms: Rent amount, payment schedule, method of payment, and review mechanisms

7. Security Deposit: Details of security deposit amount, maintenance, and return conditions

8. Permitted Use: Specified allowed uses of the premises and any restrictions

9. Tenant's Covenants: Primary obligations of the tenant including maintenance, repairs, compliance with regulations

10. Landlord's Covenants: Primary obligations of the landlord including structural repairs and insurance

11. Insurance: Required insurance coverage for both parties

12. Utilities and Services: Responsibilities for utilities, service charges, and maintenance fees

13. Assignment and Subletting: Conditions for transfer of lease rights or subletting

14. Termination: Grounds and procedures for early termination

15. Default and Remedies: Consequences of breach and available remedies

16. Governing Law: Specification of Malaysian law as governing law and jurisdiction

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

1. Fit-Out Works: Used when tenant will undertake initial renovation or fit-out works

2. Option to Purchase: Include when offering tenant right to purchase property during lease term

3. Break Clause: Optional early termination rights for either party

4. Green Building Requirements: For buildings with green certification or sustainability requirements

5. Naming Rights: When tenant is granted rights to name or brand the building

6. Common Areas: For multi-tenanted buildings with shared facilities

7. Exclusivity Clause: When tenant is granted exclusive rights for certain business activities

8. Force Majeure: Specific provisions for unforeseen circumstances affecting property use

What schedules should be included in a Commercial Building Lease Agreement?

1. Schedule 1 - Property Description: Detailed description of premises including floor plans and measurements

2. Schedule 2 - Rent and Payment Schedule: Detailed breakdown of rent, payment dates, and review mechanisms

3. Schedule 3 - Service Charges: Itemized list of service charges and calculation method

4. Schedule 4 - Building Rules and Regulations: Specific rules governing use of premises and common areas

5. Schedule 5 - Fit-Out Guidelines: Technical specifications for any permitted renovations or modifications

6. Schedule 6 - Handover Condition: Inventory and condition report of premises at commencement

7. Schedule 7 - Insurance Requirements: Detailed insurance specifications for both parties

8. Appendix A - Plans and Drawings: Technical drawings, floor plans, and location maps

9. Appendix B - Authorization Letters: Required corporate authorizations and board resolutions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Rental Agreement

Cost

Free to use
Relevant legal definitions













































Clauses





































Relevant Industries

Retail

Office Space

Banking and Finance

Healthcare

Technology

Professional Services

Hospitality

Education

Manufacturing

Logistics and Distribution

Entertainment and Recreation

Food and Beverage

Relevant Teams

Legal

Finance

Operations

Facilities Management

Risk and Compliance

Real Estate

Corporate Services

Property Management

Business Development

Administration

Relevant Roles

Property Manager

Facilities Manager

Real Estate Director

Legal Counsel

Chief Financial Officer

Operations Manager

Asset Manager

Risk Manager

Compliance Officer

Business Development Manager

Commercial Director

Lease Administrator

Corporate Services Manager

Property Investment 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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