Commercial Lease Agreement Template for Hong Kong

The Commercial Lease Agreement is a fundamental document in Hong Kong's commercial property market, used whenever a property owner (landlord) agrees to rent out commercial space to a business tenant. This document is essential for establishing a legally binding relationship between the parties and must comply with Hong Kong's property and contract laws, particularly the Landlord and Tenant (Consolidation) Ordinance. It covers crucial aspects such as rental terms, duration, maintenance obligations, and permitted use of the premises, while also addressing specific requirements for commercial properties in Hong Kong such as management fees, government rates, and building regulations. The agreement is typically more complex than residential leases due to the commercial nature of the relationship and often includes provisions for rent reviews, tenant improvements, and specific business use restrictions.

1. Parties: Identification of the landlord and tenant with full legal names and addresses

2. Background: Brief context of the lease arrangement and property ownership

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

4. Demise: Specific details of the premises being leased and any included fixtures/fittings

5. Term: Duration of the lease, commencement date, and expiry date

6. Rent and Payment Terms: Rent amount, payment schedule, method of payment, and late payment provisions

7. Management Fees and Other Charges: Details of additional charges, utilities, rates, and management fees

8. Deposit and Advanced Payments: Security deposit requirements and any advance rent payments

9. Use of Premises: Permitted use of the premises and any restrictions

10. Tenant's Covenants: Obligations of the tenant including maintenance, repairs, and compliance with regulations

11. Landlord's Covenants: Obligations of the landlord including structural repairs and quiet enjoyment

12. Insurance: Insurance requirements for both parties

13. Assignment and Subletting: Restrictions and conditions for transfer of lease or subletting

14. Termination: Circumstances and procedures for early termination

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

16. Notices: Method and addresses for serving notices

17. Governing Law: Confirmation of Hong Kong law as governing law and jurisdiction