Lease Agreement

Description

• A Lease Agreement is a legally binding contract between a landlord (lessor) and a tenant (lessee) that outlines the terms and conditions for renting a property. It establishes the rights and obligations of both parties, covering aspects such as rent payment, property usage, and maintenance responsibilities.

GOV Department

• Kementerian Perumahan dan Kerajaan Tempatan (KPKT) / Ministry of Housing and Local Government

License Name (Malay)

• Perjanjian Pajakan

Details

• The agreement specifies the lease duration, rental amount, security deposit, and permitted use of the property.
• It includes terms for property maintenance, renewal, and termination.
• Applicable for residential, commercial, and industrial properties.
• Ensures compliance with local property laws, such as the Rental Control Act or applicable housing regulations.

Important Rules

• The lease agreement must be signed by both parties to be enforceable.
• Security deposits should not exceed two months’ rent for residential properties unless specified otherwise.
• Both parties must adhere to the terms related to rent payment, property maintenance, and notice periods for termination.
• The tenant cannot sublease or alter the property without the landlord’s consent.
• Agreements exceeding a certain duration may require stamping under the Stamp Act 1949 to be legally binding.

Compound & Punishment

• Failure to properly document or stamp the agreement may result in:
  • The agreement being inadmissible in court during disputes.
  • Fines or penalties for non-compliance with local laws.
• Breach of the lease terms, such as non-payment of rent or unauthorized use of the property, may lead to:
  • Termination of the lease.
  • Legal action and possible monetary damages.

Advisor