COMMERCIAL LEASES

Costs for tenants other than rent


Costs payable by tenants at start of lease

Upon execution of the lease, the tenant typically has to pay the stamp duty and the landlord's legal costs and expenses in preparing the lease agreement. Upon taking possession of the demised premises, the tenant will also pay a security deposit to be held by the landlord and refunded (less any proper deductions) within an agreed period from the determination or early termination of the lease.

Stamp duty is payable as follows on the declared rent or the market rent, whichever is higher.

The tenant will also pay a security deposit to be held by the landlord

Utilities and telecommunications

Such services are usually subscribed and paid for by tenants directly with third-party suppliers. If separate metering is not possible for the demised premises or if the landlord is purchasing electricity in bulk for the entire building, the landlord can arrange for the supply of utilities and apportion the charges to the respective tenants accordingly.

Insurance

Tenants are responsible for insuring the demised premises and the landlord will typically require the tenant to take up an insurance policy in the joint names of the landlord and tenant.

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LEGAL AND REGULATORY