The Lease Transfer Agreement is a crucial document used in Hong Kong real estate transactions when an existing tenant wishes to transfer their leasehold interest to another party before the original lease expires. This agreement, governed by Hong Kong law and subject to the Landlord and Tenant (Consolidation) Ordinance, requires the landlord's explicit consent and must comply with stamp duty requirements. It outlines the transfer terms, property details, financial obligations, and warranties from all parties. The document is particularly important in commercial settings where businesses need to assign their lease due to relocation, business restructuring, or other operational changes. It provides legal protection for all parties and ensures a smooth transition of leasehold interests while maintaining the original lease's core terms and conditions.
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1. Parties: Identifies the current tenant (Transferor), the new tenant (Transferee), and the Landlord
2. Background: Sets out details of the original lease, property, and context for the transfer
3. Definitions: Defines key terms used throughout the agreement
4. Transfer and Consideration: Details the transfer of the lease and any payment involved
5. Landlord's Consent: Confirmation of the landlord's consent to the transfer
6. Transferor's Covenants: Warranties and representations by the current tenant
7. Transferee's Covenants: New tenant's obligations and commitments
8. Deposit Arrangements: Handling of security deposit transfer between parties
9. Completion: Details of completion date and procedures
10. Stamp Duty: Responsibilities for payment of stamp duty
11. Governing Law and Jurisdiction: Confirms Hong Kong law governs the agreement
1. Existing Tenants: Required if there are sub-tenants or occupants in the premises
2. Condition of Premises: Include when specific property conditions need to be acknowledged
3. Outstanding Repairs: Needed if there are pending maintenance or repair obligations
4. Novation of Service Contracts: Required if any service contracts are being transferred
5. Break Clause: Optional provision allowing early termination rights
6. Rent Apportionment: Include if rent needs to be pro-rated between transferor and transferee
1. Schedule 1 - Property Details: Detailed description of the leased premises
2. Schedule 2 - Original Lease: Copy or details of the original lease agreement
3. Schedule 3 - Inventory: List of fixtures, fittings, and equipment included in the transfer
4. Schedule 4 - Outstanding Liabilities: List of any outstanding payments or obligations
5. Appendix A - Landlord's Consent Letter: Formal written consent from the landlord
6. Appendix B - Property Plans: Floor plans or property layouts if relevant
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