The Assignment of Tenancy Agreement is essential in Malaysian property transactions where an existing tenant wishes to transfer their lease to another party before the original lease term expires. This document is commonly used in both commercial and residential contexts, ensuring compliance with Malaysian property law requirements. The agreement details the rights and responsibilities being transferred, includes necessary consents, and addresses financial arrangements such as security deposits and outstanding obligations. It's crucial to ensure the document adheres to the National Land Code 1965 and relevant state-specific regulations, and typically requires proper stamping under the Stamp Act 1949 to be legally enforceable.
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1. Parties: Identifies the Assignor (current tenant), Assignee (new tenant), and Landlord
2. Background: Recitals explaining the existing tenancy agreement and the intention to assign
3. Definitions: Defines key terms used throughout the agreement
4. Assignment: Core clause transferring the tenancy rights from Assignor to Assignee
5. Consideration: Details of any payment made for the assignment
6. Assignor's Covenants: Warranties and obligations of the current tenant
7. Assignee's Covenants: New tenant's commitments to comply with original tenancy terms
8. Landlord's Consent: Confirmation of landlord's approval of the assignment
9. Completion: Details of when and how the assignment will take effect
10. Governing Law: Specifies Malaysian law as governing the agreement
1. Security Deposit Transfer: Used when the existing security deposit is being transferred between parties
2. Outstanding Obligations: Include when there are existing obligations or liabilities to be addressed
3. Utilities and Services: Add when specific arrangements for transfer of utilities accounts are needed
4. Break Clause: Include if parties want to allow early termination options
5. Condition of Premises: Used when specific acknowledgments about property condition are required
1. Schedule 1 - Property Details: Detailed description of the property being subject to the assignment
2. Schedule 2 - Original Tenancy Agreement: Copy or key terms of the existing tenancy agreement being assigned
3. Schedule 3 - Inventory: List of fixtures, fittings, and contents included in the tenancy
4. Schedule 4 - Outstanding Payments: Details of any rent, deposits, or other payments to be settled
5. Schedule 5 - Condition Report: Current condition of the property at time of assignment
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