This is a Lease of residential property with options on rent free period and early termination. A lease is generally over 3 years and in the form of a deed. This is drafted in neutral form. 

The Lessor hereby agrees to lease the Premises and the furniture, fixtures, fittings and equipment therein (as per Schedule, if any) in clean and tenantable condition to the Lessee for residential purposes. The parties are required to specify the total leased area in the lease.

The term of the lease shall also be clearly stated in the lease – the above Premises is hereby leased for a term of a certain number of years, commencing on a certain date. The Lessee & the Lessor must complete the above lease of the first (stated number of) years. Any advance termination before the fixated number of years should be compensated by the Lessee and the Lessor to the total remaining sum of the rented to the Lessee and the Lessor.

The Lessor and Lessee may also agree on having a rent-free period, subject to the law and conditions expressed in the lease.

On the expiry of this lease, the Lessor has the right to take back the Premises in full, and the Lessee must deliver vacant possession of the Premises on the date of expiry. If the Lessee wishes to extend the lease, the Lessee shall have the priority to renew the lease and is required to give written notice to the Lessor two months prior to the expiry of this lease. The revised rental should be negotiated between the two parties. The Lessor has the right to lease to a third party if they cannot agree on rental or other terms one month prior to expiry.

The Lessee’s manner and behaviour is an important criterion to be considered when determining whether the lease is still valid. It shall be noted that the Lessee could peacefully hold and enjoy the Premises during the Term of Lease without any interruption by the Lessor if the Lessee have paid the Rent and other outgoings on the days and in the manner herein provided and observe and perform the terms and conditions herein contained and on the Lessee's part to be observed and performed.

The amount of Rent shall be clearly stated in the lease, in a specific currency and with a certain period of time. In addition, the charging of deposit and other charges shall also be provided in the lease in detail. The requirement to state this information clearly is to ensure the certainty of content in the lease is maintained and no further discussions have to be made post-signing.

The responsibilities of both the Lessor and the Lessee are outlined in the lease. It intends both parties to perform accordingly, which helps both parties in maintaining a good relationship throughout the duration of the lease. 

Termination of the lease could be a result of a breach or by a failure of performance by a certain party. The lease has also specified how the termination shall be carried out and the corresponding consequences.

How to use this Document?

This document should be carefully read by both the Lessor and the Lessee.

This document may be used to draft a neutral form lease agreement for a residential property with options on rent-free period and early termination. 

Both parties should sign and return a copy, and once signed, both parties should get a copy. To avoid any future disputes, both parties may wish to have their signatures witnessed.

The amount of Rent and Rent Payment Date should all be clearly stated in the lease agreement.

If either party wishes to amend the agreement in the future, both parties should agree to do so, and the original agreement and amendments should be recorded in writing and signed by both parties.