Contract of Lease

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CONTRACT OF LEASE
KNOW ALL MEN BY THESE PRESENTS:
This Contract of Lease (CONTRACT), made and entered into this ____ day of __________ in
Muntinlupa City, Metro Manila, Philippines, by and between:
(name), (civil status), of legal age, (nationality), with postal address at
(address), hereinafter referred to as the LESSOR;
-

and

(name), (civil status), of legal age, (Nationality), with postal address at

(address), hereinafter referred to as the LESSEE;
WITNESSETH THAT:
WHEREAS, the LESSOR is owner of a two-storey residential house located at __________________,
Philippines with a list of appliances and fixtures itemized in Annex "A," and hereinafter referred to as
the LEASED PREMISES;
WHEREAS, the LESSEE desires to lease the abovementioned premises and the LESSOR is willing to
lease the same unto the LESSEE subject to the following terms and conditions hereinafter specified.
NOW, THEREFORE, for and in consideration of the foregoing premises and of the covenants and
agreements hereinafter set forth, the LESSOR, hereby let and lease unto the LESSEE the aforesaid
LEASED PREMISES, and the LESSEE accepts the same by way of lease subject to the following
terms and conditions:
(1)
TERM OF THE LEASE - The term of this lease shall be for a period of Five (5) years
commencing on March __, 2017 and ending on March __, 2022.
This CONTRACT OF LEASE may be renewed upon mutual written agreement of the parties,
provided that the LESSOR receives written notice of the LESSEEs intention to renew at least
sixty (60) days prior to the expiration of the CONTRACT OF LEASE. If no such written notice is
received by the LESSOR, the LESSOR shall have the right to immediately offer the LEASED
PREMISES to the market.
(2)
RENTAL
- The parties hereby agree that the Monthly Rental shall be
______________________, inclusive of Association Dues, for the duration of the lease
period, in the following manner:
2.1
One
(1)
year
advance
rental
in
the
amount
of
____________________________, payable upon signing of this lease contract,
on or before March __, 2017;
2.2 A increase of five percent (5%) in the Monthly rental shall be affected and shall
start on the second (2nd) year of lease.
Lease Period

Monthly Rate

1st Year of Lease

2nd Year of Lease
3rd Year of Lease
4th Year of Lease
5th Year of Lease
2.3

SECURITY DEPOSIT

The sum of_________________________, is to be paid by the LESSEE to the LESSOR

as Security Deposit, for the faithful compliance by the LESSEE of the herein covenants
and to answer for any unpaid bills, such as but not limited to water, electricity, gas,
cable, telephone, broadband internet, garbage fees, and any other damages or
repairs on the LEASED PREMISES incurred by the LESSEE outside of normal wear and

Contract of Lease
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tear, as determined by the LESSOR. Such amounts will be deducted from the deposit,
and the balance, if any, will be refunded without interest to the LESSEE within sixty
(60) days after settlement of any such account to the satisfaction of the LESSOR,
expiry of lease or vacation of the premises and proof of settlement of all unpaid
accounts and upon proof that no loss or damage exists. From such amount shall be
further deducted any amounts needed to repair or restore the premises to its original
condition (allowing for ordinary wear and tear) to the full satisfaction of the LESSOR.
2.3
ASSOCIATION DUES - The yearly association dues and any increase in such
during the entire term of this lease shall be for the account of the LESSOR.

(3)
SEWERAGE, WATER, ELECTRICAL CURRENTS, ETC.
- Expenses for water,
sewerage, gas, electrical current, telephone, cable TV, broadband access and other utilities or
similar charges or assessments during the term of this contract shall be for the account of the
LESSEE.
(4)
RESIDENTIAL PURPOSE - The Leased Premises shall be solely and exclusively used
for residential purposes of the LESSEE and his family, household help, and guests only and for
no other purpose without the written consent of the LESSOR. The LESSEE shall not convert the
same to any other purpose (eg. staff house, dormitory, school/tutorial center, etc.) and shall
exercise the diligence of a good father of a family in the use of the premises. In the event of
damage to the Leased Premises or the appliances and fixtures listed in Annex A hereof,
repair or restoration to its original condition, or restitution of the corresponding value thereof
to the satisfaction of the LESSOR, shall be made by the LESSEE at their own expense. This
condition shall apply irrespective of whether the damage was done by the LESSEE, their
agents, employees, domestic help, or guests.
(5)
IMPROVEMENTS - The LESSEE shall not paint, or make any structural changes, or
alteration or improvements in the LEASED PREMISES, including electrical or plumbing
installations, without the written consent of the LESSOR. However, any major alterations or
improvements made or introduced by the LESSEE in the LEASED PREMISES with the written
consent of the LESSOR, shall, upon termination of this contract, automatically inure to the
benefit of and become the property of the LESSOR, without any obligation on the latters part
to pay or refund its value or cost to the LESSEE.
(6)
MAINTENANCE AND REPAIRS - The LESSEE has inspected the LEASED PREMISES
and found the same to be in good and tenantable condition. The LESSEE shall keep the
LEASED PREMISES in clean and sanitary condition and keep in very good condition at all
times. The LESSEE further agrees to properly maintain all air-conditioning units and
appliances provided by the LESSOR in the LEASED PREMISES and will have them cleaned and
serviced on a regular basis. The maintenance of all appliances provided by the LESSOR for the
use of the LESSEE, are the sole responsibility of the LESSEE. The LESSEE is responsible for
training their staff and household members on the proper use and care for these appliances.
Should the appliances need replacement as a result of improper use or the negligence of the
LESSEE or their household, the replacement of such shall be for the account of the LESSEE.
The LESSEE shall also maintain the garden and landscaping, the swimming pool, the interior &
exterior of the house. The LESSEE shall keep the Leased Premises free from undue
accumulation of waste materials and remove any facility, equipment, machinery,
improvements and any other materials, which in the opinion of the LESSOR constitute
nuisance, fire and health hazards, and danger to the public.
The LESSOR shall be responsible for all major repairs on the water, electrical and sewage
installations caused by ordinary wear and tear. Repairs due to the fault or negligence of the
LESSEE, members of his household, guests and visitors shall be for account of the LESSEE.
Minor repairs due to the fault or negligence of the LESSEE, members of the latters household
or guests, shall be for the LESSEES account. For the purpose of this paragraph, minor repairs
shall cover replacing of light bulbs and fuses, breakage or loss of faucet handles, drawer or
cabinet pulls and catches, keys, locks, toilet seat and water tank covers, locks and those
where the repair amounts to Ten Thousand (PHP10,000.00) or less, each occurrence, shall
be for the account of the LESSEE, regardless of the number of times repairs of such amount
occurs each year of the lease period.
The LESSOR agrees that any of the foregoing repairs on the water, electrical and sewage
installations caused by ordinary wear and tear shall be completed as soon as reasonably
possible. Should the LESSOR fail to undertake repairs within a reasonable period of time after
due notice, the LESSEE, at his option, may undertake such repairs for the account of the
LESSOR who shall reimburse the LESSEE without undue delay upon notice and presentation of

Contract of Lease
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satisfactory evidence of the cost incurred. Reimbursement of such shall not exceed ten (10)
working days else shall be considered a breach of this Contract of Lease.
The LESSOR undertakes to do all the necessary repairs for breakdowns in the premises, which
may occur within the first thirty (30) days of the lease. Provided that, the breakdowns not
due to the fault or negligence of the LESSEE, and is reported to the LESSOR by the LESSEE in
writing, within the said period.
The LESSEE shall retain the services of a reputable pest control organization to ensure the
extermination or protection against rodents, cockroaches or other insects, while the LESSOR
shall be responsible for pest control against termites and beetles (anay and bukbok).
(7)
FIRE, HAZARD AND OBNOXIOUS SUBSTANCES - The LESSEE shall not keep,
deposit or store in the Leased Premises any obnoxious substances, inflammable materials or
substances that may constitute a fire or other similar hazard.
(8)
TAXES AND INSURANCE - Real estate taxes, government assessment and fire
insurance charges for the house excluding the LESSEEs property or belongings shall be for the
account of the LESSOR. For his own protection, the LESSEE may insure his own furniture and
fixtures, equipment and other such properties found and installed in the Leased Premises.
(9)
THIRD PARTY LIABILITY - The LESSEE during his/her occupancy of the LEASED
PREMISES shall hold the LESSOR free and harmless from any damage or liability or
responsibility to any person or property arising out of or as a consequence of the use of the
LEASED PREMISES by the LESSEE, his agents, employees, domestic help and guests.
(10)
SUBLEASE The LESSEE shall not sublease the LEASED PREMISES to any other
parties.
(11)
INSPECTION OF PREMISES - The LESSOR shall maintain the premises in good and
tenantable condition and for such purpose the LESSOR reserves the right at reasonable times
and with advance notice to enter and inspect the premises in the presence of the LESSEE and
by appointment only, to make the necessary repairs thereof. The LESSEE likewise agrees to
cooperate with the LESSOR in keeping the said premises in good and tenantable condition.

(12) DESTRUCTION OF LEASED PREMISES - If the LEASED PREMISES is partially or

wholly destroyed or damaged by structural defects, natural wear and tear, fortuitous events or
any act of God or natural calamity, or any reason beyond the control of the LESSEE or the
LESSOR, rendering the same untenantable for a period exceeding thirty (30) days, the
LESSEE may opt to terminate this CONTRACT without penalties, in which case the LESSOR
shall refund to the LESSEE the security deposit and all unused rentals subject to the provisions
of Clause 2.b. hereof. All said refunds shall be accomplished within sixty (60) days from the
date the property is actually and completely vacated by the LESSEE.
For the avoidance of doubt, the LESSOR shall not in any way be liable to LESSEE for or in
relation to any damage caused by fortuitous events or acts of God, such as typhoons,
earthquakes, floods.
Upon the LESSORs receipt of termination due to this reason, the LESSEE shall be granted ten
(10) days to vacate the leased premises, rental for which shall not be charged by the
LESSOR. Should the LESSEE exceed the ten-day period for such purpose, rental for the
excess day/s including the ten days shall be considered as part of the used rentals.
(13)
RULES AND REGULATIONS - The LESSEE agrees to abide by the existing rules and
regulations promulgated by Forbes Park Village Association, and any other laws, ordinances,
rules and regulations promulgated by competent authorities affecting the occupancy of the
Leased Premises.
(14)
PRE-TERMINATION - The LESSEE hereby warrants that this Contract of Lease is
guaranteed for one (1) year, except as stipulated in SECTION 12 or 18 hereof.
In the event that the LESSEE intends to pre-terminate this contract, the LESSEE shall give the
LESSOR written notice of its intention to pre-terminate sixty (60) days prior to the termination
date, paying rental due. If pre-termination occurs within the first (1st) year of the Lease
Period, all the unused rentals for the first (1 st) year of the Lease Period shall be forfeited in

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favor of the LESSOR as liquidated damages. If the pre-termination occurs within the second
(2nd), third (3rd), Fourth (4th) or Fifth (5th) year of the Lease Period, the LESSOR shall forfeit in
its favor an amount equivalent to two (2) Monthly Rentals as liquidated damages. All other
unused Monthly Rentals shall be returned to the LESSEE in full within thirty (30) days after the
pre-termination date, subject to the provisions of Section 2.b. hereof.
(15)
SALE, TRANSFER & MORTGAGE - In the event of sale, transfer, mortgage or any
other encumbrance of the LEASED PREMISES, or any existing sale, transfer, mortgage or
encumbrance of the same, the LESSOR shall warrant that the purchaser, mortgagee, or
encumbrancer shall respect all the terms and conditions of this lease agreement including the
provisions for renewal thereof.
(16)
RETURN OF THE LEASED PREMISES - The LESSEE, upon the pre-termination or
expiration of this lease or any renewal thereof, shall quietly and peacefully deliver and
surrender the Leased PREMISES to the LESSOR in the same condition in which it was received,
save what has been lost or impaired by the lapse of time, by ordinary wear and tear or by
fortuitous event. Sixty (60) days prior to the return of the Leased PREMISES, the LESSOR
may show the PREMISES to prospective tenants at reasonable hours and with prior notice to
the LESSEE. The LESSOR hereby agrees to give the LESSEE priority or first option to extend
or renew the Lease.
Should the LESSEE fail to remove all personal articles despite the termination of this Contract
for any reason whatsoever, the LESSEE hereby authorizes and empowers the LESSOR or its
representative to take possession and enter the Leased Premises even without court order and
remove or take possession of all personal properties and other articles found therein. Upon
request of the LESSEE, and only after paying all its outstanding obligations to the LESSOR, the
personal properties and other articles may be returned to the LESSEE. The LESSEE agrees to
pay all costs for the removal and/or transfer of said properties.
(17)
NON-WAIVER OF RIGHTS: AMENDMENTS OF CONTRACT - Failure or delay of
either party to insist in the strict performance of the terms or conditions laid down in this
contract shall not be deemed a relinquishment or waiver of any right or remedy which the
party may have. At the same time, it shall not be construed a waiver of any subsequent
breach or default of the terms, conditions, covenants hereof, which terms, conditions,
stipulations and covenants shall continue to be in full force or effect. No waiver by either
party or any of its rights under the Contract of Lease shall be deemed to have been made
unless expressed in writing by such party.
(18)
PENAL PROVISIONS The LESSEE agrees that all the covenants and agreements
herein contained shall be deemed conditions as well as covenants so that upon any violations
thereof, this lease contract, at the discretion of the LESSOR, may be terminated and
extrajudicially cancelled forthwith and the LESSEE shall be liable for any and all damages,
actual and consequential, resulting from such defaults and violations.
Should the LESSOR be compelled to seek judicial relief against LESSEE, the latter shall, in
addition to the damages, pay an amount equivalent to twenty (20%) percent of the amount
claimed in the complaints as Attorneys Fees, but not less than Php 10,000.00 aside from the
costs of litigation and other expenses which the law may entitle the LESSOR to recover from
the LESSEE.
IN WITNESS WHEREOF, the parties hereto have signed these presents on the date and at the place
first above-mentioned or written.

(name)
LESSOR

(name)
LESSEE

SIGNED IN THE PRESENCE OF:

______________________________

________________________________

Contract of Lease
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ACKNOWLEDGMENT
REPUBLIC OF THE PHILIPPINES )
CITY OF ________

) S.S.

BEFORE ME, Notary Public, for and in the City of ____________, Metro Manila, this ____ day of
______________________ personally appeared:
Name

Competent Evidence of Identity

Date/Place of Issue

All known to me and to me known to be the same persons who executed the foregoing instrument of
six (6) pages, which they acknowledge to be their voluntary act and deed and the voluntary act and
deed, and which they and their instrumental witnesses have signed at the foot of the deed and on the
left hand margin of the other pages thereof.
WITNESS my HAND and SEAL at the place and on the date, month and year first abovewritten.

Doc. No.
______;
Page No.
______;
Book No. ______;
Series 2017