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Sign with Stamp Commercial Lease Agreement

Sign with Stamp Commercial Lease Agreement

Aug 6th, 2022

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How to Sign with Stamp Commercial Lease Agreement

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In this video, you'll learn the basics of commercial leases, focusing on common lease structures, important lease clauses, and typical delivery conditions. You won’t master everything about commercial leases, but you'll gain essential knowledge that aids in understanding them. Commercial leases can vary based on property type, business, and number of tenants. One common lease structure is the triple net lease, where the tenant pays base rent plus three additional costs: property taxes, building insurance, and common area maintenance. In this structure, the tenant bears all expenses associated with the property while the landlord remains responsible for the property itself.

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Got questions?

Here are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.

Is there stamp duty on commercial lease?

Do I have to pay stamp duty on a commercial lease? If you are a tenant of a commercial property, it is your responsibility to calculate and pay SDLT on the lease on time. Landlords bear no responsibility for SDLT on the lease.

Should a lease agreement be stamped?

In terms of the Stamp Duties Act, 1993, revenue stamps for a specified amount must be attached to the first page of the lease agreement. Leases are stamped to raise revenue and not as a fromality to make the lease valid. Unlike the sale of land, a valid verbal lease agreement may be entered between the parties.

Why have a stamp tenancy agreement?

Validity. Having your tenancy agreement stamped by LHDN makes your tenancy agreement valid. The tenancy agreement is ultimately a contract that covers you and your tenants rights, hence the importance of stamping. The validation of your tenancy agreement adds to the security.

How do you stamp a lease agreement?

If the lease period is 4 years or less, computation of stamp duty is 0.4% of total rent for the period of the lease. If the lease period is more than 4 years or any indefinite term, computation of stamp duty is 0.4% of 4 times the AAR for the period of the lease.

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