CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

That this CONTRACT made and executed by and between:

_____________________________., a corporation duly organized and existing under the

Philippine laws, with offices at _______________________________________,
represented herein by _________________., hereinafter referred to as the LESSOR;

-and-

_______________________, of legal age, and residing at

__________________________________, hereinafter referred to as the LESSEE;

WITNESSETH

Whereas the LESSOR is the absolute owner of residential apartment located at Molave
St. Manuguit, Tondo, Manila which is available for lease;

Whereas the LESSEE has found unit ______ in good order, to his absolute satisfaction
and has decided to lease the same, and the LESSOR has decided to accept and lease said
property under the terms and conditions herein provided;

NOW, THEREFORE, for and in consideration of the foregoing premises, the parties
herein have agreed to be bound by the following terms and conditions;

1. LEASE PERIOD – This Lease Contract shall be for a period of three (3) years
commencing on August 2021 and expiring on August 2024.

The LESSEE is permitted to pre-terminate this contract at the end of each year, with
thirty (30) days’ notice to LESSOR prior to termination. Deadline for issuance of
Pretermination Notice is on December 20 of every year. After which, it is assumed
that LESSEE will continue with the lease for the entire succeeding year.

After the expiration of the three (3) year period, and in the absence of an express
renewal thereof, it is understood that the lease thereon is on a month to month basis,
subject to the same terms and conditions herein stated. However, there will be no
renewal of contract of lease in case the LESSEE has outstanding rental balance.

2. RENTAL – The LESSEE shall pay to the LESSOR at the latter’s office or its duly
authorized agent, without the necessity of a demand every first of the month, the
amount of _________________ Pesos (P____) Philippine Currency, subject to an
escalation clause as follows:

Year Escalation Total Rent

2022 10%
2023 10%
2024 10%

In case of renewal of contract, an annual escalation increase of 10% shall be applied on

the monthly rental of the LESSEE.

3. SECURITY DEPOSIT – For the faithful compliance with all the terms and conditions of
this lease contract, the LESSEE shall, upon execution of this contract, deposit with the
LESSOR the amount of _____________________ PESOS (PhP_________________),
Philippine Currency, corresponding to two (2) months rental, as Security Deposit, plus
Five Thousand Pesos (P 5,000.00) for electric and water deposit.

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 The LESSOR shall apply such deposit toward the payment of any claim that the LESSOR
may have against the LESSEE upon the termination of this Contract. Any balance
remaining on such deposit shall be returned to the LESSEE upon the termination of this
Contract. Security deposit will be refunded three (3) months after lease and utility bills of
LESSEE have been cleared. Security deposit will be forfeited in cases of breach
and/or termination of this contract due to the fault or negligence of the LESSEE.

4. RENTAL ADVANCE – The LESSEE shall pay to the LESSOR an advance rent of
_____________________ PESOS (PhP_________________) Philippine Currency,
corresponding to two (2) months rent and will issue Ten (10) Postdated Checks
equivalent to the monthly rental, corresponding to the rent for the year.

At the end of each year or until December 31 of every year, the LESSEE shall issue
Twelve (12) Postdated Checks dated 1st of every month covering the rental payments for
the succeeding year.

5. PENALTY- It is hereby agreed that if the rent is unpaid after five (5) days following its
due date, the LESSEE shall pay a penalty charge of five (5%) percent per month and
which interest is to be compounded monthly. This penalty is without prejudice, however,
to the right of the LESSOR to terminate the lease contract should he decided to do so.

If the LESSEE fails to pay the rent for two (2) consecutive months and other charges as
they fall due, or if he fails to comply with the other terms and conditions herein stated,
the LESSOR, has the right to evict the LESSEE, even without notice to vacate. In case of
court litigation, the latter shall pay the cost of suit and the amount of not less than FIVE
THOUSAND PESOS (P5,000.00) as attorney’s fees.

6. USE – The LESSEE shall use the premises for residential purposes only. Should he
desire to use the same for any other purpose, he should obtain prior written consent from
the LESSOR.

7. PUBLIC UTILITIES – All charges for water, electricity, telephone and other utility
services utilized and/or availed of in the leased unit shall be for the SOLE ACCOUNT of
the LESSEE. In case LESSEE, for any reason, fails to pay its utility to bills, LESSOR
shall be permitted to turn off or cut the power source of the said utility, until fully paid.

8. TERMINATION OF THE LEASE – Failure of the LESSEE to pay the public utility bills
or the monthly rental for at least two (2) consecutives months or his failure to observe the
prescribed rules and regulations of the LESSOR relative to the care and maintenance of
the Leased Premises shall be sufficient ground for the termination of this Contract of
Lease.

a. In cases of termination, LESSEE will voluntarily leave the leased premises; the
policy ‘NO PAY – NO ENTRY’ will follow. The LESSEE will be ejected,
banned and can no longer enter the premises. The LESSOR can padlock the
premises if desired so or hire the services of a Security Guard, at the expense of
the LESSEE, to prevent entry of the LESSEE.
b. LESSEE agrees that any personal effects that maybe found within the lease
premises shall be inventoried and held as guarantee for any arrears of the
LESSEE to the LESSOR. After a month of safekeeping if no payment of LESSEE
is done, the personal effects of the LESSEE shall be deemed forfeited in favor of
the LESSOR.
c. The LESSOR will not be liable to any civil or criminal action when implementing
a provision of this contract.

9. IMPROVEMENT – The LESSEE shall not introduce any improvement on the leased unit
which are permanent in character, nor make any alteration of any nature without prior
written consent of the LESSOR. In case of permanent but authorized improvements or
alterations, the same shall become integral parts of the premises and shall inure to the
LESSOR upon termination of the lease without need of reimbursement by the LESSOR

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 for the cost or value thereof to the LESSEE. Parties herein agree that for this purpose,
improvements and alterations are considered permanent in character.

10. ASSIGNMENT AND SUBLEASE PROHIBITED – The LESSEE shall not assign,
transfer, his rights over the leased unit nor sub-lease the same or any portion thereof
without the prior written consent of the LESSOR.

11. STORING OF GOODS/MATERIALS – The LESSEE shall not store at any given time in
the leased unit highly inflammable and/or hazardous goods, materials or items which
pose danger or inconvenience to neighbor or to the nearby community.

12. SANITATION AND REPAIR –LESSEE shall, at its own expense, maintain the leased
premises in clean and sanitary condition, free from obnoxious odor, disturbing noises and
other nuisance.

The LESSEE particularly agrees to replace all clogged, broken and damaged carpentry
works, windows, plumbing, electrical fixtures and all drainage, and to replace the same in
and about the premises when the same be broken or damaged by the misuse and/or
negligence of the LESSEE. In cases, the LESSEE fails to do so, the LESSOR may do the
work and to subsequently charge the expense to the LESSEE’S account. In such case, all
advances made by the LESSOR shall be added to the rental dues of the LESSEE in the
succeeding month, which shall be immediately due and outstanding. Failure to pay the
cost of repairs shall be subject to the same penalty provision as Section 5 of this
Agreement.

For avoidance of doubt, all costs of repairs and maintenance, not due to the fault of
LESSEE which exceed Ten Thousand Pesos (PhP10,000) shall be considered major
repairs. Major repairs shall be shouldered by the LESSOR.

13. DAMAGES – If the leased premises is not surrendered at the expiration of this contract,
unless otherwise extended, the LESSEE shall be responsible to the LESSOR for all
damages which the latter may suffer by reason thereof, including valid claims of the
succeeding tenant resulting from the delay in surrendering possession of the premises to
the LESSOR.

14. ACCESS TO PREMISES – The LESSEE shall, at all times deemed reasonable, permit
the LESSOR or its legal representative to enter upon and examine the premises and make
such repairs as it may deem necessary to preserve and protect the property.

15. FORCE MAJEURE - LESSEE understands and agrees that the COVID-19 pandemic or
government regulations incidental thereto, are not considered fortuitous events that would
delay, bar or excuse LESSEE’s payment of monthly rentals, escalation agreements, the
costs of repairs and maintenance or all other expenses stated in this Agreement.

IN WITNESS WHEREOF, we have hereunto set our hands this ______________ day of
__________________, 2021 in Meycauayan City, Bulacan.

______________________________________
(Lessor)

By: _______________________ _________________________

_________________ ___________________
LESSOR LESSEE

Witnesses:

______________________ _________________________

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 ACKNOWLEDGEMENT

REPUBLIC OF THE PHILIPPINES)

MEYCAUAYAN, BULACAN ) S.S

BEFORE ME, a Notary Public for and in the above place and jurisdiction, on this
_______________ day of _________________, 2020, personally appeared the following:

Known to me and to me known to be the same persons who executed the foregoing Contract of
Lease and acknowledged to me that they executed the said document as their own free and
voluntary act and deed and the free and voluntary act and deed of the corporation which they
represent herein.

WITNESS MY HAND AND SEAL on the date and in the place first above written.

Doc. No.:_______
Book No.: ______
Page No.:_______
Series of 2021

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