Lease Terms and Conditions

  1. DETAILS OF LESSEE/S

          Account Number  ___________________________

          Account Name       ___________________________

          AccountAddress    ___________________________

  • Only lessee/s listed in the contract and their immediate families are the main residents of the unit subject to the allowed number of occupants
  1. UNIT DETAILS

           Unit Area (sm)     ___________________________                    

           Lot                           ___________________________

           Block                       ___________________________

  • Finished unit;  lessor may substitute equivalent items for specified finishing materials and may make minor alterations in the floor plan provided the intended use is not altered.
  • No lighting fixtures &  appliances; no curtains
  • Any renovation subject to approval by lessor
  • No dedicated parking for each unit – Common central parking; Lessees with cars will pay additional rent for their dedicated parking slot, subject to availability
  1. LEASE TERM :

          25 years

  • Uninterrupted; continuous rental and association dues payment regardless of actual occupancy within the lease term
  • Renewal dependent on renewal of leased land where the project is developed
  1. DELIVERY OF PREMISES

          18-30 months from full payment of Membership Fee.

  • Inspection for turnover will be allowed for punch listing
  • Lessee will have 1 month to inspect from notice of inspection; after which rental shall commence if no inspection is done.
  • 1 month maximum time to rectify the punch list items, otherwise, lessor will be liable for cost of accommodation of lessee
  • Planned renovation of lessee will only be allowed after acceptance of the unit for turnover
  • Actual delivery may be adjusted depending on actual site conditions and actual construction
  • Regular communication of the progress of the construction will be relayed to the lessee so they can plan their move
  • Lessee cannot withhold acceptance of  the unit if the finish is acceptable based on common construction standards.
  • Housing accommodation during rectification will be for the sole account of the  lessee if they have moved to the Philippines.
  • Termination of contract in case of non agreement to level of acceptance of finish, NO refund of membership fee.
  • Rent will already be charged while the lessee will implement any approved renovation on its unit.
  1. WARRANTY

         Lessor will extend to the lessee the warranties undertaken by the contractor.

  • Lessor does not endeavor to overprovide warranties other than those provided by the contractor
  1. USE OF LEASED PREMISES

          Residential for the housing unit.               

          Common use for the amenities.

  • Maximum permanent Pax occupancy – 3x number of rooms; this includes the carestaff, if any
  • Use of Common Area to be covered by house rules
  • Development of the common area will be based on the plan of the lessor; changes may be made provided no major deletions of intended use is made.
  • Maintenance of the common area will be part of the responsibility of the professional property management company that will be hired
  1. RENT

          Monthly Rate depending on Unit type.

  • Start upon occupancy notice; continuous regardless of occupancy during term of the lease
  • Escalation per year depending of chosen pay term; will be adjusted to actual inflation rate if inflation rate is at least 10% then adjusted back to the pre-agreed escalation once inflation goes back to less than 10%
  • Includes 12% VAT; subject to adjustment based on actual VAT rate during lease term
  1. ASSOCIATION DUES

          Monthly Rate depending on Unit type.

  • Adjusted yearly based on budget for the year
  • Special assessments may be imposed subject to agreement of the association for new technology or info that will make the living experience better for the community
  1. DOCUMENTARY REQUIREMENTS FROM LESSEE
  • Lessee to show proof of regular income over the lease term; Monthly income proof should be at least 6.67x of the monthly rent of unit
  • They will form part of Annex of the Lease Contract; They could be pension received, relatives’ income, investments/funds of the lessees; further, If inclusive of relative’s income, there should be an undertaking from the relative to support the lessee’s financial requirements and be a witness to the Contract
  • Lessees will be required to open a checking account and issue 60 post-dated checks good for 5 years rent and every start of the new contract year, to issue a new set of 12 post-dated checks so that there is always a 5-year post dated check issued to the lessor at the start of the succeeding contract year.
  • Doctor’s and relative’s certification that the lessee is still qualified to stay in an active retirement village.
  1. SPECIAL INDIVIDUAL SERVICES OFFERED

          Meals, Meal preparation, Laundry, Housekeeping, Transportation

          Repairs and Maintenance, Gardening, Special Errands, Fund management, etc.

  • To be covered by separate cost schedule and will be identified to differentiate from the general services to be offered as part of the association service offerings like concierge, community nurse, activity planner, dietician, general community amenity repairs and maintenance, etc.
  • Not part of rent that is shown in the contract; and will be charged based on actual availment.
  1. UTILITIES

          Utilities are based on actual use.

  • To be paid directly to utility companies
  • Utility services will be stopped/cut for 3-month continuous non-payment of rent and association dues
  • 2-month average consumption to be retained in case of termination for whatever reason. To be released after the last billing of the unit by the utility companies.
  1. RESERVATION FEE

          Paid upon signing of Contract.

  • Good for 6 months or upon reaching ____ lease-out rate of the project (about 80 units per phase), whichever comes first
  • If ____ not reached within 6 months, this will be returned without interest and no responsibility to continue the project
  • Reservation Fee will be forfeited if project will proceed and lessee decides not continue with the lease contract
  1. MEMBERSHIP FEE                                               

           20% downpayment   

           Balance in 12 monthly installments. 

  • Construction of unit and the rest of the project will only commence upon full payment of the membership fee
  • Payable upon reaching ____ lease-out rate
  • NO return of this fee in case of termination of this contract for whatever reason
  1. SECURITY OF RESERVATION FEE AND MEMBERSHIP FEE BEFORE START OF CONSTRUCTION

          Lessor will deposit collected funds with a bank.

          Funds will remain with the deposit account until reaching lease-out rate for the reservation fee.

  • Lessor can ask bank to issue certification that the funds are with the bank as of a specific time.
  • Lessor will not pay interest on the reservation fee and membership fee while waiting for lease out rate and full collection
  1. PENALTIES

          12% p.a. interest rate for delayed payments.

  1. NON-TRANSFERABLE AND NON-ASSIGNABLE LEASE RIGHTS
  • Upon termination for whatever reason, unit to be voluntarily turned-over to lessor without need for demand otherwise lease rental continues until actual turnover of leased premise
  1. PERMIT TO ENTER LEASED PREMISES

          Lessor allowed to inspect, maintain, repair within reasonable time.

  • Lessor will advise in advance schedule of inspection, repair and/or maintenance
  • Lessor not obliged to relocate Lessee for repairs/maintenance that will require some time.
  1. FORCE MAJEURE

          No liability for the lessor provided it is not their fault.

  • Lessor will exert best effort to relocate lessee to best temporary accommodation available at time of occurrence and subsequently.
  • Cost of new accommodation for the account of the lessee as rent for the leased unit also stops.
  • Lease may be terminated; Lessee may opt to terminate; no penalties for the Lessor
  1. MAINTENANCE OF LEASED PREMISES

          Lessee to maintain the lease premises to the level that a good house owner does to his house. 

  • Minor repairs for the lessee’s account; Lessor will not pay for the cost of minor repairs as a result of usual wear and tear of the leased premises
  • Any renovation requested by lessee, even if approved by Lessor, will not result in lessor paying the lessee for it, in case of termination of lease for whatever reason.
  1. INSURANCE

          Insurance Premium for Unit and common area for the account of the Lessor.

          Contents and improvements for the account of the Lessee.

  • Proceeds for insurance of the unit will accrue to the benefit of the lessor.
  • Lessor will decide whether to reconstruct the leasable unit especially as relating to the remaining lease term on the land and cost of reconstruction; NO Refund of membership fee
  • Lessee may continue to lease the unit in case lessor decides to reconstruct.
  1. SUB-LEASING IS NOT ALLOWED

          All regular residents will have to be approved by the Lessor

  • Relations to the lessee by other residents should be established by the Lessee.
  • Temporary residents will have to be approved by the Lessor; Lenient implementation does not automatically mean approval for continued residency.
  1. ASSIGNMENT OF LEASE

          Lessor may sell its interest to a professional group to manage and continue the operations.        

  • Fund companies or investors who undertake to engage professional property management company to operate the project are the only options for the assignment of lease
  1. MEMBERSHIP IN THE ASSOCIATION
  • Each Lessee is automatically a member of the association and is duty bound to pay association dues and to conform to the rules and regulations set forth by the association.
  1. SECURING A RESIDENT’S VISA

          Lessee to secure its own visa required to obtain permanent residency in the country. 

  • The documentary and monetary requirements of the visa is separate from the requirements set forth in this Contract.
  1. COMPLETION OF AMENITIES 

          Not all the amenities may be ready at the start of the turnover of the housing units.    

          They are prioritized over the construction period of the amenities.  

  • They will be completed no later than 6 months from start of turnover of housing units
  • The final timetable may change depending on actual site conditions and contractor’s performance
  1. JURISDICTION OF THE CONTRACT
  • Philippine laws applicable and jurisdiction is the local location of the project
  1. ACTIVE RETIREMENT LIVING

          It is the responsibility of the lessee to get his own professional health care and services.

  • The project is not expected to become an assisted community development in the future.
  • Inability to get professional care that causes strain in the property management operations can be ground for termination of the contract.
  • Project will only ensure an active and lively community living for the residents; not a medical facility offering the usual services expected of an assisted living community.
  1. PEACE AND QUIET

          Will not cause or allow any noise or activity that will disturb the peace and quiet.

  • Continuous occurrence of disturbances can be a ground for termination and NO return of membership fee.
  1. ALLOWED TRANSFERS

          Transfer of lease right is allowed to family members up to third degree of consanguinity.

          It can also be assigned to third parties provided they are at least 55 years of age. 

  1. AGREEMENT OF PEACEFUL RESOLUTION OF CONFLICTS

           Parties are willing to undertake to amicably settle disputes/concerns with the lessor. 

           This is to minimize strain on operations to ensure continued good service.

  • In the event that legal case is still pursued, the losing party will shoulder attorney’s fee.
  1. PETS

          Keeping pets is allowed provided they are no bigger than medium sized breeds.

          They should not cause unreasonable noise or cause foul odor. 

  • Details will be covered by community house rules, including types and number to be retained within the leased premises.
  1. REAL PROPERTY TAX                                                
  • For the account of the lessor
  1. UPKEEP OF THE EXTERIOR OF UNIT

          Lessee will not stock pile any items outside of their unit to keep a clean look.

  • Landscaping provided by the project will be maintained by the community association and will not be altered by the lessee.
  • Window treatment should have white lining facing the footpath/road to maintain a common look of the housing units from the outside.
  1. NOTIFICATION IN CASE OF NEED FOR MAINTENANCE
  • Lessee should immediately notify Lessor for repairs needing immediate attention like leaking water lines, roof, windows and/or walls; suspicious electrical lines, structural integrity issues of the unit and non-functioning emergency features of the unit
  1. EVICTION
  • Non payment of rent for 12 consecutive months
  1. TERMINATION (if applicable)

          Death of the lessee.

  • Formal letter signifying intent to terminate
  • Non payment for 12 consecutive months
  • Non agreement to the inflation rate escalation
  • End of 25 year term
  • When lessee not fit for active retirement and no professional help is obtained.
  • If lessee is cause of nuisance in the community
  • For more than 1 lessee, the death of the last surviving lessee.