Sample lease agreement Tanzania.

 

LEASE AGREEMENT

 

 

BETWEEN

 

 

“A” REAL ESTATE

 

 

AND

 

 

“B” FASHION RETAILER

LEASE AGREEMENT

THIS LEASE made at Dar es Salaam this 5^th day of May 2023

by and between

“A” REAL ESTATE, a limited liability company incorporated under the Laws of United Republic of Tanzania, of P.O. Box 70000, having its registered offices at MAFAO HOUSE, Arusha Hotel Road, Arusha (hereinafter referred to as the LANDLORD which expression shall where the context so admits include its successors in title) of the ONE PART.

and

“B” FASHION RETAILER, a limited liability company incorporated under the Laws of United Republic of Tanzania, of P.O. Box 80000, having its registered offices at TANAPA HOUSE, Sanawari Road, Arusha (hereinafter called “the Tenant”) of the OTHER PART.

WHEREAS:-

(a)               The Landlord is absolutely seized and possessed or otherwise well and sufficiently entitled to the piece of land situated at Plot No. 100, Block A, Ursino Street, Arusha Municipality, within a city of Arusha, hereinafter referred to as “the demised premises”;

(b)            The Landlord has agreed to grant the tenant a lease for a period of five (5) years in respect of the said premises for a period of five years commencing on the 5^th day of August 2023 to 5^th May 2028, without any interference, subject to terms and conditions laid down in this agreement;

(c)         This lease agreement is subject to renewal at the end of the original lease term, for a further period of five (5) years, subject to the mutual agreement of the parties and the terms and conditions as may be negotiated by the parties at the time of renewal. The renewal shall be evidenced by a written agreement executed by both parties and shall become effective upon the expiration of the original lease term;

(d)               The Tenant agrees to rent the said premises for the said period and upon conditions and in the manner hereinafter stipulated.

NOW THIS AGREEMENT WITNESSETH as follows:-

1        In pursuance of the said agreement and in consideration of the rent hereby granted and the tenant’ covenants hereinafter mentioned, the Landlord hereby demise unto the tenant the demised premises to hold the same without any interference whatsoever, for a period of five years commencing the 5^th day of August 2023 at a monthly rent of Tanzania Shillings One Hundred and Eighty Thousand (Tshs. 1,000,000) per month, payable one year in advance.

2        The said demise premise is unfinished and shall be fully finished and completed within a period of three (3) months from the date of execution of this contract. Upon satisfactory completion, a lease agreement shall come into force and effect, with a commencement date of three (3) months following the completion date.

3        The rent herein reserved shall be paid in Tanzania Shillings starting from the 5^th August 2023, a day when a tenant will take possession of the premise.

4        The tenant shall pay a security deposit of 500,000 at the commencement of the lease term. The security deposit shall be held by the landlord as security for the faithful performance of the tenant's obligations under this lease agreement and shall be refunded to the tenant within 10 days following the expiration or termination of this lease agreement, provided that the tenant has fulfilled all obligations under this lease agreement and the premises have been surrendered in good condition, reasonable wear and tear excepted.

5        The tenant shall use the premise only for fashion retail purposes and not any other purpose without prior obtaining consent of the landlord. The tenant shall not use the premises for any illegal purposes, including but not limited to the sale or distribution of controlled substances, weapons, stolen goods, or any other illegal goods or services.

6        The tenant shall operate within reasonable hours of not later than 10:00 pm unless otherwise agreed upon in writing by the landlord.

7    The Tenant HEREBY COVENANTS with the Landlord as follows:-

(i)                 To occupy the demised premises for commercial purpose only;

(ii)       To pay for all charges in respect of consumed water, electricity, telephone, garbage disposal, and sewerage charges, (including meter rents, if any) in connection with the demised premises during the said term;

(v)             To keep the interior of the demised premises and appurtenances thereof tidy and in good condition through out the term (fair wear and tear excepted);

(vi)          To allow the Landlord and/or his agents at all reasonable times to enter upon the property to inspect or carry out repairs or for other purposes in connection with the demised premises;

(vii)    The Tenant may, with the written consent of the Landlord assign, sublet or part with possession of the demised premises or any part thereof;

(viii)    Not to do or permit to be done anything in or upon the demised premises or any part thereof which may be or become a nuisance, annoyance, damage or inconvenience to the Landlord, occupiers of adjoining property or the neighborhood (installations and mounting of aerials for radios, televisions and other communications excepted);

(ix)     To yield up the demised premises with fittings and additions thereto at the expiration or sooner determination of the term in good repair and tenantable condition in accordance with the covenants herein contained, fair wear and tear excepted.

8          The Landlord HEREBY COVENANTS WITH THE TENANT as follows:

(i)                 To undertake to pay for the construction, improvements and renovation costs;

(ii)           Subject to the Tenant performing all the covenants herein above specified, not to interfere or allow other person rightfully claiming under or in trust for the Landlord to interfere, interrupt or intrude upon the Tenant’s peaceful enjoyment of the demised premises throughout the said term;

(iii)            To insure or cause to be insured and keep insured the demised premises and the fixtures therein against loss or damage by fire and such other risks as the Tenant deems desirable or expedient;

(iv)       To pay and discharge all rental taxes, rates, duties and any other levies imposed by the Government, Revenue Authorities, Municipal Council or other authority in relation to the demised premises;

(v)            To maintain the interior and exterior parts of the building together with the surroundings of the demised premises, which obligation shall include but not limited to the carrying out of repairs and maintenance where required and generally to remedy any structural fault or faults or construction affecting the convenient and proper use or occupation thereof, provided that such faults are not attributable to neglect on the part of the Tenant, his agents or employees; to maintain and repair the water and sewerage and sanitary systems, and assure constant supply of water; to maintain the wiring and electrical systems and assure constant supply of power, save where there is nation wide power problem from the national power supplier;

9          PROVIDED ALWAYS and it is hereby expressly agreed and declared that:

(i)            If at any time during the term of lease for the demised premises or any part thereof shall be destroyed or damaged by fire (not occasioned by the willful act, neglect or default of the tenant or his licensees, invitees, visitors or servants) or act of God or force majeure then and in any such cases and so often as the same shall happen the rent herein before reserved or a fair and just proportion thereof according to the nature and extent of the injury sustained shall cease and be suspended during and so long as the premises hereby demised or the destroyed or damaged part shall remain inhabitable or unfit for use by reason of such destruction or damage;

(ii)        Should the Tenant desire to vacate the demised premises during the continuation of the Lease, the Tenant shall give three months written notice signifying such intention;

(iii)        If the Tenant shall be desirous of taking a lease of the demised premises for any further term upon the expiration of the term hereby granted, he shall be obliged to give the Landlord a one month notice of such desire prior to the expiration of the term hereby granted.

(iv)         If the tenant shall have reasonably performed and observed the several stipulations herein contained on his part to be performed and observed up to the termination of the term hereby granted then the Landlord shall let the demised premises to the Tenant for the further term of one year and on such terms as will be mutually determined by both parties.

10.     Any dispute or difference whatsoever which shall at any time hereafter whether during the continuance of the lease or upon or after its discharge or determination arise between the parties hereto touching or concerning this lease or its construction or effect or as to the rights, duties or liabilities of the parties hereto or any of them under or by virtue of this lease or otherwise or as to any other matter touching on the lease shall be referred to one arbitrator whose appointment will be agreed to by the parties hereto.

11.          This Lease shall be executed in duplicate; one shall be retained by the Tenant and the second by the Landlord.

IN WITNESS WHEREOF, the Landlord and the Tenant have put their respective signatures on this agreement on the day, month and year hereinbefore appearing.

Signed and Delivered at Arusha by the said   }

“A” REAL ESTATE in my presence                       }          …………………………

This 5^th  day of May 2023, within the                         }                      LANDLORD

Landlord above named.                                                          }

 

Signature:        ……………………………..

Designation:    ADVOCATE/NOTARY PUBLIC

 

 

Signed and Delivered at Arusha by the said   }

“B” FASHION RETAILER in my presence           }          …………………………

this 5th  day of May 2023, within the                                     }          TENANT

Tenant above named.                                                  }

 

Signature:        ……………………………..

Designation:    ADVOCATE/NOTARY PUBLIC