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For Commercial Office/warehouse tenancy (TA has been signed)
There were no terms and conditions or clauses included in TA with regards to Fitting Out.

4) are all the sets of keys given to the tenant during the fitting out period (is it considered the completed handover of property) when the TA actually starts a month later? Or does the landlord retain the rights to hold an extra set of keys to enter the property during this time as the official TA start date has not commenced.

5) since the fitting out period is solely for renovation purposes, what can the landlord do to ensure that the tenant will not use the unit for storage as the TA start date is still a month away. Will a written agreement be necessary?

6) for partitions to be removed or added, is it a commonly understood by law that the tenant's plans should be approved by the landlord, otherwise, what can be done to enforce this? Our agent says landlord has no right to approve/disapprove once LOI signed
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1 Answer

Hi Mdm Ting,

If tenants have requested for a fit out period to be given to them on a rent free basis, it is encouraged to have such wordings indicated into the tenancy agreement.

4) I always encourage landlord to retain a spare set of keys of the unit at all times, however, I do understand that due to the business nature of the tenant, it may contravene their security policy therefore access to the premises could be restricted inclusive the fit out period.

5) If your concern is on unauthorised use of premises for storage instead of just renovation during the fit out period, you could have worded the tenancy agreement as such, however, as fitting out a premises could be subjective to weather, materials, labour and etc, therefore could run into delays or assignment can be completed ahead of time. Would it be better for all since you have already accepted the fit out period of a month to just let the tenants manage the premises as long as no illegal activities are being carried out?

6) In fitting out a premises, if there are certain restrictions by landlord for the tenant to be observed, it should be communicated before entering into any formal agreement. If all has been done and you would like deeper understanding about landlord's and tenant's covenants, you should speak to your lawyer to find out what can or cannot be done.

I am unsure if I have interpret it correctly based on your nature of questions, but it seems to me that you feel that you have entered into a rental unhappy with the terms and conditions or the closing agent.

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