CONTRACT OF LEASE

KNOW ALL MEN BY THESE PRESENTS:

This Contract of Lease made and entered into this _______________________, at

_____________________ City, Philippines, by and between:

______________________________, Filipino, both legal age, with

address at ________________________City, hereinafter referred to as the
“LESSOR”;

-and –

_____________________, Filipino, of legal age and with address at

____________________________ City, hereinafter referred to as the
“LESSEE”

WITNESSETH: That

WHEREAS, the LESSOR is the owner of the house and lot located at
_____________________________________ City; the same includes some of the fixtures
and appliances thereat an inventory list of which is attached hereto as Annex “A”
(hereinafter referred to as the “LEASED PREMISES”)
WHEREAS, LESSEE desires to lease the above-mentioned premises and
LESSOR is willing to lease the same unto LESSEE subject to the terms and conditions
hereinafter specified;

NOW THEREFORE, for and in consideration of the foregoing and mutual

covenants herein contained, LESSOR has let by these present does hereby let and lease
unto LESSEE the aforesaid leased premises and the LESSEE hereby accepts the same way
of lease subject to the following terms and condition:

1. PERIOD OF LEASE :

TERM: This term of lease is for ONE (1) YEAR, from ____________ to
__________________. Upon its expiration, this lease may be renewed under such terms
and conditions as may be mutually agreed upon by both parties, written notice of intention
to renew the lease shall be served to the LESSOR not later than seven (7) days prior the
expiry date of the period herein agreed upon.

2. RENTAL

The parties herein agree that the rental on the Leased Premises shall be
__________________________ only per month, payable every 1st of the month starting
on __________________ onwards. Upon the signing of this contract, the LESSEE shall
give to the LESSOR the amount of ______________________ covering advance
payment for ONE (1) month rental and ONE (1) month security deposit. LESSEES shall
likewise issue to the LESSOR 12 post dated checks (PDC’s) representing the payment for
monthly rental starting on August 1, 2018. In case of termination, the unused PDC’s shall

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be returned to the LESSEE and shall not be used other than the purpose for which it was
intended.

The LESSOR reserves the right to increase the monthly rental by 5% in case of
renewal of the lease.

3. SECURITY DEPOSIT

The amount of ___________________________________ as security deposit for

the Leased Premises shall be a guarantee for the faithful performance by the LESSEE of
its obligations under this Contract to answer for any unpaid bills of water, electricity,
telephone, or other charges on or damages to the Leased Premises, except those that may
arise from the ordinary wear and tear thereof, and shall be refunded to the LESSEE by the
LESSOR with FIFTEEN (15) days after termination of this Contract to give allowance for
the submission of billing and various utilities.

3.1 The said security deposit shall not, during the lease period or any
extension or any extension or renewal thereof, be used to offset rentals or other
payments due to the LESSOR from the LESSEE.

3.2 The LESSEE shall at all times maintain the security deposit
amounting to ________________________.

4. APPLICATION OF PAYMENTS

It is hereby agreed that the monthly rentals shall have priority over utilities and
other charges in the application of payments made by the LESSEE.

5. ELECTRIC CURRENT AND OTHER UTILITIES

All expenses for electric current, telecommunications, deposit and other services
shall be for the account of the LESSEE.

6. FIXED IMPROVEMENT

The LESSEE shall not make any major structural changes, alterations, or any
improvements in the Leased Premises without prior written consent of the LESSOR.
However, any major changes, alterations or improvements made or introduced by the
LESSEE in the Leased Premises with the written consent of the LESSOR which are
permanent in character, or which cannot be removed without causing damage to the
Leased Premises, shall upon termination of this Contract, automatically inure to the
benefit of the Leased Premises and shall become the property of the LESSOR.

6.1 REPAIRS - The LESSOR shall be responsible for all major repairs
on the roofs, gutters, ceilings, electrical, drainage, sewerage systems and their
installations. Minor repairs on the other hand shall be for the account of the
LESSEES. The parties herein agreed that individual repair necessitating the
expense of not more than Five Thousand Pesos (P5, 000.00) shall be deemed
minor repairs.

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 6.2 With prior notice and/or consent from the LESSOR, either by postal
or electronic form (email or text message), the lessee may institute and pay for
major repairs on the leased premises subject to reimbursement from the lessor.

7. THE LEASED PREMISES

The Leased Premises shall be used exclusively for residential purposes of the
LESSEE only. The Leased Premises shall not be subleased without the prior written
consent of the LESSOR. The LESSEE shall not use the Leased Premises other than the
purpose for which it was intended. Neither shall the LESSEE use the same in any illegal
or immoral activities.

8. MAINTENANCE, SANITATION AND REPAIRS

The LESSEE shall keep the Leased Premises in sanitary and good condition at all
times. The LESSEE warrants that it has inspected the Leased premises and found the
same in good tenable condition.

9. FIRE HAZARD AND OBNOXIOUS SUBSTANCE

The LESSEE shall not keep, deposit or store in the Leased Premises any
obnoxious or inflammable material or substance that might constitute a fire hazard or a
nuisance.

10. FURNITURES, FIXTURES AND APPLIANCES

The LESSOR shall freely and voluntarily provide a semi furnished house for the
LESSEE’s to lease. The LESSOR shall allow the LESSEE to the usage of all the fixtures
and appliances thereto without conditions and reservations as well as full understanding
that the same are not brand new and may be damaged during the period of this Agreement.
Any damage caused during the use of the said house and lot including all furniture,
fixtures and appliances therein on the ordinary wear and tear thereof shall be not on
account of the LESSEE. The LESSEE shall undertake to take care of the lease premises
unit in a tenantable condition at all times. Should there be damage caused by the LESSEE,
he/she must report the same immediately to the LESSOR, without prejudice to the
obligations of the parties under Section 6, 6.1 and 6.2 of this Agreement. The LESSEE
shall likewise make efforts to rectify or make good of any damage caused to the Leased
Premises and everything in it within 5 days as provided under Section 6, 6.1 and 6.2.

11. THIRD PARTY LIABILITY

The LESSEE during occupancy on the Leased Premises shall hold the LESSOR
free from whatever claim, damage or liability or responsibility to any person or property
as a consequence of the use of the Leased Premises by the LESSEE. In case for
fortuitous events, the LESSOR shall not be liable in any manner to the LESSEE or to any
occupant of the Leased Premises.

12. INSPECTION OF PREMISES

The LESSOR reserves the right at reasonable times and with advance notice to the
LESSEE to enter and inspect the premises in the presence of the LESSEE’s

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representative. In case the institution of repairs is necessary in the Leased Premises, the
same shall be done by prior appointment with the LESSEE.

13. RETURN OF THE LEASED PREMISES

Upon the expiration of the lease period or any extension or renewal thereof, or
upon the termination of this Contract as herein provided, the LESSEE shall immediately
and peacefully return to the LESSOR the possession of the Leased Premises as in good,
clean, sanitary tenantable condition as when the LESSEE received it from the LESSOR,
save reasonable and ordinary wear and tear. Fifteen (15) days prior to the expiration or
cancellation this Contract, the LESSOR may show the Leased Premises to prospective
tenants and/or buyers at reasonable hours and with at least two (2) working days advance
notice to the LESSEE. If the Leased Premises are not surrendered at the expiration of the
leased period or any extension or renewal thereof, the LESSEE shall indemnify the
LESSOR against any and all claims made by the possession of the Leased Premises to
such succeeding tenant, insofar as such delay is occasioned by the failure of the LESSEE
to surrender the Leased Premises on time.

13.1 The LESSOR should notify the LESSEE on the expiration of this
Contract fifteen (15) days prior to its expiration, if said agreement shall still be
subject to renewal or termination. If, however, after two (2) reminders the
LESSEE holds over the Leased Premises notwithstanding the notice and demand
to vacate, expiration, termination or cancellation of the Contract without written
consent of the LESSOR as above stipulated, and/or should the LESSEE continue
occupying the Leased Premises against the will of the LESSOR, the LESSEE
shall be liable for and shall pay the LESSOR, by way of liquidated damages for
such occupancy in the amount equivalent to two (2) times the monthly rentals
stipulated herein for each month of occupancy or fraction thereof, on top of the
liquidated damages specified under of this contract; provided, further that the
payment of the LESSEE of such liquidated damages shall not be considered as
payment for rentals nor shall it be construed to extend renew this Contract. In
either case, the LESSOR does not in any manner use or waiver her right to eject
the LESSEE from the Leased Premises.

14. DEFAULT

The LESSEE shall be deemed in default within the meaning of this Contract in
any of the following instances:

14.1 The LESSEE fails to fully pay the two (2) monthly rental despite
demand from the LESSOR.

14.2 The LESSEE violates any of the terms and conditions hereof and
such violation persists or remains unremedied despite written notice.

15. PRE-TERMINATION

The PARTIES shall have the right to pre-terminate this Agreement upon prior
written notice within 30 days, to the other party, for any cause or reason.

16. CONSEQUENCE OF DEFAULT

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 Upon the occurrence of any of the events of default as set forth in the preceding
number, the LESSOR shall, in addition to the other remedies as may be prescribed by the
law, have the following rights:

16.1 To terminate this Contract without the need of any prior notice,
demand and judicial declaration.

16.1 To immediately repossess the Leased Premises without the

necessity of instituting any judicial action. In this connection, the LESSEE hereby
grants unto the LESSOR full power and authority to take possession if the Leased
Premises and to do such acts as may be necessary to take in any manner, leasable,
barring the LESSEE or any of its representatives from entering the Leased
Premises and such other steps designed to enable the LESSOR to effectively
repossess the Leased Premises.

16.2 To take possession of and sell at public or private sale, any and all
properties of the LESSEE found in the Leased Premises and to apply the proceeds
thereof in payment of any unpaid accounts of the LESSEE. For this purpose, the
LESSEE hereby appoints the LESSOR as the LESSEE’s special attorney-in-fact
with full authority and power to sell or dispose of any and all properties under the
custody of the LESSOR for such amounts or prices which the LESSOR may
deem reasonable under the circumstances, and the proceeds thereof shall be
applied as partial or full payment of the obligations of the LESSEE under this
Contract, as the case may be. It is understood, however, that if the proceeds of the
sale of all said properties shall have satisfied the LESSEE’s obligations, the
LESSOR shall turnover to the LESSEE the unsold properties.

16.3 Before LESSOR can exercise its rights granted in the preceding
numbers, LESSEE shall be notified in writing of the occurrence of the event
constituting a default and LESSEE shall have fifteen (15) days from notice to take
the necessary corrective measures.

17. VIOLATION OF TERMS AND CONDITIONS

Any violation by the LESSEE of terms and conditions provided for this Contract
shall be a sufficient ground for the termination of this Contract of Lease. Further, in case
of material and deliberate breach, the faulting party shall be liable to pay liquidated
damages of ONE HUNDRED FIFTY THOUSAND PESOS (P150, 000.00) to the other
party, without prejudice to any other damages incurred including Attorney’s fees which
may be pursued by filing the proper action in court.

18. CUMULATIVE REMEDIES

All rights and remedies conferred upon or reserved to the LESSOR hereof shall be
deemed cumulated and not alternative. All other rights or remedies which may now or
hereafter be given to the LESSOR by law equity may be enforced concurrently from time
to time.

19. NON-WAIVER

Failure or delay by the LESSOR to enforce or demand strict performance by the

LESSEE of any stipulation or condition of this Contract shall not affect the validity

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hereof, or shall such be construed as abandonment, withdrawal, waiver or cancellation of
such stipulation, condition, right or option or of the right of the LESSOR to subsequently
enforce or demand performance of such provisions. No waiver by the LESSOR shall be
deemed to have been made unless expressed in writing and signed by the LESSOR.

20. HOMEOWNER’S ASSOCIATION DUES

The Lessee shall be liable and pay for the monthly association dues and other
charges that may imposed by the Homeowner’s Association.

21. VENUE

In case of court action arising from or in relation to this Contract, the venue shall
be only and exclusively in the proper court of LAS PIÑAS CITY only.

IN WITNESS WHEREOF, the parties have hereto set their hands on the date
and at place first mentioned above.

_______________________ _________________________
LESSOR (LESSEE)

Signed in the presence of:

____________________ ____________________

ACKNOWLEDGMENT

Republic of the Philippines)

City of ________________ ) s.s.

BEFORE ME, a Notary Public for and in the City of _______________ this ____
day of _____________ 2018, personally appeared:

Name IDENTIFICATION No. Date/Place Issued

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known to me and to me known to be the same person/s who executed the foregoing
instrument and acknowledge to me that the same is their own free and voluntary act and
deed.

WITNESS MY HAND AND SEAL, on the date and at the place above written.

Doc. No. ____;

Page No. ____;
Book No. ____;
Series of 2018

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 ANNEX A
This annex is an inventory list of major fixtures and appliances within the Leased
Premises:

 Queen bed and frame with mattress

 Counter top stove
 Built-in electric oven
 2 units of window-type air conditioner
 Garden set (steel table and 2 chairs)
 6-seater dining table
 Built-in kitchen cabinets