Rent Agreement Format in Pakistan

RENT AGREEMENT FORMAT IN PAKISTAN

1. Document Preamble & Recitals

THIS RENT AGREEMENT (hereinafter referred to as the "Agreement") is entered into and made effective as of this [Day] day of [Month], [Year] (the "Effective Date"), by and between:

THE LESSOR: [Full Legal Name of Landlord/Lessor], Son/Daughter/Wife of [Father's/Spouse's Name], holding Computerized National Identity Card (CNIC) Number [CNIC Number], residing at [Permanent Residential Address] (hereinafter referred to as the "Lessor", which expression shall unless repugnant to the context include his/her heirs, legal representatives, executors, administrators, and assigns) of the FIRST PART;

AND

THE LESSEE: [Full Legal Name of Tenant/Lessee], Son/Daughter/Wife of [Father's/Spouse's Name], holding Computerized National Identity Card (CNIC) Number [CNIC Number], residing at [Permanent Residential Address] (hereinafter referred to as the "Lessee", which expression shall unless repugnant to the context include his/her heirs, legal representatives, executors, administrators, and permitted assigns) of the SECOND PART.

(The Lessor and Lessee shall hereinafter be collectively referred to as the "Parties" and individually as a "Party".)

WHEREAS: A. The Lessor is the absolute, lawful, and undisputed owner of the residential/commercial property located at [Complete Property Address, Plot/House/Apartment Number, Street, Area, City], comprising [Number] rooms/floors, along with all fixtures, fittings, and appurtenances attached thereto (hereinafter referred to as the "Demised Premises"). B. The Lessee has approached the Lessor and represented that he/she/they require the Demised Premises for [Residential / Commercial] purposes, and the Lessor has agreed to let out the Demised Premises to the Lessee subject to the terms, covenants, conditions, and stipulations hereinafter contained.

NOW, THEREFORE, IT IS MUTUALLY AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:

---

2. Operational Definitions

For the purposes of this Agreement, the following terms shall have the meanings ascribed to them below, unless the context otherwise requires:

1. "Agreement" means this Rent Agreement, including all recitals, schedules, annexures, and amendments executed in writing between the Parties from time to time.
2. "Demised Premises" means the property described in Recital A, including all structural elements, electrical wiring, gas installations, water pipes, sanitary fittings, and fixtures handed over to the Lessee at the commencement of the Lease Term.
3. "Lease Term" means the fixed duration of [Number] months/years commencing from [Start Date] and expiring on [End Date], unless terminated earlier in accordance with the provisions of this Agreement.
4. "Monthly Rent" means the periodic financial consideration of PKR [Amount in Figures] (Pakistani Rupees [Amount in Words] only) payable by the Lessee to the Lessor for the use and occupation of the Demised Premises.
5. "Security Deposit" means the interest-free refundable monetary sum of PKR [Amount in Figures] (Pakistani Rupees [Amount in Words] only) deposited by the Lessee with the Lessor as collateral security for the due performance of the Lessee’s obligations under this Agreement.
6. "Utilities" means all recurring operational outgoings relating to the Demised Premises, including but not limited to electricity (WAPDA/KESC), natural gas (SNGPL/SSGC), water, sewerage, and maintenance or society charges.
7. "Jurisdiction" means the courts of competent civil jurisdiction located at [City, e.g., Lahore / Karachi / Islamabad], Islamic Republic of Pakistan.

---

3. Substantive Terms & Obligations

1. Grant of Lease: The Lessor hereby demises and lets out the Demised Premises to the Lessee, and the Lessee hereby takes and hires the Demised Premises, for the Lease Term subject to the timely payment of Monthly Rent and strict adherence to all covenants herein.
2. Lease Term: The tenancy shall be for a fixed period of [Number] months, commencing on [Start Date] and ending on [End Date]. Upon the expiry of the Lease Term, this Agreement shall automatically stand terminated unless renewed by a fresh written agreement executed by both Parties prior to expiry.
3. Monthly Rent & Payment Mechanics:
   • The Lessee shall pay the Monthly Rent of PKR [Amount] in advance, on or before the [Day, e.g., 5th] day of each calendar month.
   • Payment shall be made via [Bank Transfer / Cross Cheque / Cash with receipt] to the Lessor's designated bank account ([Bank Name, Account Number, IBAN]).
4. Security Deposit:
   • The Lessee has paid the Security Deposit of PKR [Amount] upon the execution of this Agreement, receipt of which the Lessor hereby acknowledges.
   • The Security Deposit shall remain with the Lessor throughout the Lease Term interest-free and shall be refunded to the Lessee in full upon the expiry or lawful termination of this Agreement, subject to the deduction of outstanding utility bills, unpaid rent, and the cost of repairing any damage to the Demised Premises beyond normal wear and tear.
5. Rent Escalation: In the event the Lease Term is extended beyond the initial period or spans multiple years, the Monthly Rent shall automatically stand enhanced by [Percentage, e.g., 10%]% per annum over the preceding year's rent.
6. Utilities and Outgoings: The Lessee shall be exclusively responsible for the timely payment of all utility bills (electricity, gas, water, telephone, internet, and maintenance charges) consumed on the Demised Premises from the exact effective date of possession until the date physical vacant possession is handed back to the Lessor. Copies of paid utility bills shall be furnished to the Lessor upon demand.
7. Permitted Use: The Demised Premises shall be used strictly for [Residential / Commercial - specify exact business activity] purposes by the Lessee and their immediate family members / registered staff. The Lessee shall not use, or permit to be used, the Demised Premises for any illegal, immoral, or hazardous activities, nor store any inflammable or explosive materials.
8. Subletting and Assignment: The Lessee shall not assign, transfer, mortgage, sublet, or part with possession of the Demised Premises or any part thereof to any third party under any circumstances without the prior express written consent of the Lessor.
9. Alterations and Structural Changes: The Lessee shall not make any structural alterations, additions, or permanent modifications to the Demised Premises without the prior written approval of the Lessor. Any authorized fixtures or fittings installed by the Lessee shall, at the Lessor's option, either remain as property of the Lessor without compensation or be removed by the Lessee at their own expense upon termination, restoring the premises to its original condition.
10. Maintenance and Repairs:
    • Minor day-to-day repairs (such as fuse replacement, bulb changes, leaking taps, minor hardware fixes) shall be carried out by the Lessee at their own cost.
    • Major structural, plumbing, or electrical failures arising from inherent defects or wear and tear not caused by the Lessee's negligence shall be the responsibility of the Lessor.
11. Inspection Rights: The Lessor, or the Lessor's duly authorized agent, shall have the right to enter the Demised Premises at all reasonable times, upon giving at least twenty-four (24) hours prior notice to the Lessee, to inspect the condition of the property and verify compliance with this Agreement.
12. Indemnification: The Lessee agrees to indemnify and hold harmless the Lessor against any claims, demands, losses, damages, or legal liabilities arising out of any injury, accident, or damage caused to any person or property within the Demised Premises due to the negligence, acts, or omissions of the Lessee, their guests, or employees.

---

4. Default, Termination, and Remedies

1. Events of Default: The occurrence of any of the following events shall constitute a material breach and "Event of Default" under this Agreement:
   • Failure by the Lessee to pay the Monthly Rent on or before the due date, persisting for a period exceeding fifteen (15) calendar days.
   • Failure by the Lessee to pay utility bills or maintain required utility connections.
   • Breach of any substantive covenant, including unauthorized subletting, illegal use, or unapproved structural alterations.
   • Insolvency, bankruptcy, or initiation of winding-up proceedings against the Lessee.
2. Notice to Cure: Upon the occurrence of an Event of Default, the non-defaulting Party shall issue a written notice of default to the defaulting Party. The defaulting Party shall have a cure period of thirty (30) business days from the receipt of such notice to rectify the default to the reasonable satisfaction of the non-defaulting Party.
3. Termination for Cause: If the Lessee fails to cure the default within the stipulated thirty (30) business day cure period, the Lessor shall have the absolute legal right to terminate this Agreement forthwith by written notice, revoke the license/tenancy, forfeit the Security Deposit (subject to adjustment of dues), and initiate legal eviction proceedings.
4. Early Termination by Lessee: The Lessee may terminate this Agreement prior to the expiry of the Lease Term by serving a minimum of thirty (30) business days' prior written notice to the Lessor, or by forfeiting an amount equivalent to one (1) month's rent in lieu of notice.
5. Consequences of Termination/Expiry: Upon the expiration or lawful termination of this Agreement, the Lessee shall immediately vacate and surrender peaceful, vacant, and physical possession of the Demised Premises to the Lessor, along with all keys, access cards, and original fixtures in good working condition. Overstaying without written renewal shall render the Lessee liable to pay penal rent/damages at the rate of PKR [Penal Amount] per day, without prejudice to the Lessor's right to initiate legal eviction through a court of competent jurisdiction under the applicable provincial rent restriction laws of Pakistan.

---

5. Boilerplate Legal Provisions

1. Severability: If any provision of this Agreement is held to be illegal, invalid, or unenforceable by a court of competent jurisdiction, such provision shall be deemed modified to the minimum extent necessary to make it legal and enforceable. The remaining provisions of this Agreement shall remain in full force and effect.
2. Entire Agreement: This Agreement constitutes the entire understanding and agreement between the Parties relating to the Demised Premises and supersedes all prior oral or written negotiations, representations, understandings, or agreements between the Parties. No modification or amendment to this Agreement shall be valid unless executed in writing and signed by both Parties.
3. Force Majeure: Neither Party shall be held liable for any failure or delay in performing their obligations under this Agreement if such failure arises from acts of God, war, civil insurrection, riots, acts of terrorism, epidemic, pandemic, governmental lockdowns, earthquake, flood, or other natural disasters beyond the reasonable control of the affected Party ("Force Majeure Event"). Financial inability to pay rent shall under no circumstances constitute a Force Majeure Event.
4. Governing Law: This Agreement shall be governed by, construed, and interpreted in accordance with the laws of the Islamic Republic of Pakistan, and specifically subject to the applicable provincial rent restriction statutes (e.g., Sindh Rented Premises Ordinance, 1979 / Punjab Rented Premises Act, 2009 / Islamabad Rent Restriction Ordinance, 2001).
5. Dispute Resolution:
   • Any dispute, controversy, or claim arising out of or relating to this Agreement, including its formation, interpretation, performance, breach, or termination, shall be settled amicably through good-faith negotiations between the Parties within fifteen (15) days.
   • If amicable settlement fails, the dispute shall be referred to arbitration in accordance with the Arbitration Act, 1940, by a sole arbitrator mutually appointed by the Parties. The venue of arbitration shall be [City], and the proceedings shall be conducted in the English/Urdu language. The award rendered by the arbitrator shall be final and binding.
   • Nothing herein shall bar the Lessor from approaching the competent Rent Controller or Civil Court for emergency injunctive relief or eviction proceedings.
6. Stamp Duty and Registration: All costs, stamp duties, registration fees (if applicable), and notarial charges associated with the execution and registration of this Agreement shall be borne equally by the Parties [or specify: solely by the Lessee].

---

6. Formal Execution Block

IN WITNESS WHEREOF, the Parties hereto have set their respective hands, signatures, and seals to this Rent Agreement on the day, month, and year first written above, in the presence of the subscribing witnesses.

---

LESSOR:

Entity / Individual Name: [Full Legal Name of Lessor]
Authorized Signatory: [Name of Signatory]
Title / Capacity: [Owner / Attorney-in-Fact]
CNIC Number: [CNIC Number]

Signature: ___________________________
Date: [DD/MM/YYYY]

---

LESSEE:

Entity / Individual Name: [Full Legal Name of Lessee]
Authorized Signatory: [Name of Signatory]
Title / Capacity: [Tenant / Director]
CNIC Number: [CNIC Number]

Signature: ___________________________
Date: [DD/MM/YYYY]

---

WITNESSES:

Witness 1:
Name: [Full Name of Witness 1]
CNIC Number: [CNIC Number]
Address: [Complete Address]

Signature: ___________________________
Date: [DD/MM/YYYY]

---

Witness 2:
Name: [Full Name of Witness 2]
CNIC Number: [CNIC Number]
Address: [Complete Address]

Signature: ___________________________
Date: [DD/MM/YYYY]