iii. The monthly rent shall escalate yearly by five percent (5%) of the base starting on the sixth (6th) year and every year thereafter until the termination of the contract. The escalated rent shall be understood to be the monthly rent applicable for such year as opposed to the original rent as provided above. All payments shall be paid at the Municipal Treasurer’s Office.
iv. The term of lease is for a period of ten (10) years counting from the date when the Contract has been signed by both parties. Upon its expiration, the Contract may be renewed under such terms and conditions as may be mutually agreed upon by both parties. A written notice of intent to renew the Lease of Contract shall be served by the Lessee not later than thirty days (30) days prior to the expiry date of the period herein agreed upon.
v. That the Lessee shall pay a deposit upon signing of the contract and prior to move-in, an amount equivalent to the rent for one month as an advance rent which shall be applied as rent for the first month of the lease period.
vi. That the Lessee shall deposit to the Lessor upon signing of the contract and prior to move- in, an amount equivalent to two months of the initial monthly rent as a Security Deposit. Same amount shall be refunded to the Lessee within thirty (30) days from the expiration of the Contract of Lease or from the date the Lessee vacates and returns the Leased Premise, whichever shall come earlier, minus whatever amount/s that the Lessee may owe at that particular point in time.
vii. That upon payment by the Lessee of one month advance rent and two months Security Deposit, the Lessee may be allowed even prior to the commencement of the lease period to undertake the required renovation work on the leased premise.
viii. In case of delay for two (2) months in the payment of monthly rentals, the Lessor may terminate the contract by sending written notice to the Lessee, and after due process, close the stall, and apply as rental whatever deposits or advanced payments the Lessee has made.
ix. The Lessee shall pay a penalty of 25% on any amount of rent due which remains unpaid on due date thereof at the rate of two percent (2%) interest per month compounded monthly to be computed from the date of delinquency until such amount is paid in full. A fraction of a month shall be considered as one month for the purpose of computing such penalty.
Other Terms and Conditions
i. Condition Precedent. A condition precedent to effect the Lease Contract is for the Lessee to submit a copy of any or all of the following depending on the nature of the his/her/its business:
- For Single Proprietorship:
- Dept. of Trade and Industry (DTI) Certificate of Registration;
- Barangay Clearance Certificate;
- Mayor’s Business Permit and Licenses;
- BIR Certificate of Registration;
- Other related documents which may be reasonably required by the municipal government.
- For a Corporation:
- SEC Registration Documents;
- Articles of Incorporation;
- By-Laws;
- Certificate of Incorporation;
- Latest General Information Sheet;
- Board Resolution specifically authorizing the person representing
the business/company to enter into this Lease of Contract;
- Barangay Clearance Certificate;
- Mayor’s Business Permit and Licenses;
- BIR Certificate of Registration;
