• Base land lease (for building construction purpose)
• Land lease (public / private land)
• Building lease
• Office lease
• Plant/factory lease
• Farm land lease

Based on the principle of freedom to contract, save for public lands or lands located in specific industrial parks that may be subject to related laws and regulations, the terms and conditions of a lease agreement may generally be freely negotiated and determined. There are certain laws or guidelines for template lease agreements that provide protections for the tenant, such as the cap of the total rent deposit. However, such protections generally do not apply to leases for business purposes.

Unless the lease of land is for the purpose of construction of buildings, under Taiwan law, any lease may not exceed 20 years. Leases that exceed 20 years are deemed shortened to 20 years. Renewal clause in a 20-year lease agreement may be challenged, so the parties may need to re-enter into the lease agreement after the expiration.

• Tenure

The usual term is one to two years for a residential lease and three to five years for an office lease. A right of first refusal upon expiration of the initial term is usually provided for in the agreement.

• Other terms

The conditions for both parties to terminate the lease and the penalty clause regarding either’s default or non-performance, etc.

No, unless the parties agree beforehand that the tenant has the right for extension of the lease.

A landlord can generally terminate the lease under the following conditions:

• The rent has been overdue for at least two months and so the lease can be terminated on the ground of rent default
• The premises are used in violation of law, including where hazardous substances are stored or otherwise threatening public safety
• The premises are subject to provisional seizure or provisional injunction if the tenant is insolvent or proven to be experiencing financial difficulties and thus unable to perform its obligations under the lease agreement.

No. There is no special regulation on this.

Rent is paid on a monthly basis in principle, but other arrangements are also acceptable.

On the basis of the parties’ agreement and no related limit under the law.

Landlords are usually required to repair and maintain the structure of the property.

Tenants, on the other hand, are usually required to do the following:

• Pay rent on time
• Keep the property in good order
• Inform the landlord if repairs are needed and give the landlord access to the property to carry out repairs
• Give the landlord access (often by appointment) for inspections and landlord’s work

According to the Civil Code, no transfer of lease or sublease is allowed without the landlord’s permission.

Generally, it is agreed in the lease agreement that the tenant is entitled to rent abatement for the destruction if the destruction is not attributable to the tenant. If as a result of the destruction the premises can no longer serve the purpose of the lease, the tenant may terminate the lease or be exempted from rental payment until repairs are completed.

The tenant is not entitled to terminate the lease and is liable to pay damages if the destruction is attributable to the tenant.

This depends on the purpose of lease and the parties’ agreements. Normally, insurance related to the spaces inside the leased premises will be borne by the tenant.

Where the lease term is less than five years or the lease has been notarized, the lease will survive and therefore the new owner will become the landlord, even if it purchases or inherits the premises after the execution of the lease.

In the event a creditor who has a mortgage over the leased premises enforces it against the leased premises by application to the court due to failure of the owner to perform its obligations owed to that creditor, the court will remove the leasehold and preclude the tenant from occupying the premises if the lease was executed after the mortgage was created, or was executed before the mortgage was created but more than five years has passed without notarization or it has always been without notarization.

However, if the lease is executed before the mortgage is created and has a term of less than five years or is notarized, the court will indicate no handover after the auction in the auction notice, which means that the court will not preclude the tenant from occupying the premises.