Q.1. What is the User Clause?

A.1. It outlines the permitted and prohibited uses of the property by the tenant. This clause is the only clause that is unique to each tenant and is usually the first clause seen on the lease document.  Many tenants tend to breach this clause which can result in forfeiture of leases.

Example of a User Clause

“To use the Leased Premises solely for the purpose of carrying on the business of engineering and repairing of rectifiers and uninterruptible power systems and activities ancillary thereto and not without the previous consent in writing of the Landlord to use the Leased Premises or suffer or permit the same to be used for any other purpose whatsoever.”

Q.2. Can a Tenant Make Changes to a User Clause?

A.2. The answer is yes, we understand that tenants my want to re-visit their User Clause due to the evolving nature of business. However, there is a procedure that must be followed should a tenant desire to make changes to the User Clause.

The Procedure is simple, just follow the 3 steps:

STEP 1 – Tenant must send a written request to the Manager, Tenant Relations, e TecK for consent to make variations to the User Clause.

STEP 2 – The Property Officer will conduct a site visit to ensure that the proposed user has no implications (HSSE and otherwise) which can impact negatively on the neighboring tenants. And users of the Park.

STEP 3 – The Industrial Parks- Lease Administration Department may have further discussions with the tenant. If approved, the Legal Department, e TecK will prepare the User Variation Document accordingly. A copy of the new User Clause will be an Appendix to the existing lease document; the original copy goes to the tenant.

Q.3. What happens when a tenant is found to be in breach?

A.3. If the Tenant does not receive consent from e TecK to vary the User Clause and there is evidence that alterations to property and type of business have been made, the Tenant will be in material breach. After which, a letter will be sent to the tenant for the breach to be remedied by a certain time. If the tenant does not comply the implication is forfeiture of the lease.

Call Tenants’ Hotline at +1 (868) 224-1970

For further information on your Lease Agreement

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