How to create a legally sound rental contract for domestic or residential leases
This article will introduce basic information about rental agreements, what to include in a rental agreement, and how DocLegal.ai can help draft a residential lease template.
What is a Rental Agreement?
If you want to rent a house or flat to live in (or rent out your house or flat for a tenant to live in), you need a rental agreement. Rental agreements (also known as lease or tenancy agreements) are important documents for tenants and landlords to enter into because they govern the rights and obligations between the parties, ensuring a smooth and legal rental process. Such contracts are legally binding, so the tenant or landlord may be liable in damages or other legal consequences if the terms of the rental contract are breached.
Types of domestic or residential rental agreements (and related agreements) include:
- Fixed-term tenancy: a lease where the term of the rental agreement is fixed and it does not automatically renew.
- Periodic tenancy (such as a month-to-month or year-to-year tenancy): where the term of the rental agreement reviews automatically (either by express agreement or by the tenant moving in and paying rent on a periodic basis) unless a full period of notice is given to terminate the tenancy.
- Sublease or Subtenancy Agreement: The existing tenant rents out part or all of the premises to another person (subtenant).
- Room Rental or Lodger Agreement - This is where tenant rents a room within property
- Tenants-in-common Agreement: This is an agreement for sharing interest in the rented premises. The interest is of a legally separate (although not physically separate) interest in the property.
- Lease renewal agreement: An agreement made to renew the lease.
Key parties involved in a Rental Contract
The main parties to the rental contract are the tenant and the landlord. However, the following groups who are not directly party to the contract may also be relevant for your consideration:
- Sub-tenants, or tenants under the head lease: Depending on relevant laws of the jurisdiction and the terms of the rental agreement, they may pass on or take on certain legal obligations and rights;
- Cohabitees: Individuals living with the tenant, such as a partner or family member, may also gain certain rights or responsibilities depending on the local laws and the terms of the rental agreement.
- Building management or the Incorporated Owners: They may have the right to set certain rules relating to living in the rented premises, such as permitted uses of common areas and whether pets are allowed in the building.
Essential Clauses in a simple rental contract
1. The name and addresses of the parties (i.e. tenant and landlord)
This ensures that both parties are clearly identified. For extra specificity, the ID number of the parties (such as HKID in Hong Kong) may also be included.
2. Address, name, and area of the premises to be let
This describes the premises being leased, including the address and total area. This ensures that both parties are aware of the property being rented.
3. Period/length of the tenancy (including commencement and end date)
This clause should state that the agreement will commence on a specific date, and continue on a week-to-week/month-to-month/etc. basis.
4. Amount of rent payable and period of payment
This clause should detail the amount of rent payable by the tenant and the payment schedule. A similar clause may also mention the tenant's responsibility for additional charges such as water, electricity, gas, management fees, government rates and rent, and property tax.
5. Initial deposit to the landlord
These clauses should explain the amount of deposit required and the conditions for its refund. It should also be mentioned the landlord's right to retain part or all of the deposit in case of a breach of the agreement by the tenant.
6. Terms of renewing and terminating the tenancy agreement
These clauses respectively explain the conditions under which the tenant can renew the lease and the conditions under which the landlord can terminate the agreement and evict the tenant (as well as the tenant's obligation to deliver vacant possession of the premises).
7. Whether the tenant or landlord will keep certain premises in repair
These clauses outline which types of repairs are to be carried out by the tenant or landlord, such as the tenant’s obligation to maintain the premises in a proper state of repair and which types of defects are to be repaired by the landlord. If the landlord has undertaken to repair certain areas or defects, this is usually supported by a clause that the landlord will be allowed reasonable access to view and repair the premises.
8. Obligations of the tenant
These clauses detail the tenant's obligations, such as paying government taxes, keeping the premises in good condition, and complying with laws and regulations. Another useful clause is the terms of using the premises, including allowed and prohibited uses (i.e. domestic, commercial).
9. Obligations of the landlord
These clauses detail the landlord’s obligations, which usually includes that the landlord will allow the tenant quiet enjoyment (i.e. not to block the tenant from entering the land, make loud noises, or otherwise interfering with the tenant’s use of the premises) and will not derogate from his grant (i.e. where the lease was made for a particular purpose, the landlord is not to render it unfit for such purpose).
Other recommended clauses
- Landlord’s provision of certain furniture and services such as water, sewerage, electricity, etc.: a schedule may be included at the end of the agreement which lists the furniture and electrical appliances included in the rental.
- Tenant’s right (or lack thereof) to keep vehicles on the premises.
- Tenant’s right (or lack thereof) to make alterations or improvements to the property (such as additional buildings, structures, or decorations).
- Restrictions on the tenant from subletting, parting with, or sharing possession of the property.
- Restrictions on the tenant from keeping pets or other animals on the premises.
- Restrictions on the tenant from changing the locks or security codes.
How to draft a rental agreement template with DocLegal.ai
DocLegal.ai enables users to summarize complex contracts, highlight absent clauses, suggest improvements, and automatically update documents all through an intuitive AI chatbot, making legal workflows more reliable and efficient. Here is how to draft these clauses:
1. Start a new session on DocLegal.ai in “New Document”
2. Describe the basic requirements of your document
3. Click “Generate document” to generate the document draft, make further edits, and add more clauses
4. Use the “Document Review” chatbot to make further customisations to the document
5. Download the finalised document and enjoy!
Common mistakes to avoid when drafting or signing a rental agreement
Be careful not to confuse an agreement to rent domestic premises as a tenant (i.e. a tenancy agreement to rent a place to live) with a licence agreement (i.e. an agreement for a hotel or lodging stay). Tenancy agreements offer more legal protections for tenants compared with licence agreements, such as a minimum notice period requirement that the landlord must give the tenant before terminating the lease.
One of the main determining factors for whether the agreement is for a lease or licence is whether the tenant has exclusive possession of the premises. For example, if the landlord lives in a different building, there is no provided cleaning inside your room, and you have the key to the room and main door of the building, you might have a lease instead of a licence (but this depends on an overall assessment of your specific situation).
Frequently Asked Questions
Why should I put my rental agreement in writing when I can just make one orally?
You should put your rental agreement in writing so that the set of terms agreed to between the tenant and landlord are clearly evidenced in writing. In case a legal dispute arises and the matter is taken to court, you need something in writing to support your claims, for example, that the landlord agreed to undertake a certain obligation in the agreement that they failed to uphold during your tenancy.
Moreover, some jurisdictions have requirements to grant leases above a certain duration in writing (or by deed) only. Take Hong Kong for example, where under s.4 of the Conveyancing and Property Ordinance (Cap.219), a rental agreement of more than three years must be executed in writing by deed.
I signed a rental agreement but there are some protections I want which were not written down. Will the law imply any protections otherwise?
Most jurisdictions will imply various essential terms into tenancy agreements, so you should check with the relevant laws of your area.
For example, implied liabilities for the landlord may include (depending on jurisdiction) quiet enjoyment of the property by the tenant, not to derogate from the grant (i.e. substantially interfering with the lease to frustrate or make impossible its original purpose), and that the premises are reasonably fit for habitation if it is a furnished residential letting.
Likewise, implied liabilities for the tenant may include (depending on jurisdiction) the tenant’s obligation to pay rent, not to use the premises for immoral or illegal purposes, not to cause unnecessary annoyance, not to make structural changes, and not to commit waste (i.e. not to alter the property and to return it in its original condition).
Nonetheless, it is advisable to clearly put down in writing all the desired legal rights and obligations of all parties for sake of certainty, in case a legal dispute arises.
Rental Agreement Templates on DocLegal.ai
DocLegal.ai provides a suite of AI-powered legal tools designed to make legal processes seamless, accurate, and accessible for everyone, including different types of rental agreement templates. Its services include AI Legal Document Generator, AI Legal Document Reviewer, and AI Legal Assistant Online. With flexible subscription plans suited for both individual users and businesses, generate your own tailored agreements and legal documents for your own use at https://doclegal.ai/ today!
Sample rental contract for domestic or residential leases
Below is a sample month-to-month tenancy agreement for a domestic/residential property. This is a “neutral” template, meaning that does not favour the tenant nor the landlord in particular.
THIS TENANCY AGREEMENT is entered into on [date of agreement]
Between
(1) [Landlord’s full name] whose address is at [Landlord’s address] (the "Landlord")
(2) [Tenant’s full name] whose address is at [Tenant’s address] (the "Tenant")
Whereas
The Landlord shall let and the Tenant shall take the Premises for the Term of Tenancy (as defined below) with details as more particularly described in the Schedule and both parties agree to observe and perform the terms and conditions as follows:
1. Tenancy
The Landlord hereby agrees to lease [Premises’ address] (the “Premises”) and the furniture, fixtures, fittings and equipment therein (as per Schedule, if any) in clean and tenantable condition to the Tenant for residential purpose. The total area is [area of Premises].
2. Term of Tenancy
2.1 This Tenancy Agreement shall commence on [commencement date of tenancy] and continue on a month-to-month basis until terminated by either party with thirty (30) day prior written notice to the other party.
2.2 The Landlord has the right to take back the Premises in full, and the Tenant must deliver vacant possession of the Premises on termination of this Tenancy.
2.3 Provided the Tenant shall have paid the Rent and other outgoings on the days and in the manner herein provided and observe and perform the terms and conditions herein contained and on the Tenant's part to be observed and performed, the Tenant shall peacefully hold and enjoy the Premises during the Term of Tenancy without any interruption by the Landlord.
3. Rent
3.1 The rent is [currency] [$ value of rent payable] on a [periodic weekly/monthly/yearly/etc.] basis, the rent includes Furniture and Electrical Appliances, and other items and fees as listed in the Schedule.
3.2 The Tenant should pay the charges of water, electricity, gas, telephone and other outgoings payable in respect of Premises from the beginning of the term of the tenancy.
3.3 The Tenant shall make [$ value of rent payable] payment in full, the rent is payable on the first day of each period beginning with the first payment on or before [commencement date of tenancy]. Without prejudice to any other right or remedy of the Landlord hereunder the Tenant shall pay to the Landlord on demand daily interest at the rate of two per cent (2%) per annum over the best lending rate from time to time in [jurisdiction] in respect of any of the payments not paid on the due date of such payment to the Landlord hereunder and such interest shall be payable from the date upon which such payment ought to have been paid up to the actual date of payment. If the rent has not been paid for more than 30 days, the Tenancy can be terminated by the Landlord, who is not required to return the said deposit.
3.4 For the avoidance of doubt, the Tenant shall not be entitled to move into the Premises until the deposit and the initial rent has been paid in full.
3.5 After receiving the rental payment for each period, the Landlord shall at the request of the Tenant issue a receipt to the Tenant.
3.6 The rent cannot be increased during the term of this Tenancy Agreement.
4. Deposit
4.1 The deposit is [currency] [$ value of deposit payable] in total, payable within 1 business day after the signature of this Tenancy Agreement.
4.2 If the Tenant terminates the Tenancy Agreement during the tenancy term without any violations of this agreement by the Landlord, the Landlord is not required to return the said deposit.
4.3 If the Tenant breaches any part of this contract, the Landlord has the right to retain part of or all of the deposit as compensation, upon providing the actual evidence by the Landlord.
4.4 If Clause 4.3 is brought into effect, and the said deposit is insufficient to cover Landlord’s costs, the Tenant should pay the extra amount to the Landlord within ten working days of receipt of the Landlord’s invoice notice.
4.5 Provided that there is no antecedent breach of any of the terms and conditions herein contained, the Landlord shall refund the Security Deposit to the Tenant without interest within 7 days from the date of delivery of vacant possession of the Premises to the Landlord or settlement of any outstanding payment owed by the Tenant to the Landlord.
5. Other Charges
5.1 During the period of the tenancy, all outgoing charges for use of water, electricity, telephone, internet, gas and heating fee are payable by the Tenant monthly according to consumption, and on receipt of bills received from the service providers/management office.
5.2 The following party shall be responsible for the following payment payable in respect of the Premises during the Term (at the current rate - subject to revision from time to time):-
- Management Fee - [$ value/rate of management fee payable] payable by [tenant/landlord]
- Government Rates and Rent - [$ value/rate of government rates and rent payable] payable by [tenant/landlord]
- Property Tax - [$ value/rate of property tax payable] payable by [tenant/landlord]
6. Landlord’s Responsibilities:
6.1 Provided the Tenant shall have paid the Rent, the deposit and other outgoings on the days and in the manner herein provided and observe and perform the terms and conditions herein contained and on the Tenant's part to be observed and performed, the Landlord is not permitted to take back the Premises during the term of the contract without obtaining agreement from the Tenant.
6.2 To ensure the legality of the Premises and its legal rights to lease the Premises.
6.3 The above property shall be renovated as agreed under the Schedule and in tenantable condition before the commencement date of the Tenancy.
6.4 The Landlord shall keep and maintain the structural parts of the Premises and the main drains, pipes, cables and the Developer’s / Landlord’s electrical appliance in a proper state of repair provided that the Landlord's liability shall not be incurred unless and until written notice of any defect or want of repair has been given by the Tenant to the Landlord, and such defect is not caused by any intentional behaviours or negligence of the Tenant and the Landlord shall have failed to take reasonable steps to repair and remedy the same after the lapse of a reasonable time from the date of service of such notice.
7. Tenant’s Responsibilities
7.1 The Tenant should promptly pay the rent, deposit and other charges as set out in Clauses 3, 4 and 5 of the Agreement. Non-payment of these charges constitutes a breach of this Agreement.
7.2 The Premises shall be occupied by [full name of occupant] and his / her family members only. During the period of the Tenancy, unless with the written agreement of the Landlord, the Tenant shall not assign, transfer, sub-let, let or part with the possession in part or in full of the Premises. The Landlord has the right to take back the property at any time and stop the leasing contract.
7.3 The Tenant shall during the Term of Tenancy keep the interior of the Premises in good and tenantable repair and condition (fair wear and tear and damage caused by inherent defect excepted) and shall deliver up vacant possession of the Premises in the same repair and condition on termination of this tenancy. Otherwise, the Tenant should pay compensation to the Landlord for his improper use of the property.
7.4 The Tenant shall indemnify the Landlord for any loss or damage to the Premises from negligent act or omission of the Tenant or any officer, director, employee, guest, visitor, servant, contractor, agent, licensee or invitee of the Tenant (each referred to hereinafter individually as an “Associate”). For the purpose of this Agreement, any act, default, neglect or omission of any Associate of the Tenant shall be deemed to be the act, default, neglect or omission of the Tenant.
7.5 The Tenant shall permit the Landlord or his authorized representatives, at a reasonable time with advance notice, to enter the Premises to repair any such loss or damage at the expense of the Tenant. During the last month of the Tenancy, the Landlord has the right to show the Premises to prospective tenants or purchasers with reasonable advance notice to the Tenant.
7.6 The Tenant shall not make any alteration and / or additions to the Premises, erect, install or remove any fixtures or partitioning, or make any structural additions and / or alternations nor affix or display any signboard or other device at the exterior of the Premises without the prior written consent of the Landlord, which consent shall not be unreasonably withheld.
7.7 The Tenant shall pay and discharge punctually in respect of water, electricity, gas, telephone and other similar fees, charges and expenses payable (if any) incurred by the Tenant at the Premises which are not included in the rental.
7.8 The Tenant shall comply with all laws, regulations and rules of [jurisdiction] and shall observe and perform the covenants, terms and conditions of the Deed of Mutual Covenant and Sub-Deed of Mutual Covenant (if any) relating to the Premises. The Tenant shall not contravene any negative or restrictive covenants contained in the Government Lease(s) under which the Premises are held from the Government, and specifically not to permit or allow the Premises to be used for any purpose that is unlawful or immoral.
7.9 A written notice served by the Landlord on the Tenant in the manner hereinafter mentioned to the effect that the Landlord thereby exercises the power of re-entry herein contained shall be a full and sufficient exercise of such power without an actual physical entry on the part of the Landlord.
8. Termination of the Tenancy
If the Tenant fails to make the rental or any other payment or beaches other material terms under this Agreement, and such failure to pay continues for more than fifteen (15) days, then the Landlord shall be entitled to deliver to the Premises a written notice demanding the Tenant to remedy the failure within fifteen (15) days after Tenant’s receipt of the notice. If such failure is not remedied by the Tenant prior to the end of such fifteen (15) day period, the Landlord shall have the right to terminate this Agreement and without prejudice to further rights or remedies to deduct any outstanding payment from the Security Deposit made pursuant to clause 4, and the Landlord shall be entitled to re-enter the Premises and, if necessary, to evict Tenant therefrom.
9. Premises Unfit for Occupation
If the Premises are substantially destroyed or damaged by fire, bad weather, war, force major, or other causes beyond the control of the Landlord and not attributable directly or indirectly to the negligence or malice of the Tenant or are otherwise rendered unfit for use or occupation, the rent and other charges shall cease to be payable from the date the Premises become unfit for use or occupation until the Premises shall again be rendered accessible and fit for use, however, that the Landlord shall be under no obligation to repair the Premises when in the Landlord’s opinion, it is not reasonably or economically or practically to do so. If such an event occurs, the Landlord shall give written notice to Tenant, any rent paid in advance and the deposit paid by the Tenant shall be returned in full within 10 days of said notice. If the said Premises or the said building not have been reinstated in the meantime either the Landlord or the Tenant may at any time after six (6) months from the occurrence of such damage or destruction or order give to the other of them notice in writing to determine this Agreement and thereupon the same and everything herein contained shall cease and be void as from the date of the occurrence of such destruction or damage or order or of the said premises becoming inaccessible but without prejudice to the rights and remedies of either party against the other in respect of any antecedent claim or breach of the agreement stipulations, terms and conditions herein contained or of the Landlord in respect of the said rent payable prior to the coming into effect of the suspension.
10. Miscellaneous
10.1 This Agreement sets out the entire agreement and understanding between the parties with respect to the subject matter hereof. This Agreement supersedes all previous agreements, arrangements and understandings between the parties with respect to the Premises, which shall cease to have any further force or effect.
10.2 If any provision of this Agreement is held by any court or other competent authority to be void or unenforceable in whole or part, this Agreement shall continue to be valid as to the other provisions thereof and the remainder of the affected provision.
10.3 Any waiver by either party of a breach of any provision of this Agreement shall not be considered as a waiver of any subsequent breach of the same or any other provision thereof.
10.4 The Schedule forms an integral part of the Agreement.
10.5 The Security Deposit paid under this clause shall be absolutely forfeited to the Landlord as and for liquidated damages (but not as a penalty) and the rights and remedies given to the Landlord by this clause shall not prejudice any other right of action or any remedy of the Landlord in respect of such breach by the Tenant.
10.6 The Stamp Duty (if any) payable on this Agreement shall be borne by the Landlord and the Tenant in equal shares.
10.7 The Tenant agrees that all personal property kept or stored on the Premises shall be at the sole risk of the Tenant. The Tenant further agrees not to hold the Landlord liable in any matter for / or on account of any loss or damage sustained by the action of any third party, fire, water, theft, or the elements or for loss of any articles from any cause, from said Premises or any other part of any associated buildings or common / public areas. Neither shall the Landlord be liable for any injury to the Tenant, his or her family, guests, employees, or any person entering the Premises. The Tenant shall be responsible for getting its own insurance (including property and third party insurance) and shall have no claims against the landlord for any property damages.
10.8 The Tenant shall not keep or permit or suffer to be kept any animals or pets inside the Premises without the prior consent of the Landlord.
10.9 Save for any additional renovations agreed in the Schedule, the Tenant hereby declares that he has inspected and is fully satisfied with and accepts in all respect the existing state, condition and finishes of the said premises. The said premises are let and will be let to the Tenant on an "as-is" basis. The Landlord shall not be required to do any work or repair to such state and condition of the said premises and the Tenant shall take the said premises in such state and condition and shall raise no objection whatsoever in relation thereto.
[If there is a mortgage on the property of the Premises:
10.10 The Tenant understand and acknowledge that the Premises is subject to charge / mortgage, and the Landlord will not produce any “Letter of Consent” from the Chargee / Mortgagee, the Landlord promise if the Premises take over by the Bank / Mortgagee, the Landlord shall refund the said Security Deposit to the Tenant within 14 days.]
11. No Rights under Contracts for Third Parties
A person who is not a party to this Agreement shall have no right under any law to enforce any of its terms.
12. Law and Jurisdiction
12.1 This document is governed by and is to be construed in accordance with the laws of [jurisdiction] applicable therein.
12.3 The parties shall use all reasonable endeavours to resolve any dispute amicably and in good faith. Each party irrevocably and unconditionally submits to the exclusive jurisdiction of the courts of [jurisdiction] (and any court of appeal) and waives any right to object to an action being brought in those courts, including on the basis of an inconvenient forum or those courts not having jurisdiction.
13. Notices and service
13.1 Any notice so served by hand, e-mail or post shall be deemed to have been duly given:
- in the case of delivery by hand, when delivered;
- in the case of fax or electronic mail on a Business Day prior to 5.00 pm, at the time of receipt;
- in the case of prepaid recorded delivery, special delivery or registered post, at 10 am on the second Business Day following the date of posting
provided that in each case where delivery by hand or by e-mail occurs after 5 pm on a Business Day or on a day which is not a Business Day, service shall be deemed to occur at 9 am on the next following Business Day. References to time in this clause are to local time in the country of the addressee.
13.2 The addresses of the parties for the purpose of clause 13.1 are as follows:
Landlord
[Landlord’s full name]
Address: [Landlord’s address]
E-mail: [Landlord’s e-mail]
For the attention of: [Tenant’s full name]
Tenant
[Tenant’s full name]
Address: [Tenant’s address]
E-mail: [Tenant’s e-mail]
For the attention of: [Landlord’s full name]
As witness, this Agreement has been signed by the duly authorised representatives of the Parties the day and year first before written.
_____________________________
Signature of Landlord, dated:
_____________________________
Signature of Tenant, dated:
SCHEDULE
The above rent includes the following Furniture & Electrical Appliances:
LIVING ROOM & DINING ROOM
( ) SOFA WITH 3 SEATERS ( ) WALLUNIT / CABINET ( ) AIR-CONDITIONER(S)
( ) HANGING / CEILING LAMP(S) ( ) SPLIT AIR-CONDITIONER(S)& REMOTE
( ) CURTAIN WITH RAIL(S) WITH COVER ( ) TELEVISION ( ) TV CABINET
( ) DINNING TABLE ( ) DINNING CHAIRS ( ) SHOES CABINET
KITCHEN
( ) DISHWASHER ( ) MICROWAVE ( ) VENTILATION FAN ( ) CEILING LAMP(S)
( ) COOKER ( ) AIR-CONDITIONER(S)& REMOTE ( ) WATER HEATER
( ) WALL UNIT CABINET ( ) CURTAIN WITH RAIL(S) ( ) REFRIGERATOR
( ) OVEN ( ) DUSTER ( ) RANGE HOOD ( ) WASHING & DRYING MACHINE
MASTER BEDROOM
( ) SOFA ( ) CEILING LAMP(S) ( ) WALLUNIT / CABINET ( ) AIR-CONDITIONER(S)
( ) HANGING / CEILING LAMP(S) ( ) DOUBLE BED WITH MATTRESS
( ) SPLIT AIR-CONDITIONER(S)& REMOTE ( ) CURTAIN WITH RAIL(S) WITH COVER
( ) TELEVISION ( ) WARDROBE ( ) TURNING CHAIRS ( ) DRESSING DESK
BATHROOM (MASTER BEDROOM）
( ) WATER HEATER ( ) VENTILATION FAN
SECOND BEDROOM
( ) SINGLE SOFA BED WITH MATTRESS ( ) CEILING LAMP(S)
( ) AIR-CONDITIONER(S)& REMOTE ( ) CURTAIN WITH RAIL(S)
( ) WARDROBE ( ) DESK ( ) DESK’S CHAIR
THIRD BEDROOM
( ) SINGLE/DOUBLE BED WITH MATTRESS ( ) CEILING LAMP(S)
( ) AIR-CONDITIONER(S) ( ) CURTAIN WITH RAILS(S)
( ) WARDROBE ( ) MIRROR ( ) BOOK-CABINET / DESK
BATHROOM
( ) WATER HEATER ( ) VENTILATION FAN ( ) MIRROR
STORAGE AND PARKING
Property includes parking (check one):
( ) in attached garage ( ) in detached garage ( ) in Parking Stall
Property includes storage space/locker ( ).
All of the Tenant’s obligations pursuant to this Tenancy Agreement shall extend to any storage space / locker and / or parking space(s). If the Tenant elects to store personal property on the Premises, the Tenant recognizes that he / she does so at its own risk, and hereby releases the Landlord from any and all claims for damage arising out of the loss, theft, or damage to goods in storage for whatever reason. The Tenant agrees not to store any hazardous material in or at the Property or on the grounds of the Property.
ANY ADDITIONAL RENOVATIONS AGREED:
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