Commercial Lease Agreement

This packet includes the following items:

1. Information & Checklist

2. Commercial Lease Agreement

3. Exhibit A: Floor Plan Cover Sheet

Commercial Lease Agreement

Information

“Location! Location! Location!” has been the mantra of many a successful business. However, finding the right space is just the beginning. Before you can go to work on making your business a reality, you must enter a Commercial Lease Agreement. This agreement will outline the legal rights, obligations and processes for both the Landlord and the Tenant.

Often Landlords and Tenants fall into the trap of perceiving the lease agreement as an obstacle to their eventual business relationship, rather than an important step in protecting the parties. A good commercial lease agreement should spell out the parties’ intentions and understanding, clearly stating important information such as premises description, rent, lease terms, repair policies, etc. By having these rights and obligations clearly stated, you can avoid most misunderstandings and the problems they spawn.

Unfortunately, disagreements and other problems do occur. In those situations, the commercial lease agreement will help to facilitate a smooth resolution by clearly stating the correct processes to cure the problem, hopefully leading to an amicable solution. If an amicable solution is not possible, a well-written commercial lease agreement can protect you and win your case in court.

This packet includes the following items: (1) Information & Checklist; (2) Commercial Lease Agreement; (3) Exhibit A: Floor Plan Cover Sheet

DISCLAIMER:

□ These forms contain the basic terms and language that should be included in a commercial lease agreement. The laws in some states require a landlord to make additional written disclosures, including disclosures about the condition of the unit, the building, the neighborhood, the environment and any other known problems. Certain cities and municipalities may have additional disclosure requirements that will need to be included. You should consult with a real estate agent or attorney in your area to determine what additional disclosures, if any, are required in your state or locality. Even if these disclosures are not required by law, a Tenant may still request that they be made, and may negotiate to make them part of its agreement.

□ Laws vary from time to time and from state to state. These forms are not a substitute for legal advice. These forms should be considered only a starting point, and should not be used or signed before first consulting with an attorney to ensure that they address your particular situation. An attorney should be consulted before negotiating any document with another party.

□ The purchase and use of these forms is subject to the “Terms and Conditions” detailed at www.findlegalforms.com.

Commercial Lease Agreement

Checklist

The following checklist is provided to help guide you through the completion of your lease, as well as provide general advice that may help you avoid miscommunications with your tenants and thereby avoid future conflict.

General

 Both the Landlord and Tenant must sign the Lease. Two originally copies should be made (one for the Landlord and one for the Tenant).

 Because the relationship with your tenant is one that will generally span months if not years, maintaining the health of that relationship is key. When completing the lease, try to answer or anticipate as many of the Tenant’s concerns as possible. It is better to have issues arise before the lease is signed than after.

 Documentation is your friend. Any consents, waivers or amendments to the lease should be in writing. In the case of the amendment, both parties must sign the document.

Section Specific

 Section 1(A) Premises- When describing the Premises, be as specific as possible. A vague description may mislead your tenant, create distrust and possibly result in litigation. If necessary, attach a schematic of the building, property or floor plan.

 Section 1(B) Parking - If no parking is provided, delete this section and renumber.

 Section 2 Term – Many landlords choose not to include an automatic renewal term. If you choose to remove this as an option, either cross out or delete the section.

 Section 4 Security Deposits – Security deposits are often regulated by state, county and municipal governments. Some states require that the security deposits be placed in an interest bearing savings account. Others have very specific documentation requirements if any portion of the deposit is not returned to the Tenant after the expiration of the lease term. Check your states deposit regulations to ensure that you are in compliance.

 Section 7(B) Insurance – This is an optional provision. If you choose not to require your Tenant to maintain and insurance policy, or if you require additional insurance, alter this provision to correspond with your needs.