Office Lease Agreement - Unfurnished

This Package Contains:
1. Information & Instructions the Office Lease Agreement; and

2. The Lease

FINDLEGALFORMS.COM

Information & Instructions

Office Lease Agreement - Unfurnished

A Lease Agreement for Office Space is an agreement where one party (a “Lessor” also known as Landlord) agrees to lease/rent office space(s) in a building he/she/it owns to another party (a “Lessee” also known as a Tenant) for a specified time.

An oral agreement when renting or leasing a property is a bad practice. While oral promises can be legally binding, it can be difficult if not impossible to prove them to a judge. It is always advisable to have a written office lease agreements so that the respective rights and obligations of each party are clearly stated in the agreement. This helps in dealing with key issues and thereby avoiding any misunderstanding and disputes. A written form of agreement is always preferred because that it is the best form of a proof to a tribunal or a judge to address any grievance or take a legal recourse in case of disputes. Hence, both the Lessor and Lessee must sign the Lease. Two originally copies should be made (one for the Lessor and one for the Lessee).

Among other issues, the Lease Agreement for Office Space will address the following:

• Duration of lease, an option to renew and how the lease can be terminated by either party by written notice.

• The responsibilities of the Lessee to pay the rent, security deposit (if any), taxes, license fees, etc. relative to its business, utilities, operating, and repair costs.

• The respective responsibilities of the Lessee and Lessor toward maintaining the premises in good condition and the expenses toward the same.

Information regarding important provisions:

1) Premises – The premises stated in the lease needs to be defined clearly. Extra facilities such as parking and common areas (e.g. bathrooms, toilets, pathways conferences, etc.) should be clearly mentioned if these are included in the premises. If necessary, attach a schematic of the building, property or floor plan.

2) Term – The length of the lease has a significant impact on the rental rate. If a Lessor chooses to offer an option to renew the term of the Lease Agreement, it should be mentioned very clearly when the renewal occurs and the terms thereafter. An option to renew clause is included this agreement an optional provision and can be deleted.

3) Security Deposits/ Late Payments – Security deposits and late payment penalties are optional provisions. Lessors under an office lease typically require a security deposit for performance of Lessor’s lease obligations and is generally equal to one or two month's rent, but a Lessor may insist on more if the company is new or financially unstable. Please note that security deposits and late payment penalties are governed by state law. Be sure to research your state’s laws before finalizing these provisions.

4) 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.

5) Use Clause – A use clause signifies how the space can and cannot be used. Because Lessors want to protect their property, their interpretation of usage may infringe upon a Lessee’s ability to adequately conduct its business. A broader use clause is advisable because Lessee’s business may grow and its business model may change. In addition, a narrow use clause can often serve as a restriction on Lessee’s ability to assign or sublet the space.

6) Lessee Improvements and Alterations – A broader clause is advisable where it clearly states the respective obligations of the Lessee and Lessor, their limitations of cost, and the scope of alterations permitted, etc. This clause should be fair and not too restrictive on the Lessee.

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 Lessor 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.