Commercial Lease Agreement
Preview document - " COMMERCIAL LEASE AGREEMENT"
Frequently Asked Questions
What is an option to renew lease?
When the term of the lease is for a fixed period of time, the lease will automatically end at the end of that period and the tenant must surrender the property at that time. An option to renew the lease is an option given to the tenant to renew the lease prior to the end of the lease if they give notice to the landlord no later than 60 days before the end of the lease.
If you want the tenant to be able to extend the lease term for that same period and same rent, then select the "yes with same terms" option.
If you want the tenant to be able to extend the lease term for that same period but a lease rate to be agreed upon when renewing, then select the "same terms except rent" option.
Select the "yes, revise standard clause" option if you want a different notice period or alternative wording in the renewal lease clause.
What does it mean to Assign/Sublease?
If a tenant assigns the lease with the landlord’s consent, all of the tenant’s rights are transferred to a 3rd party for the remainder of the lease term.
In contrast, the tenant can sublease its right to use all, or part, of the property to a 3rd party, for all or only a portion of the remaining time in the lease. The original tenant would still retain some rights under the lease.
What is an option to purchase?
An option to purchase is an option that is given to a tenant to purchase the property at a certain price during a certain period of time. The tenant may also have to pay an option fee.
What is an option fee?
An Option Feeis a fee/deposit the tenant pays the landlord at the beginning of the term to have a right to purchase the property at a certain price during a certain time period. If the tenant proceeds with the purchase, the option fee is usually applied towards the purchase price. If the tenant does not exercise its option, then the landlord may keep this deposit.
Who should sign the lease?
Both the landlord and the tenant, and any guarantor, if applicable, should sign the lease. Having witnesses to the parties' signatures provides greater evidence that the parties entered into the lease.
What is written notice?
A written notice is used to inform the other party of any significant changes to the terms of the lease, such as an eviction notice or increase in rent.