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Commercial Lease - Essay Example
Pages 2 (502 words)
A commercial lease can be understood as contract granting use or occupation of property during a specified time for a specified payment. It is an agreement under which the owner of a property grants use or occupation of under a term of contract. In most real estate transactions some form of binding agreement is made early in the process…
There are two important aspects of a commercial lease agreement, the standard lease provisions and the business points. The former consists of insurance, condemnation, and events of default while the latter consists of the specified rent and term.
The 'Business Points' identifies the various aspects such as the parties of the owner and the tenant, the said building or the said property which is to be leased. Exact details of the property needs to be provided and the building should be exactly identified in which the tenant will rent the space. It is also imperative to accurately describe the floor, location and the square footage of the property. The provisions further mentions the dates of the date of effect and the expiration (term) of the lease and in accordance to this term, the rents can be specified with the optional mention of renewal terms. Additional expenditures which can include operating expenditures and other real estate taxes exercised by different authorities need to be discussed and it needs to be clarified if the total rent includes all such expenditures.
Another important service issue is parking. It is normally expected to accompany the specified rented place but might not be the same in every case. Therefore it becomes an important clause in the contract for commercial lease. ...
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