Submitted by: Submitted by scrawl01
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Date Submitted: 11/11/2010 08:18 AM
Stephanie L. Crawl
Professor Zuzolo
Final Paper
Final: Commercial Lease Clauses
A rental agreement for office, warehouse or other space to use to run a business is called a commercial lease. Most commercial agreements are written to benefit a landlord. It may be possible to negotiate leasing terms with commercial landlords, but the success of this may depend on how many other potential business tenants are interested in renting the property. Typical clauses that are found in a commercial lease agreement are alterations and improvements, brokers, compliance with law, parking, quiet possession, repairs, signs, sublease and assignment, and use of the premises.
A clause that is usually discussed in a commercial lease is alterations and improvements. This clause contains information about maintenance, repairs, and alterations to the unit. Additionally, an outline of the responsibilities for upkeep, routine maintenance, and repairs/alterations only with the permission of the landlord advises the tenant on modifications are allowed.
The next clause includes the use if a broker. The clause confirms that this lease is not subject to any broker fees or any other type of fees or commissions as a result of the use of a real estate agent. The clause is necessary as claims may be brought is fees are not paid.
The compliance with the law clause is unnecessary as all tenants and landlords know that they are subject to local, state, and federal law if those laws are broken. The landlord and tenant have rights and responsibilities that must be followed. Any violation of the laws will result in fees or legal actions.
A clause that may be found in residential and commercial leases is a parking clause. A parking clause in a commercial lease provides a tenant with the option of renting a parking space(s) which included in his or her monthly rent. On condition of this clause is that the tenant shall provide all license plate numbers for...