What is a Commercial Lease Agreement?
Within the realm of property law and the legislative management of Real Estate, legal agreements are required to be set forth upon the leasing or renting of a piece of commercial property. In many cases, a Commercial Lease Agreement will differ from other types of lease agreements, such as residential agreements.
Due to the fact that a Commercial Lease Agreement is instated to provide for the implicit stipulations within the management and undertaking of tenant responsibility alongside with a framework of monetary exchange, the statutes within commercial leases will typically include additional clauses and stipulations reflecting applicable taxes and insurance.
The Terms of a Commercial Lease Agreement
A commercial lease agreement is a financial and legally-binding contractual statement that authenticates, authorizes, and mandates the participation of two or more parties with regard to the established terms of exchange, restitution, responsibility, and requirements expressed within the text of a commercial lease agreement. Within a Commercial Lease Agreement, there exists a wide range of terminology applicable to the terms of the lease agreement, which provide for added specification regarding legality corollary to statutory commercial law:
A Commercial Lessee is the designated party named within the individual Commercial Lease Agreement who undertakes the act of leasing a piece of commercial property from the commercial lessor; in certain cases, a commercial lessee may also be classified as a tenant – however, this varies on a case-by-case basis with regard to the specific Commercial Lease Agreement. A Commercial Lessee will typically be responsible for the following stipulations and responsibilities:
The prompt payment of lease – or rental – payments illustrated within the Commercial Lease Agreement
The adherence to any and all expressed requirements with regard to the satisfaction of supplementary payments, which may include commercial taxation and commercial insurance
The adherence to the nature of professional decorum expressed within the Commercial Lease Agreement; this may include conducting a specific type of business or commercial activity, the upkeep of the commercial property, and the authorization of personnel permitted on the premises
Within a Commercial Lease Agreement, the Commercial Lessor is classified as the individual or entity that provides a Commercial Lessee with the opportunity to rent – or lease – a piece of commercial property; in certain cases, the commercial lessor may be classified as ‘landlord’ – however, this classification is applicable on a case-by-case basis in accordance to the text of the Commercial Lease Agreement in question. A commercial lessor will typically be responsible to fulfill the provision of the following:
The establishment of a specific nature of Commercial Lease Agreement, which can range from gross commercial lease agreement to triple net commercial lease agreement
A gross commercial lease agreement provides that the lessor be responsible for the payment of applicable taxation, funding for maintenance, and insurance premiums – a triple net lease agreement recognizes the lessee as responsible for the fulfillment of not only rental payments, but also applicable taxation, insurance premiums, upkeep, and maintenance
The inclusion of any or all applicable stipulations with regard to the intended- and expressed – usage of the commercial property in question