Basically, we all are aware of the meaning of a commercial lease, which signifies legally binding deed or contract that is created between the landlord and a tenant related to a particular business. The lease implies the freedom or power of the tenant the right to use the property or land for any reason, be it some commercial activity or to set up a business, in exchange of a stipulated sum of money.
According to law, the tenant and the landlord are made to sign the commercial lease agreement that states down the rules and responsibilities that should be taken care of by both the parties. The governing law of the lease is basically the jurisdiction where the property is located. Apart from the tenant and the landowner, there is also a third party in the form of a guarantor who promises and agrees to pay if any loses are incurred, directly to the landlord if tenant fails to do so.
So, what does the commercial lease agreement deal with? Here are some major details.
- The lease states the details and facts about the type of property that is being dealt with.
- Also, apart from the type and other facts, the full address of the property also is talked about.
- The term of the tenancy and whether it is for a fixed time amount or can be renewed periodically or not.
- The stipulated amount of rent that needs to be paid, and when or how, whether through net banking, cash or through cheque.
- The type of commercial business that would be conducted within the premises of the particular property for which lease is granted.
- Everything in details about security or damage deposits.
- The conditions to follow to renew the lease after a certain time period.
Thus, both tenant and the landlord should be very careful while dealing with the commercial lease agreement through a legal assistance.
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