This Offer to Lease Commercial Premises document is a binding legal agreement that sets out the key terms of a commercial lease agreement. It is important to thoroughly document real property transactions in writing and to ensure a clear understanding between the parties. This document in its draft form contains numerous of the standard clauses commonly used in these types of contracts, as well as optional language to allow for customization to ensure the specific terms of the parties agreement are addressed. Use this document if a landlord or property owner wants to lease out their property.
This Offer to Lease Commercial Premises document is a binding legal agreement that sets out the key terms of a commercial lease agreement. It is important to thoroughly document real property transactions in writing and to ensure a clear understanding between the parties. This document in its draft form contains numerous of the standard clauses commonly used in these types of contracts, as well as optional language to allow for customization to ensure the specific terms of the parties agreement are addressed. Use this document if a landlord or property owner wants to lease out their property. Offer to Lease TO: _____ [Instruction: Insert Landlord’s name.] (the “Landlord”) DATE: _____ [Instruction: Insert offer date.] _____ [Instruction: Insert Tenant’s name.] (the “Tenant”) hereby offers to lease from the Landlord the premises known municipally as _____ [Instruction: Insert legal address of property intended to be leased.] being a _____ [Instruction: Insert brief description of property intended to be leased, including suite number, if applicable. If additional land, storage space, parking spaces or other areas are intended to be included in the proposed lease, include brief description of same as well.] of approximately _____ [Instruction: Insert approximate size of space intended to be leased, including any applicable number or size of additional land, storage space, parking space or other areas.] (the “Premises”) in the building [Comment: If additional premises are included other than space within a building, conform this sentence to mention and include same.] (the “Building”) situated thereon, upon and subject to the following terms and conditions: 1. Term. The term of the lease (the “Term”) shall be _____ [Instruction: Insert length of lease term.] commencing on _____ [Instruction and Comment: Insert proposed lease start date. If this commencement date will be subject to some other occurrence, for example, certain completion status of a build out, same should be referenced here.] (the “Commencement Date”) through and including _____ [Instruction: Insert proposed lease end date.], unless otherwise terminated or extended pursuant to the terms of a lease to be entered into between Landlord and Tenant. 2. Rental. The annual rental (“Rent”) for the Term shall be _____ [Instruction: Insert rental amount.] payable in equal monthly installments of _____ [Instruction and Comment: Insert monthly rental amounts. If Rent is not to be payable in equal monthly installments, or if Rent shall include some portion payable as a percentage of profits, this sentence should be conformed to reflect same. It would be advisable in such instance to include a Rent schedule as an attachment, incorporated by reference into this document.] in advance on the first day of each month commencing on the Commencement Date. The Tenant shall also pay all realty taxes and business taxes, associated with the Premises, as well as all taxes duly owed by Tenant with respect to its conduct of business or otherwise, to any lawful governmental entity levying such tax, as well as all charges for heating, water, electricity, fire insurance, public liability insurance, maintenance, landscaping and snow removal costs, if any, associated with the Premises, including all repairs to the Building (reasonable wear and tear excluded) save and except for structural repairs or repairs of a capital nature, it being understood that the Rent shall be net to the Landlord. [Comment: If any of the utility or other charges are not separately metered, parties will need to consider how such charges will be split. In certain instances, for example, in condominium situations, such charges are generally payable based on the pro rata share associated with the premises being leased. However, this type of split does not always take into consideration future use of a particular premises-take for instance, a spa being operated within a condominium. Based on the nature of its use, a spa would naturally use more hot water than perhaps its pro rata share would normally account for, and therefore, in an instance of charges being split solely on the pro rata share, the spa would not be paying its fair share of the water bill.] 3. Option to Renew. Provided that the Tenant is not in default under the lease, the Tenant shall have the option, exercisable upon no less than six (6) months prior written notice to the Landlord, to renew the Term for one further term of _____. [Instruction: Insert length of permitted additional term.] The terms and conditions of the renewal term shall be the same as in the original Term except as to Rent which shall be agreed to between the Landlord and the Tenant, and except as to any further rights of renewal. In the event that the Landlord and Tenant are unable to agree on the Rent for a renewal term, the matter will be submitted to arbitration pursuant to the applicable law then in effect. 4. Deposit. The Tenant hereby submits a check in the sum of _____ [Instruction: Insert deposit amount.] payable to the Landlord as a deposit pending completion or other termination of this Offer to be applied against the first month’s Rent of the initial Term. Upon acceptance of this Offer by the Landlord, the Tenant will provide the Landlord with the further sum of _____ [Instruction: Insert additional deposit sum.] as a further deposit pending completion or other termination of this Offer to be applied against the last month’s Rent of the Term. Any such deposits shall be deposited in one or more interest bearing account(s), at a banking institution licensed to conduct business in the jurisdiction in which it operates, and which account (s) (or all of which, as the case may be) shall be insured by the Federal Deposit Insurance Corporation (the “FDIC”). No such account(s) shall at any time exceed the applicable insurable limits set by the FDIC. In the event that this transaction is not completed in accordance with the terms and conditions hereof or this Offer is not accepted by the Landlord, all deposits, with interest, submitted to the Landlord shall be forthwith returned to the Tenant. [Comment: Parties may change this paragraph to reflect a non-interest bearing account.] 5. Formal Lease. A formal lease shall be entered into and executed by both parties within a reasonable time after the date of this Offer, subject to the Tenant’s attorney’s reasonable approval. The lease shall incorporate all of the provisions of this Offer to Lease. 6. Use. The Premises shall be used for _____ [Instruction: Insert permitted use of Premises.] and any other business uses ancillary thereto. The Landlord warrants that such use shall be lawful for the Premises. [Comment: If additional use, zoning, variance and/or licenses must be obtained for the use of the Premises as and for the use intended hereunder, the parties should discuss who will be responsible for obtaining and paying for same, and also whether or not the Lease shall terminate if same cannot be obtained, and a timeframe for same.] 7. Occupancy. The Tenant shall be given vacant possession to the Premises on or before the Commencement Date. The Landlord acknowledges that as of the Commencement Date there will be no existing leases, options to lease, rights of renewal or any other leasehold interest in the property. 8. Alterations to Building. The Tenant, at its sole cost and expense and in its sole discretion, shall be permitted to make such alterations, expansions or renovations to the Building (“Tenant’s Work”) as it so chooses, provided that all plans for such work shall require the Landlord’s consent [Comment: If any other parties consent is required, include reference to same here.], such consent not to be unreasonably withheld. The Tenant’s Work shall in all instances be performed in accordance with all municipal building codes, by-laws and other governmental and other applicable authorities or entities having jurisdiction. In the event Tenant performs any such alterations, expansions or renovations, it shall be Tenant’s responsibility, at its sole cost and expense, to ensure all necessary permits, inspections and/or licenses are obtained for such work, including but not limited to the commencement and completion of such work. [Comment: If Landlord intends to do any build out work prior to the lease commencement, same should be included here, and a detailed schedule of the work shall be attached to this Offer.] 9. Compliance with Municipal Requirements. The Landlord warrants that the Building has been constructed in accordance with all municipal building and zoning by-laws and in accordance with all the requirements of all the relevant governmental authorities having jurisdiction. The Landlord further warrants that all the construction, plumbing and any other permit, inspection and/or licensing, fees and utility connection costs, where applicable, have been or will be paid in full by the Landlord on or before the date of possession hereof. Any equipment and/or fixtures installed by the Tenant on the Premises may be removed by the Tenant at the end of the Term or any subsequent renewal term as the case may be, provided that any damage caused by such removal, normal wear and tear excepted, shall be reasonably repaired by the Tenant at the Tenant’s own expense. Upon expiry or earlier termination of the Lease, the Tenant will not be responsible for removing any such renovations, expansions or alterations or restoring the Premises to its original condition. 10. Signage. The Tenant shall have the right to erect and exhibit such signs and sign structures as it deems necessary, identifying the Tenant and the Tenant’s business activities, on the Premises, at the Tenant’s own expense, subject to existing municipal by- laws and requirements and other applicable by-laws and/or requirements, and upon approval of any such signs and/or sign structure, where required or applicable. Upon termination of the Lease the Tenant shall be permitted to remove all such signage at its own expense but shall repair any damage, normal wear and tear excepted, caused to the Premises by such removal. 11. Notice. Any notice required pursuant to this Offer shall be sent, if to Landlord, to _____, [Instruction: Insert Landlord’s contact name and address for notices.] and if to Tenant, to ______ [Instruction: Insert Tenant’s contact name and address for notices.]. 12. Assignment and Subletting. The Tenant shall have the right to assign or sublet its interest in all or part of the Premises or the lease at any time or times upon the prior written approval of the Landlord, such approval not to be unreasonably withheld. [Comment: Parties may revise this if desired. Various alternate clauses would reflect no permitted assignment, a one-time assignment, or assignment only to a successor or related entity.] 13. Severability. If any paragraph of this Offer or any portion thereof is determined to be unenforceable or invalid by the decision of any court of competent jurisdiction, which determination is not appealed or appealable, for any reason whatsoever, such unenforceability or invalidity shall not invalidate the whole Offer, but the Offer shall be construed as if it did not contain the particular provision held to be invalid and the rights and obligations of the parties shall be construed and enforced accordingly. 14. Entire Agreement. It is understood and agreed that the terms and conditions contained herein constitute the entire agreement between the parties hereto and there are no covenants, representations, warranties or agreements whether express or implied except as expressly set out herein. 15. Binding Agreement. The parties agree that upon acceptance of this Offer by the Landlord this Offer shall constitute a binding agreement between the parties hereto to enter into a lease and other obligations as set forth herein. 16. Irrevocability. This Offer shall be irrevocable until 5:00 p.m. _____ [Instruction: Insert date Offer expires.] after which time, if not accepted, this Offer shall be null and void. 17. Notice. Any notice required or permitted under this Lease or under state law shall be deemed sufficiently given or served if sent by United States certified mail, return receipt requested and directed to the party at the address first set forth above. Landlord and Tenant shall each have the right from time to time to change the place notice is to be given under this Offer by written notice thereof to the other party. 18. Descriptive Headings. The descriptive headings used herein are for convenience of reference only and they are not intended to have any effect whatsoever in determining the rights or obligations of the Landlord or Tenant. 19. Signed Fax Counterparts. This document or any subsequent amendment thereto may be executed by facsimile and/or in one or more counterparts, each of which when so executed and delivered shall be deemed an original, but all of which taken together shall constitute but one and the same original. Each party shall accept any such signed faxed counterpart as full execution of this document or any subsequent amendment thereto. 20. Tenant’s Representations. Tenant represents that the party executing this document on behalf of Tenant has the full right and authority to execute such document pursuant to applicable corporate documents and necessary resolutions. Tenant further represents that the corporation has duly resolved and authorized this contract to be signed and the expenditure of funds necessary to lease this property as set forth herein. Landlord shall have the right, at any and all times, to request copies of any such documents authorizing such person to enter into this Offer or otherwise and to sign documents on behalf of the Tenant. 21. Landlord’s Representations. Landlord represents that the party executing this document on behalf of Landlord has the full right and authority to execute such document pursuant to applicable corporate documents and necessary resolutions. Landlord further represents that the corporation has duly resolved and authorized this contract to be signed. Tenant shall have the right, at any and all times, to request copies of any such documents authorizing such person to enter into this Offer or otherwise and to sign documents on behalf of the Landlord. DATED _____ [Instruction: Insert date.] Witness The undersigned hereby accepts the above Offer this _____day of _________________, 20____ Witness
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