Commercial Lease Template THIS LEASE AGREEMENT is made on the ____

Document Sample
Commercial Lease Template THIS LEASE AGREEMENT is made on the ____ Powered By Docstoc
					                              Commercial Lease Template

THIS LEASE AGREEMENT is made on the ____ day of ________, between Mr./Mrs.
S/O,W/O,D/O___________, resident of __________________________________________
hereinafter referred to as ‘the Lessor’ (which expression shall include her heirs, successors,
executors, administrators and assignees wherever the context or meaning shall so require or
permit) of the first part

Mr./Mrs.________________(S/O,W/O,D/O) ________________ C/o____________, hereinafter
referred to as ‘the Lessee’ (which expression shall include her heirs, successors, executors,
administrators and assignees wherever the context or meaning shall so require or permit) of
the other part.

WHEREAS the Lessor hereby leases to the Lessee the following premises:

WHEREAS the Lessor represents that he/she is seized and possessed as owner of commercial
_______ comprising of a super area of approximately _____ Square Feet out of the
approximately total super area of _____ Square Feet on the ______Floor hereinafter referred
to as the demised premises

   1. That in connection of the rent hereinafter specified and of the covenants and conditions
      hereinafter contained and on the part of the lessee to be paid, observed and performed,
      the Lessor hereby demises unto the Lessee, free from all encumbrances, to hold and use
      for its business activities for a period mentioned herein below, the premises having an
      extent of ________ sq. fts. approx. (Super Area) and ______ sq.fts. (Covered Area)
   situated on the _______ floor, being the demised premises in accordance with the
   terms of this lease deed.

2. The Lessee hereby agrees to pay to the lessor towards the lease of the demised
   premises        a      monthly       rent      of      Rs.______________         (Rupees
   calculated @ of Rs. ____ per sq. ft. of the super area of the demised premises together
   with service tax/other taxes as are or may be made applicable in respect of the lease ,
   subject to deduction of tax at source at applicable rates. The rent would commence
   from the date of handing over the possession of the said demised premises by the lessor
   to the lessee i.e. ________. The lessee agrees to pay the rent in respect of the demised
   premises in advance by the __ day of each English calendar month.

3. The      lessee      has       deposited       a     sum      of    Rs.__________       (
   Rs._________________________________) being ___ month’s rent as interest free
   security deposit with the lessor via Cash / cheque no. ______ dated _______ drawn on
   _____________________________, the receipt of which the lessor hereby
   acknowledges. The said security deposit amount shall be refunded by the lessor to the
   lessee either upon expiry of this Lease or on earlier termination thereof, simultaneously
   on the lessee handling over to the lessor the vacant possession and after adjustment of
   arrears of rent and other dues including charges for damage caused to the demised
   premises/fittings therein, if any except for those caused by normal wear and tear.

4. The           lessee           has             paid           a         sum          of
   Rs._____________(Rs.____________________________________) net of TDS, as 1
   month’s advance rent via cash/cheque No. _________ dated ________ drawn on
   ______________________________ as an advance to lessor, the receipt of which the
   lessor hereby acknowledges. This advance rent will be adjusted against the rental for
   the first month of lease deed and the first rent would start from _________________.

5. Service Tax and any other taxes on the lease in respect of the month’s rent paid in
   advance by the lessee shall also be remitted as and when it becomes applicable and
   requested by the lessor.

6. The Lessee shall not make any structural additions, alterations or structural changes to
   the demised premises without the prior written consent of the Lessor. The Lessee
   undertakes to maintain the demised premises and all fixtures and appurtenances
   thereto in good condition and / or state of repair. All costs towards such maintenance
   and upkeep of the same shall be borne by the Lessee. The Lessee hereby also
   categorically admits its liability to make good any loss and/or damage either to the
   demises premises or to the fixtures, fittings and appurtenances to the said demised
   premises as a result of any willful and / or negligent act of the Lessee. However, the
   Lessee can make internal modifications /changes without causing any structural damage
   and provided that lessee stays in for the complete period of the lease.

7. The Lessee shall be totally liable for the payment of all charges, dues, fines / penalties
   towards the supply and consumption of electricity and water to the demised premises
   as per Bills and / or demands raised by the appropriate authority with respect to the
   entire __ floor of the premises occupied by the Lessee for the period of this lease and
   shall keep the Lessor indemnified of all such liabilities. The Lessee hereby also
   undertakes to maintain and secure the water and electricity meters supplying electricity
   and water to the demised premises.

8. The Lessee hereby undertakes not to vacate the demised premises before the expiry of
   a period of ____________years/months, of which the first __ months of the Lease is the
   lock in period. In case, for any reason whatsoever the Lessee vacates the demised
   premises at any time before the expiry of __ months, the lock in period, the Lessee does
   hereby admit its liability to pay the rentals and the power backup charges as per a
   separate agreement entered into simultaneously for the remaining period of the lock in
   period of this Lease, which sum may be deducted from the Security Deposit with the

9. The lessor shall not have the right to terminate the lease during the first ___
   months/years or during the extended lease periods if so extended. In case such
   termination is required, lessor shall pay to _____________________________, a sum
   equivalent to ____ years/months gross rent as relocation charges apart from refunding
   the security deposit.
10. The parties agree that there shall be a lock-in period of __ years/months and if for any
    reason the lessee desires to terminate this lease during the lock-in period, he/she shall
    have to pay the rental to the lessor for the remaining lock-in period.

11. The lessee hereby covenants with the lessor as follows:

   i.      To pay the rent in time i.e. by the ___ day of each English calendar month.

   ii.     Not to default or keep in arrears any payments of the rent or maintenance
           charges. In case there is any delay in the payment of rent/maintenance charges
           from the due date of payment, the same shall be subject to 18% interest per
           annum on the unpaid or balance amount and if after one month from the due
           date the payments are not cleared, the lessor will be entitled to terminate the
           present lease deed and it will be within the right of the lessor to discontinue/cut
           or suspend the maintenance services provided to the lessee without any notice.
           The said clause is equally applicable during the lock-in period

   iii.    At the expiration of the term or on early termination thereof, the lessee shall
           immediately thereupon handover the possession of the demised premises to the
           lessor, in such state of repair and condition as shall in all respects be consistent
           with a full and due performance by the Lessee of the covenants, except for
           normal wear and tear and in case the lessee fails to deliver the vacant and
           peaceful possession of the demised premises accordingly the lessor shall be
           entitled to recover the overdue rent and maintenance charges as damages which
           will be @ Rs. ________ per day. The lessee shall also be liable to pay 18%
           interest p.a. and damages.

   iv.     The lessee shall be bound to keep the demised premises in good and tenantable
           condition at its own cost. All minor maintenance/repair works within the
           demised premises shall be at the cost of the lessee. However, any structural
           repair and maintenance due to any defect in the structure from the lessor’s side
           shall be done by the lessor at his/her own cost and expenses. Further the lessee
           will not carry out alteration on the façade of the building or the structure of the
           said property.

   v.      Not to assign, sublet or part with possession of the whole or any part of the
           demised premises, except with the permission of the lessor.
   vi.     To use the demised premises for the purpose of its business activities only and
           not to use the same for any illegal, immoral or dangerous purposes which may
           violate any law and generally to do any act of things which would be detrimental
           to the interest of the lessor, structure/complex as a whole, or to the demised

   vii.    The lessee shall not obstruct the common passages and will not disturb the other
           occupants of the demised premises by causing any nuisance.

   viii.   This deed will be signed by the lessor and the lessee and the original copy of this
           lease deed shall be retained by the lessor and true copy attested for the lessee.

12. In consideration of the lessee paying the rent and refundable security deposit and
    performing and observing the above stated covenants, the lessor hereby covenants with
    the lessee as follows:

   i.      That the lessee shall be entitled to hold and enjoy the demised premises
           peacefully during the said term without any interruption by the lessor or any
           person or persons claiming under the lessor.

   ii.     That the lessor shall pay and discharge all existing property tax and all any
           municipal taxes.

   iii.     All the articles, things, installments, fixtures and fittings installed at the demised
           premises by the lessee shall be the absolute property of the lessee and the
           lessee shall be entitled to dismantle, remove and take away the same from time
           to time and when it vacates the demised premises on expiry or termination of
           the lease or any renewal thereof without causing any damage to the lessor’s

   iv.     That the lessee shall have the right to affix the name plate and/or business sign
           or any other appropriate display on the specified place. Further, if lessee needs
           to get installed or affixed any instruments/objects at the demised premises for
           running of its business activities then the lessor will do the needful to help the
           lessee but within the legal frame work. Lessee will have to specify the area
           required by it in advance to the lessor.
13. In the eventuality of building being demolished by the M.C.D or under an order of the
    court for any misuse of the demised property on account of non sanction of building
    plans, or any other such account, the same shall be handled solely by the lessor at its
    own risk and cost. However, in case due to the above said reasons the demised
    premises becomes inhabitable, the present lease shall stand terminated and the lessor
    will refund to the lessee security deposit and the advance rent received simultaneously
    with surrender of the vacant demised property to the lessor. In such a situation, clause
    related to the lock-in period shall not be applicable and the lessor shall be liable to pay
    the lessee an amount equivalent to ___ month’s rent as relocation charges.

14. If the demised premises or any part thereof during the period of lease is destroyed or
    damaged by fire (not due to fault of the lessee), earthquake, defective construction or
    any other reason whatsoever so as to be unfit for habitation and use, the lessee shall
    have the option to terminate the lease even during the lock-in period and hand over the
    possession thereof to the lessor or to continue in the demised premises. However, in
    case if the lessee continues in the demised premises, the rent for the scheduled
    demised premises shall not be payable by the lessee to the lessor till the time the
    demised premises is restored to its normal condition, subject to a ceiling of __ month’s
    rent. The lessee shall terminate this agreement during the lock-in period in case of force

15. After the __ years/months lock-in period, in the event of lessee desiring to vacate the
    demised premises before the expiry of the period of the lease, it shall be required to
    serve on the other party a notice in writing of __ months of their desire to vacate..

16. The parties agree that in case of breach of any terms by either party, either party shall
    have the right to call upon the defaulting party to remedy the breach within ___ days in
    writing specifying the breach made by the defaulting party and in case the defaulting
    party fails, neglects or refuses to remedy the breach then the other party may terminate
    the lease by giving one month notice to the other party.

17. That if any provision of this lease shall be held/determined to be void or unenforceable
    under applicable law such provision shall be deemed amended or deleted in so far as is
    inconsistent with the law and the lease shall remain valid and enforceable subject to
    such deemed amendments/deletions.
18. That this lease deed constitutes the entire agreement between the parties, and it
    revokes and supersedes all the previous discussions/correspondence, memorandum of
    understanding, agreements, between the parties, if any concerning the demised
    premises whether written, oral or implied. This lease deed shall not be changed or
    modified except by written amendment mutually agreed by the parties.

19. That all disputes between the parties hereto shall be resolved amicably and in the event
    of the same not being resolved, then the aggrieved party shall be entitled to refer the
    matter for arbitration, the proceedings of which would be conducted in terms of the
    provisions of the arbitration and Counciliation Act, 1996. Cost of arbitration shall be
    borne equally by the parties in case of sole arbitrator.

20. All disputes shall be subject to the jurisdiction of the courts of _______ only.

21. The electric load as per requirements shall be obtained by the lessee at its own cost
    from the concerned departments. However, the lessor will help the lessee in all respects
    in obtaining the electricity meter and its load.

In witness whereof, the parties hereto hereunder set their hands on the day, month and
year first above written.


1.                                                        LESSOR

2.                                                        LESSEE