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Frequently Asked Questions
What is a commercial lease?A commercial lease is a binding contract which allows a tenant the right to use the landlord’s property for a business or commercial activity in exchange for rent. Additionally, the lease outlines the rights and responsibilities of the landlord and tenant during the lease term.Why do I need a written lease?A lease provides clarity. It clearly outlines the boundaries and responsbilities for both the landlord and the tenant. Moreover, the problem with oral agreements is that they can be difficult to enforce. In a dispute, a court hears evidence to decide whose version of the story to accept. If there is a written agreement, the courts are generally obligated to uphold the terms of the written agreement.
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COMMERCIAL LEASE AGREEMENT

THIS LEASE (this "Lease") dated this 19th day of April, 2015

BETWEEN:

______________________ of
Telephone: ______________________     Fax: ______________________
(the "Landlord")

OF THE FIRST PART


- AND -

______________________ of
(the "Tenant")

OF THE SECOND PART

IN CONSIDERATION OF the Landlord leasing certain premises to the Tenant, the Tenant leasing those premises from the Landlord and the mutual benefits and obligations set forth in this Lease, the receipt and sufficiency of which consideration is hereby acknowledged, the Parties to this Lease (the "Parties") agree as follows:

  1. Definitions
  2. When used in this Lease, the following expressions will have the meanings indicated:
    1. "Additional Rent" means all amounts payable by the Tenant under this Lease except Base Rent, whether or not specifically designated as Additional Rent elsewhere in this Lease;
    2. "Building" means all buildings, improvements, equipment, fixtures, property and facilities from time to time located at __________, __________, __________, sel, __________, as from time to time altered, expanded or reduced by the Landlord in its sole discretion;
    3. "FRI lease" means a full repairing and insuring lease where all costs of maintenance and repair and the cost of insurance (whether insured directly or through the Landlord) are met by the Tenant;
    4. "Insurance Charge" means the cost to the Landlord of effecting and maintaining the Insurance Policies from and including any premiums paid and where relevant the cost of assessing any insured amounts;
    5. "Insurance Policies" means the insurance policy or policies maintained by the Landlord in respect of the Premises covering damage by Insured Risks, loss of Rent, public liability and all other insurance relating to the Building as placed by the Landlord from time to time, acting prudently;
    6. "Insured Risks" means fire, lightning, earthquake, explosion, aircraft (other than hostile aircraft) and other aerial devices or articles dropped from such aerial devices, riot, civil commotion, malicious damage, storm or tempest, bursting or overflowing of water tanks apparatus or pipes, flood, impact by road vehicles, terrorism (to the extent that insurance against such risks may ordinarily be arranged with an insurer of good repute at reasonable commercial rates) and such other risks or insurance as may from time to time be reasonably required by the Landlord;
    7. "Open Market Rent" means the best rent which might reasonably be expected to be paid by a willing tenant to a willing landlord for a letting of the whole of the Premises in the open market with vacant possession and without a fine or premium for the residue of the term remaining at the date of review;
    8. "Common Areas and Facilities" mean:
      1. those portions of the Building areas, buildings, improvements, facilities, utilities, equipment and installations in or forming part of the Building which from time to time are not designated or intended by the Landlord to be let to tenants of the Building including, without limitation, exterior weather walls, roofs, entrances and exits, parking areas, driveways, loading docks and area, storage, mechanical and electrical rooms, areas above and below leasable premises and not included within leasable premises, security and alarm equipment, grassed and landscaped areas, retaining walls and maintenance, cleaning and operating equipment serving the Building; and
      2. those lands, areas, buildings, improvements, facilities, utilities, equipment and installations which serve or are for the useful benefit of the Building, the tenants of the Building or the Landlord and those having business with them, whether or not located within, adjacent to or near the Building and which are designated from time to time by the Landlord as part of the Common Areas and Facilities;
    9. "Leasable Area" means with respect to any rentable premises, the area expressed in square metres of all floor space including floor space of mezzanines, if any, determined, calculated and certified by the Landlord and measured from the exterior face of all exterior walls, doors and windows, including walls, doors and windows separating the rentable premises from enclosed Common Areas and Facilities, if any, and from the centre line of all interior walls separating the rentable premises from adjoining rentable premises.  There will be no deduction or exclusion for any space occupied by or used for columns, ducts or other structural elements;
    10. "Premises" means the office space at __________, __________, __________, sel, __________.
    11. "Rent" means the total of Base Rent and Additional Rent.
  3. Intent of Lease
  4. It is the intent of this Lease and agreed to by the Parties to this Lease that rent for this Lease will be on a gross rent basis meaning the Tenant will pay the Base Rent and any Additional Rent and the Landlord will be responsible for all other service charges related to the Premises and the operation of the Building save as specifically provided in this Lease to the contrary.
  5. Let Premises
  6. The Landlord agrees to rent to the Tenant the office space municipally described as __________, __________, __________, sel, __________, (the "Premises"). The Premises will be used for only the following permitted use (the "Permitted Use"):
    ______________________________________________________________________
    ______________________________________________________________________.
    Neither the Premises nor any part of the Premises will be used at any time during the term of this Lease by Tenant for any purpose other than the Permitted Use.
  7. Term
  8. The term of the Lease commences at 12:00 noon on April 19, 2015 and ends at 12:00 noon on April 19, 2015.
  9. Should the Tenant remain in possession of the Premises with the consent of the Landlord after the natural expiration of this Lease, a new tenancy from month to month will be created between the Landlord and the Tenant which will be subject to all the terms and conditions of this Lease but will be terminable upon either party giving one month's notice to the other party.
  10. Rent
  11. Subject to the provisions of this Lease, the Tenant will pay a base rent of £0.00, payable per month, for the Premises (the "Base Rent").
  12. The Tenant will pay the Base Rent on or before the __________ of each and every month of the term of this Lease to the Landlord.
  13. For any rent review negotiation, the basic rent will be calculated as being the higher of the Base Rent payable immediately before the date of review and the Open Market Rent on the date of review.
  14. Use and Occupation
  15. The Tenant will use and occupy the Premises only for the Permitted Use and for no other purpose whatsoever.  The Tenant will carry on business under the name of ______________________ and will not change such name without the prior written consent of the Landlord, such consent not to be unreasonably withheld. The Tenant will open the whole of the Premises for business to the public fully fixtured, stocked and staffed on the date of commencement of the term and throughout the term, will continuously occupy and utilize the entire Premises in the active conduct of its business in a reputable manner on such days and during such hours of business as may be determined from time to time by the Landlord.
  16. The Tenant covenants that the Tenant will carry on and conduct its business from time to time carried on upon the Premises in such manner as to comply with any statute (already or in the future to be passed) or any government department, local authority, other public or competent authority or court of competent jurisdiction and of the insurers in relation to the use, occupation and enjoyment of the Building (including in relation to health and safety compliance with the proper practice recommended by all appropriate authorities).
  17. Quiet Enjoyment
  18. The Landlord covenants that on paying the Base Rent and performing the covenants contained in this Lease, the Tenant will peacefully and quietly have, hold, and enjoy the Premises for the agreed term.
  19. Distress
  20. If and whenever the Tenant is in default in payment of any money, whether hereby expressly reserved or deemed as rent, or any part of the rent, the Landlord may, without notice or any form of legal process, enter upon the Premises and seize, remove and sell the Tenant's goods, chattels and equipment from the Premises or seize, remove and sell any goods, chattels and equipment at any place to which the Tenant or any other person may have removed them, in the same manner as if they had remained and been distrained upon the Premises, all notwithstanding any rule of law or equity to the contrary, and the Tenant hereby waives and renounces the benefit of any present or future statute or law limiting or eliminating the Landlord's right of distress.
  21. Overholding
  22. If the Tenant continues to occupy the Premises without the written consent of the Landlord after the expiration or other termination of the term, then, without any further written agreement, the Tenant will be a month-to-month tenant at a minimum monthly rental equal to twice the Base Rent and subject always to all of the other provisions of this Lease insofar as the same are applicable to a month-to-month tenancy and a tenancy from year to year will not be created by implication of law.
  23. If the Tenant continues to occupy the Premises without the written consent of the Landlord at the expiration or other termination of the term, then the Tenant will be a tenant at will and will pay to the Landlord, as liquidated damages and not as rent, an amount equal to twice the Base Rent plus any Additional Rent during the period of such occupancy, accruing from day to day and adjusted pro rata accordingly, and subject always to all the other provisions of this Lease insofar as they are applicable to a tenancy at will and a tenancy from month to month or from year to year will not be created by implication of law; provided that nothing in this clause contained will preclude the Landlord from taking action for recovery of possession of the Premises.
  24. Additional Rights on Reentry
  25. If the Landlord reenters the Premises or terminates this Lease, then:
    1. notwithstanding any such termination or the term thereby becoming forfeited and void, the provisions of this Lease relating to the consequences of termination will survive;
    2. the Landlord may use such reasonable force as it may deem necessary for the purpose of gaining admittance to and retaking possession of the Premises and the Tenant hereby releases the Landlord from all actions, proceedings, claims and demands whatsoever for and in respect of any such forcible entry or any loss or damage in connection therewith or consequential thereupon;
    3. the Landlord may expel and remove, forcibly, if necessary, the Tenant, those claiming under the Tenant and their effects, as allowed by law, without being taken or deemed to be guilty of any manner of trespass;
    4. in the event that the Landlord has removed the property of the Tenant, the Landlord may store such property in a public warehouse or at a place selected by the Landlord, at the expense of the Tenant.  If the Landlord feels that it is not worth storing such property given its value and the cost to store it, then the Landlord may dispose of such property in its sole discretion and use such funds, if any, towards any indebtedness of the Tenant to the Landlord.  The Landlord will not be responsible to the Tenant for the disposal of such property other than to provide any balance of the proceeds to the Tenant after paying any storage costs and any amounts owed by the Tenant to the Landlord;
    5. the Landlord may relet the Premises or any part of the Premises for a term or terms which may be less or greater than the balance of the term of this Lease remaining and may grant reasonable concessions in connection with such reletting including any alterations and improvements to the Premises;
    6. after reentry, the Landlord may procure the appointment of a receiver to take possession and collect rents and profits of the business of the Tenant, and, if necessary to collect the rents and profits the receiver may carry on the business of the Tenant and take possession of the personal property used in the business of the Tenant, including inventory, trade fixtures, and furnishings, and use them in the business without compensating the Tenant;
    7. after reentry, the Landlord may terminate the Lease on giving 5 days written notice of termination to the Tenant.  Without this notice, reentry of the Premises by the Landlord or its agents will not terminate this Lease;
    8. the Tenant will pay to the Landlord on demand:
      1. all rent, Additional Rent and other amounts payable under this Lease up to the time of reentry or termination, whichever is later;
      2. reasonable expenses as the Landlord incurs or has incurred in connection with the reentering, terminating, reletting, collecting sums due or payable by the Tenant, realizing upon assets seized; including without limitation, brokerage, fees and expenses and legal fees and disbursements and the expenses of keeping the Premises in good order, repairing the same and preparing them for reletting; and
      3. as liquidated damages for the loss of rent and other income of the Landlord expected to be derived from this Lease during the period which would have constituted the unexpired portion of the term had it not been terminated, at the option of the Landlord, either:
        1. an amount determined by reducing to present worth at an assumed interest rate of twelve percent (12%) per annum all Base Rent and estimated Additional Rent to become payable during the period which would have constituted the unexpired portion of the term, such determination to be made by the Landlord, who may make reasonable estimates of when any such other amounts would have become payable and may make such other assumptions of the facts as may be reasonable in the circumstances; or
        2. an amount equal to the Base Rent and estimated Additional Rent for a period of six (6) months.
  26. Tenant Improvements
  27. The Tenant will obtain written permission from the Landlord before doing any of the following:
    1. applying adhesive materials, or inserting nails or hooks in walls or ceilings other than two small picture hooks per wall;
    2. painting, wallpapering, redecorating or in any way significantly altering the appearance of the Premises;
    3. removing or adding walls, or performing any structural alterations;
    4. installing a waterbed(s);
    5. changing the amount of heat or power normally used on the Premises as well as installing additional electrical wiring or heating units;
    6. placing or exposing or allowing to be placed or exposed anywhere inside or outside the Premises any placard, notice or sign for advertising or any other purpose; or
    7. affixing to or erecting upon or near the Premises any radio or TV antenna or tower.
  28. Utilities and Other Costs
  29. The Landlord is responsible for the payment of the following utilities and other charges in relation to the Premises: electricity, natural gas, water, sewer, telephone, Internet and cable.
  30. Insurance
  31. The Tenant is hereby advised and understands that the personal property of the Tenant is not insured by the Landlord for either damage or loss, and the Landlord assumes no liability for any such loss. The Tenant is advised that, if insurance coverage is desired by the Tenant, the Tenant should inquire of Tenant's insurance agent regarding a Tenant's Policy of Insurance.
  32. Governing Law
  33. Severability
  34. If there is a conflict between any provision of this Lease and the applicable legislation of (the 'Act'), the Act will prevail and such provisions of the Lease will be amended or deleted as necessary in order to comply with the Act. Further, any provisions that are required by the Act are incorporated into this Lease.
  35. Assignment and Subletting
  36. The Tenant will not assign this Lease, or sublet or grant any concession or license to use the Premises or any part of the Premises.  An assignment, subletting, concession, or license, whether by operation of law or otherwise, will be void and will, at Landlord's option, terminate this Lease.
  37. Bulk Sale
  38. No bulk sale of goods and assets of the Tenant may take place without first obtaining the written consent of the Landlord, which consent will not be unreasonably withheld so long as the Tenant and the Purchaser are able to provide the Landlord with assurances, in a form satisfactory to the Landlord, that the Tenant’s obligations in this Lease will continue to be performed and respected, in the manner satisfactory to the Landlord, after completion of the said bulk sale.

  39. Additional Provisions
  40. ___________________________________________________________
    ___________________________________________________________
    ___________________________________________________________
    ___________________________________________________________
  41. Care and Use of Premises
  42. The Tenant will promptly notify the Landlord of any damage, or of any situation that may significantly interfere with the normal use of the Premises.
  43. The Tenant will not make (or allow to be made) any noise or nuisance which, in the reasonable opinion of the Landlord, disturbs the comfort or convenience of other tenants.
  44. The Tenant will not engage in any illegal trade or activity on or about the Premises.
  45. The Landlord and Tenant will comply with standards of health, sanitation, fire, housing and safety as required by law.
  46. Surrender of Premises
  47. At the expiration of the lease term, the Tenant will quit and surrender the Premises in as good a state and condition as they were at the commencement of this Lease, reasonable use and wear and damages by the elements excepted.
  48. Hazardous Materials
  49. _________________________________________________________________________
    _________________________________________________________________________
    _________________________________________________________________________
    _________________________________________________________________________
  50. Rules and Regulations
  51. The Tenant will obey all rules and regulations posted by the Landlord regarding the use and care of the Building, parking lot, laundry room and other common facilities that are provided for the use of the Tenant in and around the Building on the Premises.
  52. General Provisions
  53. Any waiver by the Landlord of any failure by the Tenant to perform or observe the provisions of this Lease will not operate as a waiver of the Landlord's rights under this Lease in respect of any subsequent defaults, breaches or nonperformance and will not defeat or affect in any way the Landlord's rights in respect of any subsequent default or breach.
  54. This Lease will extend to and be binding upon and inure to the benefit of the respective heirs, executors, administrators, successors and assigns, as the case may be, of each party to this Lease.   All covenants are to be construed as conditions of this Lease.
  55. All sums payable by the Tenant to the Landlord pursuant to any provision of this Lease will be deemed to be Additional Rent and will be recovered by the Landlord as rental arrears.
  56. Where there is more than one Tenant executing this Lease, all Tenants are jointly and severally liable for each other's acts, omissions and liabilities pursuant to this Lease.

IN WITNESS WHEREOF the Parties to this Lease have duly affixed their signatures under hand and seal, or by a duly authorised officer under seal, on this 19th day of April, 2015.





______________________________
(Witness)


Signed for and on behalf of
______________________ (Landlord) by

Per:______________________(SEAL)
__________





______________________________
(Witness)


Signed for and on behalf of
______________________ (Tenant) by

Per:______________________(SEAL)
__________

Commercial Tenancy Agreement Information

A Commercial Tenancy Agreement, also known as a Business Lease or a Commercial Lease, is used when the owner of a business property wishes to rent space to another business owner. Both parties may either be individuals or corporations.

This Commercial Tenancy Agreement encompasses properties such as office buildings, industrial space, restaurants, retail shops, and warehouses within England, Wales, Scotland, and Northern Ireland.

Long Commercial Tenancy Agreement vs Short Commercial Tenancy Agreement

The short version of your Commercial Lease will include basic information and clauses to protect both the landlord and the tenant in the agreement. It does not include any information that is not necessary and only includes standard clauses.

The long version of your Commercial Lease will include a number of extra clauses and terms that will make your agreement much more detailed. The long version also allows you to revise clauses after completion.

If you are creating a simple lease and don't require many details, the short version may work best for you.

If your landlord/tenant agreement is complicated and requires a number of additional clauses, the long version of the Commercial Lease is recommended.

What is Included in my Commercial Tenancy Agreement?

A Commercial Lease will include information such as:

  • Personal information about both the landlord and tenant, such as contact information.
  • Whether a guarantor will be required.
  • Property-specific details, such as the size of the space being rented.
  • Letting information, such as the price of rent, length of the agreement, and how the premises may be used.
  • Whether the tenant will receive exclusive use of the property.
  • If renovations or improvements will be allowed, and if they need to be approved.

Landlord Responsibilities:

In a Commercial Lease Agreement, the owner of the property will generally be responsible for:

  • Upkeep of the commercial building or property.
  • Seasonal maintenance tasks, such as snow removal or landscaping.
  • Ensuring that the building or property meets safety and health requirements.
  • Collecting rent payments, and if applicable, utility payments.
  • How the tenant will be allowed to use the property.

A landlord will also be responsible for ensuring that rent payments are allocated to the lender if the property is mortgaged, as well as for providing insurance for the property itself.

Tenant Responsibilities:

In a Commercial Lease, the tenant of the business property is usually responsible for:

  • A portion of the total utilities cost, unless they are required to pay the provider directly.
  • The cost of minor improvements, such as paint, office supplies, etc.
  • Rent for the space provided.
  • Sometimes, tenants are responsible for taxes associated with the property.

Lease Terms for Commercial Letting Agreements:

There are three different types of lease terms in a Commercial Lease in order to accommodate different landlord/tenant situations and preferences, including:

Fixed End Date: A lease term that ends on a set date. For example, if a letting term lasts for a year and it began on May 1st, it will end the following year on the same date.

Fixed end date agreements may be for any number of weeks, months, or years. At the end of the term, you may renew your agreement, terminate it, or continue to let the property on a month-to-month basis.

Fixed Number of Weeks/Months/Years: A fixed number of weeks/months/years means that the property is being let for a certain amount of time. This could be any number of weeks, months, or years.

In this type of agreement, neither party is required to give notice at the end of the term. The lease simply terminates on its own. Once the term has ended, the landlord and tenant can renew the terms, continue on a month-to-month term, or part ways.

Periodic: A periodic tenancy continues until either the landlord or tenant terminates the lease by providing notice to the other party. These types of Commercial Tenancy Agreements are ongoing and are beneficial for long-term tenancy relationships.

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