A commercial lease is a document which highlights the manner in which a commercial deal should be presented in a recorded or written form. Such a lease has legal sanction and care should be taken to ensure that every aspect of the commercial deal is recorded correctly and accurately. Since a commercial lease has legal validity, it should be free of mistakes, and the document framed should be absolutely watertight. A commercial lease must be cogent, well researched and written by someone who is acquainted with the nuances of framing lease deals. Some of the important points which must be considered in a commercial lease are as follows:
- Names and addresses [personal and professional] of lessor and lessee.
- Duration of lease of commercial entity [property is usually leased out in such cases]
- Area of property to be leased out for commercial use.
- Current real estate valuation of the property to be leased.
- Condition of the property to be leased.
- Initial security deposit to be paid. Its nature [refundable, non-refundable] must also me mentioned.
- Monthly rental charges must be mentioned along with the mode of payment [cheque, cash, demand draft etc.]
- The time of each month by which the payment has to be made must also be specified if the lessor so demands.
- The terms and conditions which will govern the commercial lease must be firmly mentioned. The relevant sections of the penal code must be referred to for the ease of all involved.
- The penalty to be incurred in case of breach of contract is an absolute must.
Lastly, the document must be made a ratified and credible commercial lease by the signatures of the lessor, lessee, advocate, witnesses etc. Thus, a number of important areas need to be addressed while framing a commercial lease.