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Commercial Lease Agreements

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Term of Lease

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Specifies the duration of the lease agreement, often including options for renewal. Failure to comply can lead to eviction.

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Rent

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Outlines payment amounts, frequency, and methods. Late or unpaid rent can lead to penalties or termination of the lease.

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Security Deposit

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A monetary deposit held by the landlord for tenant default. Governed by state laws which dictate the maximum that can be charged and the return process.

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Use of Premises

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Defines what activities tenants are permitted to conduct on the property, which can prevent illegal or unwanted uses.

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Maintenance and Repairs

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Details the responsibilities of tenants and landlords in maintaining the property. Non-compliance can lead to legal disputes.

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Alterations and Improvements

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Conditions under which tenants can alter or improve the leased space. Usually requires landlord's consent.

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Insurance

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Specifies the types and amounts of insurance the tenant must carry. Protects both parties financially in case of damage or liability.

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Sublease and Assignment

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Describes conditions under which the tenant can rent out the space or transfer the lease to another party. Often requires landlord approval.

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Dispute Resolution

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Establishes the process for handling legal disagreements, which may include arbitration or litigation.

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Termination and Default

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Details what constitutes a breach of the lease and the remedies available to the aggrieved party.

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Compliance with Laws

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Requires the tenant to adhere to all local, state, and federal regulations, which guards the landlord against legal liability.

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Option to Purchase

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Gives the tenant the right to buy the property under specific conditions, which can be a future financial benefit.

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Renewal Options

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Gives the tenant the right to extend the lease under predetermined conditions, providing stability for the tenant's business.

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Exclusivity Clause

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Prevents the landlord from leasing nearby premises to direct competitors of the tenant, serving as a business protection measure.

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Force Majeure

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Frees both parties from liability or obligation when an extraordinary event or circumstance beyond their control occurs.

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