Updated on August 4, 2023
An Alabama commercial lease agreement is a crucial document that sets the foundation for a successful landlord-tenant relationship in the commercial real estate sector. This agreement, which is legally binding, outlines the terms and conditions for renting commercial property in Alabama.
The Alabama commercial lease agreement is designed to protect both parties’ interests. It includes details about the property, the agreed-upon rent, the initial term of the lease, and the responsibilities of both the lessor and the lessee.
Overview of this Lease
- Rent and Security Deposit (Pages 1-2): This section outlines the monthly rent for the initial period, security deposit requirements, and the policy for late payments.
- Initial Term and Renewal Options (Page 3): This part of the agreement outlines the initial term of the lease, the lessee’s options for renewing the lease, and any upfront payments required at the start of the lease.
- Possession (Page 3): This section details when possession of the premises will commence and how rent will be prorated in the event of any delay in providing possession.
- Signage and Alterations (Pages 6-7): This section outlines the lessee’s obligations regarding signage and alterations to the premises.
- Assignment and Subletting (Pages 6-7): This section details the conditions under which the lessee may assign or sublet the premises.
- Insurance (Page 6): This section outlines the lessee’s obligations regarding insurance for the premises.
- Application of Law (Pages 7-8): This section requires the lessee to comply with all laws, ordinances, regulations, and other legal requirements affecting the premises.
- Fixtures (Page 8): This section details which fixtures belong to the lessor and which belong to the lessee, and how these fixtures should be handled at the end of the lease.
- Quiet Possession (Page 9): This section guarantees the lessee’s right to quiet enjoyment of the premises, as long as they comply with the terms of the agreement.
- Subordination and Successors (Page 9): This section outlines how the agreement is affected by any existing or future mortgages on the premises, and how the agreement binds and benefits the successors and assigns of both parties.
- Governing Law (Page 10): This section states that the agreement is governed by the laws of the State of Alabama.
- Additional Terms and Conditions (Page 10): This section provides space for any additional terms and conditions that the parties agree to.
- Attachments (Page 10): This section lists any attachments that are incorporated into the agreement.
- Signatures (Page 10): This section provides space for the signatures of the lessor, lessee, and any agents, indicating their acceptance of the terms of the agreement.