Lease Deeds

A lease deed (also known as a commercial lease form) is a document under which the Landlord and Tenant set forth an agreement that outlines guidelines for rental of a residential or commercial lease properties. The lease deed basically sets forth the rights and responsibilities of the landlord and tenant according to the commercial lease agreements. It is frequently used in a rent to buy situation. The landlord still owns the commercial lease sale property, but the landlord’s right to access and enter to the property are limited.  The tenant gets the benefits of being able to use and/or live at the property, and the opportunity to achieve  ownership. 
The lease sets forth the formal agreement of the parties and is a legally binding document. The lease must be in writing for a term of more than 1 year, and signed by the landlord and the tenant.

Lease Terms

The following terms should be negotiated in the lease:

• Length of term. Leases that are for more than one year must be in writing and signed by both parties in order to be enforceable.
• Payment. Payment terms are negotiable. In a lease deed, the tenant may pay the landlord an option fee to purchase the property at a later date. The option fee is non-refundable. The parties may also agree that a portion of the lease payment should be applied towards the down payment on the purchase of the home if the tenant exercises the option to purchase the home.  The tenant may pay for repairs and a portion of the taxes.
• Deposit.  Typically, in a lease, the tenant pays a security deposit equal to the first month’s rent and the first month’s rent.
• Rules. The lease sets forth the rules that the tenant must follow in order to occupy the premises. An example may be that there is no smoking on the premises or no pets.

Lessor Rights

The lessor’s rights under the lease include the right to evict the tenant if the tenant defaults in the rent payments or does not obey the rental rules or commits an illegal act on the premises.

Lessee rights

Lessee’s rights under the commercial lease agreement form include the right to quiet enjoyment of the property. The landlord’s right to entry is limited to emergencies for repairs and things of that nature. The landlord must give the tenant reasonable advance notice upon entering except for emergency situations.

Landlord tenant disputes arise frequently. It is important to negotiate your lease in writing so that all parties understand their duties and responsibilities.  If a dispute arises during a lease term, consult with a real estate lawyer who specializes in property management.