The Free Commercial Lease Agreement is utilized when a property owner wishes to allow commercial use of their property without charging monetary rent. This arrangement might be employed for various reasons, such as supporting non-profit organizations, incubating start-ups, or maintaining occupancy during challenging market conditions. The agreement, while free of rent, typically includes provisions for other costs such as utilities, maintenance, and insurance. This document must comply with U.S. federal regulations including the Americans with Disabilities Act, as well as state-specific commercial property laws. It provides essential protections for both parties by clearly defining responsibilities, permitted uses, and termination conditions.
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1. Parties: Identification of landlord and tenant with full legal names and addresses
2. Background: Context of the agreement and property description
3. Definitions: Key terms used throughout the agreement
4. Premises: Detailed description of the leased property
5. Term: Duration of lease and renewal options
6. Rent: Payment terms, amounts, and schedules
7. Use of Premises: Permitted uses and restrictions
8. Maintenance and Repairs: Responsibilities of both parties
9. Insurance: Required coverage and obligations
10. Termination: Conditions for ending the lease
1. Improvements and Alterations: Terms for modifying the premises - include when tenant may need to modify the space
2. Subletting: Rights and restrictions for subletting - include when subletting might be permitted
3. Operating Expenses: Cost sharing arrangements - include for triple net or modified gross leases
4. Environmental Matters: Environmental compliance and responsibilities - include for industrial or potentially hazardous uses
1. Floor Plan: Detailed plan of the leased premises
2. Rules and Regulations: Building or property specific rules
3. Service Level Agreement: Maintenance and service standards
4. Fit-out Specifications: Details of any agreed tenant improvements - include when premises requires modification
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