Alabama Commercial Lease

An Alabama lease agreement is a lawful contract between an individual or business that holds the commercial property or the landlord and the individual or organization who will rent the commercial property or the tenant. In addition, most commercial lease contracts in Alabama are known as a sublease, indicating the lessor is leasing out a part of their real estate property.

Furthermore, when the lessor consents to rent a portion of their property that the tenant can use for commercial purposes, this contract becomes a legally binding agreement in Alabama. However, before entering a commercial lease, the lessor generally demands a personal guarantee if a company owns few assets or was created recently. This individual guarantee puts the liability and obligation on the business owner for the lease contract's execution.

How to draft Alabama Commercial Lease?

As you write a commercial lease contract for use in Alabama, it is necessary to comprehend that the procedure will usually undergo various modifications and drafts. In addition, you must begin the procedure by agreeing orally on several fundamental issues:

• Base rent
• Lease term
• Renewal options

Furthermore, your lease contract should comprise a title with the official addresses and names of the lessee and lessor. Subsequently, you can incorporate any of the following areas into your Alabama commercial lease term:

• Explanation of premises being rented
• Agreement provisions
• How the premises being rented will be used
• Renewal choices
• Specified security deposit
• Expenses and rent sum (include whether the agreement is modified gross, gross, or triple net)
• Default on rent (the fine for a late fee)
• Modifications the tenant is entitled to make
• Any extra miscellaneous provisions of the agreement
• Contact data for the landlord and tenant for statutory purposes
• Signature from each person (for corporate lease contracts, the signatures should be certified by a notary public)

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Another alternative for your Alabama commercial lease contract will include the following:

• Agent's name (if applicable)
• Lessor's name
• Tenant's name
• Lease terms
• Description and use of the land being leased
• Base and extra rent sum
• Late payments
• Required security deposit amount
• How lessee will take control
• Provisions of the premises being leased
• Waiver from the agent (if relevant)
• Nuisance
• Repairs managed by the lessor
• Outside spaces and roof condition
• Showing and inspection provisions
• Maintenance, repairs, compliance, and utilities by the tenant
• Improvements, alterations, signs
• Whether the leased property holds any liens
• Any faults of the premises being leased
• Indemnity and general liability insurance
• Default circumstances
• Default attorney costs and fees, waiver of exemptions, and rent acceleration periods.
• Re-letting and vacation of the property
• Additions and modifications of the property by the landlord
• Re-entry and No bar
• Fire and other damages
• Lease term fee provision, requirements, undertaking, and transfer
• Contract for agent's commission (if relevant)
• Demands and notices
• Subrogation rights waiver
• Hold harmless agreement
• Holdover
• Condemnation and prominent domain
• Provisions for cleaning the leased property when the agreement is terminated
• Attornment and subordination
• Insurance and taxes
• Addendum clause
• Requirements for the use of dangerous materials on the leased buildings
• Terms of the lease
• Legally binding effect of the contract
• Meaning of the term "landlord" or "lessor".
• Statutes and rules
• Commission to sign the legal contract
• The waiver from the Birmingham Association of Realtors, the release of lawsuits and disclaimer, and signatures of the landlord, tenant, and agent (if applicable)

And upon signing the contract, people involved in contract execution should obtain an original copy. Likewise, when the contract is implemented, the tenant should pay the demanded security deposit and obtain access to the commercial property based on the lease provisions. However, if you wish to use a simplified arrangement of the Alabama commercial lease agreement, it should comprise the following:

• Terms of the lease
• How will the tenant use the property
• Rental terms
• Terms for sublease and assignment
• Repair requirements
• Utilities
• Insurance
• Modifications and alterations
• Required property taxes
• Addition of signs
• Rules of the facility or property
• Condemnation
• Entry allowance
• Parking
• Quiet Possession
• Subordination
• Security deposit required
• Notice

If you wish to lease a commercial property in Alabama, our expert attorneys at ContractsCounsel are there to help you. So get in touch with our team now and discuss your lease terms with our professional lawyers.