Alabama Commercial Lease Agreement Template

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The Alabama commercial lease agreement is a form that is created when a lessor of property, that may be used for a business, enters a binding contract with a tenant. The document must be in accordance with State law (Title 7, Article 2A) and that the landlord require a rental application to be filled-in by the potential lessee to verify the business credit, income, and the finances of the entity’s principal.

If the business is new or has little to no known assets the landlord should require a personal guaranty which makes the owner of the entity personally liable for the performance of the lease contract.

State Definition

“Lease agreement” means the bargain, with respect to the lease, of the lessor and the lessee in fact as found in their language or by implication from other circumstances including course of dealing or usage of trade or course of performance as provided in this article. Unless the context clearly indicates otherwise, the term includes a sublease agreement.

How to Write

Step 1 – When writing there will usually be drafts and revisions and therefore it is best to agree verbally on most of the following issues before writing: base rent, length of lease, options to renew, and any other important topics of the parties.

Step 2 – In the header area enter the landlord and tenant information such as their legal names and addresses followed by filing-in the information in the required sections;

  • Section 1 – Description of Leased Premises
  • Section 2 – Use of Leased Premises
  • Section 3 – Term of Agreement
  • Section 4 – Option to Renew (check one)
  • Section 5 – Rent and Expenses. Enter which type of lease it is; Gross, Modified Gross, or Triple Net (NNN)
  • Section 6 – Security Deposit
  • Section 7 – Leasehold Improvements – Enter the changes allowed by the lessee.
  • Section 13 – Default. Enter the penalty for paying rent late.
  • Section 17 – Miscellaneous terms. Enter the municipality under any signage must be in accordance.
  • Section 22 – Landlord and Tenant contact information for legal notices.
  • Signature – Sign the document and for large-scale leases, it is recommended that it be authorized with a notary public be present for both parties.

Step 3 – After the agreement is signed a copy of an original should be given to each party and the landlord. At this time the security deposit should be given to the landlord and access to the property shall be granted on the lease commencement date.

 


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