The California Commercial Lease Agreement Template acts as a binding contract between a landlord renting a commercial space to a tenant operating a business from that space and the tenant renting the space. The parties to this agreement must make sure to have their facts straight as the nature of the business may involve several additional governing entities. The agreement itself will have a profound financial effect on both the landlord’s finances and the tenant’s ability to run a successful business, therefore, each party must make sure they are in agreement with the terms of the lease. This is considered a written contract once it has been signed by all participating parties therefore both the Landlord and Tenant may expect the other party to live up to their obligations. Similarly, each party is held responsible for living up to what they agreed to. Thus all the information input must be %100 accurate.

Required Disclosures

Arbitration of Disputes (§ 7191) – If arbitration is mentioned in any part of the agreement then the following statement must be included to be typed in 8-point roman boldface type and capitalized:

“NOTICE:  BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE ‘ARBITRATION OF DISPUTES’ PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE ‘ARBITRATION OF DISPUTES’ PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE BUSINESS AND PROFESSIONS CODE OR OTHER APPLICABLE LAWS. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY.”  “WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE ‘ARBITRATION OF DISPUTES’ PROVISION TO NEUTRAL ARBITRATION.”

CASp Report (§ 55.53) – Certified Access Specialist (CASp) Reports must be provided to the new tenant and a report may be requested by the tenant up to 48 hours before signing the lease agreement.

If the landlord has never had an inspection, and thus no CASp Report, the following statement must be entered into the lease agreement:

“A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises.”

Repairs (Section 1938) – Requires that the landlord will be held responsible for maintaining the property including any necessary repairs to correct any violations with construction-related accessibility standards in the CASp Report except if the landlord and tenant come to a separate agreement.