Delaware Commercial Lease Agreement Template

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The Delaware Commercial Lease Agreement Template is a standard written contract used when a landlord, with commercial property in Delaware, rents to a commercial entity wishing to do business on that property. Commercial leases have the same power in a court of law as a residential lease however, there are certain additional considerations which must be taken into account.

Typically, most of these are negotiable and thus need to be agreed to by both parties before the time of signing. For instance, can business acting as a lessee in this agreement, rent part of its space to a separate business should the lessee business start to fail? Or will the landlord rent an adjoining space to a lessee business’s competitor? These are just some of the issues a commercial tenant would like to address. Landlords wish to make sure the commercial business is legal and will not create a disturbance on the property. They also need to make sure the property itself is returned undamaged or has not been altered in a way the permanently affects future tenants. This document should address all of these issues and more. Once this lease is signed it will verify that both parties have agreed and promised to fulfill their respective roles while obeying the conditions of the lease.

How to Write

Step 1 – The first paragraph shall require several pieces of information. Enter the day, month, and year of the lease on the first line. The second through fourth lines will require the lessor’s full name, address, and state entered (respectively). Then enter the name, street address, and state of the lessee.

Step 2 – In item 1, enter a description of the property being leased. This should include an address and physical description of the space.

Step 3 – In item 2, enter what the lessee or commercial tenant is allowed to do on the property.

Step 4 – In item 3, enter the total amount of time in years and months the lease will be active. This should be followed by the specific start date and termination date of the agreement.

Step 5 – This lease will provide an “Option to Renew” in item 4. If the commercial tenant will retain the right to renew the lease, check the first box then enter the amount of time their renewal will be in effect. If not, then check the second box.

Step 6 – The fifth item, “Rent and Expenses,” enter the net monthly rent amount that shall be considered a base. The type of lease shall be determined here. If this is a gross lease then check the first checkbox (labeled (Gross Lease). The landlord and tenant should initial this section. If this will be a modified gross lease, check the box labeled “Modified Gross Lease.” The tenant and landlord should initial this section if it applies. The Modified Gross Lease paragraph will require that both lessee and lessor define the additional financial responsibilities to the lease. If this is a Triple Net Lease, check the box labeled “Triple Net (NNN) Lease” and make sure both parties initial. Note: Only one of these boxes should be checked. This should be followed with the minimum insurance coverage the lessee must possess for injury, death, and property damage.

Step 7 – The security deposit will need to be entered in item 6.

Step 8 – If improvements or alterations need to be made for the property, the lessee will be held to return the property as received when the lease terminates. If so, enter improvements the lessee will not be responsible for if required.

Step 9 – In the “Defaults and Possessions” section, enter the maximum amount of days rent may be late before a penalty is awarded. If the penalty will be in the form of interest rate, check the first box then enter the per annum daily interest rate the tenant will need to pay when late. If the penalty will be in the form of a daily late fee, check the second box then enter the daily late fee amount.

Step 10 – Under “Miscellaneous Terms,” enter the name of the municipality that must approve all signs or other advertising material in public view.

Step 11 – The “Notices” section will provide a reference for any official communications that must be put in writing from one party to the other regarding the lease agreement. Both the lessor and lessee must enter such contact information in this section where appropriate.

Step 12 – In item 24, titled “Binding Effect,” enter the date of signing for this lease. The lessor and lessee must sign and date this agreement in this section. Both must print their names in the space provided next to the signature line.

Step 13 – The final section is “Acknowledgment of Notary Public.” This may only be filled out by a notary public. This will include the state, county, date, party name, notary signature, and the notary’s commission expiration date.