General Lease Agreement

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Introduction

For many businesses, it makes more sense to rent the premises required for the operation of their activities than to purchase a building. There are many reasons for such choice. At the strategic level, business are placing an increasingly large premium on mobility and flexibility when establishing their needs for physical space. For this reason, they prefer not to commit to a purchase which detracts from said strategic objectives. On the financial level, leasing space is usually less financially cumbersome than purchasing space, which makes this option much more attractive for a business which carefully manages its cash. Finally, the legal process of purchasing a property is often much more complex and difficult than simply renting space, which only increase the attractiveness of leasing the required space.

This document establishes the main components of the financial, legal and physical framework of the general lease.

Description

The General Lease Agreement is the legal instrument by which the owner of a commercial building, called the lessor, undertakes toward another person, called the LESSEE, to provide the peaceful enjoyment of rental space located in its building for a period of time, either set or variable, for a consideration called rent.

Use

The following document was designed to serve as a model for a general commercial lease. It can be used for any scenario involving commercial space, but is not suitable for large surfaces, such as shopping malls and office buildings.

The selection of provisions contained in this document are not necessarily adapted to a specific scenario. It is important to review each of them to assess their relevance and adapt them as needed.

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