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Form #1184General lease agreement
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General lease agreement - free to download
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These forms are provided to assist business owners and others in understanding important
points to consider in different transactions. They are offered with the understanding
that no legal advice, accounting, or other professional service is being offered
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General form.
This lease made _________[year], between
_________, of the city of _________, state of _________, as lessor, and
_________, of the same place [or as the case may be], as lessee, witnesses:
A. Grant of Lease, Description of Property, and
Duration of Lease
Lessor, in consideration of rents herein reserved and
of agreements herein of lessee, to be kept, performed and fulfilled, leases to
lessee the following-described premises situated and being in city of
_________, county of _________ and state of _________: _________.
To have and to hold above-described premises, with
rights, privileges, easements and appurtenances thereunto attaching and
belonging, to lessee for the term of 99 [or as the case may be]Â years from and
after first day of _________ in [year]; that is to say, from the first day of
_________, in [year] until the 30th day of _________ in year _________, paying
rent therefor, and yielding possession thereof as herein provided.
B. Rent
1. Lessee agrees to pay to lessor as rent for premises
$_____, payable in monthly [or as the case may be] instalments on the
_________ day of each month [or as the case may be] at _________.
2. Any instalment of rent accruing under provisions of
this lease, which shall not be paid when due, shall bear interest at rate of
_____% per annum from date when same was payable by terms of this lease until
same shall be paid by lessee.
3. The moneys due hereunder as rent shall always be a
first lien on the land and improvements on the premises.
4. If lessee shall be ousted from possession of
premises by reason of any defect in title of lessor, lessee shall not be
required to pay any rent under this lease while so deprived of possession of
premises, and lessor shall not incur any liability by such ouster beyond loss
of rent while lessee is so deprived of possession of premises.
C. Construction of Building by Lessee
1. Lessee agrees to erect, finish and complete at
lessee's own expense, with all reasonable dispatch, and with no further delays
than may be necessary and unavoidable, on the premises, a fireproof building in
a good and suitable manner, and have the same, in any event, complete and ready
for occupancy and fully paid for, and free from all mechanics' liens and free
from any and all claims liable to ripen into mechanics' liens, on or before the
first day of _________[year], which building shall be _________[insert
provisions as to kind of building, height, value of, or whatever agreed on as
to sufficiency of building].
2. No building erected under the provisions of this
lease shall be removed or torn down without written consent of lessor.
D. Bond of Lessee
Lessee shall execute to lessor contemporaneously with
this lease, a bond in the sum of $_____, with surety satisfactory to lessor,
providing for erection of such building, together with payment of rent, taxes,
assessments and any obligations hereunder until erection and completion of
building whereupon bond shall be cancelled and released. Such bond shall
further provide that _________.
E. Assignment of Lease
1. Lessee agrees to not assign this lease, except by
way of mortgage, until lessee shall have completed and paid for building on
premises, of character and within time herein specified.
2. Lessee may, when there is a building erected which
shall conform to requirements of this lease and free from mechanics' liens and
possibility thereof and similar claims, sell or assign lessee's interest in
premises and buildings thereon, provided that all rents, taxes, assessments,
insurance and other charges of every kind shall be paid to date of such
assignment, and all agreements herein contained to be kept and performed by
lessee, shall be fully complied with at date of such assignment or conveyance.
In case of such sale or assignment of lease, same shall be evidenced in
writing, duly executed under seal and acknowledged by assignee, and duly
recorded in recorder's office of _________ county and state of _________
whereupon and whereby assignee shall expressly accept and assume all terms and
agreements in this lease contained to be kept and performed by lessee, and will
comply with and be bound by them; lessee agrees to not make any assignment of
this lease, except in manner and on conditions as set forth above, and any
assignment of the lease, leasehold interest or buildings on the property, not
in strict conformity with these provisions, shall be null and void.
3. Assignee, and succeeding assignees, shall be
subject to same terms and conditions as to future assignments, and the lessee
herein so assigning and conveying shall thereof and thereby then be forever
released and discharged from this lease and from agreements in this lease
contained, providing assignment shall have been made to be carried into effect
an absolute and bona fide sale of lessee's interest in premises.
F. Taxes, Special Assessments, Public Service Charges,
and the Like
1. Lessee agrees to pay all taxes and assessments,
general and special, and all other impositions, ordinary and extraordinary, of
every kind and nature whatever, levied or assessed on premises, or any part
thereof, or on any buildings or improvements at any time situated thereon or
levied or assessed on interest of lessors in or under this lease during the
term of lease, all of which taxes, assessments and other impositions shall be
paid by lessee in name of lessor within 20 days after the same shall become due
and payable, and in any case within apt time to prevent any sale or forfeiture
of premises therefor, or for any part thereof, it being agreed that lessee
shall pay 5/6 of the general taxes levied on premises for year [year], and
shall pay all of the general annual taxes levied on premises for each and every
year thereafter during the term hereby demised, including 1/6 [or as the case
may be] of general taxes for year [year].
2. Nothing herein contained shall be construed to
require lessee to pay any so-called income taxes assessed on or in respect of
income of lessor, or any income taxes chargeable to, or required to be paid by,
lessor unless income taxes shall be specifically levied against income of
lessor derived from rent by this lease reserved expressly as and for a specific
substitute for the taxes, in whole or in part, on real estate by this lease
demised; nor shall anything in this lease contained be construed to require
lessee to pay any so-called inheritance, estate or transfer tax growing out of
any inheritance, devise or transfer of lessor's estate, or of any interest in
reversion of real estate; provided, however, that if amount or rate of such
income taxes so specifically levied against income of lessors as a specific
substitute for taxes on real estate by this lease demised should be increased
by reason of any other income received or property owned by lessor, then lessee
shall not be obligated to pay such increased amount or excess but only such tax
as lessor would be obligated to pay in case they derived no income from any
other source than the real estate.
3. Lessee shall have the right to contest the validity
of any tax or special assessment payable by lessee which lessee deems to have
been illegally levied or assessed against premises, and for that purpose shall
have the right to institute such proceeding or proceedings in the name of
lessor as lessee may deem necessary, provided that expenses incurred by reason
thereof shall be paid by lessee and provided further it is necessary to use
lessor's name in carrying on such proceedings.
4. Whenever any taxes or special assessments may be
paid in instalments, lessee shall have the right to execute in name of lessor
and as lessor's attorney in fact such agreement or agreements as may be
required or permitted by law to secure right or privilege of paying such taxes
or special assessments in instalments and lessee shall thereupon pay instalments
before they become delinquent. Lessee shall pay prior to the termination of
this lease all deferred instalments of any such taxes or special assessments.
5. Lessee agrees to deliver to lessor from time to
time duplicate receipts showing payment of all taxes, assessments and other
impositions within 30 days after respective payments evidenced thereby.
G. Condemnation of Leased Property
If the entire premises be taken by appropriation to
public use, under right of eminent domain, during term of this lease, this
lease shall terminate and award received for taking shall be divided between
lessor and lessee as follows: _________.
H. Insurance
1. Lessee shall keep insured during demised term any
and all buildings or improvements that may be built or placed on premises, in a
good and responsible company or companies, as may be approved by lessor, to an
amount of not less than $_____, and all policies issued, and renewals thereof,
of all such insurance on the buildings or improvements to the amount of $_____
are to be assigned to, and in case of loss be made payable to, lessor, as
lessor's interest may appear, the same to be held by lessor as additional
security for the amount of rent and the rebuilding herein provided for; and
lessor, in case the buildings or improvements shall at any time or times be
destroyed by fire during the term, shall pay to lessee, on proper architect's
certificates, so much of the insurance money as may be received by reason of
such loss or destruction, in such sum or sums as may be necessary to pay for
rebuilding as herein provided; and at the time when such insurance money is
paid by lessor, lessee shall expend on work done on or for materials furnished
for the restoration, repair or erection of any new building, an amount of money
derived by lessee from sources other than such insurance money paid out by
lessor, equal to the amount of the portion so paid by lessor. No interest is to
be paid on insurance money by lessor during the time such money remains in
lessor's possession; and any and all moneys which lessor shall receive by
reason of any loss or destruction of the buildings or improvements is hereby
constituted a trust fund, to be used for rebuilding of buildings and
improvements on premises, as herein provided for. Lessor shall properly
disburse such moneys and use such toward rebuilding the buildings and
improvements on the premises, as herein provided for; but this provision shall
not prejudice the provisions in this lease contained, that such insurance money
shall stand as additional security for the rent herein provided for. Lessor
shall not be responsible for the collection or noncollection of any insurance
money in any event, but only for such insurance money as shall come to lessor's
hands.
2. In case lessee shall neglect to insure and keep
insured the buildings and improvements on premises, lessor may, at lessor's
election, procure and renew such insurance and add the amount paid therefor to
the instalment of rent next falling due under this lease, together with interest
at the rate of _____% per annum.
I. Mortgage by Lessee
Lessee may at any time mortgage or convey by deed of
trust in the nature of a mortgage, lessee's estate in premises and any building
or improvement then or thereafter situated thereon; provided, that lessee shall
not be in default in any of agreements herein contained to be kept, observed
and performed by lessee and shall have paid all rents, taxes, assessments,
insurance premiums and all other charges of every kind which shall have accrued
hereunder; and provided further, that no mortgagee or trustee or anyone to
claim by, through or under such mortgage or deed of trust, shall, by virtue
thereof, acquire any greater rights in premises and any building or improvement
thereon than lessee then has under this lease; and provided further, that such
mortgage or deed of trust shall be subject to all the conditions and
obligations of this lease and to the rights of lessor thereunder.
J. Use of Leased Property
[There is, it seems, no difference in provisions in leases
as to the purposes for which leased premises are to be used, including
forbidding use for illegal purposes, as between short-term and long-term
leases.]
K. Option To Purchase Property
Lessee shall have the right to purchase the premises
on or before _________[year], for the sum of $_____, on condition that
_________, and a deed executed by lessor on exercise of such option shall
terminate this lease.
L. Payments by Lessor Recoverable from Lessee
1. Lessor shall have the right at all times during
demised term, to pay any rates, taxes, assessments, water rates or other
charges on premises and reversionary interest therein remaining unpaid after
the same have become due and payable, and to pay, cancel and clear off all tax
sales, liens, charges and claims on or against premises or reversionary
interest therein, and to redeem premises from the same, or any of them, from
time to time, and the amount paid, including reasonable expenses, shall be so
much additional rent due from lessee at next rent day after any such payment,
with interest thereon at the rate of _____% per annum from the date of payment
thereof by lessor, until the repayment thereof to lessor by lessee.
If lessor shall advance or pay any such rates, taxes,
assessments, water rates or other charges, or any, cancel and clear off any tax
sales, liens, or charges and claims on and against premises or the reversionary
interest therein, it shall not be obligatory on lessor to inquire into the
validity of any such rate, tax or assessment, or other charge, or any such tax
sale.
2. Lessor shall have right at all times during demised
term, to pay any taxes, assessments, water rates or other charges or
impositions on premises, the building at any time situated thereon, or any interest
therein, remaining unpaid after same shall become delinquent, and to pay,
cancel and clear off all liens, charges and claims on or against premises, and
to redeem premises from same, or any of them, from time to time, and amount so
paid, including reasonable expenses, shall be so much additional rent due from
lessee to lessor at next rent day after any such payment, with interest at rate
of _____% per annum from date of payment thereof by lessor until repayment
thereof to lessor by lessee, it being agreed however (all other provisions of
this lease to contrary notwithstanding), that lessee shall not be required to
pay, discharge or remove any tax, assessment, tax lien, or other imposition or
charge on or against premises, or any part thereof, or improvements at any time
situated thereon so long as lessee shall in good faith proceed to contest same,
or validity thereof, by appropriate legal proceedings, which shall operate to
prevent collection of tax, assessment, lien or imposition so contested, or sale
of premises or any part thereof to satisfy same, provided, however, lessee, not
less than 20 days before any tax, assessment, lien or imposition on premises
shall become delinquent, shall give notice to lessor of their intention to
contest validity of same and shall deposit with lessor cash or marketable
securities satisfactory to lessor in character and amount, to be held and
retained by lessor as security for tax, assessment, lien or imposition so
contested, which security shall be held by lessor until premises shall be
relieved and discharged from any such tax, assessment, lien or imposition and
shall thereupon be returned by lessor to lessee, less amount of any loss, cost,
damage and expense, including reasonable attorneys' fees that lessor may sustain
or incur in connection with tax, assessment, lien or imposition so contested,
and pending any such legal proceedings lessor shall not have the right to pay,
remove or discharge the tax, assessment, lien or other imposition so contested.
M. Payments by Lessee of Incumbrances on Leased
Property
If the interest on any incumbrance against the
property of which the premises form a part and to which incumbrance this lease
is subordinate, shall not have been paid at the time the same becomes due and
payable, lessee is hereby authorized, but not obligated, to pay same and charge
the amount so paid against the rents accruing under this lease and such payment
of interest shall in every respect have the same effect as though the amount
thereof had been paid as rent to lessor; and in event lessor shall not have
paid the principal of incumbrance or mortgage when the same becomes due,
whether by expiration of time or by reason of the mortgagee or incumbrancee
having declared the same to be due by reason of default, then lessee shall have
the right to purchase such incumbrance and deal with the same as its own
property, and such purchase of incumbrance shall not be deemed a merger, but
lessee so purchasing such incumbrance, or the notes secured thereby, shall in
all respects have the right to deal therewith as though lessee was in all
respects a stranger to the title to premises and not otherwise interested
therein; and in event of any foreclosure sale, lessee shall have the right, but
shall not be obligated, to purchase such property at such sale with like effect
of relief from any claim of merger arising therefrom.
N. Repairs
Lessee shall, at lessee's own expense, keep buildings
on premises in good repair and condition, so that security furnished by
buildings shall not at any time be impaired or diminished in value.
O. Loss or Damage by Fire
In case of loss or damage by fire or otherwise to any
building now or hereafter standing on premises, lessee will, within _________
months after such loss, injury or destruction, repair or rebuild the same in
such manner that the building on premises, after such repairing or rebuilding,
shall be of the same general character and at least equal in value to the
building which was standing on premises at the time of such loss, injury or destruction,
and lessee will pay for such repairing or rebuilding so that premises and the
building at any time situated thereon shall be free and clear of any and all
mechanics' and other similar liens and lessee will at all times during the
continuance of this lease keep and maintain on premises a building which shall
be of the same general character and at least equal in value to the building
now situated on premises.
P. Breach of Lease as Terminating Lease
In case, at any time, default shall be made by lessee,
in the payment of any of rent herein provided for on the day the same becomes
due or payable, and such default shall continue 30 days (after notice thereof
in writing by lessor, or their agents or attorneys to lessee), or in case any
default in relation to liens as herein provided shall continue 30 days after
written notice, or if lessee shall fail to pay any of the rates, taxes or
assessments herein provided for to be paid by lessee, within the time herein
provided for, or in case of the sale or forfeiture of premises, or any part
thereof, during demised term, for the nonpayment of any tax, rate or
assessment, or in case lessee shall fail to keep insured any building or
buildings or improvements which may at any time hereafter be on premises as
herein provided for, or fail to spend insurance money as herein provided for,
or fail to rebuild as herein provided, or fail in any of the agreements of this
lease by lessee to be kept or performed, then in any or either of such events,
it shall and may be lawful for lessor at or after the expiration of 10 days'
previous notice in writing to declare demised term ended and into premises, and
the buildings and improvements situated thereon, or any part thereof, either
with or without process of law, to reenter, lessee hereby waivering any demand
for possession of premises and any and all buildings and improvements then
situated thereon. And lessee agrees that on termination of demised term at such
election of lessor, or in any other way, lessee will surrender and deliver up
premises and property peaceably to lessor, lessor's agents or attorneys,
immediately upon the termination of demised term; and if lessee, lessee's
agents, attorneys and tenants shall hold premises or any part thereof one day
after the same should be surrendered according to the terms of this lease, they
shall be deemed guilty of forcible detainer of premises under the statute, and
shall be subject to eviction and removal, forcibly or otherwise, with or
without process of law.
Q. Forfeiture to Lessor of Improvements on Termination
of Lease for Breach
In event of determination of this lease at any time
before expiration of term of _________ years, for breach by lessee of any of
agreements herein contained, all buildings, fixtures and improvements then
situated on premises shall be forfeited to lessor and become lessor's property,
and no compensation therefor shall be allowed or paid to lessee.
R. Purchase by Lessor on Termination of Lease by
Expiration of Time
Lessor agrees to purchase on _________ day of
_________ in [year], unless this lease is sooner determined in any of ways
herein provided, the buildings and improvements situated and standing on
premises, exclusive of and not including value of the land or ground, at their
actual cash value agreed on or determined by _________; purchase money to be
payable one quarter in cash and the balance in _________ years from the
_________ day of _________[year], with interest thereon at the rate of
_____% per annum, such deferred payments to be secured by a first mortgage on
premises and improvements or by such other securities as may be satisfactory to
lessee, or if lessor so desires lessor may pay the entire sum of such purchase
money in cash.
And lessee
agrees that at the time and upon the day of purchase, to wit:_________, at
twelve o'clock noon, to convey all of buildings and improvements to lessor by a
good and sufficient deed of conveyance, and will immediately surrender and
deliver up peaceably premises in as good condition as when the same were entered
upon by lessee, and any and all buildings and improvements thereon in a good
and perfect condition, ordinary wear and tear, depreciation and decay excepted.
It being, however, agreed that it is a condition of this lease that all
buildings and improvements and fixtures on premises at termination of demised
term, providing this lease is not sooner determined, shall, at and
upon the date of the expiration of the term, revert to
and become the exclusive property of and be vested in lessor without any such
deed of conveyance from lessee to lessor, but this condition is not to be so
construed as to waive the right of lessee of the payment to lessee of the
actual cash value of such improvements on the premises, to be ascertained and
determined as aforesaid.
S. Costs and Attorney Fees
In case lessor shall, without any fault, be made party
to any litigation commenced by or against lessee, lessee shall pay all costs
and attorney's fees incurred by or against lessor, by or in connection with
such litigation, and lessee shall and will also pay all costs and attorney's
fees incurred by or against lessor, in enforcing agreements and provisions of
this lease; and all such costs and attorney's fees, if paid by lessor, or
either of them, and the rent reserved in this lease, and all taxes and
assessments, and the payment of all money provided in this lease to be made to
lessor, shall be and they are hereby declared to be a first lien on all
buildings and improvements placed on premises at any time during the term of
this lease, and on the leasehold estate hereby created, and on the rents of all
buildings and improvements situated on premises at any time during the term.
T. Notices
In every case where, in the opinion of lessor, or
under the conditions of this lease, it shall be deemed necessary for interest
of lessor to serve a notice or demand on lessee concerning this lease, or any
of the conditions or provisions thereof, it shall be a sufficient service of
such notice, demand or declaration to leave a copy thereof at the place of
business of lessee, at _________ or by posting the same on the front of any
building then on premises.
U. Waivers
No waiver of a breach of any of the agreements or
provisions contained in this lease shall be construed to be a waiver of any
subsequent breach of the same or of any other provision in the lease.
V. Scope of Words Used
Each of the expressions, phrases, terms, conditions,
provisions, stipulations, admissions, promises, agreements, requirements and
obligations of this lease shall extend to and bind or inure to the benefit of
(as the case may require) not only the parties hereto, but each and every of
the heirs, executors, administrators and assigns of the parties hereto; and
wherever in this lease a reference to either of the parties hereto is made,
such reference shall be deemed to include, wherever applicable, also a
reference to the heirs, legal representatives and assigns of such party, the
same as if in every case expressed, and all the conditions and agreements
contained in this lease shall be construed as running with the land.
_________[spouse], of lessor, _________ joins
in this lease for the sole purpose of evidencing h consent to its execution, and releasing h right of [dower or courtesy, if applicable] in
premises as against lessee.
In witness whereof, the parties hereto have subscribed
their names [and set their seals] the day and year first above written.
[Acknowledgments]
[Signatures]
Contributed by
FastDue.com |
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Name of Firm |
FastDue.com |
Location |
Fairfield,
Iowa,
United States |
Total Forms Contributed |
74 |
Phone |
641-209-1761 |
Website |
http://fastdue.com |
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