West Virginia Commercial Lease Agreement Template
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A West Virginia Commercial Lease Agreement is fundamentally a reciprocal commitment between you and your property owner. This contract bestows on you the privilege of employing a property for your entrepreneurial endeavors, for a consented duration and cost. It's customized to the explicit pursuits your enterprise aims to execute on-site. Be sure to grasp each component of it prior to affixing your signature.
What are the related laws for Commercial Lease Agreements in West Virginia?
Chapter 37, Article 6 of the West Virginia Code specifically addresses landlord and tenant matters. This comprises various procedures, definitions, and provisions that regulate the creation, alteration, execution, and violation of lease agreements.
As detailed in certain sections of the article:
- Section 37-6-30 outlines the duties of landlords, which include the maintenance of premises in a fit and habitable condition.
- Section 37-6-6 centers on situations where a tenant's rent is in arrears and the leased property has been abandoned, stating the written notice required for such a tenant.
- Section 37-6-8 presents the tenant's right to recover possession of the leased property.
Laws — Title 62A, Chapter 2A: Washington Uniform Commercial Code
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How to write a Commercial Lease Agreement
As an entrepreneur, intricate legal language can be intimidating. Nonetheless, with a comprehensible plan and appropriate direction, you can adeptly compose your lease contract. Let's delve into the fundamentals of a commercial lease arrangement and discover how to adapt it to your requirements. Treat this as your amicable, unpretentious handbook for maneuvering through the realm of commercial leases.
1. Permitted Uses
The "Authorized Operations" provision enlightens you on the appropriate utilization of the leased premises. It lucidly details the sanctioned activities. These encompass manufacturing operations, administrative tasks, warehousing, dissemination, and production and distribution of goods.
It's essential to precisely enumerate all your projected business operations here. This explicitness assists in evading potential legal complications and guarantees effective resource
Industrial and light manufacturing, warehousing, office, distribution, and assembly, including designing, manufacturing and distributing branded merchandise and promotional products, including all activities incident or ancillary thereto and all other lawful uses and purposes.
2. Term and Option to Extend
(a) This pertains to the period of lease and elongations. It commences on the Inception Date and concludes on the Termination Date. You have the option to lengthen it for another two biennial periods under identical terms, though the rental fee may augment. Inform the lessor in a written format 30 days prior the end of term to elongate.
(b) The "Period" implicates both your opening lease span and any succeeding elongations.
Transparent lease periods are integral for enterprise strategizing and functioning, as well as for potential elongations.
(a) The initial term of this Lease will commence on the Effective Date and expire on the Expiration Date. The Tenant may extend the Term of this Lease for [two] additional [two]-year extension term(s), on all the same terms and conditions (except for Rent, which will increase during extension Terms as provided below) contained in this Lease, by notifying the Landlord in writing of the Tenant’s election to do so not less than 30 days before the expiration date of the then-current Term, as the case may be.
(b) The initial term and any applicable extension term are referred to in this Lease as the “Term.”
3. Repairs and Maintenance
The "Upkeep and Renovation" provision delineates the party responsible for completions of fixes. It encompasses both internal and external concerns, such as defective piping or impaired masonry. The financial liability rests with the property owner, not you.
In situations where refurbishment isn't executed promptly, you're authorized to facilitate repair actions and deduct it from your lease payment. Make certain to record these instances for upcoming reverence. This stipulation is critical, as it allocates renovation accountabilities and safeguard you from unforeseen expenditures.
From and after the Effective Date, and for the remainder of the Term, the Landlord shall perform ordinary maintenance and repair of the interior of the improvements on the Premises. In addition, the Landlord shall, at its own cost and expense without reimbursement by the Tenant, keep and maintain in good condition and repair, and make all necessary repairs and replacements to, the exterior walls, building slabs, foundations, structural parts and components, parking lots, gutters, downspouts, roof, roof membrane and coverings and any other part, component or system on the exterior of the Premises. The Landlord shall, at its own cost and expense without reimbursement by the Tenant, keep and maintain in good condition and repair, and make all necessary repairs and replacements to the sprinkler system, mechanical, HVAC, electrical and plumbing systems of the Premises. If the Landlord fails to perform any repair or replacement required to be made by the Landlord in this Lease, and the Landlord fails to cure such failure within 15 days after receipt of a written demand from the Tenant (or immediately, in the case of emergency repairs, including loss of heating and air conditioning), then the Tenant may make such repair or replacement and the Landlord shall reimburse the Tenant for the cost thereof. If the Landlord fails to pay such amount, then the Tenant may offset against the Rent due hereunder the amount so expended.
4. Alterations
"Modifications" stipulates your privileges to amend the leased area. Changes can be made without leaser consent, significant refurbishments, however, convert to the landlord's possessions. You are allowed to jettison personal belongings such as racks or equipment provided it doesn't cripple the premises. Acquiring knowledge of this clause can avert disagreements and assist you in configuring your business structure efficiently.
The Tenant may, at its own cost and expense and in a good workmanlike manner, make such alterations, additions, or improvements or erect, remove, or alter such partitions, or erect such racks, shelves, bins, machinery, furniture, fixtures, trade fixtures, equipment, and other personal property as it may deem advisable, without the consent of the Landlord. All fixtures and permanent alterations, additions, improvements, and partitions erected by the Tenant will be and remain the property of the Landlord during the Term, and will be abandoned by the Tenant at the expiration of this Lease. All racks, shelves, bins, machinery, furniture, equipment, and other personal property located in the Premises as of the Effective Date or otherwise installed by the Tenant may be removed by the Tenant at any time if the Tenant so elects. All such removals and restoration shall be accomplished so as not to damage the primary structure or structural qualities of the buildings and other improvements situated on the Premises.
5. Insurance
The "Coverage" provision safeguards both lessee and lessor. As the lessee, it's necessary to have property and liability coverage, identifying the lessor as an additional insured. The lessor provides coverage for damages to the premises.
'Abandonment of recovery' obstructs insurance agencies from recuperating from the opposing party post a loss. Your insurance provider ought to notify the lessor 30 days before the cessation of the contract. Grasping these terms guarantees financial securement for your enterprise.
(a) At all times during the Term, the Tenant shall maintain, at its sole cost and expense, policies of insurance containing the following insurance coverages (which policies shall name the Landlord as an additional insured):
(1) Property insurance with premiums paid in advance insuring the Tenant’s property using the standard Special Causes of Loss Form or equivalent for the full replacement value. The foregoing is referred to in this Lease as “Property Insurance.”
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(2) Commercial general liability insurance with respect to the Premises in amounts not less than $1,000,000 per occurrence, $2,000,000 aggregate limit using current ISO forms or equivalent.
(b) The Landlord shall obtain and keep in force during the Term of this Lease a policy or policies of insurance covering loss or damage to the Premises, in the amount of the full replacement value thereof, as the same may exist from time to time, but in no event less than the total amount required by lenders having liens on the Premises, against all perils included within the classification of fire, extended coverage, vandalism, malicious mischief, flood (in the event same is required by a lender having a lien on the Property), and special extended perils ("all risk" as such term is used in the insurance industry). Such insurance must provide for a payment of loss thereunder to the Landlord or to the holder of mortgages or deeds of trust on the Premises.
(c) The policies required by this section must provide for standard waivers of any right of subrogation that the insurer of such party may acquire against the other party to this Lease, for losses that are actually insured against, even if the loss results from a negligent act or omission. The Tenant’s insurance company must provide the Landlord with a certificate of insurance on form ACORD-27 (for Property Insurance required to be carried under this Lease), or its equivalent, and ACORD-25 (for liability insurance required to be carried under this Lease), or its equivalent, which provides that the insurance may not be cancelled without giving the named insured at least 30 days’ prior written notice (or at least ten days’ written notice of cancellation in the event of the non-payment of premium). The Tenant may carry any required insurance under a blanket policy if that policy complies with the requirements of this Lease.
6. Events of Default
The "Instances of Default" provision enumerates behaviors regarded as violations of your lease. Common instances encompass lapse of rent dues, confronting bankruptcy, or disregarding lease stipulations. Stay attentive to this segment and sidestep these traps to uphold a positive rapport with your property owner and operate your enterprise seamlessly.
The following events will be deemed to be Events of Default by the Tenant under this Lease:
(1) The Tenant fails to pay any installment of the Rent hereby reserved when due, or any other payment or reimbursement to the Landlord required under this Lease when due, and such failure continues for a period of 30 days after the Tenant’s receipt of written notice of such nonpayment;
(2) The Tenant becomes insolvent, or makes a transfer in fraud of creditors, or makes an assignment for the benefit of creditors;
(3) The Tenant files a bankruptcy petition or Tenant is adjudged bankrupt or insolvent in proceedings filed against the Tenant;
(4) A receiver or trustee is appointed for all or substantially all of the assets of the Tenant; and
(5) The Tenant fails to comply with any term, provision, or covenant of this Lease (other than the foregoing in this section 18), and does not cure such failure within 30 days after written notice thereof to the Tenant, or such longer period as may be necessary to cure such default provided the Tenant has promptly commenced curing such default and is diligently proceeding to obtain such cure.
7. Holdover
The "Holdover" stipulation addresses circumstances when you extend your stay beyond your lease. If you fail to vacate at the conclusion of your lease term, you're liable to pay 125% of the standard payment for each holdover month. Ascertain that you comprehend the financial implication of prolonging your stay and strategize your departure plan suitably.
If the Tenant holds over after the expiration of the Term and does not surrender the Premises prior to the expiration of the Term, then for each such month that the Tenant is holding over, the Tenant shall pay to Landlord 125% of the Rent due under this Lease for each month.
What happens when a Commercial Lease Agreement expires?
When a business lease agreement concludes, various outcomes could transpire. Here are some handy insights that trace the likely scenarios:
- Extend or Dissolve: Corporate tenants ought to determine whether to prolong or dissolve their lease contract considerably ahead of its cessation. Kick-starting this procedure 6 to 12 months beforehand is deemed a wise approach.
- Progress to Month-to-Month: In the absence of lease renewal or execution of a fresh lease, the tenant might have the chance to progress into a month-to-month tenancy, contingent upon the landlord's consent.
- Lessor Assumes Tenancy: Occasionally, upon termination of a business lease, the landlord could opt to take occupancy of the property themselves, either for dwelling or business ventures.
- Likelihood of Legal Proceedings: If predicaments emerge around the lease's end, say, if a tenant has habitually postponed rent remittances or neglected to abide by the lease conditions, the conclusion of a lease could precipitate a lawsuit.
What are the penalties for breaking Commercial Lease Agreements?
Undoubtedly, consequences for breaching a commercial lease agreement differ, but generally, there are several usual penalties:
- Outstanding Rent: Commonly, a primary penalty for breaking a commercial lease is that the tenant remains accountable for the outstanding rent due based on the lease term, post vacating the property.
- Notification Period: A majority of commercial property owners require a notice period varying from 30, 60, to 90 days when a tenant opts to terminate the lease.
- Termination Charges and Other Expenses: Subject to the provisions specified in the lease contract, commercial leases may impose termination fees, along with holding the tenant liable for any promotional expenses for securing a new tenant and prospective cleaning charges.
- Legal Ramifications: Depending on the situation and the breach's nature, if dispute resolution measures within the lease are depleted, the matter could escalate to legal proceedings or result in a court conflict.
Since the particulars of the penalties may differ based on the lease agreement, it is vital to meticulously examine the lease document to discern the precise terms and conditions concerning early termination.