California Commercial Lease Agreement - Paper Example

The above-mentioned lease is made effective on 7/1/2014 and is made by and between the landlord and the tenants who were the First Warmer Property LLC and the Greencraft Inc respectively.

The landlord is known to be the owner of the land and all the improvements known as the 2215S.

The landlord desires to lease out the leased promise to the tenant, and also the tenants are in need or want to lease the leased premises from the landlord and due to this the condition and terms therefore set in.

Due to the consideration of the of all the agreement herein, and contained and other goods and also valuable consideration it is therefore agreed:

Terms

The landlord at this moment leases the leased land to the tenants and on the other hand the tenants also at this moment the leases the leased premise from the landlord. The landlord is in his best condition to give and provide the tenant's possession in as nearly as possible during the beginning of the leasing term. In any way that the landlord is not in a position to provide the tenant the rent, therefore, shall be delayed. The client, on the other hand, should, therefore, have no reason to make any claim to the landlord for any of such manner of delay.

The tenant is having an option of renewing the lease for a period of about one extended term of five years. The tenant shall only enjoy such privilege through writing a notice to the landlord in not less than 90 days of the expiration of the first initial term.

4. Sublease and assignment

A tenant holds the rights o was assigning the leasing rights to a corporation freely without the written permission bearing the Landlords consent. This will allows the tenant to merge, consolidate or lease to a corporation or a subsidiary terms with terms as stated by the tenant. However, the tenant shall not be in a position of leasing or lending the premises without prior consent of the landlord.

5. Repairs

The tenant shall be entirely liable for the charges on repairs that are as a result of the neglect of the tenant. While occupying the premises. This should cover the repair of floors, walls ceilings in the rented place this respect, the property owner is then liable for the repair of major segments in the house such as repair of roofs and electronics. However, the proprietor shall be fully liable for the repair of any damage that is because of natural wear and tear. This will also cover the damages caused by the natural agents of destruction in the environment that covers snow, storms and thunderstorms, wind, hurricanes. Further, the proprietor and the tenant shall contribute in the ratio of 60/40 percent of the total cost of repair that happens after a war period. Neither the Tenant nor the client should make repairs to the house that would otherwise change the original design of the premise that would affect the suitability of the premise for the needs of either party.

6. Alterations and Improvement

Any alteration that may alter the original design of the premises must not be done without informing the property owner or the tenant forthrightly. Alterations as termed here include; decorations replacements, and improvement. The property owner must not renovate the premise with the aim of altering its original face and design without engaging the tenant. On the other hand, the tenant must not engage in changing the design of the premise without informing the owner expressly. However, the tenant is legible to install temporary personal items on the premises. The tenant remains the express owner of anything installed by them during the renting period and shall remove them upon the expiry of the leasing contract.

The tenant shall not be charged additional charges on installations that do not generate income to the tenant. However, installations considered economically active shall demand additional fee as agreed upon by both the tenant and the proprietor.

7. Insurance

This is in three clauses;

Upon fire outbreak, the tenant shall be liable for extended damage to the property, workers, client properties.

The property owner shall be liable for the repair of all damages on the property excluding the tenants personal properties.

The landlord shall be counted among the additional insured by the tenant and shall avail the landlord with a copy of this document upon issuance showing the tenants compliance. The landlord shall not maintain insurance against burglary and theft within the building.

8. Utilities

The tenant will always be required to pay the bills about the sage of water, electricity, and telephone. The property owner however shall pay the fee for the installation of the above-mentioned utilities the upgrading thereof. In case the property owner shall pay the costs associated with the above named utilities consumed by the tenant where metering is not done separately, the tenant shall be served with an invoice that shall be paid up to 15 days from the time of its receipt from the property owner.

9. Compliance with law

The tenant shall ensure to operate within the boundaries set by the law. They should ensure to abide by all the requirements and specifications of the law; public performance ordinances, and laws regulating the healthy conduct pertaining to the environment. Any breach of the law shall be treated on individual basis; any misconduct of the tenant and any person or thing affiliated to the tenant shall be tenant answerable, unless otherwise the property owner and the premise rented shall not be accountable of any offense committed by the tenant while in the premise.

10. Successors

All legal procedures and requirements of the Michigan state laws shall be applied here. The laws on succession shall cove both the landlord, the tenants and the legal team from both sides of the property owner and the tenant the people termed in the agreement as the successors witnesses and the people assigned.

11. Brokers

The property owner holds that the tenant had entered into a contract with the company alone on the terms of being a tenant. This further implies that the tenant was not suggested to, mentioned to or directed to the premise by the estate brokers connected to any firm. Therefore this firm would not be part of any activity or claim that would require compensation that would require compensation from the estate firm due to the payments made to the estate agents/brokers in form of brokerage fee, commissions or search fee.

12. Waiver of subrogation

The client shall not in any way hold the property owner, employees and agents pertaining to the property owner of liability of any subrogation, loss or damage that has occurred as result of any insured risk and extended casualties as maybe needed by the tenant. The tenant shall be liable of all his risks and shall insure appropriately and pay the annuities as recommended by the terms of insurance.

13. Termination

The tenant shall reach an agreement that termination shall be ideally because of the expiry of the renting contract. Where the tenant is not willing to renew the contract, the premise shall be handed over to the property owner/ estate firm when clean, having everything in order as it was given. The termination process shall not be considered complete when the house is handed over when in an indifferent condition other than the condition it was occupied in. The tenant shall meet all the costs that relate to the preparation of the premise for takeover. Where the preparations for take over shall be extensive, the tenant shall pay an extra 15% that shall be of administrative fee. In this situation the landlord shall not be required to serve the tenant with a notice to allow the renovations. The property owner will be at his or her own pace allowed to carry out the transaction.

14. Landlord liability

The landlord shall and will not be anyway liable to the tenant for any cost of damage or loss which may be caused as a result of the acts or omission of the tenants or even any person occupying the premises. The tenants in relation to its own damage comply to the laws, regulation and orders according to the stated standards of the federal authority.