Vermont commercial lease agreement template

Vermont Commercial Lease Agreement

This Commercial Lease Agreement (the "Lease") is made and entered into this [Date], by and between [Landlord's Full Legal Name], residing at [Landlord's Address] (the "Landlord"), and [Tenant's Full Legal Name], residing at [Tenant's Address] (the "Tenant").

If Landlord or Tenant is a business entity, state of formation and proof of authorization to enter into this agreement is attached.

1. Premises

The Landlord hereby leases to the Tenant, and the Tenant hereby leases from the Landlord, the following described premises (the "Premises"):

• [Street Address]
• Suite/Unit Number: [Suite/Unit Number]
• Square Footage: [Square Footage]
• Property Boundaries: [Detailed Description of Property Boundaries]
• Designated Common Areas: [Description of Common Areas]
• Parking Spaces: [Number] parking spaces, located [Location of Parking Spaces]
• Exclusive Use Areas: [Description of Exclusive Use Areas, if any]

2. Lease Term

Option A: Fixed-Term Lease

The term of this Lease shall commence on [Start Date] and shall expire on [End Date].

Option B: Month-to-Month Tenancy

The term of this Lease shall be month-to-month, commencing on [Start Date]. Either party may terminate this Lease by providing [Number] days written notice to the other party.

Option C: Renewal/Extension

1. The Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Duration of Term], provided the Tenant gives written notice of its intent to renew at least [Number] days prior to the expiration of the then-current term.
2. This lease will automatically renew unless either party provides a written notification of non-renewal within a period of [Number] days prior to lease expiration.

Option D: Right of First Refusal

If the Landlord intends to lease the Premises to a third party after the expiration of this Lease, the Tenant shall have a right of first refusal to lease the Premises on the same terms and conditions as offered to the third party.

Holdover Provision

1. If the Tenant remains in possession of the Premises after the expiration of the Lease term without a written agreement, such holdover shall be deemed a month-to-month tenancy at a rental rate of [Percentage]% of the then-current monthly rent.
2. Any holding over after the expiration of this lease without written consent shall be construed as a tenancy at sufferance and shall not operate to renew the lease.

3. Rent

Base Rent

The Tenant shall pay to the Landlord base rent in the amount of [Dollar Amount] per [Month/Quarter/Year], payable in advance on the [Day] day of each [Month/Quarter/Year], commencing on [Date].

Payment Method

1. Rent shall be paid by [Check/Money Order] mailed to [Landlord's Address].
2. Rent shall be paid by electronic funds transfer (EFT) to the following account: [Bank Name, Account Number, Routing Number].

Rent Increases/Escalation

1. The base rent shall increase by [Percentage]% per year on the anniversary of the commencement date of this Lease.
2. The base rent shall be adjusted annually based on the Consumer Price Index (CPI) for [Specific CPI Area], with the adjustment taking effect on the anniversary of the commencement date of this Lease.

Security Deposit

The Tenant shall deposit with the Landlord a security deposit in the amount of [Dollar Amount], which shall be held by the Landlord as security for the Tenant's performance of its obligations under this Lease. The security deposit shall be returned to the Tenant within [Number] days after the termination of this Lease, less any amounts necessary to cover damages to the Premises beyond normal wear and tear, unpaid rent, or other sums due to the Landlord under this Lease. Note Vermont law regarding deductions and required notice.

Utilities, Insurance, Taxes, Maintenance

1. Gross Lease. Landlord pays all property expenses including, but not limited to, taxes, insurance, and common area maintenance.
2. Triple Net (NNN) Lease. In addition to the base rent, the Tenant shall pay its pro rata share of all real property taxes, insurance premiums, and common area maintenance expenses (CAM) associated with the Premises. Tenant's pro rata share is [Percentage]%.
3. Modified Gross Lease. Tenant pays base rent plus specified expenses. [Specify which expenses tenant pays].

Utilities: Tenant is responsible for [List of Utilities]. Landlord is responsible for [List of Utilities].

4. Use of Premises

Permitted Use

The Premises shall be used and occupied solely for the purpose of [Description of Permitted Use].

Use Restrictions

1. The Tenant shall not use the Premises for any purpose that is unlawful or that may create a nuisance or disturbance to other tenants in the building.
2. The Tenant shall not use the Premises for [List of Prohibited Uses].

Exclusive Use

The Landlord agrees that the Tenant shall have the exclusive right to operate a [Type of Business] business within the [Building/Property].

Compliance

The Tenant shall obtain and maintain all necessary business licenses and permits required to operate its business in the Premises and comply with all applicable laws, rules, and regulations.

5. Maintenance and Repair

Landlord's Responsibilities

The Landlord shall be responsible for maintaining the structural elements of the Premises, including the roof, foundation, and exterior walls, and for maintaining the common areas of the building.

The Landlord shall be responsible for repairs to the HVAC system, plumbing, and electrical systems serving the Premises, unless such repairs are necessitated by the Tenant's negligence or misuse.

Tenant's Responsibilities

The Tenant shall be responsible for maintaining the interior of the Premises in good order and repair, including but not limited to, the floors, walls, ceilings, and fixtures.

The Tenant shall promptly notify the Landlord of any damage to the Premises or any condition requiring repair for which the Landlord is responsible.

Property Condition

Tenant acknowledges having inspected the premises and agrees that it is in good condition at the commencement of this lease.

6. Modifications, Improvements, and Alterations

Approval Required

The Tenant shall not make any alterations, additions, or improvements to the Premises without the Landlord's prior written consent, which consent shall not be unreasonably withheld.

Treatment of Fixtures

1. All fixtures and improvements installed by the Tenant shall become the property of the Landlord upon the termination of this Lease.
2. The Tenant shall have the right to remove any fixtures and improvements installed by the Tenant at the Tenant's expense, provided that the Tenant restores the Premises to its original condition.

Signage

The Tenant shall have the right to install signage on the exterior of the Premises, subject to the Landlord's approval of the design and location of the signage. All signage must comply with applicable building codes and regulations.

7. Assignment and Subletting

Restrictions

1. The Tenant shall not assign this Lease or sublet the Premises without the Landlord's prior written consent.
2. The Tenant shall not assign this Lease or sublet the Premises without the Landlord's prior written consent, which consent shall not be unreasonably withheld. Vermont law applies regarding reasonableness.
3. The Tenant may assign this Lease or sublet the Premises with prior written notification to the Landlord, so long as all obligations under this Lease continue to be met.

8. Insurance

Tenant's Insurance

The Tenant shall maintain commercial general liability insurance with a limit of not less than [Dollar Amount] per occurrence and [Dollar Amount] in the aggregate, and commercial property insurance covering the Tenant's personal property and improvements in the Premises.

Landlord's Insurance

The Landlord shall maintain insurance on the building in which the Premises are located.

Waiver of Subrogation

To the extent permitted by law, the Landlord and Tenant hereby waive any rights of subrogation against each other.

Proof of Insurance

Tenant shall provide Landlord with a certificate of insurance evidencing the required coverage before occupancy, and upon each policy renewal.

9. Default and Remedies

Tenant Default

The following shall constitute an event of default by the Tenant: (a) failure to pay rent when due; (b) abandonment of the Premises; (c) violation of any of the terms or conditions of this Lease.

Landlord Remedies

Upon the occurrence of an event of default by the Tenant, the Landlord shall have the right to terminate this Lease, re-enter the Premises, and recover possession thereof, and to recover damages, including but not limited to, unpaid rent, the cost of reletting the Premises, and any other losses sustained by the Landlord as a result of the Tenant's default. Vermont law may govern eviction procedures and available remedies.

Landlord Default

The following shall constitute an event of default by the Landlord: (a) failure to maintain the structural elements of the premises (b) failure to provide essential services to the Premises, (c) violation of any of the terms or conditions of this Lease.

Tenant Remedies

Upon the occurrence of an event of default by the Landlord, the Tenant shall have the right to terminate this Lease, and to recover damages, including but not limited to, expenses incurred as a direct result of the Landlord’s default.

Attorney's Fees

The prevailing party in any action or proceeding arising out of or relating to this Lease shall be entitled to recover its reasonable attorney's fees and costs.

10. Security Deposit

Security deposit shall be handled in accordance with all Vermont state law. Vermont law prohibits nonrefundable security deposits.

Allowable Deductions: Specify any specific deductions to be made beyond normal wear and tear or damages.

Statutory Deadlines for Return: The security deposit shall be returned within [Number] days of lease termination, in accordance with Vermont Statute.

Interest Requirements (if any): Specify whether the security deposit will accrue interest.

11. Dispute Resolution

Option A: Mediation

Any dispute arising out of or relating to this Lease shall be resolved through mediation in [City, State], before resorting to litigation.

Option B: Arbitration

Any dispute arising out of or relating to this Lease shall be resolved by binding arbitration in [City, State], in accordance with the rules of the American Arbitration Association.

Governing Law and Venue

This Lease shall be governed by and construed in accordance with the laws of the State of Vermont. Venue for any legal action relating to this Lease shall be in [County] County, Vermont.

12. Indemnification

Tenant's Indemnification

The Tenant shall indemnify and hold harmless the Landlord from and against any and all claims, damages, losses, liabilities, and expenses (including attorney's fees) arising out of or relating to the Tenant's use of the Premises, the Tenant's negligence, or the Tenant's breach of this Lease.

Landlord's Indemnification

The Landlord shall indemnify and hold harmless the Tenant from and against any and all claims, damages, losses, liabilities, and expenses (including attorney's fees) arising out of or relating to the Landlord's negligence or the Landlord's breach of this Lease.

13. Casualty and Condemnation

Casualty

If the Premises are damaged by fire or other casualty, the Landlord shall repair the Premises as soon as reasonably practicable, unless the damage is so extensive that the Premises are untenantable, in which case either party may terminate this Lease.

Condemnation

If the Premises are taken by eminent domain, this Lease shall terminate.

14. Compliance with Laws

The Tenant shall comply with all applicable laws, rules, regulations, and zoning ordinances in its use of the Premises. Vermont-specific laws should be referenced.

15. Landlord's Right of Entry

The Landlord shall have the right to enter the Premises at reasonable times to inspect the Premises, make necessary repairs, or show the Premises to prospective tenants or purchasers, upon providing the Tenant with at least [Number] hours' notice, except in cases of emergency. Vermont law may dictate reasonable notice periods.

16. Signage and Common Areas

Signage

The Tenant's signage must comply with all applicable laws and regulations and requires Landlord's approval.

Common Areas

The Tenant shall have the right to use the common areas of the building, subject to the Landlord's reasonable rules and regulations.

17. Environmental Matters

The Tenant shall not use, store, or dispose of any hazardous substances on the Premises in violation of any applicable environmental laws.

Tenant shall notify Landlord immediately of any environmental incidents.

18. Subordination, Non-Disturbance, and Attornment (SNDA)

This Lease shall be subordinate to any mortgage or deed of trust now or hereafter placed upon the Premises. Landlord shall provide a Non-Disturbance Agreement from its lender protecting Tenant's rights under this lease in the event of foreclosure.

19. Force Majeure

Neither party shall be liable for any failure to perform its obligations under this Lease due to causes beyond its reasonable control, including acts of God, war, pandemic, government shutdown, civil unrest, or other unforeseen and uncontrollable events.

20. Notice

All notices required or permitted under this Lease shall be in writing and shall be deemed to have been duly given when delivered personally, sent by certified mail, return receipt requested, or sent by email to the following addresses:

• Landlord: [Landlord's Address], [Landlord's Email Address]
• Tenant: [Tenant's Address], [Tenant's Email Address]

21. Option Clauses (If Applicable)

Option to Renew: State the terms and conditions of any renewal options.

Option to Purchase: State the terms and conditions of any purchase options.

22. End of Lease Procedures

The Tenant shall surrender the Premises to the Landlord in good condition, broom clean, and free of all personal property.

23. Legal Disclosures

Lead-Based Paint Disclosure: If the Premises were constructed before 1978, include a lead-based paint disclosure.

Floodplain Status: Disclose whether the property is located in a floodplain.

Radon Disclosure: Disclose whether a radon test has been performed.

Proximity to Agricultural Lands: Vermont law may require disclosure.

Vermont-specific smoke/carbon monoxide detector compliance: Indicate compliance.

24. Vermont Statutory Requirements

Expressly reference adherence to 9 V.S.A. Chapter 137 for commercial leases.

Comply with unique landlord-tenant rules (including noneviction moratoria, notice periods for rent increases, and prohibition of nonrefundable deposits).

25. Anti-Discrimination

The Landlord shall not discriminate against any person in the leasing of the Premises based on race, color, religion, national origin, sex, sexual orientation, gender identity, age, marital status, disability, or familial status. Expand or narrow these protections as desired.

26. Miscellaneous

Entire Agreement: This Lease constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written.

Amendment: This Lease may be amended only by a writing signed by both parties.

Waiver: No waiver of any provision of this Lease shall be effective unless in writing and signed by the waiving party.

Severability: If any provision of this Lease is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Governing Law: This Lease shall be governed by and construed in accordance with the laws of the State of Vermont.

Successors and Assigns: This Lease shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns.

IN WITNESS WHEREOF, the parties have executed this Lease as of the date first written above.

____________________________

[Landlord's Signature]

[Landlord's Printed Name]

____________________________

[Tenant's Signature]

[Tenant's Printed Name]