Real Estate Contract

CONTRACT FOR THE LEASE

OF

REAL ESTATE

This CONTRACT FOR THE LEASE OF REAL ESTATE (hereinafter the “Agreement”) entered into this the ____ day of ________________, 20___  by and between and _______________________ (hereinafter collectively “Lessor”) and _____________________________ (hereinafter “Lessee”).

NOW, THEREFORE, FOR AND IN CONSIDERATION OF mutual covenants and agreements contained herein, and other good and valuable considerations the receipt and sufficiency of all of which is hereby acknowledged the parties hereto do hereby covenant, contract and agree as follows, to-wit:

SECTION 1.    CONDITION PRECEDENT. A condition precedent to this Agreement being effective and enforceable is that Lessee obtain final approval of a transfer of the ABC retail package liquor permit currently applicable to the Property from ______________ to Lessee.  In the event Lessee is unable to obtain such approval, this Agreement shall be null and void.

 

SECTION 2.    LEASE OF REAL PROPERTY. 2.1  LEASE.    Lessor hereby demises and leases to Lessee and Lessee hereby takes and rents from Lessor the south end that certain parcel of real property and building located at ______________________________, __________________ County, _____________, and commonly known as __________________ since the legalization of alcoholic beverages in the State of _____________, being more particularly described on Exhibit “A” attached hereto and incorporated herein by reference, together with all improvements, easements, rights, licenses and appurtenances used in connection therewith or belonging thereto (hereinafter the “Property”).

2.2  PARKING. Lessor also demises and grants to Lessee during the existence of this Agreement the exclusive use of two (2) parking spaces adjacent to the building on the ______ side (close front) and the _____ side area in front of the building as well as equal use of parking facilities up to fifty (50) feet ______ of the building and full access to the driveways on the ______  side of the building from ________________ and the ______  side of the building on __________________. Lessor shall have control of non-customer parking and will take reasonable actions to prohibit and prevent same.

2.3  TERM.     The initial term of the Lease shall begin on the ____ day of ______________, 20___  and shall terminate on the ____ day of _______________, 20 ____. Lessee shall have the option to renew this Agreement at the end of the initial term for an additional term of _________ ( ____) years on the same terms and conditions set forth herein by giving Lessor notice of his intent to renew for the additional term at least ninety (90) days prior to the expiration of the initial term.

2.4  RENT.     During the initial term and any additional term of the Lease, Lessee shall pay unto Lessor the sum of _____________ and no/100 Dollars ($________ ) per month as rent for the Property. The monthly rental shall be due on the 1st of the month and if not paid by the 10th day of such month, there shall be a late charge of $ _______ due for such month. If this Lease shall begin on any day other than the first day of a month or terminate on any day other than the last day of a month, then the rent due under this agreement for such month shall be calculated on a pro rata basis.

2.5  USE OF PREMISES.   The Property and improvements thereon are hereby Leased for use as a retail package liquor store.  Lessee agrees not to use or permit the use of the Property for illegal purposes.  An auction, fire or going out of business or bankruptcy sale, may not be conducted in the Property without prior written consent of Lessor.  Lessee shall not permit (a)overnight lodging in the Property, or (b)the solicitation of business by hand bills in the parking areas.

2.6  REPAIRS.

(A)  Lessor’s Repairs:  Lessor shall be solely responsible for maintaining the roof, foundation and exterior of the building and all parking areas in good repair for their intended use.

(B)  Other Repairs:  All repairs, maintenance, replacement or reconstruction to the interior of the portion of the building leased by Lessee, including but not limited to replacement of glass doors and windows and repair of the plumbing, are to be made by Lessee at Lessee’s expense.  If Lessee fails to make such repairs or replacements promptly or within fifteen (15) days of occurrence, Lessor may, at its option, make such repairs or replacements and Lessee shall repay the costs thereof to Lessor on demand.

2.7  UTILITIES.   Lessee agrees to maintain, repair, and pay for all water, fuel, gas, oil, heat, electricity, power, materials and services which may be furnished to it or used by it in or about the Property.

2.8  TAXES.   Lessor shall pay all real property taxes levied on the Property during the term of this Lease and Lessee shall be responsible for all taxes on the personal property used in his business.

2.9  ALTERATIONS, TRADE FIXTURES, FINANCING.   Lessee shall have the right to make such alterations and improvements to the Property as it deems necessary or desirable upon giving written notice of same to Lessor.  Such alterations and improvements shall comply with all applicable construction laws and regulations and shall conform generally with the existing improvements on the Property.  The Lessee shall keep the Property free from any and all liens arising out of the work performed or materials furnished in making such improvements.

2.10  ASSIGNMENT AND SUBLEASING.  Lessee shall not have the right to assign this Lease nor sublet the Property in whole or in part without first procuring the written consent of the Lessor, which consent shall not be unreasonably withheld.  After any consent to assignment or sublease, Lessee shall remain fully liable for payment of rent and other covenants and obligations of the Lessee herein contained.

2.11  NUISANCES.   Lessee shall promptly comply with all of the ordinances of the City of , , or of any other governmental body applicable for said premises and to all ordinances and requirements enforced by the state board of health, sanitary, fire or police departments of the City of ________ for the correction, prevention and abatement of nuisances in and about or connected with the Property because of Lessee’s use thereof during the term of this Agreement, all at Lessee’s expense.  Lessee shall provide for the removal of its own trash, waste paper, boxes and cartons and shall not permit any accumulation of such materials. Lessee shall not engage in any act which shall constitute a nuisance.

2.12 ENTRY AND INSPECTION.  Lessee shall permit Lessor and his agents to enter the Property at all reasonable times for any of the following purposes to inspect the same:  (i)to maintain the building in which the said premises are located, (ii)to make repairs to the Property as the Lessor is obligated or may elect to make, and (iii)to post notices of non-responsibility for alterations or additions or repairs.

2.13 NO COMPETITORS. Lessor shall lease, rent or otherwise demise any part of the building which it owns to any person or entity which competes or intends to compete with Lessee, nor shall it construct any other building on the property and allow any person or entity which competes, or intend to compete with Lessee to occupy any space therein.  Lessor agrees to provide a provision which prohibits such competition in its leases with other Tenant’s in the buildings.

2.14 REMOVAL OF EQUIPMENT AND FURNISHINGS. Lessor agrees that Lessee shall have the right, at any time, including upon termination, to remove all equipment and furnishings which Lessee owns, including but not limited the following:

SECTION 3. DEFAULT. If either party defaults in compliance with any term, covenant, representation or warranty on their part herein contained, the non-defaulting party shall give the defaulting party ten (10) days written notice to cure the default.  If the defaulting party, prior to the expiration date of the notice, has neither cured the default nor given the non-defaulting party adequate security for the remedy thereof, then the non-defaulting party may, at its option, terminate this Agreement and take any other such action available in law or equity and as the non-defaulting party deems appropriate to remedy or compensate it for the defaulting party’s breach or default.

SECTION 4.    INDEMNITY AND INSURANCE. (A) Indemnity. Lessor and Lessee shall indemnify and save harmless the other from any and all losses, fines, suits, damages, expenses, claims, demands and actions of any kind resulting from their negligence, breach, or violation or non-performance of any condition hereof.  The parties agree to seek recovery under this Section 4(A) only if the losses suffered are not covered by the policies of insurance provided in 4(B) below and payment is not made under said policies.

(B)  Insurance:  Lessee shall, during the entire term of the Lease keep in full force and effect a policy of public liability insurance with respect to the Property and the business operated by Lessee in the Property and which the limits of general liability shall be in the amount of Five Hundred Thousand Dollars ($500,000.00) combined single limit, naming Lessor as additional insured.  Such coverage shall include a broad form general liability endorsement.  The policy shall contain a clause that the Lessee will not cancel or change the insurance without first giving the Lessor ten (10) days prior written notice.

Lessor shall during the term hereof, at it’s sole expense, provide and keep in force insurance on the building against loss or damage by fire and extended coverage, in an amount equal to one hundred percent (100%) of the full insurable value thereof, which insurance shall be placed with an insurance company or companies approved by Lessor and licensed to do business in the State of ____________. The term “full insurable value” shall mean actual replacement value of the building (exclusive of costs of excavation, foundations and footing below ground level). The insurance required under this paragraph shall be carried in the name of the Lessor and Lessee and shall provide that any proceeds thereunder shall be paid to Lessor and Lessee and any applicable mortgage holder, according to their respective interests.

Duplicate originals or certificates of insurance of the policies provided shall be furnished by Lessor and Lessee to each other and shall contain an agreement by the insurer that such policy or policies shall not be canceled without at least ten (10) days prior notice to the Lessor and Lessee.

SECTION 5.    WAIVER OF SUBROGATION. Lessor and Lessee covenant and agree that all policies of insurance carried by either of them upon the Property or the building of which the Property are located, or the contents, furniture, furnishings, fixtures and other property located therein, or business interruption or loss of rentals, shall include both the Lessor and Lessee as insureds and shall also include a clause or endorsement whereby the insureds waive all rights of subrogation against the other.  No waiver of subrogation is required for liability policies; however, both the Lessor and Lessee shall be named as insureds.  If such waiver can be secured only by the payment of an additional premium, the party benefitted thereby shall have the option of paying such additional premium or waiving his right to such protection.

SECTION 6.    DESTRUCTION OF PREMISES. If Property, including improvements thereon, are injured by fire or other casualty, Lessee shall have the exclusive right and option to either terminate this Agreement or reconstruct and/or repair the said damaged improvements and continue this Lease under its terms and conditions as if no such casualty occurred by giving written notice to Lessor of Lessee’s intention to so continue this Lease within thirty (30) days after the date of said damage or casualty.  In the event that Lessee so elects to continue this Lease, any insurance proceeds payable as a result of said fire or casualty shall be first applied to pay the reconstruction or repair of said improvements, and any balance of such insurance proceeds after payment of said reconstruction or repair shall be paid to whoever owns the insurance policy under which payment is made.

SECTION 7.    CONDEMNATION. If, during the term of this Agreement, the Property shall be taken or condemned, either in whole or part, by competent authorities for public or quasi-public use, Lessee shall have the option to terminate this Agreement as of the date of taking.  If Lessee elects not to terminate this Agreement, then this Agreement shall continue in full force and effect.

SECTION 8.    RELATIONSHIP OF PARTIES. It is understood and agreed that the relationship of the parties hereto is strictly that of Lessor and Lessee and that the Lessor has no ownership in the Lessee’s enterprise and the Agreement shall not be construed as a joint venture or partnership.  The Lessee is not and shall not be deemed to be an agent or representative of the Lessor.

SECTION 9. AGREEMENT BINDING ON ASSIGNS. All covenants, conditions and agreements and undertakings contained in this Agreement shall extend to and be binding on the respective heirs, successors and assigns of the respective parties hereto the same as if they were in every case named and expressed.

SECTION 10.  ATTORNEY’S FEES. It is further understood and agreed by and between the Lessor and Lessee that, on account of breach or default by either party of any of their obligations hereunder, it shall become necessary for the other party to employ and/or consult with an attorney to give advice, or to enforce or demand any of either party’s rights or remedies hereunder, then, and in any such event, the defaulting or breaching party shall pay all attorney fees, court costs and other expenses occasioned by such default(s) or breach(es).

 

SECTION 11.   NOTICES. Until further written notice to Lessee, all rent checks and all notices from Lessee to Lessor shall be served or sent to:

_________________________________

                 _________________________________

 Until further written notice to Lessor, all notices from Lessor to Lessee shall be served or sent to Lessee at the following address:

____________________________________

____________________________________

____________________________________

All notices to be given under this Agreement shall be in writing and shall be served personally or sent by United States certified or registered mail.

SECTION 12.  ENTIRE AGREEMENT.    This Agreement contains all of the agreements and conditions made between the parties hereto and may not be modified orally or in any other manner other than by agreement in writing signed by all parties hereto or their respective successors in interest.

SECTION 13.  PARTIAL INVALIDITY. If any section, paragraph, sentence or portion of this Agreement or the application thereof to any party or circumstance shall, to any extent, be or become invalid or illegal, such provision is and shall be null and void, but, to the extent that said null and void provisions do not materially change the overall agreement and intent of this entire agreement, the remainder of this Agreement shall not be affected thereby and each remaining provision of this Agreement shall be valid and enforceable to the fullest extent provided by law.

SECTION 14. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of ______________.

WITNESS THE SIGNATURES of the parties hereto on this the ____ day of ______________, 20 _____.

Lessor:

__________________________

__________________________

__________________________

__________________________

Lessee:

_________________________

_________________________

STATE OF _____________________

COUNTY OF ___________________

PERSONALLY came and appeared before me, the undersigned in and for the jurisdiction aforesaid, the within named _________________ in the above and foregoing instrument of writing, who acknowledged to me that he signed and delivered the above foregoing instrument of writing on the day and in the year and for the purposes therein mentioned.

GIVEN under my hand and official seal of office on this the ____ day of _______________, 20 ___.

________________________

NOTARY PUBLIC

My Commission Expires:

______________________

STATE OF ____________________

COUNTY OF __________________

PERSONALLY came and appeared before me, the undersigned in and for the jurisdiction aforesaid, the within named _________________ in the above and foregoing instrument of writing, who acknowledged to me that she signed and delivered the above foregoing instrument of writing on the day and in the year and for the purposes therein mentioned.

GIVEN under my hand and official seal of office on this the ____ day of _____________, 20 ___.

_________________________

NOTARY PUBLIC

My Commission Expires:

______________________

STATE OF _________________

COUNTY OF _______________

PERSONALLY came and appeared before me, the undersigned in and for the jurisdiction aforesaid, the within named ________________________ in the above and foregoing instrument of writing, who acknowledged to me that he signed and delivered the above foregoing instrument of writing on the day and in the year and for the purposes therein mentioned.

GIVEN under my hand and official seal of office on this the ____ day of _____________, 20____ .

___________________________

NOTARY PUBLIC

My Commission Expires:

______________________

State Specific Lease Forms

—-For State Specific Lease Forms you can download in Word Format go to

http://www.uslegalforms.com/landlordtenant/



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