Ensure Electronic Signature Lawfulness for Commercial Lease Agreements in United States

How to eSign a document: electronic signature lawfulness for Commercial Lease Agreement in United States

- When it comes to leasing commercial property, drawing up a lease agreement is arguably the most important part of the process. Having a lease agreement is an essential step in securing the future of your business. Welcome back, loopers. It's Andrew Chung with Doorloop. Today we're diving into a very significant topic for anyone who is interested in commercial leasing in the state of Illinois. We'll be discussing the ins and outs of the Illinois commercial lease agreement. Whether you're a landlord, a tenant, or a property manager this video will provide invaluable insights for you. (intro chime) Let's begin by understanding what a lease agreement is. Essentially, a lease agreement is a legally binding contract between a landlord and the tenant. In a commercial lease context. The landlord is the owner of the building, and the tenant is a business that rents commercial, industrial or office space. Unlike residential leases that usually cover a two year period, commercial leases can last up to 10 years. In Illinois, there are three primary types of commercial leases. The first is a triple net lease, where in addition to the rent, the tenant also covers insurance property taxes, and maintenance costs. Second, there's the gross lease agreement where the landlord bears all those additional costs and the tenant only pays the rental value. And then we have the modified gross lease agreement which is a balanced blend of the two, where both the tenant and the landlord agree on the building expenses. Each will be liable to cover. So what should you include in a commercial lease agreement? First off, the introduction should include key details like the date, parties involved and the lease term. It's also crucial to mention the names and details of all involved parties as well as the property address and zoning information. The terms and conditions section is another crucial part. Here, you need to clearly define the rental period, when the rent will be due, and even provide strategies in case a business runs into financial difficulty. And you need to mention who is responsible for utilities any parking arrangements and the procedures for repairs and maintenance. Security deposits are an important part of commercial leases as well. As a landlord, you must specify the security deposit amount and where it will be stored, towards the end. There should be a section for names and signatures along with the date of signing. Other sections can include the procedure for terminating the lease, any mutual promises lease renewals, intended use of the premises any improvements permitted, insurance information and terms regarding entry and subleases. As for disclosures, landlords in Illinois must disclose any defects in the commercial space and also provide required information as per state or federal laws. This includes a lead-based paint disclosure for properties built before 1978 and a Radon Gas Disclosure to warn tenants about the potential dangers of exposure to radon gas. Creating a commercial lease can be complex, but don't worry Doorloop is here to help. We offer editable and printable Illinois commercial lease agreement templates to make your task significantly easier. And if you need more control you can use our innovative property management software to personalize your rental contract. Our software features an auto fill feature making drawing up leases a breeze. Schedule a free demo with Doorloop today. Click on the link in the description below. Before we get to some frequently asked questions make sure to subscribe and give this video a thumbs up so we can get this information to more real estate professionals. And here are some frequently asked questions. Number one, "Who pays personal property taxes for commercial property?" The answer, this tax is required for all commercial buildings in Illinois and is payable by landlords or property owners. Question number two, "Is comprehensive general liability insurance mandatory for all business owners in Illinois?" No, it is not mandatory but it is recommended as it provides protection against claims for damages or injuries on the property. Question number three. "Are there any state regulated mandatory disclosures?" In Illinois, there are no specific state regulations for disclosures but federal disclosures including a lead-based paint and radon gas disclosure are mandatory. Question number four, "Does my Illinois commercial lease contract have to be notarized?" Notarization isn't legally required in Illinois but can be done if either party prefers to do so. And question number five "Do I have to have a written rental contract?" While it isn't required by law in Illinois it is in the best interest of both a landlord and tenant to have a formal written agreement in place. Well, that's it for this video. If you want to join a community with other real estate professionals join our exclusive Facebook community with a link in the description. And to learn more about property management tips click this playlist here. We'll see you there. (light ambient music)