Lease Agreement between
(Name of Church)
and
(Name of Church)
Lease Agreement made on the day of , 20 ,
between , a nonprofit corporation organized
(Name of Church)
and existing under the laws of the state of , with its principal
(Name of State)
office located at , referred to herein as Lessor and
(Street Address, City, County, State, Zip Code)
, a nonprofit corporation organized and existing
(Name of Church)
under the laws of the state of , with its principal office located at
(Name of State)
, referred to herein as Lessee.
(Street Address, City, County, State, Zip Code)
Whereas, Lessor is the sole owner of certain land, a building and other facilities located at
and more fully described below,
(Street Address, City, County, State, Zip Code)
which it desires to lease to Lessee ; and
Whereas, Lessee is a nonprofit corporation that desires and is empowered to lease said property;
and
Whereas, the parties desire to enter into a lease agreement to define their respective rights,
duties, and liabilities concerning such a lease;
Now, therefore, for and in consideration of the mutual covenants contained in this agreement,
and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties agree as follows:
1. Description of Premises and Purpose. Lessor hereby leases to Lessee property located
at , comprising land and a building, together
(Street Address, City, County, State, Zip Code)
with the improvements on such property, and more particularly described in Exhibit A
, which
(Legal Description)
is attached to and made a part of this Lease Agreement. Said demised Premises, including all
land and improvements located on the demised Premises and described in Exhibit A, are
hereinafter referred to as Premises.
Lease Agreement Page 1 of 7
2. Term. The term of the Lease shall be years, commencing on the day
(Number)
of , 20 , and terminating on the day of
, 20 , unless sooner terminated under the provisions of
this Lease Agreement. This term shall be automatically extended from year to year unless notice
to vacate is given by Lessor to Lessee within days from the end of each one year term
or unless notice is given by Lessee to Lessor within days from the end of each one year
term.
3. Rent . During the term of this Lease, Lessee shall pay to Lessor rental of
$ per month, payable in advance due on the day of each month,
except that the first installment of $ , will be due and payable on the
execution of this Lease Agreement. Rent checks shall be made payable Lessor and mailed to
, or to such other address as Lessor
(Street Address, City, County, State, Zip Code)
shall notify Lessee of in writing at .
(Street Address, City, County, State, Zip Code)
4. Taxes . Lessee shall pay any real estate taxes and assessments on Premises during the full
term of this Lease. Lessor agrees to cooperate with Lessee in seeking a reduction from the taxing
authorities in any real estate tax increase during the lease term and any renewals thereof.
Furthermore, Lessee shall pay all special or local assessments that may be levied against the
demised Premises by reason of improvements made thereon by Lessee or of the street or
sidewalks surrounding the property.
5. Fire, Hazard and Liability Insurance
A. Lessee shall provide and keep in force, at Lessee’s sole expense, fire and hazard
insurance sufficient to replace or restore the Premises in the event of loss or damage.
B. Lessee shall also provide and keep in force, at Lessee's sole expense, for the
benefit of Lessee and Lessor, general public liability insurance protecting Lessee and
Lessor against claims for bodily injury or death occurring on or in the Premises , or in the
parking lots, streets and underground passageways adjacent to the Premises , for not less
than $ with respect to any one accident or disaster, for not less
than $ with respect to bodily injury or death to any one person,
and for not less than $ with respect to destruction or damage to
property. A liability policy or a certificate of insurance covering Lessee and Lessor, as
their interests may appear, shall be deemed a compliance with the provisions of this
paragraph.
C. Lessee shall renew all fire, hazard and liability policies of insurance that it is
required to procure and maintain under the provisions of this Lease when renewal is
required, and at least days prior to the expiration of the policies, Lessee shall
furnish to a copy of the binder from the insurer. Lessee shall also provide Lessor with the
renewal of the insurance policies hereunder. All binders, policies, or certificates shall
Lease Agreement Page 2 of 7
provide for days, notice from insurers to Lessor of any cancellation or
amendment to any of the insurance policies, where a notice requirement of this nature is
acceptable to insurer.
D. Lessee shall, in addition, and in any event hold the Lessor harmless from any
liability arising from the operation, or possession of Premises, and the Lessee agrees to
indemnify Lessor against and save Lessor harmless from all demand, claims, causes of
action or judgments for injury to person, loss of life, or damage to property occurring on
said Premises and arising out of the Lessee's use and occupancy.
6. Destruction of Premises. If the Premises, or any part thereof, are damaged or destroyed
by fire or other casualty, the Lessee shall, except as otherwise provided herein, repair and rebuild
the Premises with reasonable diligence, and if there is interference with the operation of the
Lessee's business in said Premises , the rental shall be equitably apportioned according to the
time during which, and the extent to which, the Premises may have been untenantable.
7. Condemnation . In the event the Premises hereby leased, or any part thereof
Are taken in condemnation proceedings, Lessee may cancel this Lease and all condemnation
moneys shall belong to the Lessor, according to its respective interest.
8. Subletting or Assignment
A. Lessee shall not assign this Lease Agreement or any interest in this Lease
Agreement, or sublet the Premises or any part of thereof or any right or privilege
appurtenant to the Premises, or allow any person other than Lessee and Lessee's agents
and employees to occupy or use the Premises or any part thereof, without first obtaining
Lessor's written consent.
B. Lessor's consent to one assignment, sublease, or occupancy or use shall not be
deemed to be consent to any subsequent assignment or sublease or to any occupancy or
use by any other person.
C. Any unauthorized assignment or sublease shall be void, and shall terminate this
Lease Agreement at Lessor's option.
9. Default. In the event Lessee shall be in default in the payment of rentals hereunder or if
Lessee shall default in any of the covenants herein contained and should such default continue
for days after receipt of written notice by Lessee from Lessor, it shall be lawful for
Lessor to enter upon and take possession of said Premises, provided, however, that if the default
by Lessee relates to any covenant other than one respecting the payment of rent, then Lessor may
not enter upon and take possession of said Premises or exercise any other remedy provided by
law unless Lessee fails within said day period to begin to remedy the default
complained of and thereafter fails to make diligent efforts to complete the remedy.
10. Encumbrances and Restrictions. Lessor covenants and warrants that Lessor has the
lawful right to lease the Premises and that said Premises are free and clear of any and all liens,
easements, restrictions and encumbrances except those reflected in the land records of the
Lease Agreement Page 3 of 7
Clerk of County, .
11. Waste. Lessee, its assignees or sublessees shall not commit waste upon Premises and at
the expiration of this Lease will peaceably surrender possession of Premises to the then owners
of said real estate in safe condition.
12. Peaceful Use. Lessor covenants that Lessor will put Lessee into complete and exclusive
possession of the Premises as hereinbefore provided, and that, if the Lessee shall pay the rental
and perform all of the covenants and provisions of the Lease to be performed by Lessee , the
Lessee shall during the term demised, freely, peaceably and quietly occupy and enjoy the full
possession of the Premises , and the rights and privileges herein granted, without molestation or
hindrance, lawful or otherwise.
Lease Agreement Page 4 of 7
13. Lessor May Sell (Conditions). In the event that Lessor shall at any time during the term
of this Lease desire to sell the Premises pursuant to any bona fide and acceptable offer which it
shall have received, it shall offer Premises to Lessee at the same price as that contained in such
bona fide offer . Lessee shall have days from and after receipt thereof to decide whether
or not to purchase the Premises at such price. If the Lessee shall give notice of intent not to
purchase or shall give no notice within the time herein limited, Lessor may accept such offer and
proceed with the sale thereunder. If Lessee notifies Lessor that it elects to purchase said interest
in the Premises at such price, the parties shall enter into a contract of purchase and sale
forthwith, and Lessee shall, within days following evidence of marketable title to said
property, tender the purchase price thereof to Lessor in exchange for a deed to said interest.
Such contract shall provide, among other things, for prorating taxes to date of closing and for
Lessor to supply an attorney's certificate showing good title sufficient for Lessee to acquire
Lessor's fee simple interest in and to said Premises and a Warranty Deed to Premises .
14. Use. The Premises are to be used and occupied only and for no purpose other than a
house of worship. The Lessee will not, and will not allow others, to occupy or use the
Premises or any part thereof for any purposes other than as specified in this Paragraph 14,
nor for any purpose deemed unlawful, disreputable, or extra hazardous, on account of fire
or other casualty. Lessor shall exercise no control over, and is not responsible for, the
operations of Lessee’s facility, including staffing, curriculum decisions, and the like.
15. Compliance with Laws etc. The Lessee shall promptly comply with all laws,
ordinances, rules, regulations, requirements and directives of all Governmental or Public
Authorities and of all their subdivisions, applicable to and affecting the said Premises, their use
and occupancy, and shall promptly comply with all orders, regulations requirements and
directives of the Board of Fire Underwriters or similar authority and of any insurance companies
which have issued or are about to issue policies of insurance covering the said Premises and its
contents, for the prevention of fire or other casualty, damage or injury, at the Lessee’s own cost
and expense. Lessee shall be responsible for the installation and maintenance of all smoke
alarms, fire alarms, extinguishers as required by local and state fire codes and insurance
regulations.
16. Notices. All notices required under this Lease shall be deemed to be properly served if
delivered in writing personally or sent by certified mail with return receipt requested, to Lessee at
, to Lessor at ,
(Street Address, City, County, State, Zip Code) (Street Address)
, or to any subsequent address which Lessee or Lessor
(City, County, State, Zip Code)
designate in writing to the other parties for such purposes. Date of service of a notice served by
mail shall be the date on which such notice is deposited in a post office of the United States Post
Office Department.
17. Repairs. Lessee, at Lessee’s sole expense, shall maintain the Premises in good repair and
in at least as good condition as that in which they were delivered, allowing for ordinary wear and
tear.
18. Utilities. Lessee shall pay all charges measured by consumption or use for water, sewage
disposal, telephone, gas, electricity, and any other similar utility, commodity, or service
furnished to or used by Lessee whether such utility services are furnished by Lessor or are
submetered by Lessor or furnished directly from the utility company or governmental body or
agency.
19. Alterations and Improvements
A. Lessee shall not improve or alter the Premises in any manner without the prior,
express, and written consent of Lessor, but shall, before making any improvements or
alterations, submit plans and designs for such improvements or alterations to Lessor for
its approval. In the event that the plans and designs are disapproved, the improvements
or alterations shall be made only with such changes as may be consented to by Lessor.
B. Furnishings, trade fixtures, and equipment installed by Lessee shall be the
property of Lessee and may be removed by Lessee at any time during the term of this
Lease Agreement provided that Lessee is not in default under this Lease Agreement. On
termination of this Lease Agreement, Lessee shall remove any such property. Lessee
shall repair any damage to the Premises resulting from the installation or removal of such
property.
20. Miscellaneous
A. Nothing contained herein shall be deemed or construed by the parties hereto, nor
by any third party, as creating a relationship of principal and agent or of partnership or of
joint venture between the parties hereto.
B. No waiver of any condition or covenant of this Lease by either party shall be
deemed to imply or constitute a further waiver of the same or any other condition or
covenant of said Lease.
C. A Memorandum of this Lease may be recorded in said Clerk's land records of
County, , by any party hereto.
21. Surrender and Holding Over. Lessee shall surrender the Premises to Lessor on the
expiration or termination of this Lease Agreement. If Lessee holds the Premises after
termination of this Lease Agreement, a tenancy from month-to-month shall be created by
such holding at a rental of $ per month. The acceptance of the
rental by Lessor will not extend the term of this Lease Agreement in any manner.
22. Governing Law. This Lease Agreement shall be governed by, construed, and enforced in
accordance with the laws of the state of .
23. Entire Agreement. This Agreement, including the Exhibits attached hereto, constitutes
the entire agreement between the parties with respect to the subject matter hereof and supersedes
all previous proposals, both oral and written, negotiations, representations, commitments,
writings and all other communications between the parties. This Agreement may not be released,
discharged, changed or modified except by an instrument in writing signed by a duly authorized
representative of each of the
parties.
24. Mandatory Arbitration. Notwithstanding the foregoing, and anything herein to the
contrary notwithstanding, any dispute under this agreement shall be required to be resolved by
binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party
shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so
selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the
American Arbitration Association then in force and effect.
WITNESS our signatures as of the day and date first above stated.
(Name of Church) (Name of Church)
By By
(Name and Office in Corporation) (Name and Office in Corporation)
(Type/Print Name) (Type/Print Name)
Attach Exhibits
Acknowledgment (form may vary state by state)