Can this clause be signed electronically?

Yes. Electronic signatures are legally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted. Ensure intent, consent, attribution, and retention are met to satisfy legal validity.

Is notarization required for lease clauses?

Most jurisdictions do not require notarization for leases, but specific recording or mortgage-related instruments may. Verify local rules before notarizing or recording an instrument.

How do I amend the clause after signing?

Amendments require mutual written agreement signed by authorized parties. Use an addendum with a clear effective date and reference to the original clause to avoid ambiguity.

What if a signer lacks apparent authority?

Obtain proof of authority such as a corporate resolution or power of attorney before relying on execution. Failure to verify may render the signature unenforceable.

How long must signed copies be kept?

Retain signed leases for the active term plus at least three years; observe federal and industry retention rules such as IRC and HIPAA where applicable.

What to do when a dispute arises over responsibility?

Follow notices and cure procedures specified in the lease; preserve all communications and repair invoices, and consult legal counsel promptly to enforce remedies or mediate resolution.

Electronic Signature
Templates
Real estate
Building Lease Clause

Building Lease Clause

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

BUILDING LEASE CLAUSE

Parties and Effective Date

Landlord:

Landlord Contact Information

Tenant:

Tenant Contact Information

Effective Date of Clause:

Property Identification

Premises Address Parcel / APN Number Legal Description

Scope and Definition of Building Lease

This Building Lease Clause (the "Clause") modifies and supplements the Lease to which it is attached. The term "Building" shall mean the structure located at the Premises described above, together with all common areas, systems and structural components serving the Premises. Tenant acknowledges that the Building includes mechanical, electrical, plumbing, life-safety, vertical transportation, and common area systems.

Lease Term, Possession and Use

Lease Term Commencement: Commencement Date: ; Expiration Date: .

Permitted Use: Tenant shall use the Premises solely for and for no other purpose without Landlord's prior written consent.

Rent, Additional Rent, and Operating Costs

Base Rent Security Deposit

Tenant shall pay its proportionate share of Operating Expenses and Common Area Maintenance (CAM), expressed as of the Building, which shall be additional rent and payable as set forth in the Lease.

Late Charge and Interest: Late payments shall accrue interest at the lesser of (i) per annum or (ii) the maximum permitted by law. Landlord may impose a late fee of for each payment more than days late.

Repairs, Maintenance and Building Systems

Landlord Obligations: Landlord shall maintain and repair the Building's structural elements, roof, foundations, and common mechanical systems, except to the extent damage is caused by Tenant's negligence or willful misconduct.

Tenant Obligations: Tenant shall maintain the Premises, non-structural interiors, and Tenant-installed systems. Tenant shall not alter or modify Building systems without prior written approval of Landlord.

Alterations, Tenant Improvements and Signage

Alterations: Tenant may not make material alterations or structural changes to the Building or Premises without Landlord's prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed for non-structural alterations. All permitted alterations shall be performed in compliance with applicable laws and insurance requirements, at Tenant's expense, and shall become Landlord's property unless otherwise agreed in writing.

Signage: Tenant's exterior signage is subject to Landlord approval, compliance with governing signage program, and payment of any applicable charges.

Utilities, Services, and Access

Utilities: Tenant shall pay for all utilities and services serving the Premises unless separately metered and billed by Landlord. Landlord shall use commercially reasonable efforts to provide Building services but shall not be liable for interruptions outside of Landlord's reasonable control.

Access and Entry: Landlord and its agents may enter the Premises during normal business hours upon reasonable notice for inspection, maintenance, or emergency. In emergencies Landlord may enter without notice.

Insurance, Indemnity and Liability

Insurance: Tenant shall maintain insurance coverages as required by the Lease, including commercial general liability and property insurance naming Landlord as additional insured where required. Landlord shall maintain property insurance for the Building structure subject to deductible amounts borne by Landlord unless loss is caused by Tenant's acts or omissions.

Indemnity: Tenant shall indemnify, defend and hold Landlord harmless from and against all claims arising from Tenant's use of the Premises, except to the extent caused by Landlord's gross negligence or willful misconduct.

Casualty and Condemnation

Casualty: In the event of material damage to the Building, Landlord shall undertake repairs within a reasonable period. If repairs cannot be completed within days, either party may elect to terminate the Lease as provided in the Lease.

Condemnation: If the entire Building or a substantial portion is taken by eminent domain, Landlord may terminate the Lease and Tenant shall have no claim to condemnation proceeds except for Tenant improvements installed at Tenant's expense.

Assignment and Subletting

Assignment/Subletting: Tenant shall not assign or sublet the Lease or any interest in the Premises without Landlord's prior written consent, which consent shall not be unreasonably withheld where Tenant is not in default and the proposed assignee meets reasonable financial criteria.

Environmental and Hazardous Materials

Tenant shall not cause or permit the presence, use, treatment, storage or disposal of hazardous substances in or about the Premises except in compliance with applicable environmental laws and with Landlord's prior written consent. Tenant shall indemnify Landlord for any environmental claims arising from Tenant's activities.

Lead Paint Disclosure Yes No

Default, Remedies and Cure Periods

Default: A Tenant default under the Lease or this Clause shall constitute a default under both. Landlord's remedies shall include termination, damages, and pursuit of debt collection. Cure Periods: Tenant shall have days to cure monetary defaults and a reasonable period to cure non-monetary defaults, provided Tenant commences cure promptly and prosecutes diligently.

Attorneys' Fees: The prevailing party in any action to enforce the Lease or this Clause shall be entitled to recover reasonable attorneys' fees and costs.

Notices

Notice Address for Landlord Notice Address for Tenant

Governing Law and Integration

Governing Law: This Clause and the Lease shall be governed by the laws of the state of , without regard to conflict of laws principles.

Entire Agreement: This Clause constitutes part of the Lease and, together with the Lease, contains the entire agreement between the parties regarding the subject matter hereof and supersedes prior negotiations and agreements relating to the Building-specific terms.

Miscellaneous Provisions

Severability: If any provision of this Clause is held unenforceable, the remainder shall remain in full force and effect. Waiver: Failure to enforce any provision shall not be deemed a waiver of future enforcement.

Additional Provisions / Special Agreements

Additional Provisions

Landlord (Print Name):

By:

Date:

Tenant (Print Name):

By:

Date:

What a Building Lease Clause Covers

A Building Lease Clause is a contract provision that allocates rights and obligations related to a leased building or space. Typical clauses define the leased premises, term and renewal options, rent and operating expense allocation, maintenance and repair obligations, access and common-area use, insurance responsibilities, and default remedies. Well-drafted clauses reduce ambiguity between landlord and tenant, clarify who pays for building systems and repairs, and specify remedies for breaches. These clauses are commonly included in commercial and multi-tenant leases to govern ongoing operational and financial responsibilities throughout the lease term.

Why a Clear Building Lease Clause Matters

A precise clause prevents disputes over maintenance, cost allocation, and access, and supports enforceability under general contract law. When executed electronically, ensure the transaction meets the ESIGN Act requirements (15 U.S.C. ch. 96) and any applicable state law such as UETA. Clarity in this clause protects both parties and limits downstream litigation risk by documenting expectations for repairs, capital expenditures, and shared services.

Who Commonly Prepares and Signs This Clause

Landlords, property managers, and commercial tenants typically draft or review building lease clauses before final execution.

Commercial landlords and owners — review allocation of operating expenses and capital responsibilities before signing.
Property managers and asset managers — implement clause terms in building operations and vendor contracts.
Corporate and retail tenants — confirm responsibilities for tenant-fit work, HVAC access, and prorated expense calculations.

Review with counsel for complex terms, and confirm signer authority for binding execution before delivering the final agreement.

Signatory Roles and Typical Representatives

Landlord Representative

Name the company and the authorized officer or agent with authority to bind the landlord. Include title and contact details so third parties can verify execution and post-signature communications.

Tenant Representative

Identify the tenant entity and signer with corporate authority or power of attorney. For corporate tenants, include signer's title and proof of capacity such as corporate resolution or officer certificate.

Step-by-Step: Drafting and Completing the Clause

Follow these sequential steps to prepare and finalize a building lease clause with accuracy and legal clarity.

01

1. Define Premises: Describe building, suite, parcel, and usable square footage precisely.
02

2. Allocate Costs: Specify base rent, CAM, utilities, and how prorations are calculated.
03

3. Assign Maintenance: State which party handles HVAC, roof, structure, and elevators.
04

4. Establish Remedies: Set cure periods, default consequences, and repair rights.

How to Configure an Online Signing Workflow

When using an eSignature platform, set fields, authentication, and routing before sending to signers.

Field	Configuration
Signature Field	Required; signer-placed or preassigned
Date Field	Auto-populate or require signer date
Authentication	Email link, SMS code, or advanced ID proofing
Routing Order	Define sequential or parallel signing order

Typical Electronic Execution Flow

Electronic completion follows a predictable path: prepare, assign, authenticate, sign, and archive.

Upload Document: Add lease and identify clause location for fields.
Place Fields: Insert signature, initial, and date fields at required spots.
Send to Signers: Provide emails or generate a secure signing link.
Complete and Archive: Capture signed PDF and audit trail for retention.

Platform Capabilities to Look For

Use a platform that supports secure signing, audit trails, and the file formats you need.

Integrations: Salesforce, NetSuite, Google Workspace
File Formats: PDF, DOCX, HTML
Authentication: Email, SMS, KBA, SSO

eSignature Pricing and Key Feature Comparison

Compare starting prices and selected capabilities for common eSignature providers relevant to lease execution and document retention.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No envelope cap	100 envelopes/user/year	Depends on plan	Depends on plan	Depends on plan

Security and Compliance Elements to Include

Encryption In Transit: TLS 1.2/1.3

Encryption At Rest: AES-256

Audit Trails: Detailed event logs

Certifications: SOC 2 Type II

Regulatory: ESIGN, UETA compliance

Healthcare: HIPAA (BAA required)

Consequences of an Incomplete or Ambiguous Clause

Cost Disputes: Unclear CAM allocation

Maintenance Delays: Repair responsibility disputes

Default Risk: Uncertain cure procedures

Insurance Gaps: Unassigned liability coverage

Recording Problems: Issues with third-party rights

Enforcement Difficulty: Ambiguous remedy language

Common Preparation Errors to Avoid

Leaving maintenance duties vague, leading to disputes over minor and major repairs and cost allocation between parties.
Failing to define measurement method for prorations, which causes differing interpretations of rentable versus usable square footage.
Omitting explicit notice and cure periods, resulting in delayed responses to defaults and reduced ability to seek remedies.
Using inconsistent dates or conflicting clauses elsewhere in the lease, which creates contradictions that hinder enforceability.

Key Dates and Notice Deadlines to Track

Track these contract dates and notice periods carefully to preserve rights and avoid missed obligations.

Effective Date:

Enter as MM/DD/YYYY; obligations start on this date.

Rent Commencement:

Specify when rent payments begin; may differ from effective date.

Notice Periods:

State required notice for repairs, termination, and defaults.

Cure Period:

Define number of days to cure breaches before remedies apply.

Renewal Deadline:

Include deadline for exercising renewal options in writing.

Milestones for Clause Execution and Enforcement

Sequence the milestones below to reflect drafting, approval, signing, and post-signature management of the clause.

01

Draft and Negotiate

Parties exchange proposed language and mark changes for agreement.

02

Legal Review

Counsel reviews operational and risk language for enforceability.

03

Execution

All authorized signers execute the lease and clause.

04

Record and Archive

Store signed PDF and audit trail in retention system.

Real-World Examples of Clause Use

These short cases show how firms use precise clauses to streamline operations and reduce signature friction.

Optica Ventures LLC — Brian Fitzgibbons

Optica standardized building lease clauses across its portfolio to reduce negotiation time and ensure operational clarity.

The clause centralized CAM calculations for all tenants.
The interface improvements made the clause easier to distribute and sign electronically, reducing manual follow-up and improving turnaround.

Martin Properties — Tim Martin

A small property firm digitized lease clauses to close deals remotely and manage maintenance responsibilities.

The clause specified HVAC and roof repairs by landlord.
Executing the clause online maintained compliance and security while enabling mobile signing and prompt tenant onboarding.

Practical Tips for Accurate and Efficient Clauses

Adopt consistent drafting patterns and use clear measurement and payment language to minimize ambiguity and administrative burden.

Use Defined Terms

Define key terms such as "Net Rent," "Common Area Maintenance," and "Usable Square Feet" at the start of the lease to ensure consistent interpretation across clauses.

Attach Exhibits

Include exhibits for floor plans, maintenance schedules, and vendor contact lists that the clause references to prevent future disputes about scope and responsibility.

Specify Calculation Methods

Provide exact formulas for prorations, indexing, and caps on expense increases to avoid differing interpretations and unexpected charges.

Confirm Signer Authority

Require a corporate resolution or officer certificate when a company signs, and record the signer’s title and contact details in the signature block.

Frequently Asked Questions About Building Lease Clauses

Answers to common legal, signing, and post-execution questions when preparing or using a building lease clause.

Need help? Contact support

Can this clause be signed electronically?
Yes. Electronic signatures are legally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted. Ensure intent, consent, attribution, and retention are met to satisfy legal validity.
Is notarization required for lease clauses?
Most jurisdictions do not require notarization for leases, but specific recording or mortgage-related instruments may. Verify local rules before notarizing or recording an instrument.
How do I amend the clause after signing?
Amendments require mutual written agreement signed by authorized parties. Use an addendum with a clear effective date and reference to the original clause to avoid ambiguity.
What if a signer lacks apparent authority?
Obtain proof of authority such as a corporate resolution or power of attorney before relying on execution. Failure to verify may render the signature unenforceable.
How long must signed copies be kept?
Retain signed leases for the active term plus at least three years; observe federal and industry retention rules such as IRC and HIPAA where applicable.
What to do when a dispute arises over responsibility?
Follow notices and cure procedures specified in the lease; preserve all communications and repair invoices, and consult legal counsel promptly to enforce remedies or mediate resolution.

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