Can this agreement be signed electronically?

Yes. Under the ESIGN Act (15 U.S.C. ch. 96) and UETA (adopted by most states), electronic signatures are enforceable if intent, consent, attribution, and record retention are satisfied; limited statutory exceptions may apply.

Is notarization required for validity?

Generally no for ordinary use agreements, but notarization may be required for recording certain instruments or for evidentiary benefits. Always confirm recording or filing rules with the county recorder or counsel before execution.

What authentication level should be used?

Use email link authentication for routine signings; adopt SMS codes, KBA, or multi-factor authentication for higher-assurance transactions or where regulatory obligations require stronger signer identity verification.

How should insurance be documented in the agreement?

Specify insurance lines and minimum limits, require delivery of certificates naming landlord as additional insured, include notice-of-cancellation periods, and require carriers acceptable to the parties to reduce claim disputes.

How do I correct an entered error after signing?

Minor clerical errors typically require a signed amendment or addendum. Substantive errors—such as incorrect party names or dates—should be corrected by mutual written amendment and re-execution to maintain enforceability.

How long must I retain the executed agreement?

Retain for the contract term plus at least three years; for tax or real estate matters longer retention (seven to ten years) may apply. For HIPAA-covered matters follow 45 CFR §164.530(j) six-year retention.

Electronic Signature
Templates
Real estate
Commercial Building Use Agreement

Commercial Building Use Agreement

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COMMERCIAL BUILDING USE AGREEMENT

Parties

This Commercial Building Use Agreement (the "Agreement") is made and entered into on by and between:

Lessor (Owner) Name Lessor Entity Type

Individual Corporation LLC Partnership Other:

Lessor Contact Address Lessor Contact Phone Lessee (Tenant) Name Lessee Entity Type

Individual Corporation LLC Partnership Other:

Lessee Contact Address Lessee Contact Phone / Email

Premises

Street Address of Premises Parcel / APN Number Legal Description

Term

Lease Commencement Date:

Lease Expiration Date:

Renewal Option: Renewal available. If renewal is selected, Renewal Term Length: and notice of exercise must be given at least days prior to expiration.

Use and Occupancy

Permitted Use: Lessee shall use the Premises only for the following permitted business activities and related accessory uses:

Prohibited Uses: The following uses are expressly prohibited on the Premises:

Financial Terms

Base Rent (per payment period)

Rent payable: in advance on the day of each period. Payments to be made to:

Payment Address or Payee Security Deposit Late Fee / Interest on Past Due Rent

Common Area Maintenance and Operating Expenses (CAM): Tenant pays proportionate share. Tenant's initial estimated share:

Utilities, Maintenance & Alterations

Utilities: Tenant shall be responsible for all utility charges serving the Premises, including but not limited to electricity, gas, water, sewer, telephone and data services, unless otherwise agreed in writing.

Maintenance Responsibilities

Alterations: Tenant shall not make structural alterations, additions or install fixed equipment without the prior written consent of Lessor. Any permitted alterations shall be performed at Tenant's expense and in a workmanlike manner. Tenant shall, at Lessor's option, remove alterations and restore the Premises to its original condition upon termination.

Insurance & Indemnity

Tenant shall, at Tenant's sole cost and expense, procure and maintain commercial general liability insurance with minimum limits of naming Lessor as an additional insured as required by this Agreement. Tenant shall also maintain property insurance covering Tenant's personal property and improvements. Certificates evidencing required insurance shall be delivered to Lessor prior to occupancy.

Indemnity: Tenant shall indemnify, defend and hold harmless Lessor, its agents and employees from and against all claims, damages, losses and expenses (including reasonable attorneys' fees) arising out of Tenant's use or occupancy of the Premises except to the extent caused by Lessor's gross negligence or willful misconduct.

Environmental & Disclosures

Hazardous Materials: Tenant shall not bring or permit the use, generation, storage or disposal of Hazardous Materials on the Premises except in compliance with applicable law and with Lessor's prior written consent. Tenant shall be strictly liable for any contamination caused by Tenant or its contractors, employees or invitees.

Prior environmental conditions or contamination on the Premises: Yes No If Yes, describe:

Default; Remedies

Events of Default: Each of the following shall constitute an event of default: (a) failure to pay rent or other sums when due; (b) failure to cure any non-monetary breach within the cure period set forth below; (c) abandonment of the Premises; or (d) insolvency, assignment for the benefit of creditors, or appointment of a receiver for Tenant.

Cure Period: For non-monetary defaults, Lessor shall provide Tenant written notice and Tenant shall have days to cure the default. For monetary defaults, Tenant shall have five (5) business days to pay after written notice unless otherwise specified.

Remedies: Upon the occurrence of an event of default, Lessor shall have all remedies available at law or in equity, including termination of this Agreement, recovery of damages, and the right to re-enter and re-let the Premises. Lessor's acceptance of rent following a default is not a waiver of remedies unless expressly stated in writing.

Assignment and Subletting

Tenant shall not assign this Agreement or sublet the Premises, in whole or in part, without the prior written consent of Lessor, which consent shall not be unreasonably withheld for financially responsible assignees or subtenants whose proposed use complies with the Permitted Use.

Access; Signs; Fixtures

Lessor shall have the right to enter the Premises upon reasonable notice to inspect, make repairs, or show the Premises to prospective purchasers or tenants, except in emergencies when no prior notice is required. Tenant shall permit and not interfere with such access.

Signage (if permitted)

Governing Law; Miscellaneous

Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the state of without regard to its conflicts of law principles.

Entire Agreement: This Agreement, including all exhibits and any written amendments, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, representations and agreements, whether written or oral.

Notices

All notices required or permitted under this Agreement shall be in writing and delivered by hand, nationally recognized overnight courier, or certified mail, return receipt requested, to the addresses set forth below or to such other address as either party may designate by written notice.

Lessor Notice Address Lessee Notice Address

Acknowledgments

Each party represents and warrants that the person executing this Agreement on its behalf is duly authorized to enter into this Agreement and that this Agreement is a binding obligation of such party enforceable in accordance with its terms.

The parties further acknowledge that they have read and understand this Agreement, have had an opportunity to seek legal counsel, and agree to be bound by its terms.

LESSOR (Owner):

Printed Name:

By:

Date:

LESSEE (Tenant):

Printed Name:

By:

Date:

What a Commercial Building Use Agreement Covers

Commercial Building Use Agreement defines terms under which a tenant, licensee, contractor, or other party may use commercial property. It specifies permitted uses, hours of operation, maintenance obligations, access rights, insurance, indemnification, utilities allocation, alterations, signage, security, and default remedies. The agreement may be standalone or part of a lease, and can include exhibits such as floor plans, maintenance schedules, and permitted use clauses. Properly drafted, it clarifies responsibilities, reduces disputes, and establishes remedies for breach while allocating risk between property owner and occupant.

Why a Clear Use Agreement Matters

Use a Commercial Building Use Agreement to set clear permitted activities, allocate maintenance and liability, preserve property value, and reduce litigation risk. A focused agreement establishes operational boundaries, insurance and indemnity terms, and remedies for breach to protect owner and occupant interests.

Who Typically Prepares and Signs This Agreement

Typical users include property owners, commercial tenants, facility managers, leasing agents, and general counsel handling property-use risk and compliance.

Property owners and landlords seeking to control permitted commercial activities and protect asset value.
Commercial tenants defining business operations, hours, maintenance responsibilities, and alteration permissions.
Facility managers and contractors coordinating access, security protocols, and service-level commitments.

Agreements help these users document expectations, reduce disputes, and support operational and regulatory compliance across properties.

Core Clauses to Include in a Commercial Building Use Agreement

Core clauses clarify permitted uses, tenant responsibilities, maintenance, indemnity, insurance, alterations, and dispute resolution to limit exposure and define operational expectations.

Permitted Use

Describe specific business activities allowed on the premises, hours of operation, geographic and tenant-use limitations, and any exclusive use rights or prohibited activities to avoid ambiguity and future disputes.

Maintenance

Allocate routine maintenance, repair responsibilities, and capital improvement obligations between parties, include response times, contractor approval processes, and cost-sharing formulas for common areas and building systems.

Insurance

Set minimum insurance types and limits, require certificates of insurance, name additional insureds where appropriate, and specify waiver of subrogation and notice-of-cancellation provisions to manage risk.

Alterations

Regulate tenant alterations, require landlord consent and approved contractors, define restoration obligations at lease end, and identify permitted signage and mechanical changes with required permits.

Indemnity

Allocate indemnity scope for third-party claims, clarify consequential damages exclusions, and specify duty to defend standards to control litigation exposure and insurer obligations.

Termination

Detail default definitions, cure periods, remediation rights, landlord remedies, and exit obligations including surrender condition, removal of tenant improvements, and post-termination liabilities.

Essential Information to Gather Before Drafting

Tenant Name: Full legal entity name as on ID

Landlord Name: Owner or managing entity legal name

Premises Description: Street, suite, square footage, and boundaries

Effective Date: Enter MM/DD/YYYY date format

Use Description: Specific permitted activities and limitations

Insurance Details: Policy types, limits, and certificate holder

Step-by-Step: From Draft to Execution

Follow these steps to complete and execute a Commercial Building Use Agreement accurately and manage approvals.

01

Prepare Draft: Gather parties, premises, and use details.
02

Negotiate Terms: Review clauses, allocate obligations, and agree on limits.
03

Obtain Approvals: Secure landlord, tenant, and legal sign-offs.
04

Execute & Record: Sign, notarize if required, distribute executed copies.

Set Up an Online Signing Workflow

Configure an online workflow to assign roles, set signing order, and collect attachments for the agreement.

Field	Configuration
Signing Order	Sequential signing tenant then landlord then witness
Authentication	Email link by default; use SMS code for higher assurance
Attachments	Attach floor plans, certificate of insurance, exhibits
Final Copy	Send signed PDF to all parties and archive

Typical Routing from Draft to Storage

Typical routing for a Commercial Building Use Agreement from drafting to executed distribution and archival.

Draft: Prepare document with exhibits and insurance requirements.
Review: Legal and operational review by landlord and tenant.
Sign: Collect signatures and notarize or witness if required.
Distribute: Provide executed copies and store originals per retention policy.

Platform Capabilities to Support Execution

Ensure the signing platform supports secure eSignature, audit trails, and required authentication for Commercial Building Use Agreements.

Authentication: Email, SMS, or KBA options
Audit Trail: IP, timestamp, and action log
Export Formats: Signed PDF, DOCX, and XML

Key Dates to Track for Execution and Compliance

Key dates and response times to track when preparing and executing a Commercial Building Use Agreement.

Effective Date:

Date obligations begin and impact notice periods

Signature Deadline:

Date by which all parties must sign

Insurance Delivery:

Deadline to provide certificate of insurance

Alteration Approvals:

Timeframe for landlord to approve tenant work

Record Retention Start:

Date to begin retention clock for documents

Common Preparation Errors to Avoid

Using vague permitted use language such as 'general commercial purposes' that leaves room for interpretation and may conflict with zoning or lease restrictions.
Failing to specify maintenance responsibilities for HVAC, roof, and common areas, producing disputes and unexpected repair costs for landlord or tenant.
Omitting insurance minimums, additional insured requirements, and notice-of-cancellation language, which can leave parties underinsured after a loss.
Not clarifying alteration approval, restoration obligations, and signage rules, causing disagreements and costly removal or remediation after tenancy ends.

Consequences of an Incomplete or Incorrect Agreement

Breach Remedies: Monetary damages and injunctive relief

Insurance Shortfall: Claims denied or uninsured loss exposure

Regulatory Noncompliance: Zoning fines or permit revocation

Tenant Liability: Third-party claims and defense costs

Tax and Assessment: Additional local assessments

Notarization Errors: Invalidated notarizations or re-execution

eSignature Pricing and Feature Comparison

Compare common eSignature features and pricing that affect cost and compliance for Commercial Building Use Agreements.

	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	Yes, 7-day free trial	No	No	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently Asked Questions and Practical Answers

Answers to common questions about preparing, executing, and enforcing a Commercial Building Use Agreement, including e-signature and notarization concerns.

Need help? Contact support

Can this agreement be signed electronically?
Yes. Under the ESIGN Act (15 U.S.C. ch. 96) and UETA (adopted by most states), electronic signatures are enforceable if intent, consent, attribution, and record retention are satisfied; limited statutory exceptions may apply.
Is notarization required for validity?
Generally no for ordinary use agreements, but notarization may be required for recording certain instruments or for evidentiary benefits. Always confirm recording or filing rules with the county recorder or counsel before execution.
What authentication level should be used?
Use email link authentication for routine signings; adopt SMS codes, KBA, or multi-factor authentication for higher-assurance transactions or where regulatory obligations require stronger signer identity verification.
How should insurance be documented in the agreement?
Specify insurance lines and minimum limits, require delivery of certificates naming landlord as additional insured, include notice-of-cancellation periods, and require carriers acceptable to the parties to reduce claim disputes.
How do I correct an entered error after signing?
Minor clerical errors typically require a signed amendment or addendum. Substantive errors—such as incorrect party names or dates—should be corrected by mutual written amendment and re-execution to maintain enforceability.
How long must I retain the executed agreement?
Retain for the contract term plus at least three years; for tax or real estate matters longer retention (seven to ten years) may apply. For HIPAA-covered matters follow 45 CFR §164.530(j) six-year retention.

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