Can a Commercial Premise Agreement be signed electronically?

Yes. Electronic signatures are generally valid under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided intent, consent, attribution, and record retention requirements are met.

When is notarization required for a lease?

Notarization is not universally required for leases but may be necessary for recording, real estate transfers, mortgages, or when state local law or county recording rules demand an acknowledgement.

Who should sign on behalf of a corporate tenant?

An authorized officer or agent should sign. Obtain a corporate resolution or certificate of authority to confirm signatory power and reduce risks of challenge.

What happens if the lease is not recorded?

An unrecorded lease may remain valid between parties but can lose priority against subsequent liens or conveyances; recording preserves notice and priority.

Are remote online notarizations acceptable?

RON is allowed in many states with identity proofing and audio-video recording requirements; confirm state RON laws and retention obligations before use.

How do I revoke or cancel an agreement after signing?

Revocation depends on contract terms and mutual consent. Termination typically follows a written amendment or specified termination clause and may require notice or cure periods.

Electronic Signature
Templates
Real estate
Commercial Premise Agreement

Commercial Premise Agreement

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COMMERCIAL PREMISE AGREEMENT

Parties

This Commercial Premise Agreement ("Agreement") is made by and between Lessor and Lessee on the terms set forth below.

Lessor - Full Legal Name Lessor - Mailing Address

Lessor - Contact Phone

Lessor - Email

Lessee - Full Legal Name Lessee - Entity Type (select applicable)

Individual Corporation LLC Partnership

Lessee - Mailing Address

Lessee - Contact Phone

Lessee - Email

Property Identification

Premises Address Parcel / APN Number Legal Description

Term

Commencement Date: Term Length: months Term Expiration Date:

Possession Date:

Rent and Additional Charges

Base Monthly Rent: $ payable in advance on or before the day of each month.

Additional Rent / Operating Expenses (CAM, Taxes, Insurance)

Estimated Monthly CAM

Late Charge

Returned Payment Charge

Security Deposit

Security Deposit Amount: $. The deposit shall be held as security for Lessee's performance and returned as provided herein, subject to lawful deductions.

Use of Premises

Permitted Use

Hours of Operation (if applicable):

Alterations and Improvements

Lessee shall not make structural alterations without Lessor's prior written consent. Non-structural alterations are permitted with prior written notice. Lessee shall, at its expense, obtain all required permits and shall restore Premises to original condition at lease termination unless otherwise agreed.

Alterations - Lessor Written Consent Required?

Yes No

Maintenance, Repairs and Utilities

Responsibility for maintenance and repair shall be allocated as follows:

Lessor Responsibilities Lessee Responsibilities Utilities and Service Charges

Insurance and Indemnity

Lessee shall maintain commercial general liability insurance and property insurance with limits not less than the minimums stated below and shall name Lessor as an additional insured where required.

Minimum Liability Coverage Lessee - Property Insurance Required?

Yes No

Environmental and Hazardous Materials

Lessee shall not use, store or dispose of hazardous materials in, on, or about the Premises except in compliance with all environmental laws. Lessee warrants that it has disclosed the presence of any known hazardous materials on the Premises.

Known Environmental Conditions

Yes No

Inspections and Access

Lessor and its agents may enter the Premises upon reasonable prior notice for inspection, repairs or to show the Premises to prospective purchasers or tenants. Reasonable notice is defined as days, except in emergencies.

Assignment and Subletting

Lessee shall not assign this Agreement or sublet the Premises, in whole or in part, without Lessor's prior written consent, which shall not be unreasonably withheld once Lessee has provided financials and proposed terms.

Default and Remedies

If Lessee fails to cure any monetary or non-monetary default within days after written notice (or immediately for emergencies), Lessor may pursue all remedies under this Agreement and applicable law, including termination, recovery of rents and damages, and recovery of costs and attorneys' fees.

Condemnation; Casualty

If the Premises are totally condemned or rendered unusable by casualty, this Agreement shall terminate and the parties shall allocate awards and responsibilities as follows:

Surrender and Holdover

Upon termination, Lessee shall surrender the Premises in broom-clean condition, reasonable wear and tear excepted. Holdover by Lessee without a written extension constitutes tenancy at sufferance and Lessee shall be liable for holdover damages at a rate of .

Notices

All notices under this Agreement shall be in writing and delivered to the addresses below by hand delivery, certified mail, or nationally recognized courier service.

Lessor - Notice Address Lessee - Notice Address

Governing Law; Entire Agreement

This Agreement shall be governed by and construed in accordance with the laws of the state of . This Agreement, together with exhibits and written amendments, constitutes the entire agreement between the parties and supersedes all prior negotiations and agreements.

Miscellaneous Provisions

Waiver of any breach shall not be deemed a waiver of subsequent breaches. Lessee shall comply with all applicable laws, ordinances, and codes. The invalidity of any provision shall not affect the remainder of this Agreement.

Additional Terms or Special Conditions

Lessor - Printed Name:

By:

Date:

Lessee - Printed Name:

By:

Date:

What a Commercial Premise Agreement Covers

A Commercial Premise Agreement is a legally binding contract that sets the terms under which a landlord leases commercial real property to a tenant. It details parties, premises description, lease term, rent and additional charges (CAM, utilities), security deposit, permitted use, maintenance and repair responsibilities, tenant improvements, insurance, indemnity, assignment and subletting controls, default and remedies, and termination conditions. The agreement can include recording instructions and estoppel provisions. Electronic execution is generally permitted under ESIGN and UETA except where state rules or recording requirements impose different formalities.

Why a Clear Commercial Premise Agreement Matters

A well-drafted Commercial Premise Agreement reduces ambiguity about obligations, clarifies financial terms and risk allocation, facilitates enforceability, and supports efficient dispute resolution while protecting both landlord and tenant interests.

Who Typically Uses This Agreement

Several parties rely on a Commercial Premise Agreement to define rights and duties before occupancy and during the lease term.

Landlords and property managers responsible for leasing decisions and compliance with local recording or disclosure rules.
Tenants, including corporations and small businesses, who need clear use, rent, and improvement terms to manage operations.
Brokers, attorneys, and asset managers who negotiate commercial terms and prepare or review lease documentation.

Identifying the right signatory and stakeholders early shortens negotiation cycles and reduces execution delays.

Core Sections to Include in a Professional Agreement

A complete Commercial Premise Agreement groups legal and financial obligations into distinct sections so parties can find and enforce individual terms without ambiguity.

Parties

Identify landlord and tenant using full legal entity names, business type, and contact addresses to ensure enforceability and proper notice delivery.

Premises

Describe the leased area precisely (square footage, suite numbers, boundaries) and attach plans or exhibits to avoid disputes over usable space.

Term

State start date, expiration date, renewal options, and any early termination rights including notice periods and default triggers.

Rent & Charges

Specify base rent, payment schedule, late fees, CAM allocation, taxes, utilities and procedures for adjustments or reconciliations.

Use Restrictions

Define permitted and prohibited uses, hours of operation, signage rules, and compliance obligations with zoning and permits.

Default & Remedies

Describe events of default, cure periods, landlord remedies, security deposit application, and procedures for eviction or lease termination.

Step-by-Step: Completing a Commercial Premise Agreement

Follow a standard sequence to prepare, review, execute, and record the agreement to avoid common processing errors.

01

Gather Parties: Confirm legal names and signatory authority.
02

Draft Terms: Populate term, rent, use, and maintenance clauses.
03

Review & Negotiate: Collect countersignatures and finalize exhibits.
04

Execute and Route: Sign, record if required, and distribute executed copies.

Typical Document Routing for Execution and Recordation

A clear routing plan ensures timely signatures, necessary notarization, and correct recording where applicable.

Prepare Agreement: Create final version and attach exhibits.
Add Signature Fields: Assign signature, date, and initial fields per party.
Authenticate Signers: Use agreed method: ID check, email, SMS, or notarization.
Record & Circulate: Record with county if required; send executed copies to all parties.

How to Configure an Online Signing Workflow

Set up roles, field permissions, and authentication steps before sending to avoid rework and incomplete signings.

Workflow Step	Configuration
Assign Roles	Define landlord, tenant, agent roles and signing order.
Authentication	Select email, SMS, or ID verification per risk level.
Conditional Fields	Show fields only when specific options are selected.
Attach Exhibits	Include floor plans, insurance certificates, and addenda.

Preparing Documents for eSigning and eSubmission

Confirm file format, signer authentication, and any notarization or recording requirements before sending electronically.

File Formats: PDF or DOCX preferred.
Signer Authentication: Email, SMS code, or ID check.
Integrations: CRM and document storage supported.

Align the platform settings with state recording rules and any industry compliance needs to preserve legal validity and auditability.

eSignature Vendor Comparison for Commercial Leases

Compare baseline pricing and core capabilities when choosing an eSignature provider for high-volume lease workflows.

	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 by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes (Premium)	Varies	Varies	Varies	Varies
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Key Penalties and Risks to Watch

Invalid Execution: Missing signature may void agreement

Recording Priority: Unrecorded leases may lose priority

Tax Penalties: Incorrect reporting can trigger IRC §6721 penalties

Noncompliance: Zoning violations risk injunctions

Insurance Gaps: Insufficient coverage exposes liability

Tenant Default: Acceleration and eviction remedies apply

Common Mistakes That Delay Execution

Using trade names instead of legal entity names, which can prevent enforceability or proper recording and create disputes over signatory authority.
Leaving rent or CAM calculation methods ambiguous, causing later reconciliation disputes and potential claims for underpayment or overcharge.
Failing to attach exhibits such as floor plans or insurance certificates, which leads to ambiguity about deliverables and repair responsibilities.
Skipping verification of signer authority or failing to notarize where required, resulting in rejection at recording or litigation over validity.

Essential Information to Include on the Agreement

Tenant Name: Full legal entity name

Landlord Name: Full legal owner name

Premises Address: Street, suite, city, ZIP

Term Dates: Start and end dates

Rent Amount: Base rent and frequency

Authorized Signer: Printed name and title

Realistic Use Cases for Commercial Premise Agreements

These examples show how common scenarios shape lease terms and execution steps in practice.

Retail Tenant Case

A new retail tenant negotiates a five-year lease with tenant improvement credits and exclusive use clauses.

The landlord requires a security deposit and personal guaranty when tenant credit is limited.
The parties used an exhibit for TI specs, added a phased rent commencement clause tied to certificate of occupancy delivery, and executed electronically where permitted, then recorded the lease in the county recorder's office to protect priority interests.

Office Sublease Case

A company subleases surplus office space to a startup for two years with early termination rights.

The master landlord consent is required before sublease effectiveness.
The sublease ties rent adjustments to operating expense caps, includes a combined indemnity clause referencing the master lease, and the sublessor provided a landlord consent exhibit signed and attached before final execution.

Practical Tips for Accurate and Efficient Completion

Adopt consistent practices to reduce negotiation cycles, avoid rework, and preserve legal enforceability.

Use Exact Legal Names

Verify entity names against Secretary of State records. Accurate names ensure enforceability, proper recordation, and correct assignment of rights and obligations.

Attach Clear Exhibits

Label and attach floor plans, TI scopes, and insurance requirements as exhibits. These reduce interpretation disputes and make obligations measurable and enforceable.

Specify Payment Mechanics

Define payment methods, late fees, and grace periods. Clear mechanics prevent billing disputes and support accurate accounting and potential enforcement.

Confirm Signing Authority

Obtain corporate resolutions or officer certificates when entities sign. Documented authority prevents post-execution challenges and supports recording acceptance.

Common Questions and Practical Answers

Answers to frequent questions about execution, enforceability, notarization, and electronic signing for commercial leases.

Need help? Contact support

Can a Commercial Premise Agreement be signed electronically?
Yes. Electronic signatures are generally valid under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided intent, consent, attribution, and record retention requirements are met.
When is notarization required for a lease?
Notarization is not universally required for leases but may be necessary for recording, real estate transfers, mortgages, or when state local law or county recording rules demand an acknowledgement.
Who should sign on behalf of a corporate tenant?
An authorized officer or agent should sign. Obtain a corporate resolution or certificate of authority to confirm signatory power and reduce risks of challenge.
What happens if the lease is not recorded?
An unrecorded lease may remain valid between parties but can lose priority against subsequent liens or conveyances; recording preserves notice and priority.
Are remote online notarizations acceptable?
RON is allowed in many states with identity proofing and audio-video recording requirements; confirm state RON laws and retention obligations before use.
How do I revoke or cancel an agreement after signing?
Revocation depends on contract terms and mutual consent. Termination typically follows a written amendment or specified termination clause and may require notice or cure periods.

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