Can this lease be signed electronically?

Yes. Electronic signatures meeting ESIGN Act standards (15 U.S.C. ch. 96) and UETA in most states create legally binding agreements when intent, consent, attribution, and retention are met.

Is notarization required to make it valid?

Not generally for leases, but some states or lenders may require notarization for specific filings or to support recording; check state rules and lender requirements before execution.

Who pays operating expense reconciliations?

The lease should state tenant share and reconciliation timing; typically the landlord provides an annual statement and tenant pays any underpayment within a defined period after notice.

How do I amend the agreement later?

Amendments must be in writing and signed by authorized parties; include an amendment clause defining required form, effective date, and whether electronic signatures are acceptable.

What records should I keep and for how long?

Retain executed leases while active and for several years after termination. Follow IRS guidance (IRC §6501(a)) and industry-specific rules such as HIPAA for healthcare-related records.

What if a party signs without authority?

Lack of authority may render the document voidable; secure proof of authority (resolutions, POAs) and address ratification procedures in the lease to mitigate this risk.

Electronic Signature
Templates
Real estate
Modified Gross Lease Agreement

Modified Gross Lease Agreement

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Modified Gross Lease Agreement

Parties

This Modified Gross Lease Agreement is entered into between Landlord: and Tenant: (collectively, the Parties).

Landlord Contact Information Tenant Contact Information

Premises

Property Address Parcel / APN Number Legal Description

Term

Lease Commencement Date: . Lease Expiration Date: . Possession by Tenant shall occur on .

Rent and Financial Terms

Base Monthly Rent: $ payable in advance on or before the day of each month to Landlord at the address designated for notices unless otherwise directed in writing.

Security Deposit

Late Charge: If rent is not received within days after the due date a late fee of $ or percent of the overdue amount, whichever is greater, shall be charged.

Modified Gross Expense Allocation

The lease is a modified gross lease. Landlord shall be responsible for the following operating expenses: janitorial for common areas, building insurance, structural repairs, and property taxes. Tenant shall be responsible for: utilities serving the Premises, telephone and data lines serving the Premises, and interior nonstructural repairs unless otherwise provided below. Parties agree the following specific exceptions and allocations apply:

Utilities and Services

Tenant shall contract for and pay directly all utility services consumed within the Premises, including electricity, gas, water (if separately metered), and janitorial services for Tenant's interior space. Landlord shall maintain the building's central HVAC systems as provided in this Agreement unless Tenant's use requires additional HVAC service, in which case Tenant shall pay incremental costs.

Maintenance, Repairs and Alterations

Landlord shall remain responsible for structural repairs, roof, exterior walls, and common area maintenance. Tenant shall keep the Premises, including all interior finishes, plumbing fixtures, and glass, in good order and repair at Tenant's expense and shall not make any structural or exterior alterations without Landlord's prior written consent. All permitted alterations shall be performed at Tenant's expense and in accordance with applicable laws.

Insurance and Indemnity

Tenant shall procure and maintain commercial general liability insurance with limits not less than $ per occurrence and shall name Landlord as an additional insured as its interests may appear. Tenant shall indemnify and hold Landlord harmless from and against all claims, liabilities, losses, and expenses arising from Tenant's use of the Premises, except to the extent caused by Landlord's gross negligence or willful misconduct.

Default and Remedies

If Tenant fails to pay rent or otherwise breaches any material obligation under this Agreement and fails to cure within days after written notice, Landlord may terminate this Lease, pursue eviction, recover unpaid rent and damages, and seek any other remedies available at law or equity. Remedies are cumulative and not exclusive.

Subletting and Assignment

Tenant shall not assign this Lease or sublet the Premises, in whole or in part, without Landlord's prior written consent, which consent shall not be unreasonably withheld for creditworthy assignees. Any purported assignment without consent is void and shall constitute a default.

Environmental and Hazardous Materials

Tenant shall not generate, store, or dispose of hazardous materials on the Premises except as expressly permitted by law and this Agreement. Tenant shall indemnify Landlord for any contamination caused by Tenant's activities and shall promptly remediate any contamination to the extent caused by Tenant.

Disclosures

Lead-Based Paint: Known to exist? Yes No

Mold or Water Intrusion: Known to exist? Yes No

Prior Structural Damage or Repairs: Known to exist? Yes No

Notices

All notices shall be in writing and delivered to the addresses listed below by hand delivery, nationally recognized overnight courier, or certified mail, return receipt requested, and shall be effective upon receipt.

Landlord Notice Address Tenant Notice Address

Miscellaneous Provisions

Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the state in which the Premises are located. If any provision is held invalid, the remaining provisions shall remain in full force. This Agreement, together with any exhibits or addenda executed by the Parties, constitutes the entire agreement between the Parties and supersedes all prior negotiations and agreements.

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

Acknowledgment

By signing below, Landlord and Tenant acknowledge that they have read, understand, and agree to the terms and conditions of this Modified Gross Lease Agreement and that they have authority to execute this Agreement.

Landlord Printed Name:

By:

Date:

Tenant Printed Name:

By:

Date:

What a Modified Gross Lease Agreement Is

A Modified Gross Lease Agreement is a commercial lease that blends elements of gross and net leases: the tenant pays base rent while the landlord retains responsibility for some property-level expenses and the tenant pays specified operating costs. The agreement allocates which utilities, maintenance, taxes, insurance, or common area expenses the tenant must reimburse, and sets procedures for invoicing, reconciliation, and adjustments over the lease term.

Why choose a Modified Gross Lease for commercial space

The Modified Gross Lease offers predictability for tenants and administrative simplicity for landlords by fixing base rent and assigning a limited set of variable operating costs. It balances risk allocation while keeping invoicing and annual reconciliations manageable for both parties.

Who typically prepares and signs this lease

Property managers, commercial landlords, tenant representatives, and real estate attorneys commonly prepare or review Modified Gross Leases before execution.

Commercial landlords and property managers who need clear cost allocation and centralized expense control.
Small and mid-size tenants seeking predictable base rent with limited pass-through operating costs.
Real estate brokers and in-house counsel who negotiate lease clauses and review allocation mechanics.

Each party should confirm delegated expense responsibilities and reconciliation mechanics before signing to avoid later disputes.

Authorized signers and their roles

Landlord — Property Manager

An authorized representative of the landlord (property manager, asset manager, or corporate officer) must have express authority to bind the owner under applicable corporate or trust documents. Ensure signatory authority is documented to avoid enforceability challenges during disputes or title review.

Tenant — Authorized Signer

An authorized tenant signer (business owner, officer, or designated agent) should sign with title and date. If the tenant is an entity, include evidence of authority (board resolution or power of attorney) to prevent later claims of lack of authority.

Core clauses to include in a professional lease

A complete Modified Gross Lease must clearly allocate expenses, define rent and adjustment mechanics, specify maintenance responsibilities, and include remedies for default and termination.

Premises Description

Precise legal and physical description of the leased space, including suite numbers, square footage, and common area allocations to avoid ambiguity in pro rata expense calculations and maintenance obligations.

Base Rent

Net base rent amount, payment schedule, acceptable payment methods, late fee calculation, and any annual increase formula such as CPI or fixed step-ups tied to a specified index.

Operating Expenses

List of tenant-responsible expenses (utilities, janitorial, insurance, property taxes) and the method for calculating tenant share, including exclusions, caps, and reconciliation timing.

Maintenance & Repairs

Allocation of routine repairs versus capital improvements, landlord’s repair obligations, and tenant responsibility for damage caused by tenant negligence or misuse.

Term & Renewal

Lease start and end dates, options to renew with exercise notice periods, rent adjustment mechanics on renewal, and conditions for early termination or subletting.

Default & Remedies

Events of default, cure periods, remedies including late fees, interest, termination rights, and how security deposit application or indemnity obligations will operate.

Step-by-step: completing and executing the lease

Follow a clear sequence to reduce errors and ensure enforceability when preparing, negotiating, and signing a Modified Gross Lease.

01

Draft and review: Prepare initial draft and review clauses with counsel.
02

Negotiate terms: Agree on expense allocations, term, and rent adjustments.
03

Confirm authority: Obtain proof of signatory authority for each entity.
04

Execute and distribute: All parties sign, date, and receive fully executed copies.

Where and how to send executed copies

After execution, route final copies to each party and retain certified records for compliance and future reference.

Landlord Records: Store executed originals in property file and accounting records.
Tenant Records: Tenant keeps a signed copy for occupancy and expense reconciliation.
Lender / Title: Provide a copy to secured lenders or title agent if required.
Cloud Backup: Retain encrypted electronic copies for business continuity.

How to set up the document workflow online

Configure the digital signing workflow to match negotiation, approval, and signature order before sending the lease for signatures.

Field	Configuration
Signer Order	Sequential or parallel signing as required.
Authentication Method	Email link, SMS code, or stronger ID checks.
Attachment Rules	Require attachments like proof of authority or insurance.
Audit Trail	Enable timestamps, IP logging, and download receipts.

Digital signing and format compatibility

Use a platform that supports common file types and strong audit trails when e-signing a lease agreement.

File Formats: PDF, DOCX accepted
Integrations: CRM and storage
Authentication: Email, SMS, KBA

Ensure the chosen service complies with ESIGN and UETA and can produce an audit trail and tamper-evident signed PDF for enforceability.

Comparing eSignature vendors for lease execution

Vendor pricing and feature availability influence cost and compliance; the table shows typical starting prices and key capabilities relevant to 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	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

Security and compliance checklist for electronic lease files

Encryption: TLS 1.2/1.3 in transit, AES-256 at rest

Access Control: Role-based user permissions and SSO

Audit Trail: Timestamps, IP, and action history

BAA Availability: BAA required for healthcare data

Document Integrity: Tamper-evident signed PDFs

Certifications: SOC 2 Type II and ISO 27001

Common mistakes to avoid when preparing the lease

Failing to specify which operating expenses are tenant-responsible, leading to later disputes and ambiguous reconciliations.
Using imprecise legal names for parties, which can impede enforcement and complicate assignment or sublease approvals.
Skipping proof of signatory authority for entities, creating potential challenges to enforceability against corporate parties.
Neglecting to include clear notice addresses and methods, causing missed notices and accelerated default remedies.

Potential consequences of errors or omissions

Breach Liability: Tenant or landlord damages exposure

Enforceability Risk: Invalid signatures or authority disputes

Tax Consequences: Misstated rent or expense allocations

Recording Problems: Incorrectly recorded leases create title issues

Privacy Violations: Improper handling of protected health information

Late Fees: Penalty charges and collection costs

Examples of real customers using eSign for leases

These short examples show how organizations adopt electronic signing and secure workflows for lease documents.

Optica Ventures LLC

Optica consolidated lease execution across properties to reduce turnaround.

They emphasized ease of use for tenants.
Brian Fitzgibbons, COO, said the interface is simple and easy-to-use for their team and customers, enabling consistent execution and faster occupancy transitions.

Martin Properties

A property management firm moved lease signing fully online and eliminated paper storage.

Mobile signing on-site improved speed.
Tim Martin, Founder, reported processing and executing documents online with compliance and security, enabling efficient document return from any device.

Key timing and notice deadlines in a lease

Watch the dates that trigger payments, options, and notices; these deadlines affect renewal rights and default remedies.

Rent Due Date:

Specify daily or monthly due date and grace period.

Security Deposit Return:

State law sets a deadline for returning deposits with accounting.

Renewal Notice:

Tenant must give exercise notice by the period specified in lease.

Repair Cure Period:

Define notice and cure periods for landlord and tenant breaches.

Sublease Consent Time:

Landlord response window for sublease or assignment requests.

Frequently asked questions about Modified Gross Lease Agreements

Answers to common legal and practical questions about execution, e-signing, cost allocation, and recordkeeping for Modified Gross Leases.

Need help? Contact support

Can this lease be signed electronically?
Yes. Electronic signatures meeting ESIGN Act standards (15 U.S.C. ch. 96) and UETA in most states create legally binding agreements when intent, consent, attribution, and retention are met.
Is notarization required to make it valid?
Not generally for leases, but some states or lenders may require notarization for specific filings or to support recording; check state rules and lender requirements before execution.
Who pays operating expense reconciliations?
The lease should state tenant share and reconciliation timing; typically the landlord provides an annual statement and tenant pays any underpayment within a defined period after notice.
How do I amend the agreement later?
Amendments must be in writing and signed by authorized parties; include an amendment clause defining required form, effective date, and whether electronic signatures are acceptable.
What records should I keep and for how long?
Retain executed leases while active and for several years after termination. Follow IRS guidance (IRC §6501(a)) and industry-specific rules such as HIPAA for healthcare-related records.
What if a party signs without authority?
Lack of authority may render the document voidable; secure proof of authority (resolutions, POAs) and address ratification procedures in the lease to mitigate this risk.

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