Can a Release be electronically signed?

Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws, provided the transaction satisfies intent, consent, attribution, and record retention requirements.

Is notarization required for recording?

Many counties require a notarized acknowledgment for recording; requirements vary by state and recorder office. Check local recording rules before relying on a non‑notarized instrument.

Who must sign the release document?

The release must be signed by authorized representatives of the parties in their legal capacities. If an entity signs, include proof of authority such as a corporate resolution or officer certification.

What happens if a release is not recorded?

An unrecorded release may not protect against subsequent purchasers or lienholders who rely on public records; timely recording is recommended to establish priority in public records.

Can a release be revoked after signing?

Revocation depends on contract terms and whether consideration was exchanged. A unilateral revocation is generally not effective without the other party's consent or a court order.

What must I include for title company acceptance?

Title companies typically require precise premises descriptions, clear signatory authority, notarization as required, and any lender consents. Verify specific title requirements before execution.

Electronic Signature
Templates
Legal
Release of Commercial Lease

Release of Commercial Lease

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RELEASE OF COMMERCIAL LEASE

This Release of Commercial Lease (the Release) is made as of by and between Landlord Name: (Landlord) and Tenant Name: (Tenant).

RECITALS

WHEREAS, Landlord and Tenant are parties to that certain Commercial Lease dated (the Lease), concerning the premises located at (the Premises); and

WHEREAS, Tenant and Landlord desire to terminate certain obligations under the Lease and effectuate a release of liability in accordance with the terms set forth below; and

WHEREAS, the parties desire to set forth their respective agreements, representations and covenants regarding the Release and the obligations arising under the Lease.

NOW, THEREFORE, in consideration of the mutual covenants and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. RELEASE

Effective as of the Effective Date set forth below, Landlord hereby fully and unconditionally releases, remises and forever discharges Tenant and its successors and assigns from any and all claims, liabilities, demands, obligations, rights, causes of action, damages and expenses of any kind or nature, whether known or unknown, arising out of or in connection with the Lease arising prior to or on the Effective Date, subject to the exceptions set forth in Section 2.

2. SCOPE OF RELEASE; EXCEPTIONS

The release in Section 1 shall not apply to (a) obligations expressly stated in this Release to survive the Effective Date, (b) claims arising from fraud, willful misconduct or gross negligence of a party, (c) obligations relating to environmental contamination first discovered after the Effective Date to the extent caused by acts or omissions prior to the Effective Date, and (d) any other liabilities expressly carved out in writing and signed by both parties.

3. CONSIDERATION

In consideration for the covenants and releases contained herein, the parties acknowledge receipt of the following consideration, the sufficiency of which is expressly acknowledged:

Consideration (if monetary, state amount):

4. ASSUMPTION OF OBLIGATIONS

To the extent set forth in a separate agreement executed by the parties or expressly provided herein, a successor or third party may assume certain future obligations under the Lease. Any such assumption shall be evidenced in writing and shall expressly state which obligations are assumed. Absent a written assumption, Tenant shall remain liable for obligations accruing prior to the Effective Date.

5. REPRESENTATIONS AND WARRANTIES

Each party represents and warrants that it has full power and authority to enter into this Release, that the person executing this Release on behalf of such party is duly authorized, and that this Release constitutes a legal, valid and binding obligation enforceable against such party in accordance with its terms.

6. INDEMNIFICATION

Each party shall indemnify, defend and hold harmless the other party from and against any loss, liability, cost or expense (including reasonable attorneys’ fees and costs) arising from any breach of the representations, warranties or covenants made by the indemnifying party in this Release or from any claims excluded from the scope of the Release pursuant to Section 2.

7. SECURITY DEPOSIT; PIPING AND PERSONAL PROPERTY

Any disposition or retention of the security deposit, tenant improvements, fixtures or personal property shall be governed by the terms set forth below. The parties agree that Landlord shall retain/return the security deposit as follows:

Security deposit disposition:

8. RELEASE OF CLAIMS; NO FURTHER LIABILITY

Except as expressly set forth in this Release, each party covenants and agrees not to institute, maintain or permit to be instituted or maintained any action or proceeding against the other party based upon any claim released hereby. The parties further acknowledge that this Release extinguishes all known claims related to the Lease as of the Effective Date, subject to the exceptions in Section 2.

9. RECORDS, ACCESS AND COOPERATION

The parties shall cooperate and execute such further instruments and take such further actions as may be reasonably required to effectuate the purposes of this Release, including providing access to books, records or premises to the extent necessary to resolve any matters that survive the Effective Date.

10. COSTS AND ATTORNEYS' FEES

In the event of any dispute arising out of or relating to this Release, the prevailing party shall be entitled to recover its reasonable costs and attorneys' fees incurred in connection with such dispute, in addition to any other relief to which it may be entitled.

11. NOTICES

All notices, requests, consents and other communications required or permitted under this Release shall be in writing and shall be delivered to the addresses set forth below by personal delivery, nationally recognized overnight courier, or certified mail (return receipt requested). Notices shall be effective upon receipt.

Landlord notice address: Tenant notice address:

12. AMENDMENT; WAIVER

This Release may be amended only by an instrument in writing signed by both parties. No waiver by either party of any breach or default shall be deemed a waiver of any subsequent breach or default, and no failure to enforce any provision of this Release shall constitute a waiver of future enforcement of that or any other provision.

13. COUNTERPARTS

This Release may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Signatures delivered by electronic means shall be binding for all purposes.

14. GOVERNING LAW

This Release shall be governed by and construed in accordance with the laws of the state where the Premises is located, without regard to its conflict of law principles.

Governing law state:

15. ENTIRE AGREEMENT

This Release contains the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, negotiations and understandings, whether written or oral, relating to the subject matter hereof.

16. SEVERABILITY

If any provision of this Release is held to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

17. SURVIVAL

Any representations, indemnities, covenants or other provisions that by their terms contemplate performance after the Effective Date shall survive the termination of the Lease and remain in full force and effect in accordance with their terms.

Effective date of this Release: Additional terms (if any):

SIGNATURES

Landlord Printed Name:

By:

Date:

Tenant Printed Name:

By:

Date:

What a Release of Commercial Lease Is and When it Applies

A Release of Commercial Lease is a formal written instrument that documents the termination, discharge, or partial extinguishment of obligations under an existing commercial lease. It identifies the landlord, tenant, any guarantors or assignees, and the leased premises, and it states the effective date and scope of the release. The document records consideration or conditions for the release, and often directs whether it should be recorded with the county recorder or delivered to a title company. A clear release reduces ambiguity about post-termination liabilities and supports property transfers and financing.

Why a Clear, Executed Release Matters

A well-drafted release removes lingering obligations, avoids title defects, and documents mutual consent to termination terms. It reduces litigation risk and clarifies who remains liable for outstanding rent, repairs, or indemnity claims.

Typical Parties Involved in a Release

Landlords, tenants, property managers, commercial brokers, and attorneys commonly prepare or sign a Release of Commercial Lease to document termination terms.

Landlord representatives: approve release language, confirm consideration, and record release in title files.
Tenants or guarantors: consent to release, surrender possession, and acknowledge remaining obligations if any.
Lenders and purchasers: require release to clear title or remove lease encumbrance on property.

When complex assignments, financing, or guaranties are involved, include legal counsel early to confirm signatures, consents, and recording steps.

Core Sections to Include in the Release of Commercial Lease

A professional release is concise but complete: identify parties and premises, describe the scope of discharge, fix the effective date, record consideration, and state recording or notice instructions.

Parties

List each party by full legal name and entity type, including addresses and contact details so the release can be clearly attributed and enforced.

Premises

Provide a precise address, suite or unit number, and parcel or legal description; reference the original lease date and instrument to avoid ambiguity.

Scope

State whether the release is a full, partial, or conditional discharge and specify which lease obligations are extinguished versus retained.

Effective Date

Specify the effective date in MM/DD/YYYY format; this date determines when released obligations cease and affects notice periods.

Consideration

Describe monetary payment or non-monetary consideration that supports the release, including whether it is a lump sum, credit, or mutual waiver.

Recording

State recording or delivery instructions for the county recorder or title company and any attestation language required for acceptance.

Step-by-Step: Completing and Executing the Release

Follow this order to prepare and finalize a Release of Commercial Lease to reduce errors, ensure proper authorization, and enable recording.

01

Review Lease: Confirm lease clauses and any subordination or assignment provisions.
02

Draft Release: Prepare precise scope, dates, and consideration terms.
03

Obtain Approvals: Get signatures from authorized representatives and counsel.
04

Record/Deliver: File with county recorder or provide to title company.

Configuring an Online Signing Workflow

Set up signing order, authentication, notifications, and secure storage so the executed release is legally defensible and immediately available to stakeholders.

Field	Configuration
Signing Order	Sequential or parallel signing order
Authentication	Email or SMS code; stronger when required
Notifications	Automated email reminders and completion notices
Storage	Secure archival with audit trail and export options

Typical eSubmission Flow for a Release

A standard electronic workflow moves the draft to final signed PDF with an audit trail, then routes copies to recorders, title parties, and stakeholders.

Upload: Upload PDF or DOCX of the release document.
Prepare Fields: Place signature, date, and initial fields.
Send: Send signer email or share secure link.
Complete: Signer signs; system issues completion certificate.

Technical Checks Before Using an eSignature Platform

Confirm the platform supports PDF/DOCX upload, tamper-evident audit trail, custodial storage, and required signer authentication for legal enforceability in commercial lease releases.

File Formats: PDF, DOCX supported
Integrations: Title and closing systems
Security: TLS and AES-256 encryption

Timing Considerations When Executing a Release

Key deadlines and timing choices affect notice, recording priority, and downstream title clearance.

Effective Date Entry:

Record MM/DD/YYYY to fix the release start date.

Recording Timeline:

Record promptly to protect against subsequent purchasers.

Notice to Tenant:

Deliver notice per lease notice provisions before release.

Security Deposit Handling:

Document any agreed offsets or return timing.

Mortgagee Approval:

Check lender consent requirements prior to recording.

Common Preparation and Execution Pitfalls

Ambiguous premises descriptions can leave title partially uncleared and create later disputes over the exact space released.
Missing corporate authorization for an entity signatory may cause the recorder or title company to reject the release without a certified resolution.
Delays in recording the release can expose the parties to claims by subsequent purchasers or lienholders who relied on public records.
Failure to meet state-specific notarization or witness formalities can render the instrument invalid for recording or enforcement.

Key Risks If a Release Is Incorrect or Incomplete

Title Clouding: May delay sale or refinance

Financial Exposure: Continued rent claims possible

Recording Rejection: Recorder may refuse filing

Tax Consequences: Affects tax reporting positions

Legal Liability: Breach claims may persist

Penalty Fees: Notary or filing fees apply

eSignature Pricing and Feature Snapshot for Lease Releases

Comparison of common eSignature starting prices and core features relevant when executing and storing a Release of Commercial Lease.

	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	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently Asked Questions About Releases of Commercial Lease

Answers to common legal, procedural, and technical questions about drafting, signing, and recording a Release of Commercial Lease.

Need help? Contact support

Can a Release be electronically signed?
Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws, provided the transaction satisfies intent, consent, attribution, and record retention requirements.
Is notarization required for recording?
Many counties require a notarized acknowledgment for recording; requirements vary by state and recorder office. Check local recording rules before relying on a non‑notarized instrument.
Who must sign the release document?
The release must be signed by authorized representatives of the parties in their legal capacities. If an entity signs, include proof of authority such as a corporate resolution or officer certification.
What happens if a release is not recorded?
An unrecorded release may not protect against subsequent purchasers or lienholders who rely on public records; timely recording is recommended to establish priority in public records.
Can a release be revoked after signing?
Revocation depends on contract terms and whether consideration was exchanged. A unilateral revocation is generally not effective without the other party's consent or a court order.
What must I include for title company acceptance?
Title companies typically require precise premises descriptions, clear signatory authority, notarization as required, and any lender consents. Verify specific title requirements before execution.

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