Iowa Commercial Lease Agreement

Implied Covenant of Good Faith and Fair Dealing

The principle of “good faith and fair dealing” prohibits the parties involved in a contract from taking any actions that would undermine the other party’s rights under the agreement.

The covenant of good faith and fair dealing is an implied part of a contract that cannot be waived. Parties can replace it with a written agreement that better defines their understanding.

Statutory Notice Periods

Notice or demand required or permitted by the terms of this Iowa Commercial Lease Agreement will be considered complete when it’s expressed in writing, and either:

• Delivered in person to the person entitled to receive it.
• Deposited in certified mail form at any office of the United States Postal Service, addressed to the last known mailing address of the person entitled to receive it.
• Served to the person entitled to receive it in the manner of an original notice under the Iowa Rules of Civil Procedure unless the law requires otherwise.

Security Deposits

• Iowa commercial landlords can require any amount as a security deposit.
• Iowa doesn’t have any regulations or requirements in place that govern the return of commercial security deposits.
• Iowa landlords aren’t required to hold security deposits in interest-bearing accounts or pay interest.

Disclosures

• According to Iowa state law, landlords must disclose any defects in commercial properties to tenants before they move in. This is known as the Defects Disclosure.
• If a building was constructed before the year 1978, it’s mandatory, as per federal law, that the landlord informs the tenant about the usage of lead paint on the property. Also, landlords must notify the tenant about the negative impact of lead paint on human health, especially on small children and pregnant women. This is known as the Lead Paint Disclosure.

Termination and Renewal

• Iowa’slaws don’t address the automatic renewal of commercial property leases.
• If the tenant wishes to end the lease early and the lease terms don’t allow it, the tenant may be responsible for the remaining lease payments unless the tenant can demonstrate that the landlord breached the lease terms.
• The Iowa Notice of Termination of a Commercial Lease is a legal document to end a commercial lease agreement in Iowa. It’s a written notification from the landlord or tenant indicating their intention to terminate the lease.
• Landlords use a Notice of Termination to end a lease agreement. It specifies the reasons for termination and the required notice period per Iowa law.
• Tenants can issue a Notice of Termination to end a lease agreement with their landlord. The notice must include a valid reason for termination and adhere to the notice period specified in the lease agreement or Iowa law.