Land Lease Agreement Template

Basic Credentials of Lesser and Lessee

Contract Competency

The LESSOR hereby declares to lease the property to the LESSEE at ______________________ (Property’s Complete Address). The LESSEE has the complete rights to utilize the property for its intended purpose, adhering to the norms specified by the LESSOR.

The tenant must be able to pay rent and maintain adequate insurance. The tenant may not commit any crimes on the property, use the property for illegal purposes, or violate stipulations that are outlined in this lease agreement.

Duration of the Lease

This land lease agreement will be in force for a duration of ( )years, commencing from the (Date of Commencement) and culminating on the day of (Date of ending), except if the contract gets terminated upon violation of the terms or occurrence of any unforeseeable circumstances. However, the duration of the land lease agreement can be increased by the LESSOR per their wish without any force or coercion by the LESSEE.

Specific Rental Amount

The LESSEE must pay a fixed amount of USD ( ) to the LESSOR on the 1st of every month, starting from (Date of commencement). The mode of payment will be ( ). In case the LESSEE fails to pay the rent on time, the LESSOR will charge a penalty of ( ) in addition to the total monthly rent that the LESSEE is liable to pay.

The specific rental amount will stay unchanged for this period unless both parties make changes to the agreement. The renewal of the rental lease agreement shall take place annually upon the continuation of the contract with mutual consent by both parties, with a yearly increase of ( ) in addition to the rent amount of the preceding year.

Security Deposit

The LESSEE will deposit a pre-specified amount of USD ( ) with the LESSOR as a security that the LESSEE will comply with all the mentioned terms and conditions of this rental lease agreement. The amount deposited by the LESSEE will be held by the LESSOR until the completion of the lease duration.

If the LESSEE complies with the terms and conditions of the lease contract, the LESSOR will return the deposited amount within a duration of ( ) days after the end of the rental lease agreement, including any possible extension given by the LESSOR upon particular conditions.

The LESSOR might utilize the security deposit amount to compensate for any damages arising during the occupancy of the LESSEE or at the independent choice and election of the LESSOR to pay for unpaid rent or penalties.

If the security deposit sum is consumed by the LESSOR before the termination of the lease, the LESSOR can mandate the LESSEE to replace the security deposit amount used by the LESSOR.

If the LESSEE does not move out, they must return the security deposit at the end of their lease. If there are any damages, the LESSEE will have to cover them with their own money.

In exceptional circumstances, if the Lessor [Lessor.FirstName][Lessor.LastName] sells the property mentioned in the agreement, the LESSOR may transfer the security deposit amount to the new owner. The LESSOR has to notify the LESSEE regarding the sale of the property and transfer of the security deposit amount. In that case, the LESSOR will be discharged of all responsibilities of returning the security deposit amount.

Maintenance Charges/ Utility Expenses for the Property

The maintenance charges or additional costs are not included in the monthly rent payment. The LESSEE has to compensate for the costs of the damage arising out of their negligence. The LESSOR will hand over the leased property to the LESSEE in a well-maintained condition. After that, the LESSEE is liable to pay for the repair and maintenance costs of the property.

In addition, the LESSEE will also have to pay for the electricity, water, gas, or any essential utility bills availed during the lease duration of the property. The LESSOR can charge an additional cost if they need to do any work on the property that is not included in the usual routine of maintaining the property. The LESSOR is liable to pay for the below-mentioned utilities or maintenance charges.

Maintenance Charges/ Utility Expenses:

Amount to be paid by the Lessee:

Sub-Leasing of the Property by the Lessee

The LESSEE is not authorized to sub-lease the property or premises or allocate the lease to any third party without seeking written consent beforehand from the LESSOR.

If the LESSEE sub-leases the property or any specific portion of the property to any third party without informing and seeking consent from the LESSOR, the violation of this clause may lead to the levying of a penalty of USD ( ) or even the termination of the lease agreement.

Terms Leading to Contract Eviction

If the LESSEE fails to pay the rent amount within ( ) days from the due date, the LESSOR has the right to evict the LESSEE. The LESSOR is also authorized to evict the LESSEE if they do not comply with all the terms and conditions of this lease agreement or any other grounds valid in the eye of the law.

Upon eviction, the LESSEE has to continue paying the rent for the remaining term. In addition, the LESSEE has to incur the expenses arising out of attorney fees and any costs involved with the termination or renewal of the contract.

Notice Period

The LESSEE has to give at least ( ) months’ notice in writing before vacating the property. In case the LESSEE doesn’t provide any written notice before vacating the property, then they have to pay ( ) months' worth of rent to the LESSOR as compensation.

However, if the LESSEE has paid ( ) months of rent in advance, they can give a written notice ( ) weeks before vacating the property. If the LESSOR wants the property to be vacated, they must inform the LESSEE at least ( ) months beforehand.

Date and Signature