Here comes the second part of the Lease Document that is important to understand for everyone, who is going to buy commercial property. Let’s begin:

Hold Over
It is another legal term that is not so common and people are mostly unaware of it when they sign the lease document. Let me tell you, this term represents an overview of what can be happened if the tenant does not vacate the premises at the end of the lease.

Utilities
Hardly there will any commercial property be leased which is out of utilities like water, gas, sewerage system, electricity, telephone and other services. How these utilities will be metered and how they will be paid. Once these utilities will be used by tenant, he will be liable to pay all the charges of the utilities prior to the due date.

Prohibited Uses
It is known that a commercial property is going to be used for some purpose but the purpose of use should be clearly known to the landlord. You are responsible if your tenant is going to commend any illegal activity over there so he should be clear that he can not use the property for specific restrictions like manufacturing of explosives, flammables, chemicals and dangerous substances.

Property Taxes
The most important and confusing point of all the sections included here is Tax payment section. Landlord should pay all the general real estate taxes and personal property taxes prior handling the property to the tenant otherwise tenant will be considered responsible. It is the responsibility of the tenant to secure his landlord so he should keep the documents updated all the time.

Parking
This section describes the parking available for the leased building. The landlord should differentiate between where the tenant can park his vehicle and which space is for general customers who are visiting the place. It is legal responsibility of the landlord to keep the record of tenants all vehicles.

Maintenance
If any part of the property is damaged by the tenant or by any of his agent, tenant is considered responsible for that, thus he should pay charges for any kind of damage. It is recommended to clarify this point when the lease document will be prepared that who will be responsible for what kind of damages. On the other hand landlord will be held responsible for the annual repair of the property on regular basis.

Hope so, now you completely understand the leasing process of commercial proeprty and how it is different from the residential property leasing.