Leasing Contract Attorney
A leasing contract attorney helps businesses determine if signing a lease for necessary space or equipment is the best choice.
Many businesses elect to lease something, rather than buy it outright, for a variety of reasons. They may want to use the item to evaluate it for possible future purchase, they may only need the item for a limited time period, or it might be because the item is cost-prohibitive to the organization at the current time. Examples of leases that allow companies to grow and expand may include equipment, land, or office or factory space. Many businesses can benefit from a lease-to-own arrangement, where they can get the equipment they need now and then acquire the ownership to that equipment over time.
A carefully drafted leasing contract will delineate the rights, responsibilities, duties and obligations of both parties, the payment of the negotiated amount, time period covered, whether or not the property may be sublet, which party is responsible for which maintenance items, financial disclosures that must be met periodically, conditions for renewal or non-renewal, whether or not the lease may be assigned to a new owner should the business be sold, and how and when the lease may be terminated are examples of items that should be addressed before finalizing any leasing agreement.
Often, the owner of the item being leased will have “standard” terms and conditions that they present to the lessee, but these are not always as ‘cast in stone’ as originally presented. Most of the time, this type of lease is drafted to solely benefit one party, the drafter. They may or may not correctly state the law, particularly where the law was designed to benefit both parties of the transaction. Careful and considerate negotiation can often adjust these “standard” leases to benefit each party.
In addition, a complete explanation of all the terms and conditions contained within a lease usually illuminates a broader understanding of additional costs and responsibilities that should be factored into the total cost of the lease. For example, who is responsible for the insurance coverage, costs associated with normal wear or maintenance, and the responsibilities surrounding any destruction or failure of the property should be considered before signing a lease. Any lease for machinery, such as a copier or printer, should be accompanied by a Services Agreement from the lessor or manufacturer, or if it is not, who is responsible, what entities may service the machine without suffering a lease failure or penalty, and other items of a like nature should be detailed in advance to avoid future financial penalties up to and/or including forced purchase.
Terms and conditions regarding the surrender of the asset at the end of the contract period should also be carefully documented, in advance. For example, who is to pay freight, insurance, details regarding preferred or exclusive carriers, documents to be signed at time of surrender, including any photographs or other documentation regarding the condition at time of surrender, as well as a host of other considerations, depending on the item, may need to be taken into account and detailed, in advance, in your leasing contract to protect both parties.
To find out how an experienced leasing contract attorney from Larsen Law Offices, LLC can assist with the careful review, and draft the modifications necessary to your proposed lease, please contact Susan Larsen at (303) 520-6030.