Lease Term Sheet

I. Introduction

This Lease Term Sheet outlines the preliminary terms for the leasing arrangement proposed between [Your Name] and [Tenant's Name].

This document serves as a base for the official lease agreement and aims to ensure both parties are aware of the fundamental terms before proceeding with a formal contract.

This term sheet is for informational purposes only and does not constitute a legally binding agreement.

The main objective of this document is to facilitate clear communication and outline the expectations from each party regarding the premises located at [Property Address]. Once agreed upon, these terms will be elaborated in a detailed lease agreement, legally binding all included parties.

II. Lease Details

A. Leased Premises

The specifics of the premises to be leased are as follows:

Address: [Property Address]
Square Footage: [Total Square Footage]
Use: The premises may be used solely for the purpose of operating a retail clothing store.

B. Term of the Lease

The lease duration will be as agreed upon by both parties:

Lease Commencement Date: [Lease Start Date]
Lease Expiration Date: [Lease End Date]
Renewal Options: The tenant shall have the option to renew the lease for an additional term of [number of years] years, subject to mutual agreement on rental terms and conditions at the time of renewal. The tenant must provide written notice of intent to renew at least [number of days/ months] prior to the expiration of the initial lease term.

III. Financial Terms

A. Rent Obligations

The following outlines the financial commitments by [Tenant's Name]:

Monthly Rent Amount: [Monthly Rent]
Due Date for Rent Payments: [Rent Payment Due Date]
Late Payment Penalties: Any rent payment not received within [number of days] days of the due date shall incur a late fee of [late fee amount] per day until paid in full.

B. Additional Financial Provisions

In addition to monthly rent, there are other financial considerations:

Security Deposit: [Security Deposit Amount]
Maintenance Fees: The tenant shall be responsible for all maintenance and repair costs for the leased premises, including but not limited to HVAC systems, plumbing, and electrical systems.
Utilities Responsibility: The tenant shall be responsible for all utilities, including water, gas, electricity, and trash removal, unless otherwise agreed upon in writing.

IV. Special Terms

This section captures any special conditions or clauses that are critical to the lease agreement:

Alterations: The tenant may make alterations to the premises with prior written consent from the landlord. All alterations must be conducted in a professional manner and returned to the original condition upon termination of the lease.
Subletting: The tenant shall not sublet the premises or assign the lease without the prior written consent of the landlord. Any subletting or assignment without consent shall be grounds for termination of the lease.
Termination Clause: Either party may terminate the lease with [number of days/ months] written notice to the other party for any reason or no reason, subject to the payment of any outstanding rent and other obligations.

V. Legal and Regulatory Compliance

Both parties must comply with all relevant laws and regulations pertaining to the lease of the premises. Specific compliance related terms are as follows:

Zoning Laws: The tenant shall comply with all applicable zoning laws and regulations and shall not use the premises for any purpose that violates such laws.
Environmental Regulations: The tenant shall comply with all environmental laws and regulations applicable to the premises, including but not limited to hazardous materials handling and disposal.
Insurance Requirements: The tenant shall maintain insurance coverage for the premises, including general liability insurance, property insurance, and any other insurance required by law or reasonably requested by the landlord.

VI. Signatures

All terms outlined in this Term Sheet are preliminary and will take effect only upon execution of a formal lease agreement.

By signing this Term Sheet, the parties indicate their intention to continue negotiations in good faith.

This Term Sheet shall be executed in duplicate as of [Date]:

For [Your Name]:

For [Tenant's Name]: