Church Lease Contract Design Template

Church Lease Contract Design

I. THE PARTIES

This Lease Agreement ("Agreement") is made and entered into as of [Month Day, Year], by and between, [Your Company Name], a religious organization located at [Your Company Address], hereinafter will be known as the "Lessor", and [Your Partner Company Name], a corporation with a principal place of business at [Your Partner Company Address], hereinafter will be known as "Lessee".

WHEREAS, Lessor is the owner of the property located at [Your Company Address] (the "Property");

WHEREAS, Lessee desires to lease a portion of the Property for the purpose of conducting community outreach programs and church activities;

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:

II. PREMISES

Lessor leases to Lessee approximately five thousand (5,000) square feet located on the second floor of the Property. This includes the main hall, three conference rooms, and adjoining office space.

A. Specific Location

The Premises are specifically situated on the second floor, which includes designated areas for various church activities and administrative tasks.

B. Access Rights

Lessee shall have 24/7 access to the Premises for their activities, ensuring flexibility in scheduling events and meetings.

III. TERM

A. Lease Duration

The Lease commences on [Month Day, Year], and will continue for a period of five (5) years, concluding on [Month Day, Year]. This fixed term ensures stability for both parties.

B. Early Termination

Provisions for early termination are included, allowing flexibility if unforeseen circumstances arise.

C. Option to Renew

Lessee may have the option to renew the Lease for an additional term of five (5) years, provided Lessee gives written notice to Lessor at least six (6) months prior to the end of the initial term.

IV. RENT

Lessee agrees to pay Lessor monthly rent in the amount of eight thousand dollars ($8,000), due on the first (1st) day of each month. Payments shall be made to:

Account Name

Bank Account Number

[Your Company Name]

222-4467-5572

A. Late Fees

If Lessee fails to pay rent within five (5) days of the due date, a late fee of two hundred fifty dollars ($250) will be assessed for each late payment, to cover administrative costs.

V. SECURITY DEPOSIT

A. Deposit Amount

Lessee will deposit twenty four thousand dollars ($24,000) as security for fulfilling Lease obligations. This amount serves as a safeguard for potential damages or unpaid rent.

B. Return of Deposit

The deposit will be returned within thirty (30) days of Lease termination, less any deductions for damages or outstanding amounts, ensuring fair handling of the deposit.

C. Interest on Deposit

Any interest accrued on the security deposit will be added to the deposit and returned to Lessee, if applicable under state law.

VI. USE OF PREMISES

A. Permitted Use

The Premises shall be used solely for conducting community outreach programs, church activities, and administrative functions. This clause ensures that the Premises are utilized for purposes consistent with its intended use.

B. Prohibited Uses

Lessee must avoid using the Premises for unlawful purposes or in ways that could cause nuisance or damage, preserving the integrity of the Property.

C. Subleasing

Lessee may not sublease the Premises or assign this Lease to another party without the prior written consent of Lessor, maintaining control over the use of the Premises.

VII. MAINTENANCE AND REPAIRS

A. Lessor's Responsibilities

Lessor will maintain structural components such as the roof, exterior walls, and foundation. Major repairs to the electrical and HVAC systems are also covered, ensuring the Property remains in good condition.

B. Lessee's Responsibilities

Lessee is responsible for routine interior maintenance and minor repairs. This includes keeping the Premises clean and addressing minor issues promptly to prevent deterioration.

C. Emergency Repairs

In case of emergency repairs needed to ensure safety or prevent further damage, Lessee should notify Lessor immediately. Lessor will arrange for such repairs in a timely manner.

VIII. UTILITIES

A. Payment of Utilities

Lessee will cover all utility costs including electricity, water, gas, heating, cooling, and internet services. This clause ensures that utility responsibilities are clearly defined, preventing disputes over utility expenses.

B. Utility Upgrades

Any significant upgrades or changes to utility systems, such as installing additional HVAC units, must be approved by Lessor and conducted at Lessee’s expense.

C. Service Interruptions

Lessor is not responsible for interruptions in utility services beyond their control, such as outages or disruptions caused by utility providers.

IX. INSURANCE

A. Liability Insurance

Lessee must maintain commercial general liability insurance with minimum coverage of one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) in aggregate. Lessor will be an additional insured, providing protection against potential claims related to the Premises.

B. Proof of Insurance

Lessee must provide proof of insurance to Lessor before the Lease begins, ensuring adequate coverage is in place from the start.

C. Property Insurance

Lessee is encouraged to obtain insurance for personal property and equipment located within the Premises, as Lessor’s insurance does not cover Lessee’s personal assets.

X. TERMINATION

A. Termination Notice

Either party can terminate the Lease with ninety (90) days written notice. This provides ample time for both parties to make necessary arrangements.

B. Return of Premises

Upon termination, Lessee must vacate and return the Premises in its original condition, except for reasonable wear and tear. Lessor may use the security deposit to cover any necessary repairs or unpaid rent.

C. Tenant’s Property

Lessee must remove all personal property and equipment from the Premises upon termination. Any items left behind after termination will be considered abandoned and may be disposed of by Lessor.

XI. INDEMNIFICATION

A. Indemnification Clause

Lessee agrees to indemnify and hold harmless Lessor from any claims, damages, losses, or liabilities arising from Lessee’s use of the Premises. This clause protects Lessor from legal liabilities related to the activities conducted by Lessee.

B. Defense of Claims

Lessee agrees to defend Lessor against any such claims, including reasonable attorney’s fees and costs.

C. Limitations of Liability

The indemnification provided under this Agreement does not extend to damages or liabilities caused by the negligence or willful misconduct of Lessor.

XII. GOVERNING LAW

A. Jurisdiction

The Lease Agreement is governed by the laws of the State of Illinois. Any legal disputes will be resolved in Sangamon County, Illinois, ensuring a clear legal framework for addressing issues.

B. Dispute Resolution

The parties agree to attempt to resolve disputes through mediation before pursuing legal action, fostering amicable resolution.

C. Severability

If any provision of this Lease is found to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

XIII. ENTIRE AGREEMENT

A. Complete Agreement

This Agreement represents the entire understanding between the parties, superseding all prior negotiations and agreements. Amendments must be in writing and signed by all parties to be valid.

B. No Waiver

Failure by either party to enforce any provision of this Agreement shall not constitute a waiver of that provision or any other provision.

C. Binding Effect

This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns.

IN WITNESS WHEREOF, the parties hereto have executed this Lease Agreement as of the day and year first above written.

Lessor's Signature:

[Your Name]
[Job Title]
[Your Company Name]
[Month Day, Year]

Lessee's Signature:

[Name]
[Job Title]
[Your Partner Company Name]
[Month Day, Year]

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