Occupancy clause in lease If you are considering buying an investment property, check with your mortgage company first to see if they have an occupancy clause. Early Occupancy. Typically, this clause outlines the cir This use and occupancy clause may be included in a lease for a medical facility located in an office building, retail complex, or other property that does not traditionally house these facilities. For tenants, understanding these terms is crucial, especially when it comes to clauses—or the lack thereof—related to early termination. May 2, 2023 · Insert this use and occupancy clause into your lease for a medical facility located in an office building, retail complex, or other property that does not traditionally Occupancy Lease Sample Clauses Occupancy Lease. Commercial lease agreement clauses are vital in defining the landlord and tenant relationship. May 4, 2020 · Why are gross-up clauses used in leases? Gross-up clauses protect landlords from absorbing variable expenses when occupancy is low and provide tenants with more consistent budgeting. In most early occupancy cases, a landlord typically agrees to early occupancy as a way to encourage a tenant to sign Jul 10, 2025 · Learn about common lease agreement clauses that protect both landlords and tenants. A lease without an early termination clause can limit flexibility if circumstances change unexpectedly. This transaction purchases the tenant’s contractual right to occupancy for the remainder of their term. Rocheford, Jr. The lease should also detail the consequences of violating this clause, stating that adding unapproved occupants is a material breach of the agreement. This arrangement can be beneficial in This sample form is for reference and educational purposes only. And yet, the “gross up” concept continues to be misunderstood, and to confuse, perplex, and vex commercial leasing professionals engaged in drafting Jan 5, 2021 · Key Concepts Early occupancy is a benefit to the tenant, allowing them to access part or all a space they have leased prior to lease commencement. If Tenant shall perform all of the covenants and agreements herein required to be performed by Tenant, Tenant shall, subject to the terms of this Lease, at all times during the Lease Term, have peaceful and quiet enjoyment of the Premises against any person claiming by, through or under Landlord. g. In real estate transactions, occupancy clauses ensure that the property is used in accordance with agreed terms, providing clarity for both landlords and tenants regarding possession, usage rights, and responsibilities. That is, if the building is not fully occupied, the landlord is empowered to gross up or overstate the expenses as if the building is fully occupied (or nearly full). If RESIDENT should move from the premises prior to the expiration of this time period, he shall be liable for all rent due until such time that May 19, 2022 · If there is a gross-up provision in the lease, the landlord can project what the variable operating expense would be at full occupancy. These clauses define the rights and responsibilities of each party, covering fundamental aspects such as rent payment terms, maintenance duties, and security deposits. A Certificate of Occupancy Clauses: Contract for Real Property is a document that outlines the terms of a real property contract between two parties, typically a landlord and tenant. 2. Failure to comply with the occupancy restrictions can lead to eviction or legal action by the landlord. It's essential for tenants to read and understand these clauses before signing a lease, as they can significantly impact their living situation and legal responsibilities. Rent and insurance terms during early access must be clearly Oct 27, 2021 · Why? These courts are often swamped with lease cases and mostly rule in favor of the tenants (in this case, the seller). Aug 20, 2024 · ENFORCING OCCUPANCY POLICIES: STEPS AND FAIR HOUSING CONSIDERATIONS Now that you know the foundations of a good occupancy policy, it’s time to understand how to enforce it without inciting a violation. This document outlines both parties’ responsibilities and rights, ensuring no confusion or misunderstanding. Aug 3, 2024 · Early access provisions, also known as beneficial occupancy periods, provide tenants with entry to the leased premises before the official lease commencement date. Jun 9, 2016 · A continuous operations clause in a lease is a requirement that obligates the tenant to continuously operate its business throughout the term of the lease. Oct 27, 2022 · A temporary occupancy agreement is a contract between a buyer and seller that allows a buyer to use a occupy a for-sale property for a certain time period. Apr 16, 2025 · An example of a certificate of occupancy clause Here’s how a certificate of occupancy clause might appear in a lease agreement: “Tenant shall not occupy or commence operations at the Premises until a valid Certificate of Occupancy has been issued by the relevant authorities, confirming compliance with all applicable building and zoning laws. Jul 25, 2025 · To ensure clarity and enforceability, landlords should include a “Limits on Use and Occupancy” clause in their lease agreements, specifying the maximum number of permanent residents and outlining policies for guest stays. 16. 2 of the Standard Lease Provisions, Tenant shall have the right to enter the Datacenter Space for the purpose of installing and testing its Equipment and other Tenant ’s Personal Property therein during the period commencing on the Early Occupancy Date and ending on the day before the Commencement Date. Feb 24, 2025 · Understand Oregon’s occupancy laws for residential and commercial spaces, including zoning compliance, space requirements, and landlord-tenant regulations. The Possession and Occupancy clause defines when and under what conditions a tenant or buyer is entitled to take physical control and use of a property. Section 7. How an Occupancy Agreement See full list on printablesample. In practice, this means the occupant mus The Continuous Occupancy Clause is a lease provision mandating that tenants, especially anchor ones, must keep their retail spaces open and operational to maintain the shopping center's viability. Apr 17, 2024 · Learn about co-tenancy clauses in commercial leases: strategies for tenants based on occupancy of neighboring or anchor tenants. 6. If you are uncertain about the purpose or of any of these forms you should consult qualified legal counsel. Exclusive occupancy rights in leases can clash with licensing agreements that permit sublicensing or third-party use. They also prevent tenants from overpaying if base year expenses were calculated during a low-occupancy period. Typically, this clause restricts the tenant to certain type Oct 14, 2024 · Does your lease agreement actually protect you? Here are 9 little-known lease clauses that make a big difference in protecting landlords from common losses. Occupancy Agreements serve properties under temporary living and residential sharing plans and business operations. Rate: Most use and occupancy agreements state a fee from the homebuyer to the seller for the use and occupancy of the property. The clause sets forth the permitted use of the premises and includes optional language prohibiting specific uses which may be objectionable to the landlord. They provide tenants with remedies such as rent abatement or lease termination when agreed occupancy triggers—like minimum tenant presence or key anchor occupancy—are unmet. It seems like a concerning practice. Include an occupancy clause in the lease agreement to ensure every tenant knows your occupancy policies. Talk with a lawyer familiar with your state and local laws to determine which clauses are applicable to your location and situation. 4 Common Components of an Early Occupancy Provision Because each lease agreement is different, there is no standard structure for early occupancy provisions. Effective density negotiations require balancing lease flexibility with spatial constraints to accommodate fluctuating occupancy demands in co-working environments. 9. This clause states that only those listed on the lease (the tenants) and their minor children are allowed to live in the rental. Typically, it specifies the duration of occupancy, the rights and respo The Seller’s Post-Closing Occupancy clause allows the seller to remain in the property for a specified period after the closing date. Jul 16, 2025 · An occupancy agreement is a legal document granting a person permission to use a property for a specific period without the rights of a traditional lease. It establishes the terms for occupying a space, often for a short duration. How do termination clauses (e. There are two types of capped occupancy clauses: Downward-Only Capped Occupancy Clause: The maximum rent cannot exceed a certain percentage of the tenant’s sales. The Pre-Occupancy clause defines the terms and conditions under which a party may access or use a property before the official transfer of possession or closing date. However, recently, GSA stated that the Lessor cannot support the concession and are now taking it away. If you’re dealing with a co-op, make sure you check with the board’s bylaws. 20. Apr 11, 2025 · Conclusion Early occupancy allows tenants to move into a rental property before the official lease or rental period begins, providing flexibility for both parties. These clauses may trigger rent reductions, early termination rights, or lease modifications upon tenant defaults or occupancy declines. Jan 21, 2021 · A co-tenancy clause, sometimes called a co-tenancy provision, is language in a typical commercial lease agreement that provides the lessee (tenant) with rent relief or some other remedy if a certain number of tenants leave the property or if total occupancy falls below a certain level. Typically, this clause outlines t Commercial lease co-tenancy clause triggers activate tenant rights such as rent reduction or lease termination when specified co-tenants, often key anchor stores, close or fall below set occupancy thresholds. , utilities, janitorial) and that they don’t pay more than the landlord’s actual costs. Apr 22, 2024 · The duration is a critical distinguishing factor between a use-and-occupancy agreement and a lease. Lease Termination Agreement: "Upon termination of the lease, the tenant must vacate the premises and cease occupancy by the specified date. In practice, The "Limits on Use and Occupancy" clause defines the specific ways in which a leased property may be used and who is permitted to occupy it. Mar 23, 2025 · Tenants should ensure these clauses apply only to occupancy-dependent expenses (e. TENANT EXPRESSLY ACKNOWLEDGES AND AGREES THAT THE PREMISES ARE BEING LEASED AND ACCEPTED IN THEIR "AS IS, WITH ALL FAULTS" CONDITION, WITHOUT REPRESENTATION OR WARRANTY OF ANY KIND, AND SUBJECT TO ALL APPLICABLE LAWS, RULES AND ORDINANCES, INCLUDING, WITHOUT LIMITATION, ZONING ORDINANCES AND REGULATIONS GOVERNING THE USE, OCCUPANCY OR POSSESSION OF THE PREMISES OR LICENSED AREAS Feb 5, 2025 · Explore the legal nuances and implications of use and occupancy versus rent, focusing on payment obligations and their role in eviction cases. The Delay of Occupancy clause defines the procedures and consequences if the scheduled date for a tenant or buyer to take possession of a property is postponed. Nov 19, 2024 · This clause should outline the expected number of occupants in the rental, as well as policies regarding adding new tenants to the lease and hosting long-term guests for extended periods. Tenants acknowledge that this lease is between Landlord and each tenant executing this lease, jointly and severally, whether or not in actual possession of the leased premises. Typically, thi Occupancy After Lease Expiration In the event of a continued occupancy after lease expiration, the tenant agency will continue to be financially responsible for the pass-through of the lease contract rent, the PBS lease fee, and any additional costs incurred by PBS resulting from lease renewal, extension, replacement, holdover or condemnation. DELAY OF OCCUPANCY OR INCONVENIENCE PARTIAL OCCUPANCY OR USE § 9. While such periods are often treated Early Occupancy If Tenant occupies the Property prior to the Commencement Date, Tenant's occupancy of the Property shall be subject to all of the provisions of this Lease. Typically, this clause outlines the duration of the seller’s continued occupancy, any rent or security deposit required, and the responsibilities for utilities and property condition during this time. Apr 27, 2017 · The landlord benefits by a gross-up clause in the lease when vacancy is low in a building because it shifts some of the operating expense vacancy cost to the tenants who are under lease in the building. These clauses outline access scope, duration, permissible activities, and liability allocations, aiming to balance tenant convenience with landlord protections. THE GRANTING CLAUSE A lease is an agreement whereby one party (called the “landlord” or “lessor”) grants a right of possession in a particular piece of property (typically called the “premises” or “leased premises”) to another party (called the “tenant” or “lessee”). 1. MULTIPLE OCCUPANCY. This arrangement offers a flexible alternative for property owners and occupants when a formal tenancy is not practical or necessary. These limits define the maximum number of individuals who can reside in a rented property, safeguarding the interests of all parties involved. 001 of the Texas Property Code defines a lease as “any written or oral agreement between a landlord and tenant that establishes or modifies the terms, conditions, rules, or other provisions regarding the use and occupancy of a dwelling. For example, a commercial lease might limit use to retail purposes, prohibiting industrial activities. As a result, before signing a lease agreement, it’s crucial to review and understand the occupancy restrictions. Customize and download a legally binding agreement to define tenant and landlord obligations, terms and conditions, and more. Jul 26, 2024 · If you are considering buying an investment property, check with your mortgage company first to see if they have an occupancy clause. What Is a Good Occupancy Rate? An occupancy rate is the number of units in a rental property leased and occupied by tenants divided by the total number of units in the property. Pursuant to the Lease Agreement, only the individuals approved by the University with a current additional occupant addendum may reside in the apartment with the lease holder. What terms are in a Use and Occupancy Agreement? There is definitely no “standard form” use and occupancy agreement, however; there are several common provisions in a use and occupancy agreement. The Continuous Occupancy clause requires that a property be occupied without significant interruption for a specified period, typically by the tenant or owner. The Maximum Occupancy clause sets a limit on the number of individuals who may be present in a specified space at any given time. This agreement allows the seller to remain in the home for a very specific timeframe after the transfer of ownership, usually under conditions similar to a short-term lease. Simplify the process of renting or occupying a property with our comprehensive collection of templates. This access period allows tenants to prepare the space for their intended use, such as installing fixtures, equipment, or making necessary modifications prior to commencing business in the space. These clauses may apply to commercial or residential leases and often require the terminating party to give advance notice and/or pay a penalty or fee. 1 The Owner may occupy or use any completed or partially completed portion of the Work at any stage when such portion is designated by separate agreement with the Design-Builder, provided such occupancy or use is consented to, by endorsement or otherwise, by the insurer providing property insurance and authorized by public Discover a variety of occupancy agreement templates tailored for various locations and rental scenarios. The OA must be agreed to by GSA and the customer agency prior to GSA's commitment of funds for occupancy and formal assignment of space. Apr 2, 2024 · Indemnification Like the waiver of subrogation provision, this lease clause impacts and potentially limits or expands a party’s liability under the lease, allocating risk between the landlord and tenant upon the occurrence of certain preapproved incidents or categories of harm. This clause includes practical guidance Jun 18, 2025 · As a Landlord/Investor, is it a good idea to use “Occupancy Agreements” instead of the more common “Lease Agreement”? The thinking behind this idea goes like this: with an Occupancy Agreement, you won’t be bound by Ontario’s Landlord and Tenant Board and the regulations it has regarding the treatment of Tenants. A lease termination clause is a provision within a lease agreement that allows either the landlord, tenant, or both to end the lease early under specified circumstances. Apr 4, 2025 · Occupancy is important because it determines who has the right to use or inhabit a property and under what conditions. This clause states that the only residents in the rental will be the adults signing the lease and their minor children. Occupancy Agreements After Closing When a seller occupies a property after closing, a post-occupancy agreement is used. Typically, this clause outline Early Occupancy Period. Occupancy shall be no more than allowed by applicable housing codes and zoning ordinances and shall be limited to the persons who have signed this lease or acquired legal rights of oc Key Takeaways Occupancy clauses often restrict tenant activities, while usage licensing terms may allow broader or different uses, causing conflicts. Dec 28, 2016 · Learning commercial real estate as-is sample provision for CRE broker training and negotiating commercial leases through Leasing REality. Many commercial leases, es