A Texas commercial lease agreement is a binding contract for a tenant to lease retail, office, or industrial space. The agreement sets the responsibilities and rights for both landlords and tenants, as well as details about rent, deadlines, penalties, and other items.
The Texas law that governs commercial leases is Texas Property Code Title 8, Chapter 93. These types of leases are longer and more complicated than a residential lease, so consulting with a lawyer is advisable.
Texas Commercial Landlord Tenant Laws
The following are landlord tenant laws that apply to commercial properties in Texas:
- Arbitration of Disputes – Commercial property disputes are often handled through arbitration, due to the Texas General Arbitration Act. If arbitration is mentioned anywhere in the lease, landlords should also include an Arbitration of Disputes disclosure. When signed by both parties, this form will mandate arbitration, with the results being binding on everyone.
- Written Contracts – Any lease agreement of more than one year must be written, according to the Statute of Fraud
- Storage of Property – In the event that the premises are abandoned, any property of the tenant may be removed and stored for 60 days, after which it can be disposed if it remains unclaimed.
- Security Deposit – Commercial security deposit refunds (if applicable) must be returned within 60 days of the tenant leaving the premises.
Writing Texas Commercial Lease Agreements
An Alabama commercial lease agreement should generally contain the following:
- Landlord’s and property manager’s (if applicable) name and contact information
- Tenant’s name and contact information
- Description of the lease property
- Authorized use of the lease property
- Type of lease (gross, modified-gross, or triple-net)
- Lease term and start date
- Option to renew the lease (if any)
- Penalty for late/non-payment of rent
- Eviction process
- Designation of the responsible parties for certain expenses and utilities
- Security deposit and refund policy
- Permissible leasehold improvements
- Landlord and tenant contact information and form for legal service
- Place for the notarized signatures of all parties
- Miscellaneous terms specific to the lease
Sources
- 1 Civil Practices and Remedies Code Title 7, Chapter 171, Subchapter A
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ARBITRATION AGREEMENTS VALID. (a) A written agreement to arbitrate is valid and enforceable if the agreement is to arbitrate a controversy that:
(1) exists at the time of the agreement; or
(2) arises between the parties after the date of the agreement…
Source Link - 2 Business and Commerce Code Title 2, Chapter 26
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(b) Subsection (a) of this section applies to…a lease of real estate for a term longer than one year…
Source Link - 3 Texas Property Code - PROP § 93.002
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A landlord may remove and store any property of a tenant that remains on premises that are abandoned. In addition to the landlord’s other rights, the landlord may dispose of the stored property if the tenant does not claim the property within 60 days after the date the property is stored.
Source Link - 4 Property Code Title 8, Chapter 93.005
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The landlord shall refund the security deposit to the tenant not later than the 60th day after the date the tenant surrenders the premises…
Source Link
