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May 13

Written by: GCP Broker
5/13/2009 7:30 AM 

One of the first things you will encounter when reading any lease will be the introdcution.  There may be some legal language but within the first two or three sentences you should see something like "XYZ Incorporated, Landlord" and "ABC Company, Tenant". Now this is not an exact model, but what is imortant is that the parties are clearly identified. If you cannot clearly identify the parites after the first few parties, demand a cleare document.

Another issue that may arise in this section is when  a landlord or tenant is a recognized business entity, i.e. corporation, partnerhsip, LLC, etc.  In this instance it is irmportant that you verify the person signing the lease has the authority to sign the lease on behalf of the entity. This can be done by including it in the opening paragraphs, "comes now XYZ Incorporated, through its authorized representative, Joe Smith, President, ....." or by a formal acknowledgement of the entity such as a corporate resolution.  Either way make sure the person signing has the authority to sign and is identified somewhere in the lease.

Sometimes, the person signing for the entity will be another entity.  The same rule applies, make sure the signatory has the authority to do so.  "XYZ LLC, through its general parnter, QRS Inc."The correct document with the wrong signature will be an ineffective lease.

Always idenify the parties of the lease and the authority of parties.

 

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