Careful! Commercial Lease Conditions Vary by State
Careful! Commercial Leases Vary by State
Some states recognize verbal commercial leases for one year only, while others only require commercial leases for three years or more to be in writing. In North Carolina, a verbal lease for 1,000 days may be found to be enforceable.
Notarization – Some states require that a commercial lease of three or more years must be signed AND notarized in order to be valid.
Renewal options – Many states determine that a lease of a one-year term, with a three-year renewal option, is actually a four-year lease.
Terminating a month-to-month or year-to-year lease – Most states require 30-days’ notice to terminate a month-to-month tenancy. Year-to-year tenancies generally require a six-month notice, but some states require as little as a 30-day notice.
Some states’ Landlord Tenant Acts apply to both residential and commercial, while most only apply to residential.
Make sure you and/or your attorneys are referring to the appropriate real estate laws for the state the property is in.