Description of Premises
The description of the premises should include an exhibit that describes the property with its legal description. The legal description should be taken from the last deed of record. The legal description should be more than a street address. Street addresses can change. The legal description should be more than the assessor's tax identification number or parcel number. Those can also change.
It is wise to obtain a title commitment from a local title company. This commitment will clearly show the tenant who owns the real property and how it should be described. We find it surprising that long term leases are sometimes signed without ever asking the questions:
- Does the landlord own the property?
- Are there any liens or easements on the property that could affect the lease?
- Is the property described correctly?
In some cases, the commercial lease is not of an entire parcel of property. In that case, the description should still include the legal description of the entire parcel along with a description of the premises. For example, the leased premises can be referred to as Suite ___, Building ____ or ___________ square feet of the Building.
If the lease is of a portion of the land or building, it is helpful to attach a schematic showing the leased premises.