When renting out office, retail, or residential space in New York, you’ll need a free lease agreement. Preparing the document to protect the landlord from legal complications as well as ensuring the terms are clear and legally binding for the tenant is of utmost importance. However, there are a few essential aspects of the agreement that must not be overlooked if the document is to remain enforceable and valid. In New York, there are several critical aspects to consider in the creation of a free lease agreement.

Understanding the complexity of free lease agreements in New York can be a daunting task. A lack of knowledge of the locality’s property law could potentially lead to an agreement being rendered unenforceable and/or invalid. That’s why it’s always in your best interest to consult the services of an experienced business law attorney before developing and executing a free lease agreement.

So, what are the primary points to consider when creating a free lease agreement in New York?

1. Legal Language

It is absolutely essential to use legalese in free lease agreements made in New York. This is the form of language that legal advisors and other experienced lawyers understand and that can not be disputed in a court of law. Ensuring all terms in the document are written in legalese is the foundation for any formal contract.

2. Security Deposits

Security deposits are a common feature of free lease agreements. The deposit amount should be carefully thought out and specified in the document, as New York state has specific security deposit laws that must be adhered to for the document to remain legally binding and enforceable. A security deposit should not exceed one month's rent for unfurnished units, or two months rent for furnished units.

3. Tenant-Landlord Responsibilities and Rights

This is a momentous aspect of the document. It should provide a precise explanation of the rights and responsibilities of both the tenant and landlord. Things like rent collection, late payments and pet ownership should all be clarified in the agreement.

4. Background Checks

While not an obligatory component of a free lease agreement in New York, it is one that should be seriously considered. A background check paired with references can grant the landlord a better sense of the tenant they are dealing with.

5. Termination of the Agreement

Setting the terms of the agreement’s termination must be done in accordance with the law. It should be clear how much notice must be given by either party in order to effectively end the agreement. This will stop either party from having to pay unnecessary or unreasonable costs as a result of a lack of notice.

The main takeaway

In closing, free lease agreements in New York must be adequately prepared and constructed to be legally enforceable and valid. Making sure the agreement contains the correct legalese and understands both the landlord and tenant’s rights and responsibilities is fundamental to the success and longevity of the document. Background checks and termination of the agreement must also be considered. Consulting the services of an experienced business lawyer is highly recommended to ensure a comprehensive and legally binding free lease agreement.


Free Lease Agreement,

New York,

Business Law