How to write a land lease agreement

Written by mike broemmel
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In order to be enforceable and effective, a land lease agreement must contain certain provisions. Land lease agreements differ rather significantly from residential lease agreement and basic rental agreements for commercial property. The provisions included in a land lease agreement are of a more technical nature than those included in most other rental agreements in use in the U.S.

Skill level:

Things you need

  • Deed(s) to real estate
  • Written land lease agreement

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  1. 1

    Obtain the precise legal description of the real estate subject to the lease agreement. If there happens to be a "common address" (a street address or other public identifier), that can be included in the lease agreement. However, the legal description is required for a land lease.

  2. 2

    Include the exact legal names of the parties to the lease. In addition, note the address to which any notices or communications relating to the agreement are to be sent. Oftentimes the principle address of the lessee is not the rented premises.

  3. 3

    Establish the term of the land lease agreement. Specifically set forth the years or months the lease agreement is to be in effect. Note whether there is to an option to renew at the end of the first lease term.

  4. 4

    Confirm whether the lease agreement extends beyond the surface. In other words, specify whether mineral and other subterranean rights are included.

  5. 5

    Set forth a provision for how the real estate will be used. Include another provision establishing which party is responsible for real estate taxes during the term of the lease.

  6. 6

    Establish the parameters a renter must adhere to in regard to any improvements to the leased real estate.

Tips and warnings

  • If granted permission to make improvements at the premises, the tenant needs to strive for a longer lease term.
  • A land lease agreement is one of the most complex types of rental agreements. Therefore, your interests generally are best served if you engage an attorney experienced in real estate to draft or at least review a lease agreement for you.

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