This is a triple net lease between two Churches. A triple net lease is a lease agreement on a property where the tenant or lessee agrees to pay all Real Estate Taxes (Net), Building Insurance (Net) and Common Area Maintenance (Net) on the property in addition to any normal fees that are expected under the agreement (rent, etc.). In such a lease, the tenant or lessee is responsible for all costs associated with repairs or replacement of the structural building elements of the property.
Rhode Island Lease Agreement Between Two Nonprofit Church Corporations: A Comprehensive Guide to Documenting Lease Arrangements Introduction: A Rhode Island Lease Agreement Between Two Nonprofit Church Corporations serves as a legally binding contract that outlines the terms and conditions for the rental or leasing of a property between two nonprofit church corporations. This agreement allows for the smooth operation and efficient use of real estate by providing clear guidelines and responsibilities for each party involved. It is important to note that there may be different types of lease agreements tailored to specific needs, such as short-term, long-term, or sublease arrangements. Key Terms and Clauses: 1. Identification of Parties: The agreement begins by clearly identifying the two participating nonprofit church corporations involved in the lease agreement. This helps avoid confusion and establishes the legal entities bound by the contract. 2. Property Description and Use: The agreement provides a detailed description of the leased property, including its address, size, and any specific restrictions. It specifies the purpose for which the property will be used, ensuring it aligns with the nonprofit activities of the church corporations. 3. Lease Term: This section outlines the duration of the lease, whether it is a fixed term or a periodic tenancy. It includes the lease start and end dates, as well as provisions for renewal or termination options. 4. Rent and Payment Terms: The agreement defines the rent amount to be paid by the tenant church corporation and the frequency of rental payments (e.g., monthly, quarterly). It may also specify any additional charges, such as utilities, maintenance fees, or property taxes, and how these will be handled. 5. Maintenance and Repairs: This clause outlines the responsibilities of each party regarding property maintenance and repairs. It may specify that the tenant church corporation is responsible for routine maintenance while major repairs are the landlord's responsibility. Including expectations for property upkeep helps prevent disputes and promotes a harmonious landlord-tenant relationship. 6. Insurance and Liability: This section requires the tenant church corporation to provide adequate insurance coverage for the leased property, protecting both parties in case of accidents, damages, or other unexpected events. It may also include indemnification clauses to allocate responsibility for legal claims arising from the property's usage. 7. Alterations and Improvements: If the tenant church corporation is permitted to make changes or improvements to the property, this clause stipulates the required approvals, procedures, and whether any costs will be borne by the tenant or landlord. 8. Termination and Default: This section outlines the circumstances under which either party can terminate the lease agreement, such as non-payment of rent, breach of terms, or other specified events. It also details the procedure for giving notice and any penalties or remedies that may apply. Types of Rhode Island Lease Agreements between Two Nonprofit Church Corporations: 1. Short-Term Lease Agreement: This type of lease agreement typically spans a shorter duration, such as a few months or a year. It provides flexibility for shorter-term usage or temporary arrangements. 2. Long-Term Lease Agreement: A long-term lease agreement is usually established for an extended period, such as several years or even decades. This agreement provides stability and security for both parties involved. 3. Sublease Agreement: In certain situations, one nonprofit church corporation may lease a property from another nonprofit church corporation and then sublease it to another entity. A sublease agreement allows for the transfer of lease rights and obligations between the primary tenant and a subtenant. Remember, it is important to consult legal professionals, such as real estate attorneys, to ensure compliance with Rhode Island state laws and regulations when drafting a lease agreement between two nonprofit church corporations.
