Addendum

TXR 2119 — Commercial Lease Addendum for Contingencies

Addendum to a commercial lease that lets the Tenant terminate the lease, by notice to the Landlord before the applicable contingency period expires, if a checked contingency is not fulfilled — with the security deposit and any prepaid rent returned. Five standard contingencies, each with its own expiration date: A. Lender Subordination Agreement (Landlord obtains an SNDA from existing lienholders on terms reasonably acceptable to Tenant), B. Occupancy Certificate, C. Permits and Licenses, D. Sign Permits, and E. Title Review (Tenant may obtain a title commitment and survey; Landlord must cure disclosed defects 10 days before the period expires), plus a free-form "Other" contingency. Signed by Landlord and Tenant.

Source: TXR
Form Number: 2119
Category: Addendum
Revised: January 26, 2010

Used For

COMMERCIAL_LEASING

Form Outline

The TXR 2119 form is organized into the following sections:

  1. Leased Premises and Termination Right
    "ADDENDUM TO THE COMMERCIAL LEASE BETWEEN THE UNDERSIGNED PARTIES CONCERNING THE LEASED PREMISES AT ___" (repeats in the page 2 running header), followed by the printed rule: the lease may be terminated by Tenant upon notice to Landlord prior to the expiration of the applicable contingency period if the contingencies indicated below are not fulfilled, and Landlord then returns the security deposit and any prepaid rent.
  2. A. Lender Subordination Agreement
    Check the box to include this contingency. Tenant may terminate if Landlord fails to obtain a subordination, non-disturbance and attornment agreement (SNDA) on terms reasonably acceptable to Tenant from the holder of any existing mortgage, deed of trust or other lien; Tenant will sign the SNDA to evidence the subordinate position of the lease and its agreement to attorn.
  3. B. Occupancy Certificate
    Check the box to include this contingency. Tenant may terminate if a certificate of occupancy or similar certificate required by a local governmental agency prior to occupancy or operation is not obtained; if Tenant is responsible for obtaining it, only after diligent, good faith, commercially reasonable efforts.
  4. C. Permits and Licenses
    Check the box to include this contingency. Tenant may terminate if, after diligent, good faith, commercially reasonable efforts, Tenant is unable to obtain all governmental issued licenses, permits and approvals for the operation of Tenant's business in the leased premises.
  5. D. Sign Permits
    Check the box to include this contingency. Tenant may terminate if, after diligent, good faith, commercially reasonable efforts, Tenant is unable to obtain the governmental issued licenses, permits and approvals for Tenant's signs.
  6. E. Title Review
    Check the box to include this contingency. Tenant, at Tenant's expense, may obtain a title insurance commitment and a survey of the leased premises and may terminate if they disclose a defect or encumbrance to title, or other matters that would limit Tenant's use, and Landlord fails to satisfy such items 10 days prior to the expiration of the title review contingency period.
  7. E. Other (page 2)
    Check the box to add a custom contingency. The paper letters this paragraph "E." as well and prints no rules — the white space under the heading on page 2 is used for the terms.
  8. Landlord and Tenant (page 2)
    The Landlord and Tenant names and two "By: / By (signature): / Printed Name: / Title:" blocks per party. "By:" is the person or entity signing for the party (e.g. its manager or general partner); "By (signature):" is the e-sign line. No Date is printed beside any signature.

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