Commercial Premises Lease Agreement

Commercial premises lease agreement – a professional template in Word format

A commercial premises lease agreement is the basic document with which the lessor and the lessee regulate every essential question about the use of an office, a retail unit, a warehouse or other business premises. Our template contains 14 clearly structured articles – from the subject of the lease with land registry details, the intended use of the premises, the rent and the deposit, through utility costs, the building reserve fund, maintenance, insurance and the energy performance certificate, to subletting, termination, handover and a built-in clause on solemnization and enforceability. It is equally suitable where the premises are let by a private individual (a private owner of a retail unit or an office) and where they are let by a company or a sole trader, and it also suits anyone looking for a business premises rental agreement, because where business premises are concerned the legal arrangement is always a lease (zakup).

Leases of business premises in Croatia are governed by the Obligations Act (Zakon o obveznim odnosima) as the general legislation and by the Act on the Lease and Sale of Business Premises (Zakon o zakupu i kupoprodaji poslovnoga prostora) as the special act. The special act expressly provides that a lease agreement is concluded in writing, which is why a good written template is the necessary foundation of every lease relationship.

Key features

• Professional template – drawn up in line with the Obligations Act (Zakon o obveznim odnosima) and the Act on the Lease and Sale of Business Premises (Zakon o zakupu i kupoprodaji poslovnoga prostora), with clearly marked places for entering details.
• Practical reliability – it covers situations from real practice: protection of the lessor in the event of non-payment, the lessee’s right to undisturbed use, and optional clauses on signage, insurance and investment in the premises.
• Easy customisation – a fixed or open-ended term, rent with or without VAT, the allocation of utility costs and the terms of subletting are all adapted in a few minutes.
• Digital availability – the document arrives by e-mail immediately after payment, in Word (DOCX) format ready for editing, printing and solemnization.

What the commercial premises lease agreement includes

• The subject of the contract with full land registry details (land registry folio, cadastral parcel number, cadastral municipality) and the deadline for handover into possession
• The intended use of the premises, the permits for the activity and an optional clause on displaying signage on the facade
• The duration of the lease for a fixed or open-ended term, with a notice period
• The rent with an indication of VAT, annual indexation and default interest in the event of late payment
• The deposit with the deadline and terms for its return, and the obligation to insure the premises
• The allocation of utility costs and of the building reserve fund, and of routine and capital maintenance
• A prohibition on subletting and on alterations without the written consent of the lessor
• The grounds for terminating the contract, service of notices by e-mail and a mandatory handover record with meter readings
• The energy performance certificate, force majeure and a built-in clause on solemnization and enforceability (Article 13)

Advantages of using this template

1. Saving time and money – instead of drafting a contract from scratch or paying for the whole document to be drawn up, you get a finished structure that you simply fill in with your own details.
2. Legal certainty – every essential clause required by the Act on the Lease and Sale of Business Premises is in one place, so you do not risk a contract that produces no legal effect.
3. Protection for both parties – the security deposit, default interest and the grounds for termination protect the lessor, while the clauses on maintenance and undisturbed use protect the lessee.
4. Instructions for completion – the template comes with a list of practical checks: the energy performance certificate, the land registry status, the authority of the signatories and VAT status.
5. Ready for the notary public – the clause on solemnization and enforceability is already built into the text (Article 13), so you can take the document for solemnization without any changes and obtain direct enforceability.

Why written form is mandatory for a lease of business premises

Unlike many other contracts where written form is only a recommendation, for a lease of business premises it is a statutory condition of validity. An oral agreement on the lease of a retail unit or an office, however detailed, is worthless before a court. That is why a properly drafted written contract is the first and most important step in every lease relationship, and solemnization before a notary public is an additional layer of protection that allows the lessor to obtain eviction and payment without lengthy litigation.

Important – a commercial premises lease agreement must be concluded in writing, otherwise it produces no legal effect. That is why this template already contains a built-in clause on solemnization and enforceability (Article 13) – you simply take the signed contract to a notary public for solemnization.

Who is this template intended for

• Owners of business premises, both private individuals and companies, who let an office, a retail unit, a warehouse or hospitality premises
• Sole traders and companies taking premises on lease who want clearly defined rights and obligations
• Estate agencies that broker leases of business premises
• Accounting services and property managers who prepare lease documentation for clients

If you are letting an apartment to a private individual for residential use rather than business premises, see our apartment lease agreement template, which is adapted to the Residential Lease Act (Zakon o najmu stanova).