Contracts built for Real Estate Professionals

Common questions from real estate professionals

What clauses should every residential lease include?

At minimum, a residential lease should cover the lease term and renewal process, rent amount and payment method, security deposit handling and return timeline, maintenance responsibilities for both landlord and tenant, rules about subletting and guests, and early termination conditions. Most jurisdictions also require specific disclosures — lead paint for pre-1978 buildings, mold, bed bugs, or sex offender registries — so your lease should be jurisdiction-aware.

How is a commercial lease different from a residential lease?

Commercial leases are less regulated and more negotiable. They typically include CAM (common area maintenance) charges, tenant improvement allowances, percentage rent tied to sales, and permitted-use clauses that restrict what business you can operate. Unlike residential leases, commercial leases often shift maintenance and insurance obligations to the tenant through triple-net (NNN) structures.

Do I need a separate NDA for real estate transactions?

Yes, especially for commercial deals. When sharing financials, tenant rolls, environmental reports, or deal structures with potential buyers or investors, a real estate NDA ensures that information stays confidential. This is standard practice in commercial real estate, and most serious buyers expect to sign one before receiving due-diligence materials.

What is a property management agreement and who needs one?

A property management agreement defines the relationship between a property owner and a management company or individual. It covers the manager's responsibilities (tenant screening, rent collection, maintenance coordination), fee structure (typically 8-12% of collected rent), spending authority limits, and reporting requirements. Any landlord who doesn't self-manage — whether they own one rental or a portfolio — should have this agreement in place.

How do I handle security deposits in my lease agreement?

Security deposit rules vary significantly by jurisdiction. Your lease should specify the deposit amount (many states cap this at 1-2 months' rent), the account where the deposit is held, allowable deductions, and the timeline for returning the deposit after move-out. Some states require landlords to pay interest on deposits or provide receipts. Using a jurisdiction-aware lease ensures your deposit terms comply with local law.

What should a real estate broker agreement cover?

A broker agreement should define the type of listing (exclusive right-to-sell, exclusive agency, or open listing), commission rate and when it's earned, the listing period and termination provisions, marketing responsibilities, and dual-agency disclosures. It should also address carve-out listings (buyers the seller already has a relationship with) and what happens if the property sells after the listing expires to someone the broker introduced.

Can I use the same lease template across different states?

Using the same template across states is risky because landlord-tenant law varies dramatically by jurisdiction. Security deposit limits, required disclosures, notice periods for entry, eviction procedures, and rent control rules all differ. Contract.DIY generates leases that incorporate jurisdiction-specific requirements, so your agreement is compliant with local law rather than a one-size-fits-all template.

What is a triple-net (NNN) lease and when should I use one?

In a triple-net lease, the tenant pays base rent plus all three net costs: property taxes, insurance, and maintenance. This shifts most operating expenses from the landlord to the tenant. NNN leases are common in commercial real estate for single-tenant properties, investment properties, and franchise locations. They're attractive to investors because income is more predictable, but tenants should carefully review expense caps and audit rights.