What is a lease abstract?
An abstract is a simple summary of complex language. The goal is to focus attention on the important points.
As an example, the tenant’s insurance provision may look like this:
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“11. LIABILITY AND CASUALTY INSURANCE: Tenant shall, at Tenant’s expense, obtain and keep in force during the term of this Lease a policy of comprehensive general liability insurance, including personal injury liability, contractual liability, and completed operations liability (if applicable), insuring Landlord and Tenant against any liability arising out of the use, occupancy or maintenance of the Premises. Such insurance shall be in the amount of not less than One Million and no/l00ths Dollars ($1,000,000.00) for bodily injury and property damage for anyone accident or occurrence. Fire Legal Liability insurance with extended coverage in an amount of not less than Fifty Thousand and noll OOths Dollars ($50,000.00) shall also be obtained and kept in force during the term of this Lease at Tenant’s expense. The limit of any of such insurance shall not limit the liability of Tenant hereunder. If Tenant fails to procure and maintain such insurance, Landlord may, but shall not be required to, procure and maintain the same, at Tenant’s expense to be reimbursed by Tenant as Additional Rent within ten (10) days of written demand. All insurance required to be obtained by Tenant hereunder shall be issued by companies acceptable to Landlord. Thirty (30) days prior to the Lease Commencement Date, Tenant shall deliver to Landlord certificates of liability insurance required herein with loss payable clauses satisfactory to Landlord. Any deductible under such insurance policy in excess of One Thousand and no/l00ths Dollars ($1,000.00) must be approved by Landlord in writing prior to issuance of such policy. No policy shall be cancelable, allowed to lapse and/or expire and/or be subject to reduction of coverage except upon thirty (30) days’ prior written notice to Landlord. All such policies shall name Landlord as additional insured and shall be written as primary policies not contributing with and not in excess of coverage which Landlord may carry. The policy limits set forth herein shall be subject to periodic review, and Landlord reserves the right to require that Tenant increase the liability coverage limits if, in the reasonable opinion of Landlord, the coverage becomes inadequate and is less than commonly maintained by tenants making similar uses in the area of similar buildings.” |
But, the abstract looks like this:
“Lease, p.12, s.11: TT ’s CGL including PI, contractual + completed operations liability >$1MM per occur; Fire with extended coverage >$50,000; All Risk at full replacement value; and Business Interruption and/or Loss of Rental Insurance =6 months Rent and Additional Rent. LL as additional insured and may not be cancelled, reduced, allowed to expire or lapse w/o 30 days prior written notice to LL. Deductibles <$1K to be approved by LL.”
The parking clause might look like this:
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45. PARKING. Tenant’s occupancy of the Premises shall include the non-exclusive use of up to 3.5 parking spaces per 1,000 square feet leased which shall be used in common with other tenants, invitees and visitors of the Building at no charge. Tenant shall have the right to park in the Building parking facilities in common with other tenants of the Building upon such terms and conditions, including the imposition of a reasonable parking charge, if the same is established by Landlord at any time during the term of this Lease. Tenant agrees not to overburden the parking facilities and agrees to cooperate with Landlord and other tenants in use of the parking facilities. Landlord reserves the right in its absolute discretion to determine whether the parking facilities are becoming overburdened and to allocate and assign parking spaces among Tenant and other tenants, and to reconfigure the parking area and modify the existing ingress to and egress from the parking area as Landlord shall deem appropriate. Landlord will not charge the Tenant a parking charge during the initial term of this Lease.
But, in abstract form:
Non-exclusive use of 3.5 spaces per 1,000sf @ a reasonable charge, if imposed. |
