How to Choose a Sample Triple Net Lease: What you don’t know can hurt you

November 1, 2008 by Admin · Leave a Comment
Filed under: Commercial Real Estate 

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

So you’re searching online for a sample triple net lease to find out what this type of lease is all about and maybe use the sample in your own investment plans. While an online search for a sample triple net lease may sound like a logical thing to do, there are two problems with this strategy. First of all samples of this type of lease is as rare as hen’s teeth on the Internet. Now that’s not really a huge problem. If you’re willing to do a little hunting around, you’ll eventually track down a few. And that’s when the problems arise. How do you know the samples you’ve found accurately represent what a triple net lease should contain? Moreover, how can you be sure that what’s in the sample lease covers everything you’ll need in your own lease agreement?

Unless you’re already an expert at dealing with the triple net lease (in which case, you probably wouldn’t be looking online for samples), there are a lot of elements in a sample lease that can trip you up. To avoid trouble in the future, the wording of financial obligations must be clear and precise.

Keep in mind that a triple net lease obliges the lessee to pay all costs associated with the building. That includes things like utility bills and building repairs, which can vary dramatically depending on how the property is being used. Now if you end up with a loop-hole in your lease that lets the lessee off the hook for, say, certain kinds of building repairs, can you imagine what could happen?  It’s not so bad if you’re the one leasing the property. If you’re the owner, though, you could be in for a major hit to your bank balance.

Needless to say, a lease document isn’t something you want to cut corners on. A single error could cost you thousands in various fees, not to mention the headaches and hassle that go along with trying to get misunderstandings ironed out and rewrite the lease so that all parties involved are satisfied with then new wording.

Quite often, it’s not particularly safe to depend on the Internet for getting correctly worded legal forms. There are too many people out there who build sites just for the money and have no concern for whether you get accurate lease forms or not. That fact that you could lose serious money because of an error they left in their sample form is of no concern to them.

That doesn’t mean there aren’t any good places where you can find a sample triple net lease online, though. If this is your goal, seek out high quality sites specifically designed to help commercial real estate investors, the business sites of a commercial real estate agencies, or the personal Web sites of a commercial real estate investors. All these places can be excellent sources of forms because the people behind the sites truly understand real estate investing and, because they’re trying to run a business online, it’s in their best interest to make sure you get a quality product.

A sample triple net lease is hard to find online and a good one is even hard to find. If you need a quality sample triple net lease, though, check the Web sites of commercial real estate agents and sites for real estate investors and you’ll be able to find a sample you can use.

Reblog this post [with Zemanta]