Commercial Leases: How State Laws Can Vary and Affect Your Lease

Similar to any other contract between two or more parties, a commercial lease must contain essential terms between the parties to be found valid and enforceable. But does a commercial lease need to be in writing? Does the length of the lease affect the requirement for a lease to be in writing? What’s the effect if a lease is found void? In short – say it with me, lawyers – it depends.

Although Not Always Required, All Leases Should Be in WritingThe statute of frauds requires specific agreements to be in writing, and if they’re not in writing, the agreement would be unenforceable and void. One specific agreement that must be in writing is a lease with a duration of one or more years, at least in most states. Some states have enacted laws requiring a lease need only be in writing if the duration is three years or more. Regardless of your state’s requirements, it is imperative to have your lease in writing. Why? Because stuff happens. People change. Profit margin fluctuates…