This is a basic business point that defines who is the Tenant (Lessee) and who is the Landlord (Lessor). While this section may seem insignificant be sure to look at the names carefully as mistakes can be made and be costly. Each party should investigate and determine that the correct party has signed the lease and agreed to be bound to perform the obligations under the lease, and that those obligations will be enforceable if a default occurs. Basically, you want to know who to go after in the event of a default or other situation. Don’t confuse owners with landlords or management companies. Because owners can delegate their power to 3rd parties to lease property on their behalf, owners are often not the ones to negotiate and sign lease contracts. Owners of properties can be set up as individuals, corporations, or LLC’s. Make sure that whoever signs the lease as the Lessor is the actual owner or is a 3rd party that has a corporate resolution in place that gives them the right to sign a lease on behalf of the owner. As a Tenant who has a corporation or LLC set up, however doing business as a different name, it’s always a good idea to identify your business as the corporation or LLC to avoid any confusion.
If you have questions about commercial lease agreements in general or about your specific Austin Office Space Lease feel free to contact us.