Dancing Rabbit Land Trust lease agreement
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Sample Standard Lease Agreement
Dancing Rabbit Land Trust, Inc.
General Terms
This is an officially binding legal document, consisting of ___ pages, between Larry Smith and the undersigned lessee or lessees (referred to below as "lessees"), In this document, Larry Smith agrees to lease certain property located in Van Zandt County, Texas, according to the terms set forth below. This lease and its terms as described below is made on this day, .
The present address of said lessees is ______________________________________________________________________________________________ .
Larry Smith is Owner/administration of the land to be leased, for the benefit of lessees and future generations. The lessees share the purposes and goals of Larry Smith and have agreed to enter into this lease not only to obtain those certain benefits to which the lessee is entitled to by this lease, but also to maintain fence and grasslands.
Larry Smith and the lessees, for themselves and their respective heirs, executors, administrators, successors and assigns, mutually covenant and agree to the terms of this lease. During the lease term described below, Larry Smith leases unto lessees and lessees accept from Larry Smith, upon the terms and conditions in this lease, sole possession and occupancy of the parcel of land located as shown on the site plan attached to this lease. This parcel of land is known as J. B. Y'barbo Survey abstract no. 980.
The lessees' interest in their parcel, as regarding this lease, will be referred to as “lessees interest” and the parcel of land itself shall be referred to as the “leasehold premises” or the “leasehold”.
Lease Term
The term of this lease shall be the period of _________ year(s) beginning at noon on the day of _______ and ending at noon on the day of ____________. Unless so terminated according to provisions of this lease, it may be renewed by the lessees or their heirs at the end of this term and all subsequent terms for another such period under the terms described below. This lease shall in no way be construed to represent a purchase agreement.
Lease Renewal
Unless the lease is terminated before the end of the lease term, lessees shall have the option of a renewal of this lease, upon these terms or upon such modification of these terms as may be mutually agreed upon by both Larry Smith and lessees. The terms, rights and obligations of this lease, or of any renewal, shall be binding upon the named parties, or upon any successors to either. Larry Smith reserves the right to make changes in its leasing structure, affecting broadly leaseholders in general of Larry Smith, that may be incorporated into this lease agreement upon the renewal of this lease.
Lessees' Rights and Responsibilities
If several lessees cosign this lease, they are jointly and severally responsible for honoring the terms, obligations, and restrictions described herein. The number of cosigners to this lease shall not exceed five (5).
Lessees may transfer, assign or otherwise encumber any of their rights to interests in the leasehold premises only with prior consent in writing from Larry Smith and in accordance with the provisions of this lease.
The lessees shall safeguard the leasehold premises against damage, waste or trespass and shall hold harmless the Larry Smith from any liability or loss thus incurred.
Lessees shall use the leasehold premises in a socially responsible manner, causing no real harm and creating no serious nuisances to neighbors. Lessees shall take responsibility for the use of the leasehold premises by members of their family, friends or visitors, and shall make them aware of the spirit, intent and appropriate terms of this lease.
Lessees agree to secure Verbal consent from Larry Smith for any uses which are possibly inconsistent with the purposes, conditions and restrictions of this lease.
The rights and responsibilities of lessees as defined in this lease apply to the leasehold only. No rights over land owned by Larry Smith, not part of the leasehold, are conveyed by this lease.
Lessees will allow authorized agents of Larry Smith to enter leasehold for the purpose of verifying compliance with the terms and restrictions of this lease, and only to those listed here ___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________.
Certain powers over the leasehold are reserved by Larry Smith and are not granted to lessees as part of this lease without specific consent in writing from Larry Smith. These powers include but are not limited to: road building, granting of easements, creation of land conservation areas, mining rights, and any other such restrictions, codes, or ordinances as may be adopted by Larry Smith in the future.
Certain other powers over the leasehold are reserved by Larry Smith, but may be assumed by lessees until such time as specific notice is given by Larry Smith that these powers are restricted or reserved by Larry Smith. Assumption of these powers by lessees in the absence of such restrictions by Larry Smith does not prevent Larry Smith from restricting or reserving these powers at any time. These powers include but are not limited to: harvesting of timber, wildcrafting or other collection of wild plants, use of surface water, including blockage of streams, and any other such restrictions, codes, or ordinances as may be adopted by DRLT in the future.
Termination of Lease
The lessees may terminate this lease at any time and for any reason, provided (1) that they give Larry Smith notice in writing not less than sixty (60) days prior to their intended termination date; and (2) that they have disposed of their personal property and improvements as stated below.
Upon termination of the lease, lessees are responsible for selling or removing personally owned improvements. The selling price for said improvements shall be no higher than five percent (5%) above the Fair Market Value of the improvement excluding consideration for the market value of the land. If Larry Smith and the lessees cannot agree on a Fair Market Value, appraisers shall be selected following procedures prescribed for selecting arbitrators (included in lease, below). The price set by the appraiser(s) shall constitute Fair Market Value. Buyer of lessees’ improvements must be a lessee of Larry Smith, or must remove improvements before termination of lease. Larry Smith retains first option to buy any or all improvements at price set by lessees, subject to the limitations above. Larry Smith will respond to the lessees offer to sell within thirty (30) days.
If and when the lessees make final notice of termination of this lease, the lessees will make every effort to sell their improvements and leave the leasehold without damaging or defacing the leasehold in any way. During this time, all provisions of this lease agreement shall remain in effect inclusive of payment of lease fees and all other obligations stated in this lease. Once sale and transfer of any improvements on leasehold is completed and closed according to the provisions of this lease, the lessees and Larry Smith may declare final termination of the lease.
Larry Smith may terminate this lease, at its discretion, in the event the lessees have:
- violated any of the provisions of this lease; or
- used the leasehold in any manner seriously detrimental to the ecological integrity of the land, the surrounding community or the inherent interests of future leaseholders; or
- failed to pay the lease fee within thirty (30) days of notification, by registered mail or similar process, that it is overdue, or failed to request and receive a legally binding reduction or waiver of the fee from Larry Smith; or
- been absent from the leasehold for at least six consecutive months, unless previously otherwise agreed with Larry Smith. Larry Smith shall make reasonable arrangements with the lessees for necessary absences, provided the lessees have a firm intention to return to the leasehold. Should the lessees be absent from their leasehold for a period of six consecutive months without notice or arrangements with Larry Smith, Larry Smith after reasonable effort to contact lessees may declare the leasehold abandoned, terminate the lease and take possession of the lessees property, buildings and improvements. On such occurrence, Larry Smith may charge the lessees reasonable storage charges or cleanup costs related to the process of restoring the leasehold to its original condition. Notice shall be given via registered mail or similar process at least thirty (30) days before such declaration is made by Larry Smith. Notice will be sent to the contact address that lessees have provided to Larry Smith; Providing this address and being responsible for its accuracy is the responsibility of the lessees; or failed to comply with any ruling or judgment made through the process for arbitration of disputes or grievances hereinafter provided. However, Larry Smith shall not terminate the lease without first giving the lessees a thirty (30) day notice, citing the cause of termination, and granting an opportunity to correct their default. Lessees may request arbitration of any issues relating to the cause of termination at any time within the thirty (30) day period before termination occurs according to provisions herein.
If this lease is terminated for any reason, the lessee is entitled to the value of their interest in any buildings or improvements on the leasehold covered by this lease, as described below.
If Larry Smith terminates or does not renew this lease, the lessee must vacate the leasehold and premises within sixty (60) days, with the provisions of this lease still in effect during this time. If the lessee does not, Larry Smith may: (1) take any legal action necessary to remove all remaining persons and/or property from the leasehold; and (2) by public or private sale dispose of the lessees’ interests in buildings and improvements at the best price obtainable under distress circumstances.
Proceeds from the sale will be applied in this order: (1) to any amounts owed to Larry Smith, include storage and cleanup costs incurred in the process of returning the leasehold to its original condition; (2) to the holder of any lien against buildings and improvements; (3) to the cost of the sale; (4) to the lessee. If Larry Smith does not receive enough money/proceeds from the sale to cover all claims against the leasehold, the lessees will be personally and jointly liable for the difference.
Larry Smith will not be liable to prosecution for damage for taking any of the above actions.
Addition or Removal of Cosigner from Lease
In the case of a lease with fewer than five (5) cosigners, additional cosigners may be added to the lease at the mutual consent of lessees and Larry Smith, so long as the total number of signers on the lease does not exceed five (5). In the case of a lease which has more than one signer, the names of one or several cosigners may be removed from the lease at the mutual consent of all lessees and Larry Smith, so long as one lessee remains a signer of the lease. In such case, remaining lessees shall be responsible for all terms and conditions set out in the original lease, including any ongoing fees as described in this lease and outstanding obligations that may remain.
Transfer upon Death of Lessees
Upon the death of the last surviving lessees, Larry Smith shall agree to lease the leasehold (provided all conditions set forward in this lease are agreed to) to one or more of the following:
- The spouse or domestic partner of the lessee; or
- The child or children of the lessees; or
- Member(s) of the lessees’ household or residential group.
In so doing, Larry Smith shall take into consideration the expressed wishes, if any, of the lessees of this lease, and the relative needs and abilities of their successors to make responsible use the leasehold.
Upon such death, Larry Smith must receive written application from one of above listed within sixty (60) days of date of death, indicating desire to continue to lease leasehold for the remaining duration of the lease term. If such application is not received, leasehold shall revert to Larry Smith with proper notice as described above.
Lease Fee
In return for such possession, occupancy and use of the leasehold, described as J.B. Y'barbo Surbey abstract no 980, the lessees shall pay the following lease fee: Lessees pay in advance a fee of $ __1.00_____ per acre, per year, equal to one year’s fee on named J.B. Y'barbo Survey, before the date named as the start of the term of this lease, and Lessees pay an anual fee, due on the date of contract each year preceeding. This fee is set by Larry Smith. This fee is currently set at $1.00 per acre at 29 +/- acres.
In the event that the lessees overpay Larry Smith for the leasehold, the lessees may receive the unused balance from Larry Smith within thirty (30) days of the termination of this lease. In the event that Larry Smith terminates the lease according to the provisions of this lease, no unused portion of a lease prepayment can be returned until Larry Smith determines that a satisfactory settlement has been reached with the lessees.
