Demised premises: Overview, definition, and example
What are demised premises?
"Demised premises" refers to the portion of property that is leased or rented to a tenant under a lease agreement. It specifically denotes the space or area that the landlord has agreed to lease to the tenant for a specified term, and is typically defined within the lease contract. This term is commonly used in commercial real estate leases but can also apply to residential leases in some contexts.
For example, in a commercial lease, the demised premises might include a specific office suite or retail space that the tenant has the right to occupy and use for business purposes.
Why are demised premises important?
The concept of demised premises is important because it establishes the boundaries of the leased space and the tenant’s rights to that space. It helps define the area that the tenant is entitled to use and control, separate from areas that may remain under the landlord’s control (such as common areas or shared facilities). Understanding the demised premises is key to ensuring that both the landlord’s and tenant’s expectations and obligations regarding the leased property are clearly defined.
Understanding demised premises through an example
Imagine a company rents an office space in a building. The lease specifies that the demised premises include Suite 300, which consists of 2,000 square feet on the third floor of the building. The company is responsible for maintaining and using this space according to the terms of the lease, while common areas such as hallways and bathrooms remain under the control of the landlord.
In another example, a retailer leases a storefront in a shopping mall. The lease defines the demised premises as the physical store located in Unit 45. The retailer has exclusive rights to occupy and use this unit for selling goods, but the rest of the mall, such as walkways and parking lots, is not included as part of the demised premises and remains under the landlord’s control.
An example of a demised premises clause
Here’s how a clause related to demised premises might appear in a lease agreement:
“The Landlord agrees to lease to the Tenant, and the Tenant agrees to lease from the Landlord, the demised premises described in Exhibit A, consisting of [specify area, e.g., 2,000 square feet of office space] located on the [floor number] of the building at [address].”
Conclusion
The demised premises are the designated area of property that a landlord leases to a tenant. It defines the space the tenant has the right to occupy and use, setting clear boundaries for both parties’ rights and responsibilities under the lease. Whether for residential or commercial leases, clearly outlining the demised premises helps prevent disputes and ensures both the landlord and tenant understand their respective obligations regarding the leased property.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.