Description of premises: Overview, definition, and example
What is description of premises?
A description of premises refers to the detailed information provided in a contract or agreement that specifies the location, characteristics, and features of a property or space being leased, sold, or used for business operations. This description helps clarify the exact nature of the property involved, ensuring that both parties have a mutual understanding of what is being referred to in the agreement.
For example, in a lease agreement, the description of premises might detail the address, floor number, square footage, and any specific areas that are included or excluded from the rental space.
Why is description of premises important?
The description of premises is important because it ensures that there is no ambiguity about the property involved in the contract. This detailed information helps protect both parties by clearly defining what is being rented, sold, or used. It can prevent disputes by providing a reference point for issues related to boundaries, maintenance responsibilities, or property features. A well-drafted description of premises reduces the chance of misunderstandings or disagreements during the course of the agreement.
Understanding description of premises through an example
Let’s say a business enters into a lease agreement for office space. The description of premises would clearly outline the office's location (e.g., "Suite 300 on the third floor"), the total area (e.g., "1,500 square feet"), and any shared or common areas (e.g., "shared restroom facilities on the same floor"). By including this information, both the landlord and tenant have a clear understanding of what space is being leased.
In another example, a property sale agreement might include a description of premises that specifies the land area, any buildings or structures on the property, and boundaries or easements that affect the property.
An example of a description of premises clause
Here’s how a description of premises clause might appear in a contract:
“The Premises are located at [Insert Address], consisting of approximately [X] square feet of office space, located on the [X] floor of the building, with shared access to common areas including [Insert Common Areas].”
Conclusion
The description of premises provides critical details about the property involved in a contract, ensuring that both parties clearly understand the space or location in question. It helps avoid confusion and disputes over property boundaries, features, and responsibilities. A clear and accurate description of premises is essential in contracts involving real estate transactions, leases, or any agreements concerning the use of 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.