A peppercorn rent agreement is a contract in which a tenant pays a nominal or symbolic amount of rent, usually a single peppercorn, to the landlord. This type of agreement is often used when the rental property has a unique or historical significance and the landlord is interested in maintaining control over the property.
If you are a landlord or tenant looking to create a peppercorn rent agreement, the following template can help you get started:
PEPPERCORN RENT AGREEMENT TEMPLATE
This peppercorn rent agreement (the “Agreement”) is entered into on [insert date] between [insert landlord`s name and address] (the “Landlord”) and [insert tenant`s name and address] (the “Tenant”).
1. Premises. The Landlord agrees to lease to the Tenant, and the Tenant agrees to rent from the Landlord, the property located at [insert property address] (the “Premises”).
2. Term. The term of this Agreement shall be [insert length of term], beginning on [insert start date] and ending on [insert end date]. The Tenant may renew the lease for an additional term if both parties agree.
3. Peppercorn Rent. In consideration of the Tenant`s occupation and use of the Premises, the Tenant shall pay to the Landlord an annual rent of one peppercorn, which shall be paid on the anniversary of the commencement of the term of this Agreement.
4. Use of Premises. The Tenant agrees to use the Premises for [insert approved use, such as residential or commercial use] only and shall not use the Premises for any unlawful purpose.
5. Maintenance and Repairs. The Tenant shall maintain the Premises in good condition and repair and shall notify the Landlord of any needed repairs. The Tenant shall not make any structural changes to the Premises without the Landlord`s written consent.
6. Indemnification. The Tenant shall indemnify and hold the Landlord harmless from any and all claims, damages, or liabilities arising out of the Tenant`s use and occupancy of the Premises.
7. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of [insert governing law jurisdiction].
8. Entire Agreement. This Agreement represents the entire understanding between the parties and supersedes all prior negotiations and agreements between them.
IN WITNESS WHEREOF, the parties have executed this peppercorn rent agreement as of the date and year first above written.
[Insert landlord`s signature block]
[Insert tenant`s signature block]
In conclusion, a peppercorn rent agreement can be a unique and creative way for landlords to retain control over their properties while allowing tenants to occupy and use them. By using a tailored template such as the one above, both parties can ensure that their rights and obligations are clearly understood and legally protected.
