An Illinois commercial lease agreement is a legally binding contract between a commercial entity and a property owner or landlord, documenting key terms like lease duration, rent, security deposit, exclusivity, and subleasing.
It is crucial for both parties to clearly understand the document’s clauses before signing, as the state’s tenant protection laws are specific to residential tenants. This type of agreement is commonly employed for leasing industrial, retail, or office spaces.
Illinois Business Entity Search: The landlord has the option to verify a business entity’s operational status by accessing their credentials in the database.
REQUIREMENTS
Rental Laws: Illinois Compiled Statutes Chapter 810, Act 5, Article 2A (Leases).
Consumer Protection Laws: 810 ILCS 5/2A-104.
Jurisdiction: Under 810 ILCS 5/2A-106, the jurisdiction must align with the lessee’s residence, the location of the rental property, or the jurisdiction where the lease is executed; otherwise, the judicial forum is not enforceable.
Required Disclosures
- Rent Concession Act: If a landlord offers a rent reduction to their tenant, it must be documented in the lease agreement. (765 ILCS 730)
- Utility Payments: Before requiring tenants to pay, a landlord must disclose the formula used to allocate charges for master-metered public utility services. (765 ILCS 740/5(a))
