Free Land Lease Agreement Template

What Is a Land Lease Agreement?

A land lease agreement lets someone rent land for a set period while the landowner keeps ownership. It’s commonly used for housing, farming, or small businesses when buying land isn’t possible. 

However, big businesses also use land leases for flexibility and to reduce capital expenditures. For example, Macy’s entered into a $1 billion, 99-year ground lease in Flushing, NY, which allowed the retailer to operate its store without the high upfront costs of purchasing the land.

A land lease agreement typically covers key details like:

• How long the lease will last
• How much rent will be paid and when
• What the land can be used for
• Who handles upkeep and maintenance
• Insurance expectations
• How and when the lease can end

In many cases, the tenant owns the home or building on the land, but not the land itself. This makes it more affordable and gives people a way to move forward without buying property.

Types of Land Lease Agreements

Leasing land to open a shop isn’t the same as leasing it to grow crops or park a mobile home. While a commercial land lease agreement works well for business use, other agreements are better suited for residential or agricultural setups. 

Each setup calls for a different type of agreement. Here’s a quick breakdown of the main types and how they work.

Can You Write Your Own Land Lease Agreement?

Yes, you can write your own land lease agreement. As long as it meets your state’s legal requirements, it’s valid. In many states, if the lease lasts more than a year, it must be in writing due to what’s commonly known as the Statute of Frauds.

That said, each state may have its own specific rules. Some require notarization for longer leases or have different standards for enforceability. Always check your state’s regulations before finalizing the agreement.

How to Write a Land Lease Agreement

A land lease isn’t something you want to rush. Getting the details right protects both sides and helps avoid expensive surprises later. Here’s how to write one that covers all the essentials.

1. Use Our Free Land Lease Agreement Template

Legal Templates’ land lease agreement template​ makes it easy to create a clear, legally binding land lease ​ agreement. It’s quick to customize, covers all the key terms, and works for farming, business, or private use.

2. Define What Each Side Wants

Start by deciding what you want out of the lease. Do you prefer monthly rent, annual payments, or a lump sum up front? Will you handle the property taxes, or pass them to the tenant? Will you require a security deposit?

Then talk through the tenant’s plans. They should know their budget, how they’ll use the land, and what setup costs they’ll face. If there’s more than one tenant, list each name in the lease. When both sides understand each other’s goals, writing the lease gets easier.

3. List the Land Details

Include all the key information about the property. Write down the:

• Full address of the land
• Legal description (from the deed or property records)
• Total acreage
• Boundary lines
• Easements
• Access roads
• Available utilities

If you plan to register the land lease agreement​ with the county or land office, state that in the agreement.

4. Check Zoning and Permits

Make sure the tenant’s plans follow local zoning rules. Some uses are restricted, depending on the area. If they want to build, farm, or run a business, they might need permits. Go over what’s allowed and what approvals they need before they get started.

5. Clarify How the Tenant Can Use the Land

Be clear about what the tenant can do on the land. They might use it for farming, storage, retail, or renewable energy. If there are limits, state those too. For example, you may allow a produce stand but not permanent buildings.

If signage is involved, like for a business, decide whether the tenant can put up signs and include that in the lease.

6. Set the Lease Term and Rent Structure

Choose a clear lease period with defined start and end dates. Decide if it will be short-term or long-term. Then, outline how rent will be paid. Common payment options include:

• Flat monthly rent
• Annual payments
• One-time upfront payment
• Percentage of income (for commercial use)

If you’re including extras, write them in:

• Option to renew the lease
• Right of first refusal
• Option to buy the land later

7. Assign Costs Clearly

Make it clear who’s paying for what. List who will cover:

• Property taxes
• General liability insurance
• Worker’s compensation insurance
• Automobile insurance (if vehicles are used)
• Utilities
• Fence repair, pest control, and drainage
• Permit fees and legal compliance

Write it all into the land lease agreement so both sides know exactly what they’re responsible for. You can also include any other required types of insurance, depending on how the land is used.

8. Add Improvement Rules

Set rules for any buildings or changes the tenant wants to make. Say if improvements are allowed, and require written approval before work begins.

Also, explain who owns the improvements when the lease ends. For example, if the tenant builds a greenhouse, the lease should say whether they need to remove it or leave it.

If the tenant wants to finance their leasehold interest, you’ll also need to decide whether to allow leasehold mortgages or subordinated leases, and write that in clearly.

9. Control Subleasing and Access

Decide if subleasing is allowed. If it is, the tenant should get your written consent before bringing anyone else in. Set clear terms for when and how you can access the land, for inspections, maintenance, or other reasons. This gives you peace of mind and keeps things transparent.

10. Include Exit and Restoration Terms

Say when the lease can end early, like for non-payment, damage, or misuse. Set a notice period for early termination and for the natural end of the lease.

Before the tenant leaves, explain what they need to do. They may need to remove structures, clean up, and restore the land to its original condition.

11. Add Dispute Terms and Legal Steps

Decide how you’ll handle disputes, such as mediation, arbitration, or going through the local court system, and include that process in the lease. 

If the lease runs long-term, you may also want to record it with the local land office for added legal protection. Some states require notarization, so if that applies, make sure both parties sign in front of a notary.

12. Sign and Store Copies

Once the terms of the land lease agreement​ are finalized, both parties should sign and date the agreement. If there’s more than one tenant, each should sign. Give everyone a copy and store them safely. This protects both parties if any disputes or questions come up later.

Sample Land Lease Agreement Template

Take a look at the sample below to see what a land lease agreement can include. When you’re ready to create your own, you can download our free template in Word or PDF.

State of _______________

Rev. 1346414

LAND/GROUND LEASE AGREEMENT

This Land/Ground Lease Agreement (this “Agreement”) is entered into as of the _____ day of

_______________, 20_____, (the “Effective Date”) by and among/between:

Landlord: ________________________, (“Landlord”) and

Tenant(s): ________________________________________________, (collectively, “Tenant”).

Each Landlord and Tenant may be referred to in this Agreement individually as a “Party” and collectively

as the “Parties.”

For good and valuable consideration stated herein, the sufficiency of which is hereby acknowledged, the

Parties agree as follows:

1. Agreement to Lease. Landlord agrees to lease to Tenant and Tenant agrees to lease from Landlord,

according to the terms and conditions set forth herein, the following real estate (the “Site”): ___________

________________________________________________________________ [Legal land description].

2. Purpose. The Site may be used and occupied only for the following purpose (the “Permitted Use”):

__________________________________________________________________ [Purpose of land use].

Nothing herein shall give Tenant the right to use the Site for any other purpose without the prior written

consent of Landlord. Landlord makes no representation or warranty regarding the legality of the Permitted

Use, and Tenant will bear all risk of any adverse change in applicable laws.

3. Term. This Agreement will be for a term beginning on _______________, 20_____ and ending on

_______________, 20_____ (the “Term”). The Parties hereto may elect to extend this Agreement upon

such terms and conditions as may be agreed upon in writing and signed by the Parties at the time of any

such extension.

4. Rent. Tenant will pay Landlord rent in advance $__________: (Check one)

☐ On the Effective Date.

☐ In monthly installments due on the__________ day of each month during the Term.

Late Fee (Check one)

☐ Landlord will NOT charge a late fee.

☐ Rent paid after the __________ day of each month will be deemed as late; and if rent is not

paid within __________ days after such due date, Tenant agrees to pay a late charge of (Check

one) ☐ __________% of the balance due per day for each day that rent is late ☐ $__________.

☐ In annual installments due on the __________ [Day of the month] day of _______________ [Month]

each year during the Term.

Late Fee (Check one)

☐ Landlord will NOT charge a late fee.

☐ Rent paid after the __________ [Day of the month] day of _______________ [Month] of each

year will be deemed as late; and if rent is not paid within __________ days after such due date,

Land/Ground Lease Agreement (Rev. 1346414)

Tenant agrees to pay a late charge of (Check one) ☐ __________% of the balance due per day

for each day that rent is late ☐ $__________.

Prorated Rent (Check one)

☐ Rent for any period during the Term which is for less than one year will be a pro rata portion of the

annual installment. Additional details: _____________________________________________________.

☐ Not applicable.

5. Additional Rent. There may be instances under this Agreement where Tenant may be required to pay

additional charges to Landlord. All such charges are considered additional rent under this Agreement and

will be paid with the next regularly scheduled rent payment. Landlord has the same rights and Tenant has

the same obligations with respect to additional rent as they do with rent.

6. Security Deposit. (Check one)

☐ Tenant is NOT required to pay a security deposit.

☐ Upon signing this Agreement, Tenant will pay a security deposit in the amount of $__________ to

Landlord. The security deposit will be retained by Landlord as security for Tenant’s performance of its

obligations under this Agreement. If Tenant does not comply with any of the terms of this Agreement,

Landlord may apply any or all of the security deposit to remedy the breach, including to cover any amount

owed by Tenant and/or any damages or costs incurred by Landlord due to Tenant’s failure to comply.

Within __________ days after the termination of this Agreement, Landlord will return the security deposit

to Tenant (minus any amount applied by Landlord in accordance with this section). Any reason for

retaining a portion of the security deposit will be explained in writing.

Interest (Check one)

☐ The security deposit will bear interest while held by Landlord in accordance with applicable

state laws and/or local ordinances.

☐ The security deposit will NOT bear interest.

7. Taxes. (Check one) ☐ Tenant ☐ Landlord shall pay all taxes or assessments which are levied or

charged on the Site during the Term.

8. Utilities. (Check one) ☐ Tenant ☐ Landlord shall pay the cost of all utility services during the Term,

including but not limited to gas, water, and electricity used on the Site.

9. Delivery of Possession. Landlord will deliver exclusive and lawful possession of the Site to Tenant on

the start date of the Term. In the event Landlord is unable to give possession of the Site to Tenant on such

date, Landlord will not be subject to any liability for such failure, the validity of this Agreement will not be

affected, and the Term will not be extended. Tenant will not be liable for rent until Landlord gives

possession of the Site to Tenant.

10. Conditions Precedent. Prior to the start date of the Term, Landlord shall satisfy the following

conditions:

1. Register the Lease Agreement with the __________ [County] land office as required under

applicable_________________ [State] law.

2. Confirm by writing to the Tenant that the Site has been cleared of any and all occupants.

3. Represent and warrant that it owns good and indefeasible title in and to the Site and has full right

and authority to make this Lease.

Land/Ground Lease Agreement (Rev. 1346414)

11. Holdover Tenancy. Unless this Agreement has been extended by mutual written agreement of the

Parties, there will be no holding over past the Term under the terms of this Agreement under any

circumstances. If Tenant does retain possession past the Term, Tenant shall pay __________% of the

then applicable rent computed on a monthly basis for each month or portion thereof during such holdover.

In addition, Tenant shall be liable for any damages incurred by Landlord as a result of the holdover.

12. Condition of the Site. Tenant has examined the Site and accepts the Site in its current condition “AS

IS” and “WITH ALL FAULTS.” except as expressly set forth herein, landlord makes no representation OR

warranty, express or implied, or arising by operation of law, including but not limited to, any warranty of

fitness for a particular purpose, merchantability, habitability, SUITABILITY, or condition. tenant

acknowledges that Tenant has not relied on any representations or warranties by Landlord in entering this

Agreement.

13. Use of the Site. Tenant agrees to use the Site only for the Permitted Use and will not commit waste

upon the Site. Tenant will, at its sole expense, maintain the Site in good repair and make all necessary

repairs thereto. Tenant will not use the Site for any unlawful purpose or in any manner that will materially

harm Landlord’s interest in the Site.

14. Improvements and Alterations. Tenant (Check one) ☐ may not ☐ may make improvements,

alterations, additions, or other changes to the Site without the written approval of the Landlord. Tenant

agrees that any construction will be performed in a good and workmanlike manner and will comply with all

applicable laws. All improvements, alterations, additions, or other changes to the Site shall become the

property of Landlord upon the termination of this Agreement.

Signs (Check one)

☐ Tenant shall have the right to erect any sign related to its business, on the condition that such signs

comply with the law.

☐ Tenant shall NOT have the right to erect any sign related to its business.

15. Leasehold Mortgage. Tenant (Check one) ☐ does not have ☐ has the right to grant a mortgage,

deed of trust, or other security instrument in Tenant’s interest to the Site created by this Agreement (the

“Leasehold Mortgage”) to secure repayment of a loan made to Tenant to finance construction of any

improvements made to the Site during the Term.

Subordinated Lease (Check one)

☐ Landlord agrees to pledge as collateral or subordinate its interest in the Site for or to any Leasehold

Mortgage if required by any lender of Tenant.

☐ In no event will any interest of Landlord in the Site be pledged as collateral for or be subordinate to any

Leasehold Mortgage.

16. No Mechanics Lien. Tenant will not permit any mechanics or other liens to be filed against Landlord’s

interest to the Site as a result of any work performed for or obligations incurred by Tenant. Tenant will

indemnify Landlord for any liability, cost, or expense, including attorney’s fees, in the event any such lien

is filed.

17. Permits and Approvals. Tenant will be responsible for obtaining all licenses, permits, and approvals

required by any federal, state or local authority in connection with its use of the Site. Landlord will

cooperate with Tenant and provide the necessary documents to obtain such licenses, permits, and

approvals.

18. Compliance with Laws. Tenant covenants and agrees to comply with all federal, state and local

laws, regulations and ordinances affecting the Site and use of the Site, including applicable environmental

laws. In addition, Tenant will comply with all requirements necessary to keep in force fire and liability

insurance covering the Site.

Land/Ground Lease Agreement (Rev. 1346414)

19. Hazardous Substances. Tenant will not keep or store on the Site any item of a dangerous,

flammable, or explosive character that might unreasonably increase the danger of fire or explosion on the

Site or that might be considered hazardous or extra hazardous by any responsible insurance company.

20. Insurance. At all times during the Term, Tenant will maintain insurance for the Site covering:

I. Property Insurance. Property insurance covering all of Tenant’s improvements, equipment, and

other personal property located on the Site.

(Check all that apply)

☐ II. General Liability. Commercial liability insurance covering bodily injury, death, or property

damage in an amount not less than $__________ per occurrence.

☐ III. Workers’ Compensation. Workers’ compensation and employee insurance in an amount not

less than $__________, or as required by law.

☐ IV. Automobile Insurance. Automobile liability insurance in an amount not less than $__________.

☐ V. ___________________________________

All insurance policies (☐ other than worker’s compensation), shall name Landlord as an additional

insured or interested party. Tenant will provide Landlord certificates evidencing the required insurance

policies prior to the start date of the Term.

21. Waiver of Subrogation. Landlord and Tenant each waive any and all claims or rights to recovery

against the other Party for any loss or damage to the extent such loss or damage is covered by insurance

or would be covered by insurance as required under this Agreement. Landlord and Tenant will cause each

insurance policy carried by Landlord or Tenant relating to the Site to include or allow a full waiver of any

subrogation claims.

22. Indemnification. To the extent permitted by law, Tenant agrees to indemnify, defend, and hold

harmless Landlord from any and all claims, actions, liabilities, suits, demands, damages, losses, or

expenses, including attorneys’ fees, arising out of or relating to (i) Tenant’s use and occupancy of the Site,

(ii) any work done by or on behalf of Tenant on the Site, (iii) Tenant’s negligence or willful misconduct,

and/or (iv) Tenant’s breach or default of any of the terms of this Agreement, provided however, Tenant’s

obligations under this section shall not extend to any claims actions, liabilities, suits, demands, damages,

losses, or expenses arising from the sole negligence or willful misconduct of Landlord.

23. Access to Site. Landlord or its agents may have access to the Site at reasonable times to inspect the

Site, to make any necessary repairs, to show the Site to prospection lenders or buyers, and as otherwise

needed to perform its obligations under this Agreement.

24. Default. The following shall each constitute an “Event of Default” by Tenant:

A. Tenant fails to make any required payment due under this Agreement.

B. Tenant fails to perform any obligation or condition or to comply with any term or provision of this

Agreement.

C. Tenant files a petition for bankruptcy, reorganization or similar relief, or makes an assignment for

the benefit of creditors.

D. _______________________________________________________

E. _______________________________________________________

F. _______________________________________________________

25. Termination by Landlord. Upon the occurrence of an Event of Default by Tenant which continues for

a period of __________ days after receiving written notice of the default from Landlord, Landlord has the

Land/Ground Lease Agreement (Rev. 1346414)

right to terminate this Agreement and take possession of the Site. Landlord’s rights hereunder shall be in

addition to any other right or remedy now or hereafter existing at law or equity.

26. Termination by Tenant. In the event of a breach by Landlord of any of its obligations, covenants, or

agreements under this Agreement which continues for a period of __________ days after receiving

written notice of the breach from Tenant, Tenant has the right to terminate this Agreement, upon written

notice to Landlord, without penalty. Landlord shall return to Tenant any prepaid or prorated rent if Tenant

terminates this Agreement pursuant to this section.

27. Surrender of the Site. Tenant shall return the Site to Landlord upon termination of this Agreement in

good condition and repair, ordinary wear and tear excepted. Within __________ days following the

termination of this Agreement, Tenant will remove all equipment, materials, fixtures and other personal

property belonging to Tenant from the Site. Any property left on the Site after __________ days following

the termination of this Agreement will be deemed to have been abandoned by Tenant and may be

retained by Landlord.

28. Registration of the Lease. The parties shall, to the extent required by law and practice, properly

register this Lease Agreement with the relevant Land Registry Office, and any other relevant government

office that may serve as a place for registering or recording leases, within 45 days from the date that this

Lease Agreement is executed.

29. Subordination. This Agreement and Tenant’s right hereunder shall be subject and subordinate in all

respects to any mortgage, deed of trust, or other lien now or hereinafter incurred by Landlord. Upon

request of Landlord, Tenant will enter into a subordination agreement or other customary form as required

by the lien holder.

30. No Partnership. Nothing contained in this Agreement shall be deemed or construed to create a

partnership, joint venture or any other fiduciary relationship between the Parties other than that of

Landlord and Tenant. Neither Party is authorized to act as an agent or on behalf of the other Party.

31. Condemnation. In the event that all or a material portion of the Site necessary for Tenant’s Permitted

Use of the Site is taken for any public or quasi-public use under any governmental law, ordinance or

regulation or by the right of eminent domain, this Agreement shall terminate on the date of such taking,

and all rent under this Agreement shall be prorated and paid to such date. In the event such taking is less

than a material portion of the Site, this Agreement shall remain in full force and effect; provided however,

the rent due under this Agreement shall be reduced to such extent as may be fair and reasonable under

the circumstances. Landlord and Tenant shall each be entitled to receive and retain such separate awards

and portions of lump sum awards as may be allocated to their respective interests in any condemnation

proceedings.

32. Limitation of Liability. Landlord is not responsible or liable for any loss, claim, damage or expense

as a result of any accident, injury or damage to any person or property occurring anywhere on the

Premises, unless resulting from the negligence or willful misconduct of Landlord.

33. Assignment and Subletting. Tenant will not assign this Agreement as to all of or any portion or the

Site or make or permit any total or partial sublease or other transfer of all of or any portion of the Site

without Landlord’s consent.

34. Quiet Enjoyment. If Tenant pays the rent and performs all other obligations under this Agreement,

Tenant may peaceably and quietly hold and enjoy the Site during the Term.

35. Force Majeure. In the event that Landlord or Tenant shall be delayed or hindered in or prevented

from the performance of any act other than Tenant's obligation to make payments of rent, additional rent,

and other charges required hereunder, by reason of strikes, lockouts, unavailability of materials, failure of

Land/Ground Lease Agreement (Rev. 1346414)

power, restrictive governmental laws or regulations, riots, insurrections, the act, failure to act, or default of

the other Party, war or other reason beyond its control, then performance of such act shall be excused for

the period of the delay and the period for the performance of such act shall be extended for a period

equivalent to the period of such delay.

36. Notices. All notices given under this Agreement must be in writing. A notice is effective upon receipt

and shall be delivered in person, sent by overnight courier service or sent via certified or registered mail,

addressed to Landlord or Tenant at the address stated above, or to another address that either Party may

designate upon reasonable notice to the other Party.

37. Further Assurances. Each Party hereto agrees to execute and deliver any additional documents and

to do all such other acts as may be necessary to carry out this Agreement and each Party’s rights and

interests in this Agreement.

38. No Waiver. No Party shall be deemed to have waiver any provision of this Agreement or the exercise

of any rights held under this Agreement unless such waiver is made expressly in writing.

39. Severability. If any provision of the Agreement is held to be invalid, illegal, or unenforceable in whole

or in part, the remaining provisions shall not be affected and shall continue to be valid, legal, and

enforceable as though the invalid or unenforceable parts had not been included in this Agreement.

40. Successors and Assignees. This Agreement will inure to the benefit of and be binding upon the

Parties and their respective permitted successor and assigns.

41. Governing Law. The terms of this Agreement shall be governed exclusively by the laws of the State

of _________________, without regard to its conflicts of laws rules.

42. Disputes. Any dispute arising from this Agreement shall be resolved through: (Check one)

☐ Court litigation. Disputes shall be resolved in the courts of the State of _________________.

☐ If either Party brings legal action to enforce its rights under this Agreement, the prevailing

party will be entitled to recover from the other Party its expenses (including reasonable

attorneys’ fees) incurred in connection with the action and any appeal.

☐ Binding arbitration. Binding arbitration shall be conducted in accordance with the rules of the

American Arbitration Association.

☐ Mediation.

☐ Mediation, then binding arbitration. If the dispute cannot be resolved through mediation, then the

dispute will be resolved through binding arbitration conducted in accordance with the rules of the

American Arbitration Association.

43. Amendments. This Agreement may not be modified except in writing signed and acknowledged by

both Parties.

44. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be

deemed an original, and all of which together, shall constitute one and the same document.

45. Headings. The section heading herein are for reference purposes only and shall not otherwise affect

the meaning, construction, or interpretation of any provision in this Agreement.

Land/Ground Lease Agreement (Rev. 1346414)

46. Entire Agreement. This Agreement constitutes the entire understanding between the Parties and

supersedes and cancels all prior agreements of the Parties, whether oral or written, with respect to the

Site.

47. Miscellaneous. ___________________________________________________________________

____________________________________________________________________________________

IN WITNESS WHEREOF, the Parties hereto, individually or by their duly authorized representatives have

executed this Agreement as of the Effective Date.

Landlord Signature

Landlord Full Name

Tenant Signature

Tenant Full Name

Tenant Signature

Tenant Full Name

Land/Ground Lease Agreement (Rev. 1346414)