Common Terms Agreement Vs Facility Agreement In Fairfax
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FAQ
Common Terms Agreement The CTA is an agreement among the financing parties and the borrower which sets out the terms that are common to all tranches of debt including definitions, conditions precedent, covenants, events of defaults and various miscellaneous provisions.
A Facilities Use Agreement is a contract, but it is not a lease and cannot have the characteristics of a lease. Rather it is a contract that extends a license to someone who has no other right to use the property. Such a license allows use of the property for a specific time and purpose.
A rental agreement differs from a lease agreement in that it is not a long-term contract and usually occurs on a month-to-month basis. This month-to-month lease agreement expires and then renews each month upon agreement of the parties involved.
The main difference is the length of tenancy. A rental agreement is usually short term or month-to-month, while a lease is typically for a longer period of time, usually six months or more.
Most leases define “common areas” as portions of the building or project that are available for use by all tenants or occupants on a non-exclusive basis. The lease often makes reference to specific shared spaces, such as lobbies, stairwells, corridors and entrance ways.