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Section 7: Preparation of Lease Forms

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General

The department is responsible for drafting lease agreements using TxDOT's standard forms. There is a form for each type of lease identified above. The majority of the provisions in the lease forms are boilerplate and can not be changed. TxDOT's policy is to not change the forms for any reason because there is a responsibility to treat all lessees equally. However, there are circumstances where provisions need to be added, changed and/or deleted because of the unique nature of a particular lease.

Department personnel working with leases should read the lease forms to become familiar with their content. The following is a list of items within the lease forms that need to be addressed when completing a lease agreement. Note that these items may occur in different sections or articles within each form.

  • Preamble - county, lease number, lessee
  • Term - the commencement and expiration dates of the lease and the time period for the cancellation notice
  • Consideration - designation of the monthly or annual rent
  • Use - a specific statement of the authorized use under the lease
  • Construction - These provisions may need to be revised depending on whether there is proposed construction under the lease. There is a shortened lease form to be used if construction of improvements is not allowed. Check with the ROW program office in Austin.
  • Security for Removal of Improvements - In the event improvements will be constructed under the lease, the department will need to estimate the cost of removing the improvements and the amount designated in this provision. If no surety bond is required, this section should be removed from the lease agreement and subsequent sections renumbered.
  • Miscellaneous - Notices; Governing Law; District Engineer; Recordation: these provisions require the proper addresses, District designation, and county where the lease is located
  • Signature Block - name and title of person executing the lease for the lessee
  • Property description and sketch of the area to be leased labeled as Exhibit "A" follows signature page

When not experienced in drafting lease forms, department personnel should contact the ROW program office in Austin for guidance and forward a completed draft for review before submitting it to the lessee.

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