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PLAYBOOK TEMPLATES
Real Estate Purchase Agreement
A Real Estate Purchase Agreement governs the sale and transfer of property ownership between buyer and seller. This playbook covers due diligence, contingencies, and closing mechanics.
Termination and Exit Strategies
Negotiation strategy
Negotiate for flexible termination options, such as termination for convenience, to avoid penalties. Ensure notice periods are reasonable to allow for orderly transition.
Secure provisions that protect against abrupt terminations, such as penalties for early exit. Ensure restoration obligations are clearly defined to avoid disputes.
Essential elements
1
Termination for Convenience
Allows exit with notice, no penalties.
2
Termination for Default
Defines default and cure periods.
3
Holdover Tenancy
Outlines terms for post-lease occupancy.
Action framework
ACCEPT
Propose edits if notice periods are too short or penalties are excessive.
EDIT
Reject if termination rights are overly restrictive or unfair.
ADD
Add clauses for jurisdiction-specific compliance or missing exit strategies.
PRO TIP
Always review jurisdiction-specific requirements to ensure compliance with local laws.
Real-world examples
FAVORABLE
Tenant-Friendly Termination Clause
"The Tenant shall have the right to terminate this Lease for convenience upon providing the Landlord with a written notice of termination at least ninety (90) days prior to the intended termination date. The Tenant shall not be liable for any penalties or additional charges for exercising this right, provided that all rent and other obligations due under the Lease are paid up to the date of termination."
NEUTRAL
Standard Default Termination Clause
"In the event of a default by either party under this Lease, the non-defaulting party shall provide the defaulting party with a written notice specifying the nature of the default. The defaulting party shall have a period of thirty (30) days from the receipt of such notice to cure the default. If the default is not cured within the specified period, the non-defaulting party may terminate this Lease by providing a written notice of termination to the defaulting party."
UNFAVORABLE
Punitive Holdover Clause
"If the Tenant remains in possession of the Premises after the expiration or termination of this Lease without the Landlord's written consent, such holding over shall not constitute a renewal or extension of the Lease. The Tenant shall be deemed a tenant at sufferance and shall pay rent at a rate equal to one hundred fifty percent (150%) of the last monthly rent payable under this Lease, in addition to any other damages the Landlord may incur as a result of such holdover."
Alternative scenarios & positions
High-Risk Projects
In high-risk projects, ensure exit strategies are robust to mitigate potential financial exposure. Include specific triggers for termination to protect against unforeseen risks.
Long-Term Leases
For long-term leases, incorporate periodic review clauses to reassess termination terms and ensure they remain aligned with business objectives.
Multi-Tenant Buildings
In multi-tenant buildings, coordinate exit strategies with other tenants to minimize disruption and ensure compliance with building-wide policies.
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