Gross Up Clause That Should Be Used In A Base Year Form
Use a Sample Gross up Clause That Should Be Used In A Base Year template to make your document workflow more streamlined.
What this base-year gross-up clause does
A base-year gross-up clause explains how a tenant’s share of operating expenses is adjusted when a property does not operate at the agreed base-year occupancy or expense level. It usually identifies the base year, expense categories, exclusions, occupancy assumption, calculation method, reconciliation timing, supporting records, and dispute process. There is no single federally issued form or universal wording for this clause; the lease and applicable state law control. Parties should have counsel review the completed language before signing. signNow can place fields, route signatures, and preserve the executed record and audit trail.
Who uses a base-year gross-up clause
Real estate
Commercial real estate owners and property managers use the clause when a lease requires tenants to reimburse increased operating expenses above a defined base year. They document expense categories, exclusions, occupancy assumptions, and supporting statements before requesting signatures.
Lease administration
Tenants, landlords, asset managers, and counsel use the clause to make annual expense reconciliations traceable. The signed record identifies the base year, gross-up methodology, notice process, and dispute procedure without replacing lease-specific legal review.
How to complete the gross-up clause
Use this workflow to prepare, review, and sign the base-year gross-up clause with consistent calculation assumptions.
Confirm definitions:
Use the agreed base year and operating-expense definitions. Add calculation:
Insert the gross-up calculation and permitted expense categories. Set assumptions:
State assumptions for occupancy, hours, and service levels. Route for signatures:
Send the completed clause for review and signatures.
How the clause workflow works
The clause connects lease assumptions to a documented calculation, review sequence, signature event, and retained execution record.
Identify inputs: Identify the lease, property, and base-year assumptions. Apply formula: Calculate the gross-up using stated occupancy rules. Route document: Send the clause to designated parties for review. Archive evidence: Capture signatures and preserve the completed record.
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Recommended clause workflow settings
Choose controls that preserve the base year, gross-up assumptions, signer identity, and executed lease record.
| Setting | Recommendation |
|---|---|
| Authentication method | Email link with SMS verification |
| Signature type | Typed or drawn electronic signature |
| Audit trail | Export with the executed clause |
| Document retention | Follow lease policy and state law |
| Encryption | TLS 1.2/1.3 and AES-256 at rest |
Features for base-year clause execution
signNow organizes the clause from field placement through signature, audit evidence, template reuse, mobile review, and connected record storage.
Fillable fields
Place signature, initials, date, and text fields directly on the gross-up clause or lease exhibit, reducing manual routing and incomplete execution.
Audit trail
Capture signer actions, timestamps, and document history with the executed clause, helping parties preserve evidence of the signing event.
Reusable template
Save the approved wording as a reusable template for recurring leases while keeping property-specific assumptions editable for each transaction.
Signing order
Send the clause to landlords, tenants, brokers, or counsel in a defined signing order, keeping review responsibilities visible before execution.
Mobile signing
Review and sign from signNow mobile apps when property teams work away from the office, subject to the organization’s device and access policy.
Integrations
Connect executed clauses with systems such as Salesforce, NetSuite, Google Drive, Box, or Procore when the surrounding lease workflow requires record synchronization.
Security controls for signed lease clauses
Data encryption:
Electronic signatures:
SOC 2 Type II:
ISO 27001:
Transport security:
Storage encryption:
Ways to send and sign the clause
- Use the signNow web app when lease administrators need to upload the clause, place fields, set signing order, and review the complete base-year calculation on a larger screen.
- Use the signNow mobile app when property managers or tenants must review and sign the clause away from the office, subject to device and access policies.
- Use kiosk mode when multiple parties sign from one managed device during a scheduled lease-execution meeting; Business Premium includes kiosk mode.
- Generate a shareable signing link when the same approved clause template must reach identified parties through an established leasing workflow, while retaining signer controls.
Risks from unclear clause terms
Calculation dispute
Incomplete execution
Expense ambiguity
Audit gap
Key performance indicators that demonstrate SignNow's proven track record.
Troubleshooting the base-year clause workflow
Resolve field, signing, plan, and recordkeeping questions before the gross-up clause becomes part of an executed lease.
Upload the final lease exhibit or clause as a PDF, then use signNow’s field tools to place signature, date, and initials fields. Confirm that the base year, expense categories, and gross-up formula remain readable before sending. The Business plan includes templates and audit trails.
A gross-up clause has no universal federal wording. Have counsel confirm the lease language, property type, state law, expense exclusions, occupancy assumption, and reconciliation method. signNow provides document execution and audit evidence; it does not determine whether the clause is legally sufficient.
For U.S. transactions, ESIGN and applicable state law such as UETA generally recognize electronic signatures when intent, consent, attribution, and record retention are established. For consumer-facing records, review the electronic-record disclosure requirements in 15 U.S.C. §7001(c).
Use signNow’s signer authentication settings to require an email link, SMS code, or stronger authentication where available on the selected plan. Match the control to the parties, transaction value, and internal policy before sending.
Business is priced at $8 per user per month when billed annually and includes legally binding eSignatures, templates, audit trails, and mobile apps. Business Premium is $15 per user per month annually and adds bulk send and kiosk mode.
Export the completed document and audit trail after all parties sign. signNow supports encrypted data in transit with TLS 1.2/1.3 and at rest with AES-256, while the parties remain responsible for selecting a legally appropriate retention period.
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