Why “Standard” Agreements Are Rarely in Your Favor as a Land-Based Business Owner

By Attorney & Counselor Stephen M. Ringquist

If your business depends on real estate, you’ve likely been handed a contract labeled a “standard agreement.”  Maybe it’s a commercial lease, easement, vendor agreement, utility agreement, access license, telecommunications agreement, development contract, property management agreement, or construction contract. Regardless of the context, the message is usually the same:

“This is our standard form.” Often, that statement is intended to reassure you. After all, if it’s “standard,” it must be fair, right? Not necessarily.

As a real estate attorney who practices in Texas and beyond, I’ve reviewed countless agreements presented as standard. In most cases, “standard” simply means the document was drafted by one party’s attorneys to protect that party’s interests, not yours.

“Standard” Means Standard for Them, Not for You

When someone describes an agreement as standard, they’re usually saying: This is the version we prefer to use. That’s all. It doesn’t mean the contract is balanced. It doesn’t mean the terms are market-standard. It doesn’t mean the provisions have been customized for your business or your property. Most importantly, it doesn’t mean the agreement adequately protects your rights if something goes wrong. The party presenting the contract has often spent years refining the document to reduce risk for themselves and maximize their leverage. You should assume they did not spend that time protecting your interests.

What “Standard” Agreements Tend to Get Wrong for the Land-based business owner

Different industries use different forms, and the details matter. But after years of reviewing surface use agreements, pipeline easements, solar leases, wind leases, water leases, communication tower leases, and commercial leases involving land, certain patterns repeat.

The Hidden Risk of Boilerplate Language

Many land-based business owners skim through “standard” agreements because they assume the most important terms are the business terms: price, rent, compensation, or deadlines. However, the provisions that create the greatest risk are often buried deep in the boilerplate sections. These may include:

• Indemnification obligations
• Limitation of liability provisions
• Insurance requirements
• Default and termination rights
• Assignment provisions
• Personal guarantees
• Renewal clauses
• Exclusive use restrictions
• Dispute resolution requirements
• Attorney’s fees provisions

A single paragraph can significantly shift legal and financial risk from one party to another. Unfortunately, many business owners don’t discover those consequences until a dispute arises.

The Contract Was Not Written for Your Business

Every land-based business operates differently. A ranch has different priorities than a warehouse operator. A self-storage facility faces different risks than a hotel owner. A commercial landlord has different concerns than a developer acquiring land for a future project. Yet many agreements are drafted as if every transaction is identical.

As a result, standard contracts frequently fail to address issues that are critical to your specific business model, including: future expansion plans, redevelopment opportunities, operational flexibility, tenant relationships, vendor access, property maintenance responsibilities, regulatory compliance obligations, risk allocation among stakeholders. What works well for one property owner may create significant exposure for another.

Broad Rights Often Become Expensive Problems

One of the most common issues I encounter involves agreements that grant rights far beyond what is necessary to accomplish the transaction. For example, a contract may provide:

• Unlimited access rights
• Broad assignment authority
• Open-ended renewal options
• Exclusive rights affecting future business opportunities
• Control over portions of your property
• Rights that continue indefinitely

At the time of signing, these provisions may seem insignificant. Years later, they can interfere with leasing efforts, refinancing, redevelopment plans, sales transactions, or future business operations. The cost of correcting a poorly drafted agreement is almost always greater than the cost of negotiating it properly in the first place.

“Everyone Signs This” Is Not a Legal Strategy

One of the most common responses business owners hear when requesting revisions is: “Everyone signs this agreement.” Even if that’s true, it doesn’t mean the agreement is appropriate for your situation. Every business has different risks, different assets, and different objectives. Sophisticated companies negotiate contracts every day. They expect other sophisticated parties to do the same. In fact, many provisions presented as “non-negotiable” become surprisingly flexible when meaningful concerns are raised.

The Long-Term Impact Is Often Overlooked

Business owners naturally focus on getting deals completed. However, real estate-related agreements often outlive the transaction that created them. A contract signed today can affect:

• Property value
• Financing options
• Sale opportunities
• Redevelopment plans
• Operational efficiency
• Future partnerships

The consequences may not become apparent until years later, when changing business conditions expose weaknesses in the original agreement. By then, your negotiating leverage may be gone.

Negotiation Is a Normal Part of Business

Many owners hesitate to push back because they fear slowing down the transaction or damaging the relationship. In reality, negotiation is a normal part of commercial business. Well-drafted agreements help both parties understand expectations, allocate risk appropriately, and avoid disputes later. A thoughtful review process often strengthens the business relationship because potential issues are addressed before they become costly problems.

Questions to Ask Before You Sign

Before signing any agreement that affects your business or your property, ask:

• What risks am I assuming?
• What rights am I giving away?
• What happens if the relationship ends?
• How could this affect future operations?
• Does the agreement align with my long-term business goals?
• Are there provisions that would create problems during a sale, refinance, or expansion?

If the answers are unclear, additional review is often money well spent.

Practical Steps Before You Sign Anything Called “Standard”

A few habits will serve any Texas land-based business owner well:

• Slow the timeline. Almost no legitimate deal actually has to close on the artificial deadline that comes with the first draft. Take the time to read carefully and get advice.
• Get the full document set, not just the signature page. Exhibits, surveys, payment schedules, insurance certificates, and operational protocols are where many of the real terms live.
• Compare the offer to industry norms, not to whatever the company tells you “everyone in your area” is signing. Norms vary widely by region, project size, commodity, and operator.
• Think about successors. Will this agreement bind your children? Your buyer? A conservation easement holder? Long-term documents need to make sense across long-term ownership.
• Have an attorney who represents land-based business owners review the agreement before signing. Real estate, mineral, surface use, and energy agreements have technical language that does not always mean what it appears to mean.

Final Thoughts

When a business tells you something is “standard,” they are telling you the “truth” from their point of view. The form is standard for them. It is the document they have refined to do exactly what they want it to do, on exactly the terms that work for their business, across hundreds of properties.

Your business and land are not standard. The way it has been operated, taxed, leased, and conserved is not standard. The agreement that governs what happens on your property for the next 20, 30, or 50 years should not be standard either. It should be the product of a real negotiation, with real legal review, by a lawyer whose loyalty runs to the land-based business owner.

At Braun & Gresham, that is what we do. Our real estate practice regularly represents Texas land-based business owners across a wide range of land-based agreements, from surface use and easements to commercial leases, renewable energy projects, and complex development deals. If a “standard” agreement has just landed on your table, we would be glad to take a look before you sign.