Recapture Rights In Leases

Thursday, 14 June 2012 by

  With today’s low commercial rents, the landlord would like to be able to share in the anticipated future rise in rents by including a “recapture” provision in the lease which allows the landlord to terminate the lease if the tenant wants to assign the lease or sublease the premises.   The landlord is more likely

Structuring Lease Terminations

Saturday, 14 April 2012 by

  A frequent way to address the financial difficulties of a business in today’s market is for the landlord and the tenant to agree to an early termination of the lease. While seemingly simple, lease terminations could involve significant legal issues for both landlords and tenants.   A lease termination may be treated as a

  A property owner could get hurt by not controlling environmental studies by potential buyers or tenants. To avoid buying or leasing a property contaminated with hazardous materials, the prudent buyer or tenant will want a clean environmental report. The owner often allows the buyer or tenant to conduct a hazardous materials study by a consultant

  A real estate buyer can sue to make the seller sell the property to the buyer on the agreed upon price and terms. As part of this lawsuit, called specific performance, the buyer can record a notice that an action is pending, known as lis pendens. This notice practically disables the seller from selling, leasing

Impact of Foreclosure on Leases

Monday, 14 November 2011 by

  Foreclosure of a real estate loan generally extinguishes a lease that is junior to the loan. So, the termination of a lease and the resulting forced relocation could ruin a tenant’s business. Conversely, a lender may lose a rental stream by inadvertently terminating the lease of a creditworthy tenant paying rent at market rates

  A common misunderstanding is that an “as-is” provision in a real estate purchase and sale contract relieves the seller of the duty to disclose to the buyer any of the property’s defects. Generally, even with an as-is provision, the seller must disclose facts known to seller that materially and adversely affect the value of the property,

  It is not possible to survive in the real estate business today using the old, common methods of structuring real estate transactions. To succeed, real estate professionals must be creative. To that end, this article will provide a brief summary of the advantages and disadvantages of some of the alternative methods of structuring real estate acquisition.   If

Achieving Flexibility in Leases

Sunday, 14 August 2011 by

  The long recession coupled with a decline in rents has created a new marketplace reality for commercial tenants and landlords. More tenants now ask for lease flexibility, such as the right to cancel their lease early, to fit with their business needs. When negotiating flexibility in leasing terms, parties have four main options available:   Whether the parties

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