Owners of non-residential commercial rental properties in California must disclose on every commercial lease whether the property has been determined to meet all applicable construction-related accessibility standards by a Certified Access Specialist (“CASp”) and must:
Provide a Copy of CASp Inspection Reports. If the property has been inspected by a CASp, landlords must provide a ...
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While estoppel certificates are common in commercial leasing and often treated as simple “form” documents, they can have significant consequences if their terms and provisions are not fully understood. A tenant who executes an estoppel certificate without fully reviewing and understanding it may give up the right to assert important defenses to potential landlord claims under the lease.
Most leases require the tenant to provide the landlord with an estoppel certificate upon request. Lenders and ...
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Grand Prospect Partners, L.P. v. Ross Dress for Less, Inc., et al. (2015)
Ross Dress for Less leased space in a shopping center near Mervyn’s. The Ross lease contained a co-tenancy clause allowing Ross to terminate its lease if Mervyn’s closed and the landlord could not find a suitable replacement tenant within 12 months of Mervyn’s termination (during which time Ross would get full rent abatement). When the landlord failed to ...
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Income-producing real estate is only as valuable as the cash flows generated from leases. As a result, lenders review proposed leases with a cautious eye, focusing on these 10 issues:
1. Ambiguous Rent and Term Commencement Dates. If the rent and term commencement dates are tied to complex formulas or to contingencies that are not properly drafted, the lender may disapprove the lease.
2. Tenant’s Right to Offset Rents. Tenants should never have ...
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