The Tenant Estoppel Certificate; Time to Be Cautious Posted on February 18, 2016 in Real Estate Law

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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California Court of Appeal Ends Silence on Enforceability of Co-Tenancy Provisions in Commercial Leases Posted on May 16, 2015 in Real Estate Law

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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10 Lease Issues That Can Cause a Lender To Kill a Deal Posted on April 15, 2015 in Real Estate Law

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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