Real Estate Lease Transactions
Real Estate Lease Transactions For Commercial Landlords and Tenants: Drafting & Review
The lease agreement transactions that go smoothly don’t cause any notoriety; all the parties are happy in the end. The problem is when transactions go wrong. The main question as the transaction’s complexity increases is: will yours be the side exposed to the most liability? We want to do everything in our power to protect you if a problematic legal situation does arise. Many times our clients’ biggest concerns involve one of the following: real estate, there is a lot to learn about this particular property and a lot to know about making a good Agreement. Many times their biggest concerns involve one of the following:
- How to know their interests are being protected
- Understand their rights and responsibilities
- Be prepared for unforeseen events and conditions
Moschetti Law Group’s experienced real estate attorneys can help you protect your interests and examine the fine print of your lease agreements. Whether you are working on a commercial lease agreement or a residential lease agreement, Moschetti Law Group has the knowledge and experience to provide the legal counsel on which you can rely. We will walk you through the traps and tricks that tenant attorneys rely on and transact around them. You can rest assured that you’ll be covered well into the future. Contact us today for an expert review of your lease agreements or to draft new documents as your situation requires.
For example, Harold owned a multi-tenant medical property that he practiced out of along with four other medical professionals. One of the other doctors decided it was time to retire and sell his practice but had only a few months left on his lease. He knew the right purchaser, but they needed at least a seven-year term.
Harold came to us wanting to help his tenant/friend and get the new doctor in his place. We decided it was better to work on a new lease to update the terms for Harold. We negotiated a new lease that fit everyone’s needs, and now Harold has a new tenant, his friend has a happy retirement, and the new doctor has a great space to build his practice.
The party who created the document will almost always put their party in a more favorable situation. As the landlord, most of the time, you will be the creator. But not always. That dream tenant, the Fortune 500 company taking tens of thousands of square space, their attorney will be giving you the lease from which to negotiate.
One of our clients received a draft lease from a prominent tenant that had so many outs and adverse provisions in its sections that while the tenant could rely on 15-years of tenancy, the landlord could only rely on a lease that was barely better month-to-month. While those stipulations may have been unenforceable, the landlord would have been disadvantaged from the start. Also, those leases would have taken away any reasonable way to refinance or sell – they were that bad. Our attorneys negotiated a lease that was ultimately favorable to both parties and promoted a positive landlord/tenant relationship.
Have there been changes in the legal code, or even in the way things work in the world, that could negatively impact your situation? The legal landscape changes to reflect society, so what was permissible before may not be acceptable today – and that could bite you if your lease is outdated. We represented a landlord unable to pass through any of the expenses he thought he was able to, simply because the lease used was a form lease from the early 80s. We renegotiated on his behalf and updated the lease to be current, but this mistake from a previous attorney cost him tens of thousands of dollars over the lease term. Avoid such costly errors with a lease review by one of our expert real estate lawyers.
Many legal problems are caused by poorly drafted agreements by well-meaning but unqualified real estate agents. A comma in the wrong place could change the meaning of the entire provision. When it comes to rights, liabilities, and obligations, it is wise to have your contracts drafted by an attorney who is knowledgeable in real estate law pertinent to your area and skilled in crafting a lease that protects the parties’ interests involved. Trusting the contract preparation to an expert like the real estate lawyers at Moschetti Law Group gives you the confidence that all the terms of your lease will be legal, applicable, and enforceable.
Have you been exposed to the issues that can arise in a landlord/tenant agreement? Are these issues thoroughly addressed in the contract? Is your side represented well? Real estate is a specialized area of law. Many landlords and tenants learn by experience, but, as they also learn, tuition at the School of Hard Knocks is much too high. Using an attorney with experience in commercial real estate, transactional law, and litigation and as a landlord, tenant, and broker is like having a dedicated and personal guide instead of a confusing map. An attorney with the right experience will anticipate for you what can go wrong and what can, with a little tweaking, go incredibly right.
Also, ask yourself how objective are you about this specific transaction? The more urgent the deal appears, the sloppier and less thorough your attention to detail becomes. Especially when the pressure is made more significant by large numbers at stake. Our practiced and customer-focused real estate attorneys guide you through each step of even the highest stake transactions. We provide objectivity, experience, and patient questions to ensure you’re making the most informed, strategic decisions for your specific situation.
There are many pieces to the leasing puzzle. Our real estate attorneys will help you navigate the contract, including determining which parts are critical for your success and which are less critical. Remember, a lease is a binding, long-term agreement, and it’s in your best interest to review all the key elements of your contract to ensure they are genuinely representing your interests.
Working with the experienced real estate attorneys at Moschetti Law Group, you will strategize for the following elements of creating a lease and more:
- Basic provisions
- The premises and its measurement, including BOMA standards
- Terms and options
- Parking rights
- Security deposits
- Base rent and percentage rent
- Late charges
- Holdover if there isn’t a renewal
- Rental increases
- Personal guaranties
- Rent abatement
- Operating expenses and rent increases – what can be passed through and how
- Use and whether or not it will be allowed by the municipality
- Sign criteria
- Tenant improvements and work letters
- Indemnification and who has to protect whom
- Insurance clauses
- Repairs, maintenance, and warranties
- Trade fixtures and what stays at the end of the lease
- Obligations of the landlord and tenant
- Damage and destruction
- Assignment of lease, subleasing, and future transfer of business
- Breach of lease and what remedies exist for both parties
- Estoppels, subrogation, attornment, and other complex issues
- Options to renew