You're
an owner leasing commercial rental property or a tenant wishing to lease.
You've
agreed on the important lease terms such as
square footage, rent, and term. So why should you
spend the time and money to involve a lawyer
you ask? On both sides, it's advisable.
Leases
are contracts and commercial leases are usually contracts involving a lot of
money
over a long term. Therefore, you want to be
sure that the written lease agreement actually
reflects what you agreed upon. The precise wording in these contracts is critical
and has
legal ramifications. Lay people may not be
aware what the terms mean legally. It's important
before you sign any lease agreement to understand
what you are signing, what rights you are
getting and what rights you are giving up.
You
also need to know what liability you may face. In addition, you need to protect
yourself in case problems arise. Many questions
can arise after a lease agreement is signed.
These are as varied as the individual deal
itself. For example, if something major like the heat or
air conditioning breaks, is the landlord or the
tenant responsible for the cost of repair? Another
example could be who is responsible to clean
snow from the sidewalks, landlord or tenant?
Other issues may include use of the property,
term, rent (there are different types of commercial
rentals, and ways to calculate the rent),
subletting, renewal, default, warranties, insolvency,
signage, parking, covenants, restrictions, maintenance
and repairs, build outs and property
changes, lease modifications, zoning, insurance
and utilities, taxes and assessments, rights with
respect to other tenants, and other issues particular to your lease. You
can see that the list of
issues is long.
When
you've gone through all of the stress of getting to the point where you sign
the
lease, you may be just ready to sign the lease.
But don't, without carefully reviewing the lease
and your understanding of it with a business
attorney. This extra step can make for a sound
deal that meets your needs. A knowledgeable
attorney can advise you before you sign if the
lease has potential problems. If so, addressing
them in advance is often much easier and cost effective.
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