Know how to interpret the terms of a commercial lease
On behalf of Kadish & Associates Law Group posted in Business Litigation on Friday, November 1, 2019.
Commercial leases need to be as detailed as possible to protect both parties. There are several things that should be included in these documents, and they must all be worded properly to avoid the possibility of problems in the future. No matter which side of the lease you are on, you must ensure that your interests are protected.
One of the most important things that you can do when you are going to sign a commercial lease is to read it thoroughly. You can’t leave any sentence unchecked. While you are going over it, make sure that every point you agreed to is included in the document. By doing this, you are protecting yourself against the possibility of having a long and drawn out battle if questions arise pertaining to that topic.
Most commercial leases have calculations for how expenses for common areas are calculated. These are usually passed down to the tenants, so be sure that it is clear exactly how those will be handled. The last thing that either side needs to happen is a costly litigation process that is because of a misunderstanding about these expenses. This is one area of a commercial lease that is usually up for negotiations, so the terms must be exactly what was agreed upon.
Some leases have conditional obligations in them, but you must use caution with these. There is a chance that this could be a bad thing if the conditions are something that neither party in the lease can control.
Having an experienced attorney review the lease might be a good idea, no matter what side of the matter you are on. This helps ensure that you don’t miss anything that might be detrimental to you.