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Commercial leases require provisions that protect all parties

On Behalf of Warren Gammill & Associates, P.L. | Nov 6, 2015 | Commercial Real Estate

Commercial real estate leases need to be written so as to clearly delineate the obligations of both the landlord and the tenant. There are many commonly used provisions contained in commercial leases. These provisions can do a number of things.

For example, there are provisions that outline the most fundamental aspects of the agreement. These basic aspects can include such things as the names of the parties involved as well as a description of the property in question. Other basic provisions can cite details about the rent, the security deposit and the lease’s duration.

Of course, there is a variety of expenses and duties involved in maintaining a leased commercial property, and there are provisions that specify who is responsible for covering what. A maintenance and repairs provision stipulates the responsibilities of each party that pertain to maintaining and repairing various parts of the property. And there are provisions that cover who is to pay for such things as taxes, insurance and utilities.

Commercial lease provisions can also cover contingencies should certain events transpire. For instance, a landlord’s solvency provision can elucidate what rights a tenant will have if a landlord faces financial difficulty and the leased property is foreclosed upon. A destruction or condemnation provision covers each party’s rights and obligations regarding a situation where the commercial property is destroyed or taken by eminent domain.

Commercial lease provisions can offer both landlords and tenants protections and rights that should serve to act in their mutual benefit. Unfortunately, disputes can still arise which can be very difficult to resolve. So, should you ever be in a landlord-tenant dispute, a commercial real estate attorney may be able to help you get the lease’s terms either enforced or terminated, depending on your circumstances and needs.

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