Commercial leasing disputes are common between landlords, tenants, property owners, and developers and often lead to real estate litigation.
This article discusses 3 common types of commercial leasing disputes.
1.There are many issues and disputes that can arise between landlords and tenants who are leasing commercial property. Disputes over responsibility for repairs and damage, common area maintenance, renovation, changes, reduction or expansion of leased premises, rent, subletting, relocation clauses in the lease, exclusive use rights, restricted or prohibited uses, eviction rights, and taxes, are some of the most common problems occurring in landlord - tenant dispute cases.
2.Fee disputes can occur between landlord and tenants, sellers and real estate brokers, developers and owners, property management companies and owners, but are not limited to just these parties. Fee disputes occur when issues with leasing or real estate contracts arise. If a tenant disagrees with the landlord's accounting, often times disputes arise when the tenant challenges their charges and fees.
3.In commercial real estate, some lease contracts contain termination clauses, which allow the tenant to terminate the contract prior to the end of the lease term. Depending on the reasons for termination, a dispute may arise. These clauses are basically contingencies whereby the buyer or leaser can back out of an agreement if certain conditions are not met or if certain clauses are breached.
A tenant must notify their landlord of their intent to terminate their contract and provide dates. Otherwise, at the expiration of a lease or contract, a party may offer notification that they will be terminating their lease or contract or not renewing it.
A landlord also has the right to terminate agreements depending on the terms of the lease. For instance, a landlord can terminate the lease if the tenant breaks the lease terms. Additionally, the landlord could charge the tenant a termination fee.
Sometimes commercial businesses ask for termination agreement clauses to be added to their contracts in the event that they suffer a great loss of sales, they end up in bankruptcy, or they decide to restructure their entire business. If they do not have these clauses, however, they may have to challenge their landlord's lease to terminate.
Solutions to commercial leasing disputes include litigation and/or mediation. Consult with an experienced attorney for advice regarding your specific commercial leasing dispute.