4 Things Your Attorney Will Ask You When Dealing With Commercial Leases
Both landlords and tenants like to know that the process of obtaining and leasing commercial real estate is a lengthy one. Each party should be represented by legal counsel, especially tenants, to ensure the process runs smoothly. If you are a tenant, there are four common questions your M&A Attorney in Miami will ask you.
Is everything in writing? To guarantee legal protection, leases and other documents need to be in writing. If there are any amendments, those should be in writing as well. Anything signed by the landlord or tenant should be physically documented. Without these in written and signed documents, you cannot ensure you’ve upheld your end of the deal.
What defines a breach? While there are usually the obvious issues of failing to pay rent, there may be other obligations the landlord has included within the contract. The lease needs to clear about what exactly would result in a breach and what the cure period is, if any. They also need to clearly define what happens in default.
What are tenants allowed to do with space? Whereas single-family homes, apartments, condos, and other residential real estate property should be for living situations only, commercial spaces have a multitude of uses. Many leases will limit tenants’ use to one single specified use of the space, such as in an office or warehouse. However, there are some instances in which it can be permissive (giving leniency and minimal discretion to the tenant). The lines can be blurred, so seeking legal counsel from a corporate law firm in Miami is crucial.
Will there be a guarantor? This question is for landlords, but tenants should still be aware of if the landlord of the commercial space has one or not. A guarantor can help mitigate a business’s liability, potentially not making ends meet, therefore not paying rent.