In the Spotlight: Review Condominium Declaration When Drafting Lease for Commercial Unit

Special care should be given when drafting and negotiating a lease for a commercial condominium unit. Because the landlord in such a situation has rights and responsibilities as an owner of the condominium unit which comprises all or a portion of the leased premises, both parties to the transaction should review the relevant condominium declaration (which should consist principally of a recorded Declaration of Condominium and any amendments) to ensure that the lease terms comply with the condominium documents. The tenant will want assurances that the execution and delivery of the lease will not require any consents pursuant to the condominium declaration or violate the terms of the declaration or any other relevant documents. The landlord, on the other hand, will want to provide that the tenant will comply with all relevant terms of the declaration and not otherwise adversely affect the landlord's status as a condominium owner. Both parties will want to make sure that the lease accurately reflects their business deal.

4 minute read January 01, 2004 at 11:07 AM

By

William Crowe