Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
Issues Related to Turnover of Leased Premises at Expiration of Lease Term
When landlords and tenants are engaged in the negotiation and drafting of a lease, all too often, their attention is focused on those matters that are the first to occur. As a result, too little attention is paid to the issues surrounding the return of the premises when the lease term expires. Obviously, the business terms of the transaction such as rent, operating costs, and construction allowances all must be identified before a deal can be reached. Furthermore, those matters that have a direct impact on the tenant's occupancy and use of the premises are of clear importance to the parties from an operational standpoint. However, when the landlord and tenant fail to give the same level of consideration to the expiration of the lease term that is given to the commencement of the term, problems can arise.
Condition for Delivery of Premises at Expiration of Lease Term
The parties to a lease should be very careful when describing the condition in which the leased premises must be returned to the landlord at the end of a lease term. The key concern is whether the tenant is permitted to leave the premises in its improved condition or if the tenant needs to remove the improvements and return the space to its 'shell' condition. The difference between the two can be immense. In the first example, a lease could state that the premises are to be returned to the landlord 'in good repair, order and condition, reasonable wear and tear and damage by casualty excepted.' Absent language to the contrary, the tenant's only obligation would be to repair any damage that is caused during the move-out. In the second example, a lease could state that the premises are to be returned to the landlord 'in the same condition as existed at the commencement of the term.' Assuming the premises was in its shell, unimproved condition at the term commencement, the tenant would have to remove any and all alterations that were constructed during the lease term. If the tenant was delivered an unimproved space and subsequently engaged in a comprehensive build-out, the cost of the restoration could be significant.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Warehouse Liability: Know Before You Stow!
As consumers continue to shift purchasing and consumption habits in the aftermath of the pandemic, manufacturers are increasingly reliant on third-party logistics and warehousing to ensure their products timely reach the market.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?