Who Is in the Chain of Liability for OFAC Noncompliance?
March 31, 2005
By now many of us have either heard or read several articles written about compliance with the Executive Order 13224, titled "Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism" (the "Executive Order"). Although the probability of leasing or selling to any "Persons Who Commit, Threaten to Commit, or Support Terrorism," is extremely low, the consensus among the real estate bar seems to be that it is better to comply with the Executive Order and protect yourself and your client rather than risk the stiff penalties and stigma that would follow by inadvertently violating it. It is apparent that the creation of a Landlord-Tenant relationship or a conveyance of a property interest would give rise to an obligation to comply with the Executive Order, thereby triggering all of the potential liability associated with violating it.
Terrorism Insurance: A Two-Edged Sword
March 31, 2005
In the landlord-tenant arena, the issue of whether terrorism insurance must be purchased has two frequently encountered aspects. In one factual pattern, a tenant of a single-user property is required by its lease to purchase certain insurance coverage to protect both its own interest and the landlord's. Does this lease provision include terrorism insurance, as well as other types of coverage generally required on the leased premises? In another factual pattern, tenants of a multi-tenant facility must reimburse the landlord for their share of the landlord's taxes, common area expenses and insurance premiums. Do those insurance premiums properly include the landlord's cost of obtaining terrorism insurance?
In the Spotlight: Exploring the 'Gray' Between Ground and Space Leases
March 31, 2005
There are frequently varying shades of gray between a true ground lease and a space lease, particularly in retail real estate. The true ground lease is exactly that: a lease of ground — dirt — generally for a long term where the landlord has few, if any, obligations and, in fact, few rights other than to collect a rent stream which can only be interrupted in extremely limited circumstances. A space lease, of course, provides a landlord with varying responsibilities from construction to maintenance, repair, enforcement of other tenant obligations, etc., as well as creating various landlord rights such as use restrictions, radius restrictions, continuous operation provisions, etc. Landlords often get into trouble when they blend concepts from both ground and space leases without carefully considering whether the blend actually works throughout the lease term.
Selling the State's Zoning Exemption?
March 31, 2005
The Court of Appeals recently confronted a significant zoning issue: When, and on what terms, can the state or a state agency transfer to a private entity its exemption from local zoning restrictions? In <i>Matter of Crown Communication New York, Inc. v. Department of Transportation</i> (NYLJ 2/14/05, p. 19, col. 4), a divided court held that telecommunications towers erected on state land were immune from local zoning regulations even when the much of the space on the towers had been leased to private companies. The court's decision, however, raises as many questions as it resolves.
Index
March 31, 2005
Everything contained in this issue.
Practice Tip: Use Caution When Relying on Governmental Reports
March 31, 2005
Product failures are often investigated by official agencies. For example, the National Highway Traffic Safety Administration ("NHTSA") will often report on automobile defects as well as traffic accidents; the National Transportation Safety Board ("NTSB") investigates aviation accidents, and the Coast Guard investigates maritime disasters.
Online: Learn About Breast Implants
March 31, 2005
The Implant Information Project ("The Project"), located at <i>www.breastimplantinfo.org</i>, is a new Web site sponsored by the National Research Center for Women & Families, a nonprofit, nonpartisan organization that is dedicated to improving the health and safety of adults, teens, and children. It provides up-to-date information about the latest research on breast implants, so that teens, women, and their families have the information they need to make appropriate decisions.
