TreatiseTreatise

Friedman on Leases (5th Edition)

 by Patrick A. Randolph, Jr., Milton R Friedman, Patrick A Randolph, Yale Law School, Wendy Sue Friedman, Kathryn Ann Friedman, Amy L Friedman, Milton R Friedman
 
 Copyright: 2004-2014
 Last Updated: July 2014

 Product Details >> 

Product Details

  • ISBN Number: 1402404093
  • Page Count: 2506
  • Number of Volumes: 3
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Widely revered by real estate lawyers and leading publications in the field, Friedman on Leases clearly explains the full range of commercial lease provisions and possible landlord-tenant scenarios, enabling you to craft fair, problem-free leasing agreements for any situation.

Providing the balanced coverage that benefits attorneys for both parties, Friedman on Leases discusses the governing law in useful, accessible terms and offers hundreds of sample agreements and clauses that allow you to draft every essential document involved in commercial leasing more easily and confidently.

Friedman on Leases helps you to avoid the drafting problems that can compromise transactions; modify provisions in leases to accommodate different landlord-tenant arrangements; anticipate and resolve problems in transactions early on before they threaten agreements; deal effectively with difficult issues specific to certain types of leases; and proceed wisely and safely in those legal areas of leasing where the various courts (or states) may differ.

Updated at least once a year, Friedman on Leases is an indispensable guide for real estate attorneys and general practitioners who handle commercial lease transactions, and useful reading for executives and managers involved in leasing deals.


”[Friedman on Leases is] must reading and an important reference for all attorneys and every serious executive concerned with contracting for the use of space.”
 —Real Estate Law Journal

“[Friedman on Leases is] a monumental exposition, combining the attributes of a learned text with those of a practical guide.” 
 —Real Estate Review

“[Friedman on Leases is] a practical, authoritative, and complete analysis of the law of commercial real estate leases.” 
 —The Mortgage and Real Estate Executive Report

“[Friedman on Leases is] a text of prime use for all attorneys, from the expert leasing lawyer to the novice reviewing the first lease … There is no comparable work on the subject.” 
—The Business Lawyer

  Preface
  Preface to the Eleventh Supplement
  Table of Contents
Chapter 1: Introduction: The History and Nature of a Lease
  • § 1:1 : A Brief History of Leases1-1
    • § 1:1.1 : The Mesopotamian, Egyptian, and Biblical Hebrew Civilizations1-1
    • § 1:1.2 : Roman Leases1-5
    • § 1:1.3 : Feudal England1-7
    • § 1:1.4 : Western Leasing Before and During the Industrial Revolution1-10
  • § 1:2 : Present Day: What Is a Lease?1-13
    • § 1:2.1 : The End of the Residential Lease1-13
    • § 1:2.2 : The Nature of the Commercial Lease1-14
Chapter 2: The Parties
  • § 2:1 : In General2-1
    • § 2:1.1 : Marital Rights2-2
    • § 2:1.2 : Fiduciary Capacity2-3
    • § 2:1.3 : Nature and Validity of Entity2-5
    • § 2:1.4 : Landlord’s Ownership Capacity2-6
    • § 2:1.5 : Cotenancy of Either Party2-8
    • § 2:1.6 : Other Special Entities2-12
    • § 2:1.7 : Landlord’s Employee in Occupancy2-13
      • [A] : Sharecroppers Versus Farm Leases2-15
  • § 2:2 : Landlord’s Title2-18
  • § 2:3 : Landlord’s Duties to Evaluate and Report Terrorist Associations of Tenants and Other Parties Involved in Leasing Process2-20
    • § 2:3.1 : The USA PATRIOT Act2-21
    • § 2:3.2 : Gramm-Leach-Bliley Act2-29
    • § 2:3.3 : Executive Order 132242-30
  • § 2:4 : Restrictions on Illegal Immigrants2-32
Chapter 3: The Premises
  • § 3:1 : The Leased Premises—Description3-1
  • § 3:2 : Appurtenances3-12
    • § 3:2.1 : Express Provisions for Appurtenances3-12
      • [A] : Express Parking Rights3-13
    • § 3:2.2 : Implied Appurtenant Rights3-16
      • [A] : Implied Access Rights3-18
      • [B] : Implied Elevator Access3-23
      • [C] : Implied Access to Basement Areas3-24
      • [D] : Implied Parking Rights3-26
        • [D][1] : Recognition of the Right3-26
        • [D][2] : Remedies for Restriction of Parking Rights3-28
      • [E] : Implied Right to Light and Air3-30
      • [F] : Implied Visibility Rights, Signage3-36
      • [G] : Implied Air Rights (Development Rights)3-37
      • [H] : Implied Roof Rights, Rights in Walls, Rights in Subsurface3-38
      • [I] : Other Implied Appurtenances3-41
    • § 3:2.3 : Telecommunications and Television Rights3-44
    • § 3:2.4 : Drafting and Negotiating Considerations for Appurtenances3-48
  • § 3:3 : Tenant’s Option for More or Less Space—Landlord’s Option to Relocate Tenant3-51
  • § 3:4 : Access to Landlord’s Property for Free Speech Purposes3-56
Chapter 4: The Term—Possession
  • § 4:1 : In General4-1
    • § 4:1.1 : Term Tenancy and Periodic Tenancy Defined4-4
    • § 4:1.2 : Defining the End of a Lease Term4-7
    • § 4:1.3 : Can There Be a Perpetual Lease?4-10
  • § 4:2 : Landlord’s Responsibility to Deliver Possession at Commencement4-12
    • § 4:2.1 : Third Parties in Possession at Commencement of Lease4-17
    • § 4:2.2 : Delays in Possession Due to Landlord’s Construction Delays4-19
  • § 4:3 : Landlord’s Right to Enter, Inspect, Repair, and Exhibit Leased Premises4-21
    • § 4:3.1 : Business and Practical Aspects of Landlord’s Right to Enter, Inspect, Repair, and Exhibit Leased Premises4-21
    • § 4:3.2 : Legal Rights of a Landlord to Enter, Inspect, Repair, and Exhibit Leased Premises4-23
    • § 4:3.3 : Form of Permission for Landlord to Enter, Repair, Improve, and Exhibit Leased Premises, Including Right to Post Signs4-28
  • § 4:4 : Possible Right of Bankruptcy Trustee to Terminate Tenant’s Lease Rights4-29
Chapter 5: Rent
  • § 5:1 : In General5-2
    • § 5:1.1 : Nature of Rent5-2
      • [A] : Does Payment of Taxes and Operating Expenses Constitute “Rent”?5-8
    • § 5:1.2 : Covenant to Pay Rent5-11
      • [A] : Covenant to Pay Without Offset or Deduction5-13
    • § 5:1.3 : Rent Concessions5-15
    • § 5:1.4 : Statement of Aggregate Rent for the Term5-16
    • § 5:1.5 : Beginning of Accrual of Rent5-17
  • § 5:2 : Additional Rent5-18
    • § 5:2.1 : Taxes, Assessments5-20
      • [A] : Payments in Lieu of Taxes (PILOTS)5-30
    • § 5:2.2 : Water, Sewer Charges5-31
    • § 5:2.3 : Insurance5-32
    • § 5:2.4 : Taxes, Etc. As Additional Rent5-34
    • § 5:2.5 : Electricity—Rent Inclusion5-36
    • § 5:2.6 : Late Charges As Additional Rent5-39
  • § 5:3 : Acceleration of Rent5-40
  • § 5:4 : Rent Escalation5-53
    • § 5:4.1 : Tax Escalation5-58
    • § 5:4.2 : Operating Expenses As Basis for Escalation5-69
    • § 5:4.3 : Cost of Living5-73
    • § 5:4.4 : Use of Multiple Factors of Escalation5-77
    • § 5:4.5 : Ceilings on Escalation5-78
  • § 5:5 : Escalation Clause—Taxes and Operating Expenses5-80
    • § 5:5.1 : Escalation Clause—Taxes and Operating Expenses—Another Form5-83
    • § 5:5.2 : Escalation Clause—Taxes and Operating Expenses—with Additional Provisions5-89
  • § 5:6 : Escalation Clause—Based on Cost of Living5-96
    • § 5:6.1 : Escalation Clause—Based on Cost of Living—Another Form5-97
  • § 5:7 : Most Favored Nation Clause5-100
  • § 5:8 : Tenant Audit Rights5-103
  • § 5:9 : Rent Overcharges5-105
Chapter 6: Percentage Leases
  • § 6:1 : General6-2
    • § 6:1.1 : Percentage Lease As Creating Partnership6-5
    • § 6:1.2 : Tenant’s Breach and Default6-7
  • § 6:2 : Amount of Percentage Rent6-8
  • § 6:3 : Tables of Amount of Percentage Rent6-10
  • § 6:4 : Gross Sales and Other Income6-13
    • § 6:4.1 : Gross Sales—Subrents6-24
  • § 6:5 : Records, Statements, and Payment of Percentage Rent6-26
  • § 6:6 : Tenants’ Credits Against Percentage Rent6-31
  • § 6:7 : Multiple Stores6-33
    • § 6:7.1 : Radius Clause6-37
  • § 6:8 : Recapture and Step-Up Clauses6-38
  • § 6:9 : Implied Covenant That a Percentage Tenant Actively Conduct Business6-40
    • § 6:9.1 : Effect of Minimum Rent6-43
    • § 6:9.2 : Winding Down Tenant’s Business6-48
    • § 6:9.3 : Effect of Tenant’s Right to Assign or Sublet6-49
    • § 6:9.4 : Use Clause in Lease6-50
    • § 6:9.5 : Tenant’s Exclusive Use Rights6-52
    • § 6:9.6 : “Economic Interdependence”6-53
    • § 6:9.7 : Multiple Tenants6-55
    • § 6:9.8 : Author’s Commentary on Implied Duties of Continuous Operation6-55
      • [A] : Good Tenant’s Results6-59
      • [B] : Good Landlord’s Cases6-61
      • [C] : Implied Duty of Tenant to Conduct a Certain Kind of Business6-63
      • [D] : Other Tenants’ Standing to Claim Implied Duty of Continuous Operations6-64
  • § 6:10 : Express Covenant of Continuous Operation6-64
  • § 6:11 : “Duty to Open” Distinguished6-68
  • § 6:12 : Enforcement of Percentage Tenant’s Duty to Conduct Business6-70
  • § 6:13 : Assignment of Lease by Percentage Tenant6-79
  • § 6:14 : Sale of Premises—Apportionment of Percentage Rent6-81
Chapter 7: Assignment, Subletting, and Mortgaging by Tenant
  • § 7:1 : Business and Practical Aspects of Tenant’s Right to Assign and Sublet7-3
    • § 7:1.1 : Landlord’s Drafting Considerations7-5
    • § 7:1.2 : Tenant’s Drafting Considerations7-8
  • § 7:2 : Tenant’s General Right to Assign, Sublet, and Mortgage7-10
  • § 7:3 : Restrictions on Tenant’s Right to Assign, Sublet, and Mortgage7-12
    • § 7:3.1 : Statutory Restrictions7-12
    • § 7:3.2 : Restrictions by Nature of Lease7-13
      • [A] : Tenancy at Will7-13
      • [B] : Concessions7-13
      • [C] : Hotels7-14
      • [D] : Gallonage Leases7-14
      • [E] : Percentage Leases7-15
      • [F] : Lease of Agricultural Land on Sharecropping Basis7-17
      • [G] : Rent-Controlled Property7-17
    • § 7:3.3 : Express Restrictions—Construction of Express Restrictions—General7-18
      • [A] : Agents, Servants in Possession7-22
      • [B] : Partnership Tenants7-23
      • [C] : Corporate Tenants7-24
        • [C][1] : Change in Stock Control7-24
        • [C][2] : Dissolution of Corporate Tenant7-26
      • [D] : Assignment by Operation of Law7-28
      • [E] : Non-Assignment Clauses7-29
        • [E][1] : In General—Tenant’s Covenant Against Assignment, Subletting, and Mortgaging7-29
        • [E][2] : Merger of Corporate Tenant7-31
        • [E][3] : Modification of Non-Assignment Clause7-33
    • § 7:3.4 : Enforcement of Express Restrictions7-38
      • [A] : In General7-38
      • [B] : Bankruptcy Treatment of Restrictions on Assignment7-47
      • [C] : Landlord’s Rights Under Non-Assignment Clause7-52
      • [D] : Landlord’s Express or Implied Duty to Be Reasonable in Consenting to Transfer7-54
        • [D][1] : In General7-54
        • [D][2] : Historical Analysis7-55
        • [D][3] : Landlord’s Duty to Be Reasonable in Consenting—Construction7-56
      • [E] : Consequences of Landlord’s Unreasonable Withholding of Consent7-71
    • § 7:3.5 : Effect of Assignment or Sublease Made in Breach of Restriction7-74
    • § 7:3.6 : Landlord’s Waiver of Restriction Against Assignment and Subletting7-77
  • § 7:4 : Assignments and Subleases7-82
    • § 7:4.1 : In General7-82
    • § 7:4.2 : Assignments Pro Tanto7-84
    • § 7:4.3 : Sublease for Balance of Term As Assignment7-85
      • [A] : Reservations, Other Than That of Time, As Creating Sublease Rather Than Assignment7-90
    • § 7:4.4 : Form of Sublease—Short Form—Incorporating Prime Lease by Reference7-95
  • § 7:5 : Relations Between Landlord, Tenant, and Assignee7-99
    • § 7:5.1 : Liability Under the Lease7-100
      • [A] : Privity7-100
      • [B] : Liability of Tenant to Landlord After Assignment by Tenant7-101
      • [C] : Liability of Assignee of Lease to Landlord7-103
        • [C][1] : Privity of Estate7-105
          • [C][1][a] : Obligations of Assignee Based Upon Privity of Estate7-105
          • [C][1][b] : Restrictions That Bind Parties in Possession Without Privity7-108
        • [C][2] : Assumption of Lease by Assignee7-108
          • [C][2][a] : General Assumption7-111
          • [C][2][b] : Prospective Assumption7-111
      • [D] : Concurrent Liability of Original Tenant and Assuming Assignee7-112
    • § 7:5.2 : Tenant-Assignor As Surety7-116
    • § 7:5.3 : Tenant-Assignor’s Remedies to Enforce Payment of Consideration for Assignment7-119
  • § 7:6 : Form of Tenant’s Assignment of Lease with Consent by Landlord and Assumption by Assignee7-121
    • § 7:6.1 : Comments on the Foregoing Form7-123
  • § 7:7 : Relations Between Landlord, Tenant, and Subtenant7-123
    • § 7:7.1 : In General7-123
    • § 7:7.2 : Tenant’s Responsibility for Subtenant Behavior7-133
    • § 7:7.3 : Termination of Prime Lease—Effect on Sublease7-135
    • § 7:7.4 : Status of Subtenant When Landlord Fails to Renew7-142
    • § 7:7.5 : Protection of Subtenant7-143
      • [A] : Subtenant’s Right to Pay Rent to Prime Landlord7-143
      • [B] : Nondisturbance Agreement Between Prime Landlord and Subtenant7-144
        • [B][1] : Form of Nondisturbance Agreement Between Prime Landlord (Fee Owner) and Subtenant7-149
        • [B][2] : Another Form of Nondisturbance Agreement Between Prime Landlord (Fee Owner) and Subtenant—Construction Form—Construction of Building by Prime Tenant-Sublessor7-153
  • § 7:8 : Leasehold Mortgages7-158
    • § 7:8.1 : In General7-158
    • § 7:8.2 : Liability of Leasehold Mortgagee for Rent and Other Tenant Obligations—Right of Leasehold Mortgagee to Cure Defaults Under Mortgaged Lease7-175
    • § 7:8.3 : Lease Provisions Relating to Leasehold Mortgages7-179
Chapter 8: Mortgages
  • § 8:1 : In General8-1
    • § 8:1.1 : Subordination, Nondisturbance, and Attornment Agreements8-2
      • [A] : Subordination8-2
      • [B] : Nondisturbance Agreements8-9
    • § 8:1.2 : Holdover Tenant Versus Foreclosing Mortgagee8-11
    • § 8:1.3 : Federal Protecting Tenants at Foreclosure Act8-13
      • [A] : Preservation of Leases Arising “Prior to Notice of Foreclosure”8-14
        • [A][1] : When Does Title Transfer? The Problem of Statutory Redemption8-16
      • [B] : What Is a “Bona Fide Lease”?8-16
      • [C] : Application and Remedies8-18
  • § 8:2 : Negotiation of Subordination and Nondisturbance Clauses8-20
  • § 8:3 : Tenant’s Right to Cure Mortgage and Tax Defaults8-22
  • § 8:4 : Tenant’s Mortgage of Landlord’s Interest—“Subordinating the Fee”8-23
    • § 8:4.1 : Lease Provisions for Mortgage of Fee to Finance Tenant’s Construction8-28
Chapter 9: Damage and Destruction of Leased Property
  • § 9:1 : Common-Law Rule9-2
    • § 9:1.1 : Where Lease Is Silent on Responsibilities9-2
      • [A] : Common-Law Responsibility to Repair or Replace9-7
    • § 9:1.2 : Provisions Requiring Tenant to Repair or Maintain9-7
    • § 9:1.3 : Provisions Requiring Landlord to Repair or Maintain9-10
    • § 9:1.4 : Commercial Frustration9-16
  • § 9:2 : Statutes Dealing with Destruction or Substantial Damage to Premises9-19
    • § 9:2.1 : Effect on Statutes of Failure to Repair and Other Matters9-29
    • § 9:2.2 : Stipulations Taking Leases Out of the Statutes9-32
  • § 9:3 : Apportionment of Rent After Damage to Premises9-34
  • § 9:4 : “Damage by the Elements” and “Acts of God,” Etc.9-36
  • § 9:5 : “Destruction” and “Untenantability”9-39
  • § 9:6 : Interpretation of Clauses Covering Damage and Destruction9-45
  • § 9:7 : Impact of Insurance Obligation9-51
  • § 9:8 : Drafting Clauses Covering Damage and Destruction9-52
  • § 9:9 : Clauses Covering Damage and Destruction9-58
  • § 9:10 : Fault of Landlord or Tenant—Subrogation of Insurer9-64
    • § 9:10.1 : Avoidance of Insurer’s Subrogation Rights9-72
      • [A] : Mutual Waivers of Subrogation9-86
  • § 9:11 : Implied Waiver of Subrogation of Landlord’s Insurer—Three Approaches9-93
    • § 9:11.1 : Implied Co-Insured Status Assumed Absent Explicit Language Stating Contradictory Intent in the Lease9-94
      • [A] : Policy Considerations9-96
      • [B] : Significance of Specific Lease Language9-98
        • [B][1] : Language Tending in Favor of Implied Waiver of Subrogation9-98
        • [B][2] : Language Expressing No Waiver of Subrogation Is Intended9-102
    • § 9:11.2 : No Implication of Co-Insured Status Unless Explicitly and Unambiguously Stated Otherwise in the Lease9-104
      • [A] : Policy Considerations9-105
      • [B] : Unequivocal Terms and Allocation of Duties9-107
    • § 9:11.3 : The Middle Approach9-109
      • [A] : Policy Considerations9-110
      • [B] : Waiver of Subrogation Factors9-112
    • § 9:11.4 : Miscellaneous Considerations9-115
  • § 9:12 : Indemnities—Effect9-117
  • § 9:13 : Impact of September 11, 20019-121
Chapter 10: Repairs; and Appendix 10A
  • § 10:1 : Landlord’s Common-Law Obligations10-3
    • § 10:1.1 : In General10-3
    • § 10:1.1A : Post-Lease Liability of Landlord for Pre-Existing Defects10-7
    • § 10:1.2 : Implied Warranty of Habitability10-13
      • [A] : Application to Commercial Leases10-17
    • § 10:1.3 : Scope of Warranty10-20
      • [A] : Tort Liability for Breach of Implied Warranty10-24
    • § 10:1.4 : Waiver of Implied Warranty10-27
    • § 10:1.5 : Defective Condition Existing When Lease Made—Trap10-30
      • [A] : Lead Paint10-36
    • § 10:1.6 : Tenant’s Common Law Remedies10-39
    • § 10:1.7 : Common Areas10-46
      • [A] : Illumination10-56
      • [B] : Snow and Ice10-57
    • § 10:1.8 : Distinction in Duty Based upon Classification of Injured Party10-63
    • § 10:1.9 : Criminal Attacks10-66
      • [A] : Recent Developments Concerning Landlord’s Liability to Tenant for Criminal Attacks10-79
      • [B] : Liability Based on General Negligence Theory10-79
      • [C] : Existence of Duty of Care10-80
      • [D] : Duty to Maintain Common Areas Safe from Criminal Acts10-81
      • [E] : Voluntary Assumption10-81
      • [F] : Duty to Protect Arising Out of “Implied Warranty of Habitability”10-82
      • [G] : Statutes As Basis for Landlord’s Duty to Protect10-83
      • [H] : Foreseeability10-83
      • [I] : Role of Public Policy in Establishing Duty10-85
      • [J] : Causation10-86
    • § 10:1.10 : Parts of Premises Entirely in Possession and Control of Landlord and Not Usable by Tenants10-87
    • § 10:1.11 : Premises in Public Use10-90
    • § 10:1.12 : Injuries to Persons Outside Premises—Nuisance—Landlord’s Liability for Tenant’s Acts10-94
    • § 10:1.13 : Furnished House or Apartment10-102
    • § 10:1.14 : Landlord’s Voluntarily Undertaking to Repair10-103
    • § 10:1.15 : Statutes10-103
      • [A] : Habitability Requirements10-103
      • [B] : Environmental Statutes10-110
    • § 10:1.16 : Landlord’s Liability for Injury Caused by Mold10-112
      • [A] : Mold As a Latent Defect10-112
      • [B] : Implied Warranty of Habitability10-113
      • [C] : Negligence10-114
      • [D] : Causation10-116
      • [E] : Statutory Law10-117
    • § 10:1.17 : Landlord’s Liability for Secondhand Smoke10-117
  • § 10:2 : Tenant’s Common-Law Obligation to Repair10-118
  • § 10:3 : Covenants to Repair—Scope10-121
    • § 10:3.1 : In General10-121
      • [A] : Express Limitation on Repair Covenants10-121
      • [B] : Structural Repairs10-123
  • § 10:4 : Covenants to Repair—As Running with the Land10-128
  • § 10:5 : Landlord’s Covenant to Repair10-131
    • § 10:5.1 : In General10-131
    • § 10:5.2 : Scope10-140
    • § 10:5.3 : Remedies for Landlord’s Breach10-141
      • [A] : Liability in Tort10-143
      • [B] : Tenant’s Right to Repair at Landlord’s Expense10-150
      • [C] : Liability for Damages; Specific Performance10-154
      • [D] : Liquidated Damages10-156
  • § 10:6 : Tenant’s Covenant to Repair10-157
    • § 10:6.1 : Scope10-157
      • [A] : Ordinary Repairs10-166
      • [B] : Wear and Tear10-167
    • § 10:6.2 : Tenant’s Covenant to Repair—Breach and Damages10-169
  • § 10:7 : Right to Shore Walls10-171
    • § 10:7.1 : Form of Permission from Tenant to Shore Walls10-174
  • § 10:8 : Negotiating and Drafting Repair Clauses—Business and Practical Aspects10-175
  • § 10:9 : Forms of Repair Clauses10-181
  • Appendix 10A : Existence and Scope of Residential Implied Warranty of Habitability in Each JurisdictionApp. 10A-1
Chapter 11: Compliance with Laws
  • § 11:1 : General11-1
  • § 11:2 : The California Couplet and the “Six Factors Test”11-18
  • § 11:3 : Protecting Landlords Under “Absolute Liability” Environmental Statutes11-20
Chapter 12: Landlord’s Services; and Appendix 12A
  • § 12:1 : General12-1
  • § 12:2 : Breakdown Clauses12-3
  • § 12:3 : Shopping Centers and Other Special-Purposes Facilities12-3
  • Appendix 12A : Cleaning ScheduleApp. 12A-1
Chapter 13: Condemnation
  • § 13:1 : In General13-2
  • § 13:2 : Partial Condemnation and Taking of Less Than Fee Interests13-5
    • § 13:2.1 : Partial Taking13-5
      • [A] : Shopping Center Leases13-11
    • § 13:2.2 : Taking for Temporary Use13-13
    • § 13:2.3 : Change of Grade13-15
    • § 13:2.4 : Miscellaneous13-16
  • § 13:3 : Tenant’s Claim for Leaseholds and Other Interests13-17
  • § 13:4 : “Termination upon Condemnation” Clauses13-24
  • § 13:5 : Fixtures13-31
  • § 13:6 : Stipulations with Respect to Condemnation of Tenant’s Interests13-37
  • § 13:7 : Condemnation Clauses13-43
    • § 13:7.1 : Clauses13-43
      • [A] : Clause 113-43
      • [B] : Clause 213-43
      • [C] : Clause 313-45
      • [D] : Clause 413-46
      • [E] : Clause 513-46
      • [F] : Clause 613-46
      • [G] : Clause 713-47
      • [H] : Clause 813-47
      • [I] : Clause 913-48
      • [J] : Clause 1013-48
      • [K] : Clause 1113-49
      • [L] : Clause 1213-52
    • § 13:7.2 : Comment on Clauses13-57
Chapter 14: Renewals
  • § 14:1 : In General14-1
    • § 14:1.1 : Impact of Tenant Default on Right to Renew14-16
    • § 14:1.2 : Transferability of Right to Renew upon Tenant’s Assignment or Sublet14-21
    • § 14:1.3 : Provisions for Recomputation of Rent upon Renewal14-25
  • § 14:2 : Notice of Renewal14-45
    • § 14:2.1 : Late Renewal Notice14-57
    • § 14:2.2 : Notice of Non-Renewal14-72
  • § 14:3 : Retention of Possession As Effecting Renewal14-73
    • § 14:3.1 : Cases Distinguishing Between Extensions and Renewals14-75
    • § 14:3.2 : Cases Making No Distinction Between Extensions and Renewals14-83
    • § 14:3.3 : Effect of Statutes14-90
  • § 14:4 : Automatic Renewals14-91
  • § 14:5 : Renewals By Fiduciaries14-94
  • § 14:6 : Effect of Renewal on Previous Lease and Rights Pertaining to It14-100
  • § 14:7 : Retaliatory Eviction14-101
    • § 14:7.1 : Application to Commercial Leases14-113
Chapter 15: Purchase Options
  • § 15:1 : Tenant’s Option to Buy the Premises15-1
  • § 15:2 : Effect of Breach of Lease by Tenant15-27
  • § 15:3 : Assignability of Tenant’s Purchase Option15-30
  • § 15:4 : Extensions and Renewals of Lease15-33
  • § 15:5 : Exercise of Option—Notice—Effect15-40
    • § 15:5.1 : Optionee’s “Interest in Realty”—Doctrine of Relation Back15-55
    • § 15:5.2 : Tenant’s Duty of Good Faith upon Exercise15-63
  • § 15:6 : Tenant’s Right of Refusal15-65
    • § 15:6.1 : Business and Practical Aspects of Tenant’s Right of Refusal15-65
    • § 15:6.2 : In General15-69
      • [A] : Characterization Issues: Perpetuities15-70
      • [B] : Characterization Issues: Impact on Right of Sale of Premises15-73
    • § 15:6.3 : Variations of Standard Refusal Right15-74
    • § 15:6.4 : Certain Transfers May Not Trigger Right of First Refusal15-80
    • § 15:6.5 : Notice Issues15-88
    • § 15:6.6 : Operation of the Right15-91
    • § 15:6.7 : Model Clause15-104
    • § 15:6.8 : Effect of Brokerage Commission on Tenant’s Right to Match Outside Bid15-107
Chapter 16: Default by Tenant; and Appendix 16A
  • § 16:1 : In General16-2
  • § 16:2 : Tenant’s Breach and Forfeiture16-7
    • § 16:2.1 : Notice of Default16-7
    • § 16:2.2 : Forfeiture of Lease Rights16-13
    • § 16:2.3 : Tenant Insolvency As Breach of Lease16-25
    • § 16:2.4 : Impact of Bankruptcy on Landlord’s Remedies for Default16-30
    • § 16:2.5 : Impact of Tenant Default on Subtenant16-42
      • [A] : Bankruptcy Code and Public Housing Evictions16-43
  • § 16:3 : Termination of Lease and Survival of Tenant’s Liability16-44
    • § 16:3.1 : In General16-44
      • [A] : Traditional Rule16-44
      • [B] : Contract-Based Approach to Damages Calculation—Mitigation Requirement16-48
      • [C] : Is There a Trend to Adopt the Contract Approach?16-58
    • § 16:3.2 : Landlord’s Resumption of Possession16-60
    • § 16:3.3 : Landlord’s Reletting As Acceptance of Surrender16-65
    • § 16:3.4 : Landlord’s Duty to Relet After Reentry16-82
  • § 16:4 : Landlord’s Right to Cure Tenant Defaults16-95
    • § 16:4.1 : Default Provisions; Conditional Limitations16-96
  • § 16:5 : Waiver by Landlord of Tenant Default16-104
    • § 16:5.1 : In General16-104
    • § 16:5.2 : Disclaimer of Waiver by Landlord16-119
    • § 16:5.3 : Criticism of the Rules of Waiver16-123
    • § 16:5.4 : Waivers of Jury Trials16-126
      • [A] : Strict Construction of Waivers16-127
      • [B] : Waivers Must Be Conspicuous16-128
      • [C] : Conclusions for Lease Drafting16-129
  • § 16:6 : Effect of Federal Fair Debt Collection Practices Act16-129
  • Appendix 16A : State-by-State Analysis of Landlord’s Duty to MitigateApp. 16A-1
  • Table 1: : States Where Duty to Mitigate Is Imposed by StatuteApp. 16A-1
  • Table 2: : States Where Duty to Mitigate Is Recognized in Common-Law DecisionsApp. 16A-19
  • Table 3: : States That Appear to Have Recognized Duty to Mitigate in Common-Law DecisionsApp. 16A-26
  • Table 4: : States That Impose No Duty to Mitigate (Statute or Decision)App. 16A-30
  • Table 5: : States Where Duty to Mitigate Is UncertainApp. 16A-38
Chapter 17: Exculpatory Clauses
  • § 17:1 : Landlords’ Exculpatory Clauses—Statute of Limitations17-1
  • § 17:2 : Fiduciary’s Exculpatory Clause17-21
  • § 17:3 : Clauses Reducing Length of Statute of Limitations17-22
  • § 17:4 : Exculpation of Landlord or Tenant from Personal Liability Under the Lease17-23
Chapter 18: Termination of Lease
  • § 18:1 : Tenant’s Surrender of Possession on Expiration of Lease: Duties Regarding Condition of Premises Upon Surrender18-1
  • § 18:2 : Tenant’s Retention of Possession After End of Lease: Liability for Damages18-26
  • § 18:3 : Landlord’s Notice of Increase in Rent or Other Change in Terms After Expiration of Lease18-35
  • § 18:4 : Holdover Tenancies—In General18-42
    • § 18:4.1 : Terms of New Tenancy Resulting from Holdover18-47
    • § 18:4.2 : Exceptions to Holdover Rule18-52
  • § 18:5 : Lease Provisions Negating Tenant’s Status As Holdover Tenant18-53
  • § 18:6 : Landlord’s Right to Retake Possession by Self-Help18-55
  • § 18:7 : Tenant’s Remedies for Landlord’s Wrongful Eviction18-65
  • § 18:8 : Tenant’s Personal Property Left on Premises18-67
Chapter 19: Take-Over Leases
  • § 19:1 : In General19-1
  • § 19:2 : Clause for Lease Take-Over19-6
Chapter 19A: Tenant Bankruptcy
  • § 19A:1 : Automatic Stay of Eviction19A-1
  • § 19A:2 : Tenant’s Decision to Affirm or Reject the Lease19A-2
  • § 19A:3 : Effect of Tenant Rejection19A-4
  • § 19A:4 : Effect of Tenant’s Decision to Affirm and Assume the Lease19A-5
Chapter 20: Distraint, Landlords’ Liens and Tenant Security; and Appendix 20A
  • § 20:1 : In General20-1
  • § 20:2 : Ordinary Security20-4
    • § 20:2.1 : Marketable Securities20-16
    • § 20:2.2 : Security As Lien on the Property20-17
  • § 20:3 : Other Forms of Tenant Security20-18
    • § 20:3.1 : Sums Paid on Execution of Lease As Bonus or in Consideration of Lease or As Advance Rent20-18
    • § 20:3.2 : Other Forms of Tenant Security—Letters of Credit20-25
  • § 20:4 : Nature of Security Deposit—Statutes20-30
  • § 20:5 : Transfer by Landlord or Tenant—Effect on Security20-39
    • § 20:5.1 : Assignment by Tenant20-39
    • § 20:5.2 : Transfer by Landlord20-39
      • [A] : Rights of Tenant Against Grantee20-40
      • [B] : Rights of Grantee Against Landlord20-41
  • § 20:6 : Effect of Federal Income Tax20-42
  • § 20:7 : Security Deposit Clause20-44
  • Appendix 20A : STATE-BY-STATE ANALYSIS OF SECURITY DEPOSIT STATUTESApp. 20A-1
Chapter 21: Option to Cancel Lease
  • § 21:1 : Business and Practical Aspects21-1
  • § 21:2 : Effect of Cancellation Right on Validity and Enforceability of Lease21-6
    • § 21:2.1 : In General21-6
    • § 21:2.2 : Common-Law Tenancies at Will21-6
    • § 21:2.3 : Law of Contracts As Applied Generally to Cancellation Clauses21-9
    • § 21:2.4 : Application of Cancellation Clauses to the Modern Lease21-9
  • § 21:3 : Operation of Cancellation Clauses in the Modern Lease21-12
    • § 21:3.1 : In General21-12
    • § 21:3.2 : Cancellation on Sale21-13
    • § 21:3.3 : Cancellation for Demolition or Construction21-18
    • § 21:3.4 : Cotenancy Clauses21-20
    • § 21:3.5 : “One Chance” Clause21-22
  • § 21:4 : Notice of Cancellation21-22
Chapter 22: Alterations and Improvements by Tenant
  • § 22:1 : Tenant’s Right to Alter and Improve22-1
    • § 22:1.1 : Introduction22-1
    • § 22:1.2 : English Background of Law of Waste22-3
    • § 22:1.3 : Law of Waste in the United States—Life Tenant and Remainderman—Landlord and Tenant22-5
    • § 22:1.4 : Alterations in Absence of Governing Stipulation22-7
  • § 22:2 : Stipulations22-10
    • § 22:2.1 : Construction of Stipulations22-10
    • § 22:2.2 : Minor Changes22-17
    • § 22:2.3 : Tenant’s Right to Sublet Commercial Space As Authorizing Alterations22-19
  • § 22:3 : Definitions of “Alterations” and “Improvements”22-19
  • § 22:4 : Tenant’s Statutory Right to Alter or Repair22-21
  • § 22:5 : Effect of Tenant Alterations or Improvements on Real Estate Taxes22-24
  • § 22:6 : Tenant Improvements As Taxable Income to Landlord22-27
  • § 22:7 : Business and Practical Aspects of Stipulations Regarding Alterations or Improvements22-29
  • § 22:8 : Is Tenant Entitled to Compensation for Improvements?22-31
  • § 22:9 : Mechanics’ Liens22-40
  • § 22:10 : Model Provision for Alterations and Improvements22-47
Chapter 23: The Work Letter
  • § 23:1 : Landlord’s Construction for Tenant—Foreword23-1
  • § 23:2 : The Work Letter23-3
  • § 23:3 : Definitions of Terms Used in Construction and Air Conditioning23-18
Chapter 24: Fixtures
  • § 24:1 : The Variable Character of Fixtures—Background24-1
  • § 24:2 : Tenant’s Right of Removal24-7
    • § 24:2.1 : Do Tenant’s Water Appropriation Rights Pass to the Landlord?24-17
  • § 24:3 : Trade Fixtures24-17
  • § 24:4 : Tenant’s Duty to Remove24-23
    • § 24:4.1 : Tenant’s Duty to Remove As Affected by Bankruptcy24-28
  • § 24:5 : Intention As a Factor in Determining Removability by Tenant24-29
  • § 24:6 : Stipulations24-33
  • § 24:7 : A Visual Artist’s Right to Prevent Removal of Fixtures That Are Works of Art24-38
Chapter 25: [Reserved]
Chapter 26: Interpretation and Construction of Leases
  • § 26:1 : Foreword26-1
  • § 26:2 : General26-2
  • § 26:3 : Interpretation Versus Construction26-6
  • § 26:4 : Surrounding Circumstances26-7
  • § 26:5 : Rules, Tools, and Maxims of Construction26-16
    • § 26:5.1 : Ambiguity26-17
    • § 26:5.2 : Practical Construction26-27
    • § 26:5.3 : Construction Against Drafter26-32
    • § 26:5.4 : Ejusdem Generis26-38
    • § 26:5.5 : Deletions and Alterations of Lease26-40
    • § 26:5.6 : Grammar and Punctuation26-43
    • § 26:5.7 : Priority of Position26-45
    • § 26:5.8 : Miscellaneous26-46
  • § 26:6 : Stipulations Purporting to Control Interpretation and Construction26-53
Chapter 27: Use of Leased Premises
  • § 27:1 : Tenant’s Duty to Use27-2
    • § 27:1.1 : General27-2
    • § 27:1.2 : “Vacant” and “Deserted”27-3
  • § 27:1A : Tenant’s Duty Not to Commit Waste27-5
  • § 27:2 : Uses Permitted by Implication27-6
  • § 27:3 : Restrictions on Tenant’s Use27-8
    • § 27:3.1 : Terms of Lease27-8
      • [A] : Residential Use27-14
      • [B] : Incidental Uses27-16
    • § 27:3.2 : Legality of Use27-17
      • [A] : Certificate of Occupancy and Other Specific Requirements27-25
      • [B] : Necessary Permit or Zoning Variance27-28
      • [C] : Supervening Illegality of Use—Supervening Impracticability27-33
      • [D] : Stipulations27-38
  • § 27:4 : Fitness of Premises for Tenant’s Use27-40
    • § 27:4.1 : General27-40
    • § 27:4.2 : Implied Warranty of Fitness27-42
    • § 27:4.3 : Landlord’s Management of Common Areas27-46
      • [A] : Landlord Security Measures in Common Areas27-47
  • § 27:5 : Effect of Lease on Landlord’s Right to Lease Other Property27-48
  • § 27:6 : Possible Special Operating Duties of Shopping Center Landlords27-53
    • § 27:6.1 : The Problem of Synergy27-53
    • § 27:6.2 : Circumstances Where Landlord’s Duty May Arise27-55
      • [A] : The Big Box Phenomenon27-55
      • [B] : Office Conversions27-56
    • § 27:6.3 : Authority Discussing the Issue of Implied Landlord’s Duties in Retail Settings27-57
    • § 27:6.4 : Effect of a Reservation of Rights to Alter Premises27-62
  • § 27:7 : Fair Housing Laws’ Impact on Residential Landlords’ Restrictions on Use27-63
    • § 27:7.1 : Discrimination Based upon Race27-63
    • § 27:7.2 : Discrimination Based upon Religion27-65
    • § 27:7.3 : Discrimination Based upon Sex27-65
    • § 27:7.4 : Discrimination Based upon Family Status27-67
    • § 27:7.5 : Discrimination Based upon Age27-69
    • § 27:7.6 : Discrimination Based upon Citizenship27-69
    • § 27:7.7 : Discrimination Based upon Occupation27-70
    • § 27:7.8 : Discrimination Based upon Disability27-70
    • § 27:7.9 : Discrimination Based upon Pets27-73
Chapter 28: Exclusive Uses
  • § 28:1 : Validity and Construction of Covenants Against Competing Uses28-1
  • § 28:2 : Implication of Right to Exclusive Use28-7
  • § 28:3 : Obligations of Landlord Under Covenants for Exclusive Uses28-9
  • § 28:4 : Areas Affected by Covenants Against Competing Uses28-18
    • § 28:4.1 : After-Acquired Property28-18
    • § 28:4.2 : Sale of Property Affected by Covenant28-21
    • § 28:4.3 : Radius Clauses28-23
  • § 28:5 : Effect of Covenant Against Competing Uses on Right to Park Cars28-25
  • § 28:6 : Remedies of Tenant-Covenantee28-25
    • § 28:6.1 : Notice28-25
    • § 28:6.2 : Injunction28-28
    • § 28:6.3 : Rescission28-30
    • § 28:6.4 : Damages28-31
  • § 28:7 : Overlapping Sales28-37
  • § 28:8 : Antitrust Implications of Covenants Against Competing Uses28-47
    • § 28:8.1 : Federal Antitrust Considerations28-49
    • § 28:8.2 : State Antitrust Considerations28-54
    • § 28:8.3 : Indirect Restraint on Competition28-55
  • § 28:9 : The Restatement Approach28-56
  • § 28:10 : The Question of Market Impact and the Rule of Reason28-59
Chapter 29: Tenant’s Right to Quiet Possession
  • § 29:1 : Foreword29-1
  • § 29:2 : Covenant of Quiet Enjoyment29-2
    • § 29:2.1 : General29-2
    • § 29:2.2 : Eviction As a Consequence of Government Action29-7
    • § 29:2.3 : Express Covenants of Quiet Enjoyment29-8
    • § 29:2.4 : Actual Eviction of Tenant by Landlord29-13
    • § 29:2.5 : Effect of Covenant of Quiet Enjoyment on Other Property of Landlord29-17
    • § 29:2.6 : Covenant of Quiet Enjoyment As Independent Covenant29-19
    • § 29:2.7 : Effect of Covenant of Quiet Enjoyment on After-Acquired Property of Landlord29-19
    • § 29:2.8 : Covenant of Quiet Enjoyment As Running with the Land29-21
    • § 29:2.9 : Where Landlord Has Permission to Enter29-23
  • § 29:3 : Constructive Eviction29-23
    • § 29:3.1 : General29-23
    • § 29:3.2 : Damages for Constructive Eviction29-43
    • § 29:3.3 : Provisions Limiting Landlord’s Liability for Constructive Eviction29-46
  • § 29:4 : Distinction Between Breach of Covenant of Quiet Enjoyment, Eviction, and Trespass29-48
Chapter 30: Execution and Delivery
  • § 30:1 : General30-1
  • § 30:2 : Execution of the Lease Prior to Possession by Tenant30-4
  • § 30:3 : Defective Execution30-7
    • § 30:3.1 : Part Performance30-7
  • § 30:4 : “Delivery” of Lease Prior to Possession by Tenant30-9
  • § 30:5 : Execution and Delivery of Lease After Tenant Takes Possession30-13
Chapter 31: Recordation of the Lease—Possession As Notice
  • § 31:1 : Possession As Notice31-1
    • § 31:1.1 : General31-1
    • § 31:1.2 : Possession Consistent with the Record31-7
    • § 31:1.3 : Tenant Not in Possession31-9
    • § 31:1.4 : Effect of Inquiry31-10
  • § 31:2 : Recording the Lease31-15
Chapter 32: Modification of the Lease—Reduction of Rent
  • § 32:1 : General32-1
    • § 32:1.1 : Effect of Integration or Merger Clause32-2
    • § 32:1.2 : Agreements to Modify Rent32-3
    • § 32:1.3 : Effect on Guarantees32-6
    • § 32:1.4 : Has the Original Lease Been Superseded?32-7
Chapter 33: Sign and Advertising Rights
  • § 33:1 : Sign and Advertising Rights of Landlord and Tenant33-1
    • § 33:1.1 : Generally33-1
    • § 33:1.2 : Landlord’s Waiver of Right to Object to Signs33-11
  • § 33:2 : Billboard Rights33-13
  • § 33:3 : Drafting Considerations in Billboard Leases33-16
  • § 33:4 : Right to Visibility Easements for Signage33-19
Chapter 34: Contracts to Lease
  • § 34:1 : Distinction Between a Lease and a Contract to Lease34-1
  • § 34:2 : Contracts to Lease—In Operation34-5
  • § 34:3 : Statute of Frauds—Part Performance34-19
    • § 34:3.1 : Leases Implied in Fact34-26
  • § 34:4 : Security34-27
  • § 34:5 : Tenant’s Refusal to Accept Possession of Leased Premises As Breach of Contract, As Distinguished from Breach of Lease— Interesse Termini34-28
  • § 34:6 : Provision for Formal Lease34-31
  • § 34:7 : Damages for Breach of Contract to Lease34-34
Chapter 35: Guaranty of Lease
  • § 35:1 : General35-1
  • § 35:2 : Application to Renewals, Extensions, and Holdover Tenancies35-5
  • § 35:3 : Defenses, Release, and Discharge of Guarantor35-9
  • § 35:4 : Subrogation of Guarantor—Rights of Assignee of Debt35-20
  • § 35:5 : Form of Guaranty of Lease35-21
Chapter 36: Transfer of Landlord’s Reversion; and Appendices 36A-36C
  • § 36:1 : Background36-1
  • § 36:2 : Broken Covenants Do Not Run36-5
  • § 36:3 : Covenants Relating to Matters Not in Existence; the Rule in Spencer’s Case36-8
  • § 36:4 : The Touch and Concern Requirement36-12
  • § 36:5 : Lease Covenants Ordinarily Running with the Land36-17
  • § 36:6 : Covenants Concerning Brokerage Commissions36-18
  • § 36:7 : Effect on Subsequent Owner of Waivers of Tenant Obligations and Modifications of Lease36-20
  • § 36:8 : Concurrent Leases36-22
  • § 36:9 : Landlord’s Representation of Title; Estoppel Certificates36-24
  • Appendix 36A : SIMPLE FORM OF ESTOPPEL CERTIFICATE FOR SALE OF BUILDING ALREADY UNDER LEASEApp. 36A-1
  • Appendix 36B : SIMPLE FORM OF ESTOPPEL CERTIFICATE FOR TENANT IN CONNECTION WITH MORTGAGE LOAN ON PROPERTY WHERE TENANT IS LESSEEApp. 36B-1
  • Appendix 36C : TENANT’S ESTOPPEL CERTIFICATE FOR LENDERApp. 36C-1
Chapter 37: Leases, Licenses, and Easements Compared—Parking Rights, Department Store Concessions, Lodgers, Etc.
  • § 37:1 : General37-1
    • § 37:1.1 : Lease vs. License37-1
    • § 37:1.2 : Lease vs. Easement37-8
  • § 37:2 : Parking Rights of Tenant37-8
  • § 37:3 : Lodgers37-10
  • § 37:4 : Department Store Concessions37-13
  • § 37:5 : Miscellaneous37-17
Chapter 38: Insurance
  • § 38:1 : Overview38-1
  • § 38:2 : Allocation of Insurance Risk38-14
  • § 38:3 : Validity of Requirements for Terrorism Insurance38-15
  • § 38:4 : Availability and Applicability of Terrorism Insurance38-17
  • § 38:5 : Insurance Claims for Mold38-23
    • § 38:5.1 : Generally38-23
    • § 38:5.2 : Efficient Proximate Cause Doctrine38-23
Chapter 39: Merger of Leases into the Fee
  • § 39:1 : General39-1
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