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Preface |
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Preface to the Eleventh Supplement |
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Table of Contents |
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Chapter 1: |
Introduction: The History and Nature of a Lease |
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- § 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
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Chapter 2: |
The Parties |
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- § 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
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Chapter 3: |
The Premises |
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- § 3:1 : The Leased Premises—Description3-1
- § 3:2 : Appurtenances3-11
- § 3:2.1 : Express Provisions for Appurtenances3-12
- [A] : Express Parking Rights3-13
- § 3:2.2 : Implied Appurtenant Rights3-15
- [A] : Implied Access Rights3-17
- [B] : Implied Elevator Access3-22
- [C] : Implied Access to Basement Areas3-23
- [D] : Implied Parking Rights3-25
- [D][1] : Recognition of the Right3-25
- [D][2] : Remedies for Restriction of Parking Rights3-27
- [E] : Implied Right to Light and Air3-29
- [F] : Implied Visibility Rights, Signage3-35
- [G] : Implied Air Rights (Development Rights)3-36
- [H] : Implied Roof Rights, Rights in Walls, Rights in Subsurface3-37
- [I] : Other Implied Appurtenances3-40
- § 3:2.3 : Telecommunications and Television Rights3-43
- § 3:2.4 : Drafting and Negotiating Considerations for Appurtenances3-47
- § 3:3 : Tenant’s Option for More or Less Space—Landlord’s Option to Relocate Tenant3-50
- § 3:4 : Access to Landlord’s Property for Free Speech Purposes3-55
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Chapter 4: |
The Term—Possession |
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- § 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?4-9
- § 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 Premises4-22
- § 4:3.3 : Form of Permission for Landlord to Enter, Repair, Improve, and Exhibit Leased Premises, Including Right to Post Signs4-27
- § 4:4 : Possible Right of Bankruptcy Trustee to Terminate Tenant’s Lease Rights4-29
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Chapter 5: |
Rent |
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- § 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 Rent5-16
- § 5:2 : Additional Rent5-17
- § 5:2.1 : Taxes, Assessments5-20
- [A] : Payments in Lieu of Taxes (PILOTS)5-29
- § 5:2.2 : Water, Sewer Charges5-30
- § 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 Escalation5-57
- § 5:4.2 : Operating Expenses As Basis for Escalation5-68
- § 5:4.3 : Cost of Living5-73
- § 5:4.4 : Use of Multiple Factors of Escalation5-76
- § 5:4.5 : Ceilings on Escalation5-77
- § 5:5 : Escalation Clause—Taxes and Operating Expenses5-79
- § 5:5.1 : Escalation Clause—Taxes and Operating Expenses—Another Form5-82
- § 5:5.2 : Escalation Clause—Taxes and Operating Expenses—with Additional Provisions5-88
- § 5:6 : Escalation Clause—Based on Cost of Living5-95
- § 5:6.1 : Escalation Clause—Based on Cost of Living—Another Form5-97
- § 5:7 : Most Favored Nation Clause5-99
- § 5:8 : Tenant Audit Rights5-102
- § 5:9 : Rent Overcharges5-104
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Chapter 6: |
Percentage Leases |
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- § 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 Sublet6-48
- § 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
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Chapter 7: |
Assignment, Subletting, and Mortgaging by Tenant |
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- § 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 Assumption7-110
- [C][2][b] : Prospective Assumption7-111
- [D] : Concurrent Liability of Original Tenant and Assuming Assignee7-112
- § 7:5.2 : Tenant-Assignor As Surety7-115
- § 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 Form7-122
- § 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
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Chapter 8: |
Mortgages |
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- § 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
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Chapter 9: |
Damage and Destruction of Leased Property |
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- § 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 Destruction9-57
- § 9:10 : Fault of Landlord or Tenant—Subrogation of Insurer9-63
- § 9:10.1 : Avoidance of Insurer’s Subrogation Rights9-71
- [A] : Mutual Waivers of Subrogation9-85
- § 9:11 : Implied Waiver of Subrogation of Landlord’s Insurer—Three Approaches9-92
- § 9:11.1 : Implied Co-Insured Status Assumed Absent Explicit Language Stating Contradictory Intent in the Lease9-92
- [A] : Policy Considerations9-94
- [B] : Significance of Specific Lease Language9-97
- [B][1] : Language Tending in Favor of Implied Waiver of Subrogation9-97
- [B][2] : Language Expressing No Waiver of Subrogation Is Intended9-100
- § 9:11.2 : No Implication of Co-Insured Status Unless Explicitly and Unambiguously Stated Otherwise in the Lease9-103
- [A] : Policy Considerations9-103
- [B] : Unequivocal Terms and Allocation of Duties9-106
- § 9:11.3 : The Middle Approach9-107
- [A] : Policy Considerations9-108
- [B] : Waiver of Subrogation Factors9-110
- § 9:11.4 : Miscellaneous Considerations9-114
- § 9:12 : Indemnities—Effect9-115
- § 9:13 : Impact of September 11, 20019-118
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Chapter 10: |
Repairs |
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- § 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 Habitability10-12
- [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
- § 10:1.6 : Tenant’s Common Law Remedies10-38
- § 10:1.7 : Common Areas10-45
- [A] : Illumination10-55
- [B] : Snow and Ice10-56
- § 10:1.8 : Distinction in Duty Based upon Classification of Injured Party10-62
- § 10:1.9 : Criminal Attacks10-65
- [A] : Recent Developments Concerning Landlord’s Liability to Tenant for Criminal Attacks10-78
- [B] : Liability Based on General Negligence Theory10-78
- [C] : Existence of Duty of Care10-79
- [D] : Duty to Maintain Common Areas Safe from Criminal Acts10-80
- [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 Protect10-82
- [H] : Foreseeability10-82
- [I] : Role of Public Policy in Establishing Duty10-84
- [J] : Causation10-85
- § 10:1.10 : Parts of Premises Entirely in Possession and Control of Landlord and Not Usable by Tenants10-86
- § 10:1.11 : Premises in Public Use10-89
- § 10:1.12 : Injuries to Persons Outside Premises— Nuisance—Landlord’s Liability for Tenant’s Acts10-92
- § 10:1.13 : Furnished House or Apartment10-101
- § 10:1.14 : Landlord’s Voluntarily Undertaking to Repair10-102
- § 10:1.15 : Statutes10-102
- [A] : Habitability Requirements10-102
- [B] : Environmental Statutes10-109
- § 10:1.16 : Landlord’s Liability for Injury Caused by Mold10-111
- [A] : Mold As a Latent Defect10-111
- [B] : Implied Warranty of Habitability10-112
- [C] : Negligence10-113
- [D] : Causation10-114
- [E] : Statutory Law10-115
- § 10:1.17 : Landlord’s Liability for Secondhand Smoke10-116
- § 10:2 : Tenant’s Common-Law Obligation to Repair10-117
- § 10:3 : Covenants to Repair—Scope10-120
- § 10:3.1 : In General10-120
- [A] : Express Limitation on Repair Covenants10-120
- [B] : Structural Repairs10-122
- § 10:4 : Covenants to Repair—As Running with the Land10-127
- § 10:5 : Landlord’s Covenant to Repair10-130
- § 10:5.1 : In General10-130
- § 10:5.2 : Scope10-138
- § 10:5.3 : Remedies for Landlord’s Breach10-139
- [A] : Liability in Tort10-141
- [B] : Tenant’s Right to Repair at Landlord’s Expense10-148
- [C] : Liability for Damages; Specific Performance10-152
- [D] : Liquidated Damages10-154
- § 10:6 : Tenant’s Covenant to Repair10-155
- § 10:6.1 : Scope10-155
- [A] : Ordinary Repairs10-163
- [B] : Wear and Tear10-164
- § 10:6.2 : Tenant’s Covenant to Repair—Breach and Damages10-166
- § 10:7 : Right to Shore Walls10-168
- § 10:7.1 : Form of Permission from Tenant to Shore Walls10-171
- § 10:8 : Negotiating and Drafting Repair Clauses—Business and Practical Aspects10-172
- § 10:9 : Forms of Repair Clauses10-178
- Appendix 10A : Existence and Scope of Residential Implied Warranty of Habitability in Each JurisdictionApp. 10A-1
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Chapter 11: |
Compliance with Laws |
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- § 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
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Chapter 12: |
Landlord’s Services |
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- § 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
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Chapter 13: |
Condemnation |
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- § 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
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Chapter 14: |
Renewals |
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- § 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 Renewal14-24
- § 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 Leases14-112
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Chapter 15: |
Purchase Options |
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- § 15:1 : Tenant’s Option to Buy the Premises15-1
- § 15:2 : Effect of Breach of Lease by Tenant15-26
- § 15:3 : Assignability of Tenant’s Purchase Option15-29
- § 15:4 : Extensions and Renewals of Lease15-32
- § 15:5 : Exercise of Option—Notice—Effect15-38
- § 15:5.1 : Optionee’s “Interest in Realty”—Doctrine of Relation Back15-54
- § 15:5.2 : Tenant’s Duty of Good Faith upon Exercise15-62
- § 15:6 : Tenant’s Right of Refusal15-63
- § 15:6.1 : Business and Practical Aspects of Tenant’s Right of Refusal15-63
- § 15:6.2 : In General15-67
- [A] : Characterization Issues: Perpetuities15-68
- [B] : Characterization Issues: Impact on Right of Sale of Premises15-70
- § 15:6.3 : Variations of Standard Refusal Right15-71
- § 15:6.4 : Certain Transfers May Not Trigger Right of First Refusal15-78
- § 15:6.5 : Notice Issues15-86
- § 15:6.6 : Operation of the Right15-89
- § 15:6.7 : Model Clause15-101
- § 15:6.8 : Effect of Brokerage Commission on Tenant’s Right to Match Outside Bid15-104
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Chapter 16: |
Default by Tenant |
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- § 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 Rights16-12
- § 16:2.3 : Tenant Insolvency As Breach of Lease16-24
- § 16:2.4 : Impact of Bankruptcy on Landlord’s Remedies for Default16-29
- § 16:2.5 : Impact of Tenant Default on Subtenant16-41
- [A] : Bankruptcy Code and Public Housing Evictions16-42
- § 16:3 : Termination of Lease and Survival of Tenant’s Liability16-43
- § 16:3.1 : In General16-43
- [A] : Traditional Rule16-43
- [B] : Contract-Based Approach to Damages Calculation—Mitigation Requirement16-47
- [C] : Is There a Trend to Adopt the Contract Approach?16-57
- § 16:3.2 : Landlord’s Resumption of Possession16-59
- § 16:3.3 : Landlord’s Reletting As Acceptance of Surrender16-64
- § 16:3.4 : Landlord’s Duty to Relet After Reentry16-81
- § 16:4 : Landlord’s Right to Cure Tenant Defaults16-94
- § 16:4.1 : Default Provisions; Conditional Limitations16-95
- § 16:5 : Waiver by Landlord of Tenant Default16-103
- § 16:5.1 : In General16-103
- § 16:5.2 : Disclaimer of Waiver by Landlord16-118
- § 16:5.3 : Criticism of the Rules of Waiver16-122
- § 16:5.4 : Waivers of Jury Trials16-125
- [A] : Strict Construction of Waivers16-126
- [B] : Waivers Must Be Conspicuous16-127
- [C] : Conclusions for Lease Drafting16-128
- § 16:6 : Effect of Federal Fair Debt Collection Practices Act16-126
- 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
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Chapter 17: |
Exculpatory Clauses |
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- § 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
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Chapter 18: |
Termination of Lease |
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- § 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
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Chapter 19: |
Take-Over Leases |
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- § 19:1 : In General19-1
- § 19:2 : Clause for Lease Take-Over19-6
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Chapter 19A: |
Tenant Bankruptcy |
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- § 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
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Chapter 20: |
Distraint, Landlords’ Liens and Tenant Security |
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- § 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
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Chapter 21: |
Option to Cancel Lease |
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- § 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
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Chapter 22: |
Alterations and Improvements by Tenant |
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- § 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
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Chapter 23: |
The Work Letter |
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- § 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
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Chapter 24: |
Fixtures |
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- § 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
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Chapter 25: |
[Reserved] |
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Chapter 26: |
Interpretation and Construction of Leases |
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- § 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
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Chapter 27: |
Use of Leased Premises |
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- § 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] : Stipulations27-37
- § 27:4 : Fitness of Premises for Tenant’s Use27-40
- § 27:4.1 : General27-40
- § 27:4.2 : Implied Warranty of Fitness27-41
- § 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 Settings27-56
- § 27:6.4 : Effect of a Reservation of Rights to Alter Premises27-61
- § 27:7 : Fair Housing Laws’ Impact on Residential Landlords’ Restrictions on Use27-62
- § 27:7.1 : Discrimination Based upon Race27-63
- § 27:7.2 : Discrimination Based upon Religion27-64
- § 27:7.3 : Discrimination Based upon Sex27-65
- § 27:7.4 : Discrimination Based upon Family Status27-66
- § 27:7.5 : Discrimination Based upon Age27-68
- § 27:7.6 : Discrimination Based upon Citizenship27-69
- § 27:7.7 : Discrimination Based upon Occupation27-69
- § 27:7.8 : Discrimination Based upon Disability27-70
- § 27:7.9 : Discrimination Based upon Pets27-72
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Chapter 28: |
Exclusive Uses |
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- § 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
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Chapter 29: |
Tenant’s Right to Quiet Possession |
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- § 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 Enter29-22
- § 29:3 : Constructive Eviction29-23
- § 29:3.1 : General29-23
- § 29:3.2 : Damages for Constructive Eviction29-42
- § 29:3.3 : Provisions Limiting Landlord’s Liability for Constructive Eviction29-46
- § 29:4 : Distinction Between Breach of Covenant of Quiet Enjoyment, Eviction, and Trespass29-47
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Chapter 30: |
Execution and Delivery |
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- § 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
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Chapter 31: |
Recordation of the Lease—Possession As Notice |
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- § 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
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Chapter 32: |
Modification of the Lease—Reduction of Rent |
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- § 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?32-6
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Chapter 33: |
Sign and Advertising Rights |
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- § 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
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Chapter 34: |
Contracts to Lease |
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- § 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
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Chapter 35: |
Guaranty of Lease |
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- § 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
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Chapter 36: |
Transfer of Landlord’s Reversion |
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- § 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
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Chapter 37: |
Leases, Licenses, and Easements Compared—Parking Rights, Department Store Concessions, Lodgers, Etc. |
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- § 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
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Chapter 38: |
Insurance |
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- § 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 Mold38-22
- § 38:5.1 : Generally38-22
- § 38:5.2 : Efficient Proximate Cause Doctrine38-23
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Chapter 39: |
Merger of Leases into the Fee |
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Table of Cases |
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Index |
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