Commercial Lease Analysis Final Exam Questions with Verified Answers Solved 100%
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Commercial Lease Analysis
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Commercial Lease Analysis
Commercial Lease Analysis Final Exam Questions with Verified Answers Solved 100%
Essential Terms to a Form a Lease - Answers Parties: The parties to the lease must be clearly identified.
Premises: The premises which will be leased must be identified.
Signatures
Term: The term of the proposed ...
Commercial Lease Analysis Final Exam Questions with Verified Answers Solved 100%
Essential Terms to a Form a Lease - Answers Parties: The parties to the lease must be clearly identified.
Premises: The premises which will be leased must be identified.
Signatures
Term: The term of the proposed lease must be determined.
(Not Rent)
Sebco Corp. v. Mid-Island Equities Corp. - Answers Definition of a lease - exclusive use, possession and
control
Rule of Independent Covenants - Answers Lease obligations are independent of one another (i.e. LL
failure to provide HVAC doesn't automatically equal offset rent)
Statue of Frauds - Answers Leases over a year must be in writing
Killer lease, theft by drafting, grabs, pyramiding of definitions - Answers Opposite of a fair lease, ways a
drafter can word a lease in ways that lead to confusion/deception. Drafter employs the technique of
building one definition upon another definition obscuring the meaning of the clause and creating a one-
sided advantage.
Services & Repairs - Answers In Common Law Tenant responsible for repairs and its own services absent
language to contrary.
Usually some clause in modified gross lease where LL provides HVAC and major capital repairs - may be
pass-thru. LL backcharge tenant for repairs tenant responsible for. LL maintains/repairs exterior,
structural and base MEP
Inconvenience from Services & Repairs - Answers No allowance, setoff, or reduction of rent for Tenant
as a result of Owner making alterations, additions, etc. Can only pursue damages for breach of contract.
Services (Tenant Clause) (Essay) - Answers LL shall furnish gas, electricity, water, heat, AC on Business
Days (industry open for business) from 7am-6pm, Saturdays 8am-1pm & keep elevators available
(comfortable occupancy).
Maintain temp of 70-74 degrees w/ 50% humidity & 0.25 cubic feet/min/USF fresh air year round.
Compliance with Law (Essay) - Answers LL & Tenant comply with all law, order, regulations. Tenant not
to incur expenses for additional construction for compliance reasons, unless required for Tenant's
specific use of Premises for business.
, Bankers Trust v Sommer - Answers Who is responsible for complying with particular laws. "Tenant's use
and occupancy" interpreted as only unique/unusual use that would trigger Tenant responsibility. Tenant
not obligated to comply if unforeseen at lease or considerably expensive.
Banker's Trust Tests - Answers Was the alteration contemplated by parties?
Was there an intent to shift burden to Tenant?
Does language of lease shift burden to Tenant?
Wolf v. 2539 Realty Associates - Answers Specific language is critical in determining each party's
responsibility for repairs (Repair v. Restoration v. Remediation)
Special circumstances: "Sick Building" Syndrome, Asbestos, HazMat, Mold.
Alterations - Answers In Common Law Tenant has no right to substantially alter or improve lease
premises.
If wish to do so, must submit plans/specs for approved - 10 day review or consent deemed given. Tenant
use GC/subs approved by LL, build in first-class manner. Tenant provide as-builts.
Fast-Track Alterations - Answers Tenant may be permitted to make alterations without consent that do
not exceed agreed-upon cost. Must comply with all laws & regs, not adversely affect structure/function
of building. LL not to unreasonably withhold or delay consent for alterations etc. above said value.
Limitation of Liability Clause - Answers Limits the amount of money or damages that one party can
recover from another party for breaches or performance failures.
Eviction - Answers The action of expelling someone, especially a tenant, from a property; expulsion.
Doctrine of Coinsurance or Implied Coinsurance - Answers "Sufficient insurance to avoid being a
coinsured".
Coinsurance is an industry-wide property provision that states the amount of coverage that must be
maintained as a percentage of the total value of the property at the time of loss (recovery cost), or else
penalty.
Implied Coinsurance: a tenant is normally liable to a landlord in damages for any injury to the premises
resulting from the tenant's own wrongful acts or negligence.
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