Entering into a business-related lease agreement can be an incredibly complex prospect, even under the best of circumstances, and there are numerous ways in which negotiations between two parties can devolve into thorny disputes and disagreements. Whether you’re a landlord, a tenant, a building contractor or other, it is in your best interest to be aware of the more common issues that can arise when entering into a lease agreement so you’re not caught off-guard in the unfortunate event things do not go as smoothly as everyone involved may hope.
What Are Some Common Real Estate Disputes?
Here are some of the most common disputes that occur between parties entering into a business-related lease agreement:
- A landlord may increase rent on a vulnerable tenant by an exorbitant or unreasonable amount.
- A potential tenant may not be to close on a deal and may wish to get their initial deposit back.
- A landlord may not complete previously agreed upon repairs or renovations prior to the tenant’s move-in date.
- A tenent may falsify their application to hide previous disputes or provide misleading income statements.
- A landlord may wish to exercise their right to reentry, which is the right to take property back if the renter does not adhere to a previously agreed upon condition or purpose.
Other areas where disagreements can surface include property management, fixture installation and removal, and basic building or landscaping maintenance.
What Can I Do to Protect Myself When Entering Into a Business-Related Lease Agreement?
When entering a business-related lease agreement, or any kind of lease agreement for that matter, it is important to keep and maintain any and all documents, communications and other relevant materials so that – should any disputes arise – there is a record of exactly who agreed to what and when. A contemporaneous record of events may be the deciding factor in how any conflicts are ultimately decided in a court of law.
Should I Speak to a Lawyer if I Have Questions About Entering a Lease Agreement for my Business?
Due diligence demands you go into any lease agreement or other legal contract with your eyes open and your head on a swivel. Unanticipated disagreements or sticking points can crop up at any point during the negotiation process or even after the deal is finalized. That is why speaking with a litigation lawyer regarding any questions or concerns you may have in advance can go a long way toward minimizing future costs or legal fallout. It is also in the best interest of you and your business to have any legal contracts read over and broken down by an objective third party prior to signing.