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Common sources of commercial lease disputes

| Aug 17, 2020 | Commercial Real Estate |

Anytime two parties enter into a contract, there is a potential for a dispute to arise. Understanding that may inspire parties subject to a commercial lease to ensure that the document’s provisions protect their rights and interests to the greatest extent possible. Making that happen often requires knowing what kinds of disputes could arise.

Commercial property owners and their tenants have a somewhat symbiotic relationship. The parties to the lease often share common area maintenance, or CAM, charges, insurance coverages and compliance with legal obligations. For instance, even when a tenant makes an insurance claim, the property owner may be involved as well.

As you can see, this situation means that disputes could easily arise. If a tenant believes he or she is paying more in CAMs than the lease prescribes, it may be necessary to complain to the landlord. If the property owner disagrees, a dispute has now arisen. The same could be said for insurance coverage requirements and any potential legal liabilities that may or may not be shared by the parties. All of these issues ought to be outlined in the lease, which is where the parties will need to go to begin resolving the issue.

When a property owner or tenant fails to resolve a dispute in accordance with the provisions of the commercial lease the parties agreed to, it may be necessary to take legal action. California law allows for a number of different legal remedies for what is essentially a breach of contract. However, the courts will require evidence to support the complaining party’s position. It would probably be worthwhile to work with an attorney in order to help ensure that the case is presented in such a way as to reach the best resolution possible.