Here are a few other examples.Most boiler plate leases contain provisions such as the tenant irrevocably authorizes the landlord to execute and deliver in the name of the tenant any subordination if tenant fails to do so.This usually occurs when a building changes hands (and many times because the owner lost the building to the lender) or refinancing occurs.To agree at the lease execution that you will be forced to indicate your subordination four years hence is absurd without the assurance that you enjoy all the terms of the lease and are assured of quiet enjoyment and non-disturbance. When a landlord defaults, it may manifest itself in the obvious lack of service to the tenant.If the landlord defaults and fails to perform any of their obligations under the lease, the tenant, at its option, should be able to perform the landlord’s obligation or cause performance of landlord’s obligation and deduct the reasonable cost thereof from the rent.A simple self-help clause like this can keep the tenant in control when the landlord has lost his.Most leases are one-way defaulters – the tenant., leaving silent, or very few, the provisions for landlord default.When buildings change hands, landlords go away, buildings get taken by the bank, or they file for bankruptcy, be sure your lease contains strong enough clauses to protect your lease provisions.
Also on tenant default, many leases contain a nasty little provision that the tenant is in default if it files for bankruptcy or is filed against for involuntary bankruptcy.Gee, that’s nice.Three creditors gang up on the tenant, file for involuntary bankruptcy and the tenant is now in default of the lease and must cure the default or the landlord can force you out.I don’t think so.Ask your attorney to adjust the lease to reflect default only in the event the tenant is “adjudicated” bankrupt. Another example is the time amount to cure a default.Many leases contain fuses so short to cure a default, economic or non-economic, that you’ll be in material breech before you have a chance to get the lease out of the storage room.
Nothing contained herein is to be considered legal advice. Always seek legal advice when evaluating any legal document
