We have posted previously about the case of EMI Group Ltd v O&H Q1 Ltd, in which the court was asked to decide whether a tenant can assign its tenancy to its guarantor. In this case, EMI Group were the guarantor of original tenant HMV, and were arguing that the lease had been validly assigned … Continue Reading
Finding an apartment in New York City is a journey in stress management. You’ve done your internet research. You’ve climbed a thousand steps. Now, you’ve found the place of your dreams. Is it too good to be true? It might. Why? Because the financial standing to qualify for that apartment is an entirely different matter. … Continue Reading
It would be unfair (and likely bad faith) for a property owner to terminate a brokerage agreement prior to entering into a sales agreement or lease just to avoid paying a real estate commission. Yet, if a property owner is dissatisfied with the services of the broker, the owner should be able to terminate the … Continue Reading
On August 19, 2014, the Pennsylvania Superior Court affirmed a trial court’s decision not to reduce accelerated damages awarded to a landlord to present value, thereby strengthening the landlord’s position with respect to acceleration clauses in an already landlord-friendly state. The case, Newman Development Group of Pottstown, LLC v. Genuardi’s Family Market, Inc. and Safeway, … Continue Reading
Pennsylvania Act No. 129 of 2012 (effective September 4, 2012), amended the Landlord and Tenant Act of 1951 to provide for the disposition of personal property deemed abandoned by a tenant. The Pennsylvania legislature has returned to this subject with Pennsylvania Act No. 167 of 2014 (effective December 21, 2014). Under the prior law, there … Continue Reading
Under some circumstances recapture provisions can offer substantial benefits to both landlord and tenant. The tenant is relieved of its future performance obligations, and the landlord can put the premises to better use, in a direct relationship with a new tenant, perhaps gaining rent at a newly higher market rate or a lease for a … Continue Reading
Selecting a title company for a transaction is influenced by a number of factors, including the level of customer service, responsiveness and sophistication (particularly when dealing with complex commercial transactions). Knowledgeable and responsive escrow officers and underwriters can facilitate closings tremendously. However, underwriting guidelines may adversely affect an underwriter’s ability to deliver an acceptable title … Continue Reading
When tenants offer landlords guarantees of their lease liabilities landlords need to take care what assignment rights the tenant can have and this was demonstrated in last week’s Court of Appeal decision in Tindall Cobham 1 Ltd v Adda Hotels. As you may recall, prior to the KS Victoria case (previously reported here) it was … Continue Reading
This post and related article was also written by Michael Joy and Robert Jochen. In an article that appears in The Legal Intelligencer, the authors discuss the significant impact that will result from a successful PA Supreme Court appeal of the lower court decisions surrounding Shedden v. Anadarko E & P Co., L.P., 88 A.3d 228 … Continue Reading
this is a follow-up to an earlier blog post on this issue from March, 2014 On Thursday, August 14, 2014, the Supreme Court of Pennsylvania advised that it would consider the appeal from the Superior Court determination dated March 14, 2014 in the matter of Sheddon v. Anadarko E&P Co. LP. We will continue to update this … Continue Reading
This entry was written by Lesley Vars and Leah Speckhard Recent years have seen the increase in popularity of pop-up shops as solutions for landlords in need of cash flow. Retailers like pop-ups as a chance to test the waters before signing a long-term lease or to sell seasonal merchandise. Pop-up shops began to take … Continue Reading
Negotiation of the construction allowance is an important part of most commercial lease transactions and usually centers around the size of the allowance and the type of improvements to be constructed. However, the tax consequences flowing from the construction allowance are frequently subject to far less negotiation. If the tenant owns the improvements after construction, … Continue Reading
We have been approached by many clients who contemplate the advantages of buying versus leasing space to serve as their headquarters facility. More often than not, the underlying decision is based on the numbers. In order to make a well informed business decision, we recommend a comprehensive side-by-side comparison of each option. WHAT FACTORS TO … Continue Reading
A landlord may request a principal of a tenant or an affiliated entity to guarantee lease obligations if the prospective tenant has a less-than-ideal credit profile. In a tenant-friendly market, few landlords will be successful in this pursuit. Consequently, a savvy landlord may request a sufficient security deposit, plus a limited or “Good Guy” Guaranty … Continue Reading
Considered boilerplate, lease provisions addressing estoppel certificates are often glossed over during negotiations (or ignored entirely). However, estoppel certificates are important documents in the event a Landlord wants to sell or finance its property. With a bit of consideration during lease negotiations, estoppel clauses can meet a landlord’s needs without being an undue burden to its … Continue Reading
When landlords negotiate amendments or extensions of leases with existing tenants, it can be easy to overlook a very simple but important part of the documentation process: the reaffirmation of an existing guaranty of lease. A reaffirmation of guaranty from a guarantor of the tenant’s obligations under a lease can be as simple as … Continue Reading
On March 14, 2014, the Superior Court of Pennsylvania ruled in favor of an oil and gas exploration company, applying the doctrine of estoppel by deed to prevent a landowner from partially repudiating an existing oil and gas lease. This decision is significant for oil and gas lessees as it stands for the proposition that … Continue Reading
This post was also written by Jon Pike and Richard Perkins. Last spring we posted on the difficulties facing landlords and tenants as a result of the High Court decision in Good Harvest. Yesterday we had some good news as the Court of Appeal has reconsidered the point and introduced some commercial common sense into the law.… Continue Reading
The duty on investors and other owners to notify building insurers and keep them updated of all material circumstances should not be under-estimated. Failure to do this may result in cover being prejudiced. An unusual case that reached the Court of Appeal earlier this year made us think about whether property investors have got more … Continue Reading
