Tag Archives: Lease

(US) Present Value in Lease Terms: PA Superior Court Holds Reductions in Present Value Must Be Explicitly Stated In The Lease

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

(US) PA Landlord Tenant Act: More PA Legislation on Abandoned Property

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

(US) Not All Title Companies Are Created Equal: Choosing Wisely

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

(UK) Lease Guarantees: An Update

This post was written by Stuart Wright and Siobhan Hayes 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 … Continue Reading

(US) The Case That Could Disrupt a Century of Settled Law: PA Supreme Court to Hear Appeal of Shedden v Anadarko

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

(US) Estoppel by Deed Follow-Up: PA Supreme Court To Consider Appeal of Superior Court Decision

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

(US) Construction Allowance in Commercial Leases: Do You Want Income Taxes With That?

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

(US) Buy versus Lease: Why Organizations Should Consider Purchasing Their Space

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

(US) The ‘Good Guy Guaranty’: Covered obligations can differ depending on your perspective

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

(US) Tenant Estoppels: Just the Facts Ma’am

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

(US) Reaffirmations: A Guaranteed Good Idea

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

News on Guarantees

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

Risk to building owners – Remember to Notify Your Insurers

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
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