Commercial Leases are agreements for the rental of property for business purposes, such as for office or retail uses. Generally, the term “commercial leases” refers to creating a tenancy in real property. However, leases may also be created for other commercial purposes, such as mining rights or equipment rentals.
COMMON COMMERCIAL LEASE ISSUES
HANDLING COMMERCIAL LEASE DISPUTES
A commercial lease should be based on clear title, well defined and enforceable provisions, and favorable terms for the parties. Some real estate contracts push the limits of the law and may contain unenforceable provisions or be based on fraud. A capable real estate attorney can help steer clear of scams and the risks that come from potentially unenforceable provisions.
When drafting commercial leases, the largest issue is simply the favorability of the terms. A good real estate attorney drafts and negotiates favorable terms for clients and is often able to develop terms that are favorable to all parties. Favorable terms can save money, protect against future disputes, and make the landlord-tenant relationship easier for all parties.
A common type of commercial lease dispute is an eviction lawsuit. Because a commercial lease is a creature of contract, we look to the terms of the contract to determine each party’s rights and obligations. There may be conditions precedent to being able to enforce contractual provisions. Terms in the lease may need to be reconciled with the requirements of the Utah Code.