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Understanding common commercial lease disputes

On Behalf of | Apr 12, 2022 | Real Estate |

Commercial leases involve unique terms between a landlord and tenant, often with considerable rent payments and firm agreements between each party regarding their rights and responsibilities for the length of the agreement.

Whether a lease includes vague lease terms or one or both parties believe a breach of contract occurred, commercial lease disputes are often complex. These disputes see further complications due to commercial laws and regulations that can alter the terms or impede negotiations.

Common commercial lease disputes

When either side believes the other has breached a commercial property lease, it may be due to one or more of the following reasons:

  • Rent disputes, including increases, partial payments or timeline issues
  • Common area maintenance
  • Structural or building issues
  • Maintenance requests
  • Insurance
  • Subletting or assignments
  • Code compliance
  • Term compliance
  • Zoning laws
  • Evictions

Misinterpretation of the lease agreement, changes in conditions, actual breaches of the contract or the need for termination are the cause of many commercial lease disputes.

Party rights

In every case, both the landlord and tenant have defined rights drafted in a commercial lease agreement that aims to protect and uphold their end of the contract.

Landlord rights

Commercial lease agreements obligate tenants to pay rent and maintain the property according to proper guidelines. Landlords can enforce a lease agreement for the duration of the contract and are not required to break a tenant’s lease before it expires.

Tenant rights

Commercial landlords must take measures to respond to maintenance requests in a timely manner and keep the building and premises safe and up to code. Tenants may be subject to different rights to lease renewal in lease agreements and can seek assistance to negotiate a new contract in the face of a refusal to renew.