Recent Answers to Commercial Real Estate Law Questions

Sara S.

Answered Jun 17, 2025

Hi, Your responsibilities as a tenant will be identified in the lease. Such responsibilities will probably include some maintenance and repairs while the landlord is likely responsible for structural soundness, essential services and common area maintenance of the property. Reviewing the lease with a qualified Maryland attorney will give you much more insight.

Jerome L.

Answered Apr 8, 2025

Hi there, A finance lease agreement can be a practical way to acquire commercial property or equipment with lower upfront costs and fixed payments—but it comes with specific legal obligations and long-term commitments that you should fully understand before signing. Here are the key legal implications to consider: Legal Considerations in a Finance Lease Agreement: Binding Long-Term Obligation: A finance lease is typically non-cancellable during the lease term, meaning you are legally obligated to make payments for the entire duration, even if you no longer need the property. Ownership vs. Use: You do not own the property under a finance lease. You are leasing it for an extended period, often with an option to purchase at the end. However, all the risks and responsibilities of ownership—like maintenance, insurance, and taxes—may still fall on you. Lessor’s Ownership Rights: The leasing company retains title to the property during the lease term. If you default, they typically have the right to repossess the property and pursue you for any remaining balance. Fixed Monthly Payments (But Watch for Hidden Costs): While the fixed payments seem attractive, be sure to review: Interest rates Late fees or penalties Additional service charges or fees tied to property upkeep End-of-Term Options: Understand your rights at the end of the lease: Can you buy the property? Are there residual value payments? Will you owe fees for wear-and-tear or restoration? Termination & Default Clauses: Read the fine print on what constitutes default and whether the lessor can accelerate payments or take legal action if you miss a payment. Impact on Financial Statements: A finance lease may appear as a liability on your balance sheet, depending on how the lease is structured. It’s wise to consult with an accountant on this point too. Before moving forward, I highly recommend having the lease agreement reviewed by an attorney. This will ensure the terms are fair, your risks are understood, and you are fully protected. If you would like assistance reviewing or negotiating the terms of your finance lease, I am happy to help. Best regards, Jerome Lucas Newell, Esq. Commercial Lease & Business Contracts Attorney

Jodi B.

Answered Apr 4, 2025

I would need to see to the contract to see if you have any contingency clauses that were added for your protection before you signed the contract.

Danny J.

Answered Dec 29, 2024

Your situation as a gas station owner facing maintenance and safety issues due to landlord negligence is indeed concerning. The ability to terminate a lease agreement in these circumstances depends on several factors: 1. Lease Terms: The specific provisions in your lease agreement regarding maintenance responsibilities and termination clauses are crucial. 2. Implied Warranty of Habitability: Even if not explicitly stated, there's often an implied obligation for landlords to maintain the property in a safe and usable condition. 3. Environmental Regulations: Gas stations are subject to strict environmental and safety regulations. The landlord's failure to address issues like leaking fuel tanks could be a serious violation. 4. Material Breach: The landlord's failure to make necessary repairs could constitute a material breach of the lease agreement, potentially justifying termination. 5. Notice and Opportunity to Cure: Most jurisdictions require tenants to provide formal notice and allow landlords a reasonable time to address issues before termination. Given the complexity of commercial lease agreements and the specific safety concerns in the gas station industry, it would be prudent to have a thorough legal review of your situation. As an experienced attorney, I could: 1. Review your lease agreement in detail 2. Assess the extent of the landlord's breach 3. Evaluate potential environmental and safety liabilities 4. Guide you through the proper notification process 5. Advise on options for lease termination or negotiation with the landlord Would you like to discuss your specific circumstances in more detail to determine the best course of action for protecting your business and ensuring compliance with safety regulations?

Damien B.

Answered Dec 24, 2024

A landlord could agree to terminate the lease if a tenant requests it or can modify a lease to allow for an option for a tenant to vacate the premises at an earlier date. If a tenant wants to vacate the premises on an earlier date than the lease end date, either the landlord would have to agree to the earlier termination date or the tenant could be found in breach of contract. If you are considering early termination, it's advisable to communicate with the landlord to explore possible solutions, such as subleasing, assigning the lease, or negotiating a modification to the lease agreement. Feel free to reach out if you have other questions about this.

Lorraine C.

Answered Dec 11, 2024

That situation sounds frustrating, to be sure. The termination rights of both parties should have been clearly defined in the construction agreement. It would be best for you to have an experienced transactional attorney review the contract terms and discuss the issues you are having so that you can receive advice specific to your situation. Regardless, I highly recommend that you document any quality of work or performance issues in writing and with pictures, if applicable. That way, if you do decide to terminate the contract later (with an attorney's guidance), you will have the proof you may need to support your claim.