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Using a Real Estate Lease Form - Four Caveats to Remember
Four Things to Check Before You Sign a Form Commercial Real Lease:
● Pick the right lease form. There are a myriad of commercial real estate lease forms for various property types and expense allocation methods, including net, gross and modified gross lease forms for commercial buildings, office buildings, industrial buildings, shopping centers. Using the wrong form is a common mistake.
● Read the lease form. People are lulled into a "form mindset," believing that what the form provides is the way it is done. As a result, commercial real estate lease forms are not critically read to see if the terms provided (or omitted) fit the deal or the parties’ business needs.
● Modify the lease form. Commercial real estate lease forms are generic by design and cannot cover all issues or concerns applicable to your transaction. Consider modifications that reflect your deal, enhance your position or reduce your risk. Modify the form accordingly.
● Use the lease form’s defined terms. Often parties modify forms using general real estate terms. If the form contains defined terms, use the defined terms to avoid ambiguity, disputes and litigation.
Angel Law Offices - Commercial Real Estate Lawyers - Los Angeles | Denver | Boulder
Disclaimer: This commercial real estate law article is provided for general education purposes only. The information should not be relied on as legal advice for your spcific commercial real estate lease issue, nor does it serve to create an attorney-client relationship. Laws vary from one state to another. For legal advice on a specific matter, consult a qualified commercial real estate attorney.
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