Home Business 5 Common Causes of Commercial Property Lease Disputes

5 Common Causes of Commercial Property Lease Disputes

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Finding the right space for your business is critical to success, but there are times when things can go sour between you and your landlord. While some of these problems can be resolved easily, others require the expertise of a commercial litigation lawyer. But first: What are the causes of commercial property lease disputes?

1. Breach of Contract

Every real estate transaction should involve a contract. Usually, these agreements come in writing. While there are some exceptions to this general rule, it is recommended to have a contract in written form. This will come in handy in the event of a dispute.

One of the causes of commercial property lease disputes is a breach of contract. If one party fails to fulfill their obligations under the contract, it can result in a dispute. This can be related to property maintenance or payment, for example. If the other party is found guilty, you may be able to get financial compensation for damages. A commercial litigation lawyer can help file a claim and get the compensation you deserve.

2. CAM Fees

In most cases, tenants may be responsible for paying common area maintenance (CAM) fees. This fee takes care of maintenance to the various common area of the property. And sometimes it covers the day-to-day expenses of the property owner. Usually, this cost is added to the monthly rent. Sometimes, tenants will find the CAM fee computation by the landlord a bit outrageous and will want to challenge the amount owed, thus resulting in a dispute.

3. Repairs and Maintenance

Both tenant and landlord play a part in the upkeep of a commercial property. While the tenant is responsible for keeping the lease space in good condition, the landlord is solely responsible for performing repair and maintenance services. Most commercial lease agreements clearly state these responsibilities, and if any party is believed to have breached the agreement, a dispute can arise.

4. Subleasing

Oftentimes, a commercial tenant may want to sublease part of the space in order to save money. The laws governing this act vary from location to location. While some provinces give a commercial tenant the right to do so, others prohibit it. More so, many commercial leases include an anti-subletting clause, hence commercial tenants have no right to sublet. The landlord also has the right to evict the commercial tenant if he decides to sublet. If, on the other hand, the lease has no anti-subletting clause, the tenant presumes he has every right to sublease even without seeking the consent of the property owner. If a dispute of this nature arises, a commercial litigation lawyer can help.

5. Late Payments

Disputes often arise when a commercial tenant fails to pay rent at the appointed time. if a tenant defaults in this aspect, a commercial landlord has every right to evict the tenant and receive compensation for damages. In addition, the commercial tenant will be asked to pay any outstanding rent.

In a commercial lease dispute, it is often recommended to consult the expertise of a professional commercial litigation attorney to review your lease agreement.

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