Taking a Close Look at Commercial Lease Disputes

06/09/2018 Off By Eden

Taking a Close Look at Commercial Lease Disputes

A common pitfall for businesses is becoming involved in commercial lease disputes. Commercial property usually involves transactions using a complex lease agreement. This legal document can describe how restrictions, covenants, controls and more will be handled by the parties agreeing to the lease. There are many types of disputes that can result from a commercial property lease. This article takes a close look at commercial lease disputes so you can be better informed.

 

Common Commercial Property Lease Disputes

Very often, a lease dispute occurs because of differing interpretations of the provisions of a lease. A landlord could read things one way, while a tenant could read the same thing in a completely different way. Often, commercial lease disputes involve the calculation or review of rent, usage activities, allocation of property tax, exclusive access and prohibited access, responsibility for repairs, subletting restrictions, relocation rights, and changes to property.

Resolving Disputes through Mediation

Resolving a commercial lease dispute requires knowledge of the laws of real estate as well as business law. A written lease agreement will be the document used to clarify the dispute. Resolution of a commercial lease dispute will depend on the specific issue being challenged. In some cases, it could involve multiple issues. These types of disputes can become complicated and may require the assistance of a mediator or lawyer to resolve.

Mediation is an option for resolving disputes through negotiation by a third party. It can advance the interests of both sides rather than determine rights and find fault. In order for mediation to be effective, it will require both sides to be willing to compromise. However, mediation can provide a way to avoid using the legal system to resolve a commercial lease dispute.

Time and Expense

The cost of mediation will be determined by the mediator that’s selected. It’s common for a commercial mediator to charge up to $500 an hour, with the mediation often lasting between one to four hours. If the issues involved are very complicated, it could take as long as eight hours. The distribution of the mediation expenses will be listed in the mediation agreement, which is drafted and signed prior to the mediation process taking place.

Confidentiality

One reason why mediation is popular for resolving commercial lease disputes is confidentiality. Once a lawsuit is filed, it becomes part of the public record where anyone can read about it. Companies involved in a commercial lease dispute value their reputation and understand that their future successes could be negatively impacted by lengthy litigation. For this reason, many choose to resolve the issues confidentially within a short period of time.

The Role of Real Estate Lawyers

A commercial lease dispute can be a complicated and challenging situation that requires the expertise of a lawyer. A real estate lawyer can review all the facts of a case and provide clients with valuable legal advice. If a commercial lease dispute does go to court, a real estate lawyer can provide representation.