This post originally appeared on tBL member blog SVN Southland Commercial Blog and is republished with permission. Find out how to syndicate your content with theBrokerList.
Thank you to Drew Emmert and SVNIC for publishing the second part of this commercial leasing series. As mentioned when we spotlighted part one, this is a series that centers around taking the “legalistic provisions in the commercial lease” and then “demystifying” them. Part one went over subordination, non-disturbance and attornment, and ‘SNDA Agreements.’ Part two does a great job breaking down the tenant estoppel certificates. If you’re wanting to deepen your understanding of the commercial lease, this is a good source of information for you.
A typical commercial lease is a comprehensive document that may be anywhere from 20 to 60 pages long. (Often with exhibits these things can be huge! So, reviewing new leases can be a real headache for an agent trying to sell or property manager taking on the management of a new multi-tenant property or shopping center.) When paging through a lease many provisions can seem irrelevant, extraneous, unimportant or rarely used. The fact is that every lease provision is drafted to address a specific event, need or situation that a landlord or tenant may face. Today, I was asked to address some of the more ‘legalistic’ provisions in the commercial lease in an attempt to try to ‘demystify’ them for you.
To read part one of this series on Subordination, Non-Disturbance and Attornment Agreements and ‘SNDA Agreements’, please visit here.
II. Tenant Estoppel Certificates
Estoppel: A legal bar to alleging or denying a fact because of one’s own previous actions or words to the contrary. Merriam-Webster Dictionary online.
An estoppel certificate is a document designed to give a third party critical information on the relationship between the landlord and a tenant. The third party is frequently a prospective purchaser of the landlord’s real property containing the tenant’s premises, or a lender who will be secured by an ….
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