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Under current California law, commercial real property owners are required to state in every lease agreement whether the property leased has undergone inspection by a Certified Access Specialist (“CASp”) and, if so, whether the property has or has not been determined to meet all applicable construction-related accessibility standards. [California Civil Code Section 1938].  Effective immediately, additional commercial lease accessibility disclosures are required.
Continue Reading Commercial Lease Alert: New Access Law Disclosure Requirements In Leases Effective January 1, 2017

In connection with a commercial lease with an international company, a commercial landlord is often asked to accept U.S.-based subsidiary as the tenant entity.  The U.S. subsidiary often does not have independent financials or credit history, leading the landlord to request additional lease security.  In this context, the landlord may be offered a guaranty from a foreign-based parent company.  Although it may seem prudent to accept a guaranty from an international entity with substantial assets, these guaranties present certain challenges.  Even if the foreign guarantor has significant financial strength, a guaranty may prove worthless if the landlord cannot collect on a judgment against the guarantor.  
Continue Reading Commercial Lease Guaranties From Foreign Entities: What You Need to Know to Safeguard Your Security

Effective January 1, 2015, California law requires real estate brokers and agents to provide their clients and prospective clients with specific new disclosures, including (1) an initial disclosure form regarding the nature of agency relationships, which is typically provided at the time a listing agreement is entered into; and (2) an additional disclosure form to be presented in connection with a specific lease or purchase transaction.  Owners/landlords may elect at their option not to execute the initial disclosure form.
Continue Reading Important Alert for Commercial Owners/Landlords and Brokers/Agents: Changes to California Dual Agency Disclosure Laws Effective January 1, 2015

Effective January 1, 2015, commercial landlords are prohibited from entering into leases or other occupancy agreements that include any unreasonable restriction or prohibition on the installation or use of an electric vehicle charging station (“EV Station”) in a parking space associated with the commercial property.  AB 2265 was enacted in an effort to promote, encourage and remove obstacles to the use of EV Stations, and effective January 1, 2015, the bill became law with the addition of Section 1952.7 to the California Civil Code.  This new law invalidates any term in a commercial lease or lease amendment which adversely affects the installation of EV Stations.
Continue Reading New Legislative Requirements For Electric Vehicle Charging Stations At California Commercial Properties

Many commercial property owners have approached us with questions about missing data protocols, how to properly comply with AB 1103 (and the consequences of non-compliance) and what buildings are affected.  Here is what you need to know.
Continue Reading Missing Data Protocols Under AB1103 Energy Use Disclosure Rule And Other Important Facts You Need To Know

What You Need to Know:

On July 1, 2014, 2013 CALGreen, Part 11, Title 24, of the California Code of Regulations will go into effect. As a result, certain nonresidential additions and alterations will trigger compliance with more stringent energy-saving measures for plumbing, electrical, lighting and heating, ventilation and air conditioning systems. It is expected that the implementation of these updated Title 24 regulations will result in increased compliance costs in the completion of tenant improvements in commercial buildings. The implications for sellers, buyers, owners and tenants of commercial real estate include the need to update lease forms to take into account the practical impact of these regulations on each transaction and each material work of construction.Continue Reading Changes To California Title 24 Energy Use Requirements Effective July 1, 2014

Who must sign?
Does whether an entity is in “good standing” really matter?

Leases are often not given the same attention as other types of contracts with respect to issues of corporate authority and enforceability. Proof of authority is often an issue in the context of leases and related documents. What you need to know.Continue Reading What Makes A Lease “Enforceable” – What You Need to Know

[The requirements for AB 1103 have been modified. See updated information here.]

What you need to know:

The long-awaited energy use disclosure requirements, first enacted as AB 1103 (Saldana) in 2007 (codified as California Public Resources Code, §25402.10), are finally effective. Commencing July 1, 2013, owners of commercial, non-residential buildings in excess of 50,000 square feet will be required to track and disclose detailed information regarding energy consumption at each building. The reporting requirements will be extended to buildings in excess of 10,000 square feet commencing on January 1, 2014; and to buildings in excess of 5,000 square feet on July 1, 2014.Continue Reading California Commercial Building Owners Must Comply With New Energy Use Disclosure Rules Commencing July 1, 2013

What you need to know:

On July 1, 2013, pursuant to newly enacted California Civil Code Section 1938, owners of commercial real property must state on every lease form or rental agreement whether the property leased has undergone inspection by a Certified Access Specialist (commonly referred to as a “CASp”) and, if so, whether the property has or has not been determined to meet all applicable construction- related accessibility standards pursuant to California Civil Code Section 55.53.

If a commercial property has not been inspected by a CASp, the new statute does not require such an inspection; it merely requires disclosure of whether or not an inspection has been performed and the results of any such inspection. As discussed in more detail below, the intent appears to be to provide an incentive for commercial property owners to reduce their exposure to liability in ADA lawsuits by encouraging owners to obtain a CASp inspection.

Owners of property in San Francisco of 7,500 square feet or less (5,000 square feet or less after June 1, 2013), must also comply with Chapter 38 of the San Francisco Administrative Code. These requirements will be the subject of a separate posting shortly.Continue Reading New Disability Access Law Imposes Notification Requirements For Commercial Leases