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Commercial real estate is used exclusively for business purposes, such as retail spaces, offices, industrial facilities, hotels, and warehouses. Many businesses lease their locations. Disputes may arise between landlords and tenants. Understanding how to avoid and resolve disputes can reduce the risk of commercial litigation. Our California real estate attorneys discuss ways you can resolve disputes related to commercial property in this blog.
Understand Your Lease Terms
Commercial leases are complex contracts that contain legal phrases and jargon that can hide critical information. It is imperative that landlords and tenants understand all terms within their commercial leases, especially terms related to maintenance responsibilities, rent escalation, and termination clauses.
Being well-versed in the lease terms and your rights is essential for avoiding and resolving disputes. Therefore, before signing a commercial lease, review it carefully with an attorney. Your lawyer will explain the terms of the lease and your legal rights and responsibilities.
Open and Clear Communication
Clear communication prevents misunderstandings. However, parties must be open and willing to discuss situations as they arise. Active listening is the first step. Listen to the other party’s perspective to begin collaborative discussions to reach an amicable resolution for disputes.
Constructive feedback is another important element of communication. Feedback should be given respectfully with the intent to resolve problems instead of focusing on personal attributes. Being constructive instead of blame-shifting promotes the resolution of commercial landlord-tenant disputes.
Detailed Commercial Lease Agreements
Hiring an attorney to draft a commercial lease agreement is the best way to ensure the lease is legally enforceable. A detailed lease can avoid future problems by providing clear terms and conditions. The lease agreement can also include procedures for resolving disputes.
Mediation or Arbitration for Commercial Lease Disputes
Landlords and tenants can resolve disputes through mediation to avoid commercial litigation. A neutral mediator helps the parties negotiate a resolution to conflicts. Mediation can be much less costly and time-consuming than litigation. It preserves relationships and gives the parties control over outcomes.
Arbitration also uses a neutral third party. However, the process is more like litigation. The parties present their arguments, and the arbitrator makes a binding decision. Arbitration is more streamlined than litigation but can still be costly and is not as collaborative as mediation.
Keep Records and Documentation
Careful documentation can also avoid landlord-tenant disputes for commercial leases. When conflicts arise, your records and documentation can help resolve disputes. For example, payment disputes may be resolved with clear financial records. Disputes related to repairs and maintenance may be resolved with logs of all repair and maintenance requests.
Seeking Legal Advice
Navigating the complex nature of leases and landlord-tenant disputes requires a thorough understanding of contracts, real estate law, and the elements of commercial lease agreements. When disputes arise, sound legal counsel helps you protect your rights. Your attorney develops a strategic response for dispute resolution that can increase the chance of favorable outcomes.
Schedule a Consultation With Our California Real Estate Attorneys
Our California real estate attorneys can help you with all matters related to commercial property. Call our office to schedule an appointment with an attorney. Our attorneys represent clients in all commercial and residential real estate transactions and litigation matters. If you have a dispute related to real property, we can help.