Terms of the Agreement

  1. The Grant of a License—a provision setting forth the scope of the license (i.e., what areas of the neighboring property can be accessed and by whom);
  2. Term/Schedule for the Work— provision setting forth the term of the license, upon the expiration of which, all work impacting licensor's property will be removed;
  3. Payment of Expert and Legal Fees—licensor will want a lawyer and professionals to assist in the review of licensee's work and the preparation of the license agreement. These costs should be borne by the licensee;
  4. Pre-Condition Survey—as the party seeking access, licensee will want to document the conditions of the neighboring property before work commences;
  5. Scope of the Protection Work—the scope of the work impacting the licensor property will need to be attached to the license agreement. This way all parties know what is to be performed and what is expected;
  6. Insurance—licensee, as well as its contract(s) performing the work, will need to obtain and maintain liability insurance. In addition, licensor should be named as an additional insured under such liability policy. Make sure all proper endorsements are issued securing such additional insured status;
  7. Indemnification—licensor will want to make sure the license agreement contains a broad indemnification provision, which will require licensee to indemnify and defend licensor from and against claims arising from the construction project and any work performed at the licensor property;
  8. Repair of Property—a provision setting forth licensee's repair obligations should be well documented;
  9. Mechanic's Liens—licensor will want to make sure that if any liens are filed against its property, licensee will discharge/satisfy such liens at its own cost;
  10. Termination—in the event of a breach of the license agreement by licensee, licensor may want the right to terminate the license agreement earlier than the natural expiration of the term; and
  11. License Fee—finally, licensor may seek remuneration from licensee for the use and encumbrance of the licensor property.

Looks Like Court is the Answer

[w]hen an owner or lessee seeks to make improvements or repairs to real property so situated that such improvements or repairs cannot be made by the owner or lessee without entering the premises of an adjoining owner or his lessee, and permission so to enter has been refused, the owner or lessee seeking to make such improvements or repairs may commence a special proceeding for a license so to enter pursuant to article four of the civil practice law and rules. The petition and affidavits, if any, shall state the facts making such entry necessary and the date or dates on which entry is sought. Such license shall be granted by the court in an appropriate case upon such terms as justice requires. The licensee shall be liable to the adjoining owner or his lessee for actual damages occurring as a result of the entry.

Chase Manhattan Bank v. Broadway, Whitney Company North 7-8 Investors v. Newgarden MK Realty Holding v. Scneider Mindel v. Phoenix Owners Chase Manhattan Bank Foceri v. Fazio Matter of 155 W. 21st St. v. McMullan Greens at Washingtonville v. Town of Blooming Grover

Is it Over?

Jonathan Grippo is a construction and real estate transactional attorney at Goulston & Storrs, dealing particularly with issues related to senior living, multifamily, commercial office and condominium developments.