To commercial landlords, the ideal lawyer is one that can predict the future. And in the context of buying and selling New York City real estate, that means lawyers who can craft lease provisions to pre-emptively thwart tenant-holdouts seeking cash buyouts in exchange for surrendering and vacating their premises. The scenario usually plays out like this: Landlord markets the building for sale, buyer tenders an offer on the condition that the building be conveyed vacant on the closing date, tenant demands an exorbitant amount of money from landlord in exchange for vacatur, landlord scours the lease for any possible tactical advantage in its negotiation with tenant, landlord finds none and capitulates to tenant’s demand, or loses the deal. A win/win for the tenant.
A lease provision that affords landlords the tactical advantage they need in such scenarios, and the focus of this article, is the “early termination provision” (hereinafter as the termination provision). Specifically, this article seeks to: (i) guide the practitioner through the pitfalls of a poorly drafted termination provision; and (ii) advise the practitioner how to craft a proper and effective termination provision.
Case Study
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]