- April 13, 2020
- Posted by: Christopher Hanson
- Categories: Covid 19, Real Estate
Follow these steps when analyzing your commercial lease non-rent payment issue.
COVID-19 COMMERCIAL TENANCY AND FORCE MAJEURE WHITEPAPER
We’ve put together a white paper on “force majeure” and “impossibility” and “frustration of purpose.”
This whitepaper is not, and should not be construed to be, legal advice. It is the writer’s summary of the legal principles which might apply to this “novel” Corona Virus situation.
COMMERCIAL LEASE COVID-19 ISSUES VIDEO PRESENTATION
We’ve put together a video discussion on “Commercial Lease – COVID 19 Issues.”
COVID-19 IMPACT ON COMMERCIAL REAL ESTATE:
Consumers (that’d be you and me) are not going shopping. We’re not headed to our favorite restaurants, or gyms, or car dealers. We’re not visiting dentists or hair salons. Or our favorite saloons either. Investment advisors are working from home, as are accountants, now that Tax Day has been bumped to July… (There’s a not-funny pun about death and taxes in here somewhere.)
So, if your favorite store is not getting its sales dollars from you, how does it pay the Landlord? How does the Landlord pay it’s Lender?
Many states have places a moratorium on evictions, but the rent is still owed. Same with foreclosures on mortgages.
A lot – and I mean a LOT – of people are re-reading their Leases and Loan Documents, All of a sudden that “force majeure” clause is right up front and center. The next thing people are pulling out are their insurance policies.
What’s it all mean? When will it all end? How, and Who, will get the mess cleaned up?
We don’t know. Yet.
As is true in every situation where someone seeks legal advice, each case is different. Each case is dependent upon the unique facts attributable to it.
If you believe you are in a situation where legal advice or assistance is needed, feel free to contact the firm, and set up an appointment with one of our attorneys. We’ll be happy to help where/when/if we can.