The AIR Commercial Real Estate Association has updated its lease forms to account for a new California disability access law effective January 1, 2017. The new law was approved by Governor Jerry Brown on September 16, 2016.
As the new year begins and you get ready to close deals, make sure you update your AIR forms. You may update them at the AIR’s website here. The advantages of the AIR’s industry-leading lease forms are summarized here.
The following is a summary of certain key provisions of the new law (Civil Code section 1938):
- Lessor’s Disclosure Requirement: Lessors must state on every lease executed on or after January 1, 2017, whether or not the Premises has undergone an inspection by a Certified Access Specialist (CASp).
- Requirements When There is a CASp Report: If the Premises has undergone such an inspection, and there have been no alterations which have impacted compliance with construction-related accessibility standards, Lessor must provide a copy of the report to Lessee before signing the Lease. Lessee is required to keep it confidential, except as necessary to correct violations.
- Responsibility For Correcting Violations in the CASp Report: Correcting violations noted in the CASp report is presumed to be Lessor’s responsibility, however, the parties may agree otherwise. If Lessee is not provided the CASp report 48 hours prior to Lease execution, Lessee has 72 hours after execution to rescind the Lease.
- If Report Discloses Compliance: In such case, Lessor must provide a copy of the disability access inspection certificate to Lessee and any inspection report not already provided within 7 days of Lease execution.
- If No CASp Report or Disability Access Inspection Certificate Exists. In such case, Lessor must advise Lessee in the Lease that Lessee has the right to have a CASp inspection using language provided in the statute.
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