About Usman Mohammed

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So far Usman Mohammed has created 22 blog entries.

Is Earthquake Coverage a Pass-Through Expense In AIR Leases?

Southern California recently experienced a magnitude 7.1 earthquake.  Well before the recent quake, our clients have been increasingly considering earthquake coverage for their buildings.  Under the various AIR Leases, if a Lessor obtains earthquake coverage for its building, can it charge this cost to Lessee? Short answer: Sometimes.  In the AIR “Net” leases, it is [...]

By | 2019-07-25T17:25:30+00:00 July 25th, 2019|Leasing|7 Comments

New Single-User Restroom Law – Is Lessee Responsible To Comply?

Effective March 1, 2017, California businesses with a single-user restroom must identify such restrooms with signage as “all-gender” restrooms.  Under the AIR lease, is it Lessee’s responsibility to comply with this new law, and is Lessee responsible for the cost to comply? Yes, according to many Lessors.  Lessors are contending that, pursuant to Paragraph 6.3 [...]

By | 2018-02-19T15:21:56+00:00 February 23rd, 2017|Leasing|2 Comments

AIR Updates Leases For 2017 Disability Access Law

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 [...]

By | 2018-01-31T21:02:47+00:00 January 4th, 2017|Leasing|0 Comments

3 Tips To Evict Tenants Quickly

If the most frustrating event for an owner of commercial property is a tenant not paying rent, the second most frustrating event must be a delay in evicting that tenant. If the lease at issue is an AIR lease, here are three tips to facilitate a quick eviction: 1. Careful Preparation of the 3-day Notice: [...]

By | 2018-01-31T21:05:11+00:00 August 29th, 2016|Landlord-Tenant|0 Comments

Lessor’s Rights When Lessee Breaches the AIR Lease

If Lessee does not perform an obligation in the AIR Lease, Lessee typically has the right to cure its Default.  However, if it fails to cure on time (or if the Default cannot be cured), Lessor may terminate Lessee’s right to possession of the Premises and require Lessee to pay Lessor all of the following [...]

By | 2018-01-31T21:05:48+00:00 April 12th, 2016|Landlord-Tenant|0 Comments

Modifications to the AIR Purchase Agreement (Part 3)

After you sell a property, do you want to ensure that the buyer does not make a claim against you?  Part 3 of this series discusses the most effective modifications Sellers make to the AIR purchase agreement to avoid (or limit) post-Closing claims by Buyers. “Cap” on Liability: Many custom purchase agreements will include a [...]

By | 2018-01-31T21:08:02+00:00 February 4th, 2016|Purchases/Sales|2 Comments

Think Twice Before You Click “Send” – AIR Allows Notices By E-mail

Could a quick e-mail from a Buyer’s broker to a Seller’s broker stating “Buyer finds the environmental report unacceptable” accidentally terminate a purchase and sale agreement? Could an e-mail from a tenant's broker to a landlord's broker stating "tenant is going to exercise the option” be an unintentional exercise of an AIR option to extend [...]

By | 2018-02-19T15:24:53+00:00 December 15th, 2015|Leasing, Purchases/Sales|0 Comments

AIR Option – 2 Key Provisions You Should Know

The AIR Option To Extend Addendum is frequently an afterthought when completing AIR lease documents. This Addendum is a well-drafted form and relatively straight-forward. Nevertheless, there are at least two key provisions that every real estate professional should know. 1.  Fair Market Rental “Floor” Provision: If it is a fair market value option, the Addendum [...]

By | 2018-02-19T15:29:42+00:00 November 11th, 2015|Leasing|6 Comments

The Automatic Security Deposit Increase Provision

The AIR leases contain an often overlooked Security Deposit provision. When there is an increase in the Base Rent, the Security Deposit increases proportionately. Therefore, if Base Rent increases by 3%, the Security Deposit also increases by 3%. This landlord-friendly provision is not the standard in custom leases drafted by attorneys. Nevertheless, when lawyers are [...]

By | 2018-02-19T15:31:31+00:00 June 23rd, 2015|Leasing|4 Comments

Modifications to the AIR Purchase Agreement (Part 2)

In Part 1 of Modifications to the AIR Purchase Agreement, I discussed four areas of the AIR purchase agreement that Sellers frequently modify. Part 2 focuses on perhaps the greatest area of liability to Seller after the Closing – Seller’s 12 representations and warranties that it makes to Buyer. Paragraph 12.1 of the AIR purchase [...]

By | 2018-01-31T21:12:13+00:00 June 16th, 2015|Purchases/Sales|6 Comments