About Usman Mohammed

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So far Usman Mohammed has created 26 blog entries.

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

Modifications to the AIR Purchase Agreement (Part 1)

In a prior article, I addressed the issue of Should You Use the AIR Purchase And Sale Agreement? Some sellers believe that the AIR purchase agreement does not contain protections afforded sellers in custom agreements. It is correct that a custom agreement drafted by a seller’s attorney will typically favor Seller more than the AIR [...]

By | 2018-01-31T21:13:15+00:00 June 3rd, 2015|Purchases/Sales|6 Comments

Should You Use the AIR Purchase And Sale Agreement?

Generally, yes. The AIR purchase and sale agreement form is well-drafted and does not substantially favor either the buyer or the seller. As a result, it is frequently used for the purchase of real estate in California. There are many advantages to using the AIR purchase and sale agreement. Brokers, lawyers, buyers, and sellers are [...]

By | 2018-01-31T21:13:56+00:00 May 28th, 2015|Purchases/Sales|6 Comments

Is Lessor Penalized for Delivering Possession Late?

According to the various AIR lease forms, Lessor is required to use its “best commercially reasonable efforts” to deliver possession of the Premises on the Commencement Date. If Lessor uses such efforts and is unable to deliver the Premises on time, is Lessor required to compensate Lessee? No, Lessor is not “subject to any liability” [...]

By | 2018-02-19T15:33:14+00:00 May 7th, 2015|Leasing|Comments Off on Is Lessor Penalized for Delivering Possession Late?

Are Brokers Entitled to a Commission When a Tenant Exercises an AIR Lease Option?

Yes. Even if the Brokers did not participate in the exercise of the AIR Lease Option to extend the term, the Brokers are entitled to a commission. Paragraph 15 of the AIR lease forms state that “if Lessee exercises any Option, . . . Lessor shall pay Brokers a fee in accordance with the fee [...]

By | 2018-02-19T15:36:04+00:00 April 28th, 2015|Leasing|Comments Off on Are Brokers Entitled to a Commission When a Tenant Exercises an AIR Lease Option?

AIR’s Inducement Recapture Provision: When Free Rent Is No Longer Free

Tenants love free rent.  But they would hate to pay it back. Under the AIR lease, if Lessee commits a Breach, it is required to immediately pay Lessor the value of any free rent or other inducement (TI allowance, etc.) it received (Paragraph 13.3). This type of provision is included in many custom leases as [...]

By | 2018-08-16T14:50:33+00:00 April 16th, 2015|Landlord-Tenant, Leasing|Comments Off on AIR’s Inducement Recapture Provision: When Free Rent Is No Longer Free

Ensure Your AIR Lease Guaranty Is Enforceable: 5 Tips for Brokers/Landlords

After you successfully negotiated for a lease guaranty, the last thing the landlord wants to discover later is that the Guaranty is not enforceable or difficult to enforce. Here are 5 tips to help avoid such a problem when completing the AIR Lease Guaranty: Entity as Guarantor – Identify Name and Title of Person Signing: [...]

By | 2018-01-31T21:16:48+00:00 April 6th, 2015|Leasing|Comments Off on Ensure Your AIR Lease Guaranty Is Enforceable: 5 Tips for Brokers/Landlords