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So far Usman Mohammed has created 22 blog entries.

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

Think Twice Before You Click “Send:” AIR (And Other RE Contracts) Now Allow 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 | 2018-02-19T15:38:30+00:00 February 25th, 2015|Leasing|Comments Off on Think Twice Before You Click “Send:” AIR (And Other RE Contracts) Now Allow Notices By E-mail

Two Ways For Landlords to Maximize Recovery of Expenses (AIR Multi-Tenant Lease-Gross)

The AIR multi-tenant lease (gross) is a "modified" gross lease. A tenant pays its share of any increase in taxes and insurance over a base year. However, there is no base year for CAMs (Common Area Maintenance Fees).   A tenant therefore pays its share of the total CAMs for the year.  Many owners of [...]

By | 2018-01-31T21:19:17+00:00 February 3rd, 2015|Leasing|Comments Off on Two Ways For Landlords to Maximize Recovery of Expenses (AIR Multi-Tenant Lease-Gross)

AIR Lease Revises Key “Hazardous Substances” Provision

A recent change to the AIR lease will benefit certain tenants that bring Hazardous Substances onto the Premises. Before the revision, when a lease term was expiring, a tenant was required to remove all Hazardous Substances brought onto the Premises during the lease term. Tenants frequently performed work that exceeded statutory requirements. Now, a tenant is [...]

By | 2018-02-19T15:41:28+00:00 January 26th, 2015|Leasing|Comments Off on AIR Lease Revises Key “Hazardous Substances” Provision

Ignore Estoppel Certificates At Your Peril: AIR Gives Landlords a New Weapon

Has a tenant's failure to complete its estoppel certificate ever threatened to delay the sale of your property or the closing of a refinance?  For many owners, the answer is yes.  A recent revision to the AIR lease forms attempts to solve this problem.  If a tenant fails to timely deliver its estoppel certificate, [...]

By | 2018-02-19T15:53:17+00:00 January 26th, 2015|Leasing|Comments Off on Ignore Estoppel Certificates At Your Peril: AIR Gives Landlords a New Weapon