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Updated almost 14 years ago on . Most recent reply

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Todd Cook
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"As-is" clause

Todd Cook
Posted

I recently went to renew my commercial lease that I've had for many years. After some haggling about things we settled on an agreed price and some minor improvements to the property.

When I got the lease it's full of AS-IS verbiage that was never here before. "....lessor makes no warranties....condition of premises....including without limitation those relating to structure, systems, components of.....air quality....no obligation to construct, remodel, repair or improve.....except as set forth...."

It seems as if signing this puts any and all responsibilities on me for any damages or repairs required. I'm not certain this would be legal even in renting a commercial building. If the roof collapses (as it did on a related property) it would appear I'm totally on my own here.

Am I over thinking this??

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Bill Gulley#3 Guru, Book, & Course Reviews Contributor
  • Investor, Entrepreneur, Educator
  • Springfield, MO
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Bill Gulley#3 Guru, Book, & Course Reviews Contributor
  • Investor, Entrepreneur, Educator
  • Springfield, MO
Replied

A commercial lease? Now you get to play hardball. You need to go back to him and address these issues. If your original lease had a renewal option read it carefully, there should have been.

You may need to talk with an attorney, not to sue, but to help with the negotiating. Putting you at a huge disadvantage on a lease now may mean you need to move if he makes unreasonable demands and if he forces you out. If so, he may need to assist in various losses in you moving your business. Many times there are only certain aspects of the lease that can be changed, rents, insurance coverage, maintenance issues, but moving to a position of requiring you to accept the place as is and then be responsible could be over the top in some instances/matters. And as Scott mentioned, it may be his new lease, but an existing tenant will have more to say about renewals than a new tenant with a new lease too. good luck

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