Commercial Real Estate Law & Regulations Flashcards

What does 'constructive eviction' mean in commercial real estate law?

Answer: When a landlord's failure to maintain the property makes it unusable, effectively forcing the tenant to vacate

Constructive eviction occurs when a landlord's breach of the lease—such as failing to provide heat, water, or safe conditions—so substantially impairs the tenant's use that the tenant is forced to vacate.

What is the 'covenant of quiet enjoyment' in a commercial lease?

Answer: A landlord's promise that the tenant will have undisturbed possession and use of the leased premises

The covenant of quiet enjoyment is the landlord's implied or express promise that the tenant's peaceful possession and use of the leased space will not be disturbed by the landlord or superior title holders.

Under the Americans with Disabilities Act (ADA), Title III applies to commercial real estate by requiring:

Answer: Public accommodations to remove barriers to accessibility where readily achievable

ADA Title III requires places of public accommodation to remove architectural barriers where doing so is 'readily achievable' (easily accomplishable without much difficulty or expense).

What is 'eminent domain' in the context of commercial real estate?

Answer: The government's power to take private property for public use with just compensation

Eminent domain (also called condemnation) is the government's constitutional power to acquire private property for public use, requiring payment of fair market value compensation to the owner.

What does 'recording' a commercial lease or memorandum of lease accomplish?

Answer: Providing public notice of the tenant's interest in the property, protecting against subsequent purchasers

Recording a lease or lease memorandum in public land records gives notice of the tenant's leasehold interest, protecting the tenant if the property is sold or if the landlord's lender forecloses.

What is 'zoning' and how does it affect commercial real estate?

Answer: Local government regulations designating how land may be used, restricting or permitting specific commercial activities

Zoning ordinances divide municipalities into districts with specific permitted uses (office, retail, industrial, residential), directly affecting what businesses can operate in a given building or location.