Lease Negotiation & Terms Flashcards
7 cards from real CLP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Lease Negotiation & Terms flashcards as text
A landlord and tenant disagree on the 'commencement date' of a lease that is contingent on tenant improvements. What standard benchmark is typically used?
Answer: The date the space is delivered in the agreed condition (substantial completion)
Lease commencement is typically tied to substantial completion of tenant improvements or delivery of the space in the agreed condition, not just signing.
In negotiating a lease abstract, which term describes a landlord's right to relocate a tenant to comparable space within the building?
Answer: Relocation clause
A relocation clause allows the landlord to move the tenant to a comparable space, typically with advance notice and compensation for moving costs.
What is the primary purpose of a 'subordination, non-disturbance, and attornment' (SNDA) agreement in a commercial lease?
Answer: To protect the tenant's right to remain in occupancy if the landlord's lender forecloses
An SNDA ensures that if a lender forecloses on the property, the tenant's lease remains intact (non-disturbance) in exchange for recognizing the new owner (attornment).
A tenant negotiating a long-term lease requests a 'rent reset to market' clause. What does this provision do?
Answer: Adjusts rent to prevailing market rates at specified intervals, potentially up or down
A market rent reset clause resets base rent to current market levels at predetermined intervals, which can result in either increases or decreases.
Which negotiated lease provision most directly protects a tenant from paying rent on space that is temporarily unusable due to a casualty?
Answer: Rent abatement upon casualty clause
A rent abatement upon casualty clause suspends or reduces rent when the premises are damaged by fire or other casualty and cannot be fully used.
A CLP candidate reviews a lease with a 'recapture clause.' Under what circumstance would a landlord exercise this right?
Answer: When the tenant attempts to assign or sublet the space
A recapture clause allows the landlord to take back the tenant's space instead of approving a proposed sublease or assignment.
In lease negotiation, what does 'estoppel certificate' obligate the signing party to confirm?
Answer: The current status and terms of the lease as of a specific date
An estoppel certificate is a signed document confirming the lease is in full force, the rent amount, any defaults, and other material lease facts as of a stated date.