Committing to a commercial lease carries with a completely different level of liability. In comparison to a residential lease, it’s a whole other ball game. 

So when it comes to a commercial lease dispute, one can only imagine the level of complexity in trying to find a reasonable resolution. 

Learn more about the complex nature of a commercial lease, common areas of dispute and how to resolve them with the aid of expert legal services… 

Pin-Pointing Common Commercial Lease Disputes 

So, what is it about a commercial lease that makes it so much more complicated than a residential lease? First of all, they are very different from other property lease agreements as they involve a number of ever-changing factors. 

These factors often extend past the control of either party involved in the lease. They include zoning commissions, local regulations, customers, and other tenants.

To add to this, most commercial lease agreements include long lease terms and large rent payments. In fact, a commercial lease is often worth hundreds-of-thousands of dollars, or quite often, millions or more.

This means there is a lot more at stake when a commercial lease dispute arises. 

At the heart of most lease disputes is generally a contract issue. Some of the most common disputes include: 

1. Lease Terms 

The terms of a commercial lease are specific to the needs of each business. However, disputes often arise when it is unclear who can use the property, the time period and validity of the lease, and monthly payments. 

2. Duty of Repair 

Some commercial properties are in better condition than others. A dispute may arise over whose responsibility it is to repair and maintain the property- the company or the owner. 

3. Early Lease Termination 

Upon signing a lease a company agrees to a set time period in honoring the lease. However, certain circumstances may arise which could spur on early lease termination. 

4. Lease Deposits 

In the case of the above and early lease termination, a dispute may arise over a lease deposit and whether a business should receive this amount in full. Most commonly, property owners are reluctant in returning this full amount when a tenant is in early breach of a lease. 

5. Subleasing a Property 

In certain cases, a business may be permitted to sublease or re-assign their lease to a new business. However, permission for this varies according to each lease agreement. 

These are just a few of the most common commercial lease disputes between businesses and property owners. Some others also include tax issues, zoning complications, and other aspects of commercial law.

If either party believes there has been a breach of lease in some way, the best way to resolve this issue is with the help of legal professionals. Ideally, they should be well versed in commercial real estate law and contract law.  

The Resolution of Commercial Lease Disputes 

As mentioned, finding a reasonable resolution to suit both parties in a commercial lease dispute can be complicated. Reaching a solution is often an interaction between both contract and real estate law. This is why a professional attorney is always recommended.

When it comes to resolution, the lease contract is used as the legal document which lawyers will refer to. Also, resolving a dispute depends on the specific issue in question. 

However, in some cases, a dispute may involve a number of clashing issues that need to be resolved all at once. This is where legal resolution can get complicated and expertise is required. 

When mediation is involved, the aim is the encourage compromise by both parties. It aims to advance each party’s interests, rather than focusing on ”rights”.

Mediation is also a great way to avoid spending time in court, faced by a random selection of jurors to decide on your lease terms. 

Essentially, mediation helps to settle disputes as quickly as possible, so as to not affect third parties including investors, lenders, and appraisers. 

The Benefits of Legal Mediation 

Here are just a few of the major benefits of resolving a commercial lease dispute through legal mediation: 

1. Save Time and Money 

Mediation is the best option to save both time and expense in a commercial lease dispute. This is because it’s aimed at keeping both parties out of court and away from expensive litigation fees. While also reaching a reasonable resolution as quickly as possible. 

In fact, some real estate mediations can be completed in under a day at very little cost when compared with litigation. 

2. Find Resolution with Creative Solutions

The litigation process makes it fairly impossible to reach a creative solution that will benefit both parties in a lease dispute. On the other hand, a mediator experienced real estate law is more likely to achieve this. 

Basically, a mediator is able to help both parties reach an agreement not contemplated by the contract or lease, but rather their general relationship.

3. A Controlled Outcome 

Mediation is often the best route to take because it allows both parties to have equal say during a dispute and ultimately control the outcome. 

Both parties are treated as active participants during the resolution process, each responsible for the agreed-upon outcome. This works in favor of a far more suitable lease, where either party is more inclined to abide by it, than not. 

4. Dispute Confidentiality 

Mediation is a great way to keep proceedings quiet and confidential throughout the resolution process. The outcome is not considered public information and is generally inaccessible. 

In essence, this helps both businesses and property owners to keep their reputation intact, without having to face lengthy public litigation. 

5. Save the Business Relationship

At the end of the day, a commercial lease agreement is akin to a business relationship. Mediation offers far less confrontation, egoism, and pride and helps to preserve a working business relationship. 

In Need of Professional Lease Enforcement?

If you’re facing a dispute over a commercial lease and require legal representation to enforce a lease, then Litigation Advocates is your go-to. 

Take a look at the legal expertise we offer in the fields of dispute resolution, lease enforcement, commercial litigation, legal collections, and more.

Feel free to contact us today for the legal support you need with regards to successful commercial dispute resolution.