Rules and Regulations – Another Kind of Lease Amendment

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So, after you’ve fully negotiated a Lease, do you think the words are chiseled into stone, the document is fixed, it is now a “read only” file? Maybe you need to think again. It is not uncommon (how about that for indirectness) for a lease to say: “Landlord reserves the right to, and Tenant agrees that Landlord, at any time and from time to time for the general welfare of the Shopping Center, may impose reasonable rules and regulations governing the Shopping Center and the use of the Common Areas and Tenant shall abide by those rules and regulations..” Yes, it ain’t over ‘til the fat lady sings.

Let’s talk about “Rules and Regulations.” There is nothing wrong, per se, about placing reasonable limitations on a tenant’s use of the property, including on the tenant’s own premises. After all, a lease is a grant of rights to a tenant, and no one believes those rights should be unlimited. And, most of the typical set of Rules and Regulations meet a tenant’s expectations – no smoking; rubber tired wheels on hard flooring surfaces; no shaking carpets out the window. [Read more…]

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