Late fees on Commercial lease.
TEXAS.
I saw this on another website: "Commercial leases are basically no holds barred. The consumer protections for residential leases do not extend to commercial leases because the law presumes that the
parties are of equal bargaining power and sophistication. The amount
would have to be extremely egregious."
Is this true?
There are still laws governing commercial leases (and I assume you are not referring to multi-family or any type of housing), and these vary from State to State (and possibly even locally). But it is certainly true that there are less tenant protections and easier eviction processes for obvious reasons. Commercial landlords aren't generally throwing grandmas out on the street.
Quote from @Bob Solak:The Tenant in this scenario is a National company, with interest, offices, and assets across the continent.
Commercial landlords aren't generally throwing grandmas out on the street.
Generally, it's true. Wolf v wolf as opposed to wolf v sheep. I'm sure many states have some definition of egregious, but yeah, terms are negotiated up front without any consumer protection oversight.
Quote from @Jack Deer:
TEXAS.
I saw this on another website: "Commercial leases are basically no holds barred. The consumer protections for residential leases do not extend to commercial leases because the law presumes that the
parties are of equal bargaining power and sophistication. The amount
would have to be extremely egregious."Is this true?
Aloha,
In general, yes. Commercial implies Business tenants, vs. Residential tenants. Residential agreements typically fall under each jurisdictions Landlord / Tenant laws. Commercial, which includes storage, parking, warehousing, manufacturing, retail businesses of all kinds, is in large part based on simple Contract Law, along with other State and Federal regulations, such as usury laws, fraud, etc. etc. Bottom line, courts generally believe each party knows their business, and is utilizing appropriate consultants to guide them. As always, check local laws, but often all that is needed to keep a commercial tenant out if they are in breach of contract is a chain and a padlock.
Here is a great source to view sample Industry Standard Commercial documents:
https://www.aircre.com/air-cre...
Quote from @Richard F.:Yes. The lease is for vacant land.
Commercial, which includes storage, parking, warehousing, manufacturing, retail businesses of all kinds
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Yes, with some exceptions for usury or DTPA violations.