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LegalCornerTM - Commercial Leases F.A.Q.'s

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Q.How Do Commercial Leases Differ From Residential Leases?

A.Commercial leases and residential leases are very different. Most commercial leases are not based on a standard form or agreement; and even when they are contain numerous amendments favoring the landlord. Prospective commercial tenants need to carefully examine every commercial lease agreement presented. Commercial leases are also not subject to most consumer protection laws applicable to residential leases. For example, there are no caps on security deposits or rules protecting a tenant's privacy. The prospective tenant must negotiate for these protections. Unlike residential leases, commercial leases cannot easily be broken or changed. A commercial lease is a legally binding contract, and a good deal of money is usually at stake. Finally, commercial leases are generally subject to much more negotiation between the prospective tenant and the landlord, since there are no standard forms, because businesses often need special features in their spaces, and landlords are often willing to make concessions to long term tenants.

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