By Mickey MaherAugust 2, 2024 In the current economic climate, distressed tenants increasingly are approaching landlords about terminating their leases early – especially in retail and office settings. In a variation of the theme, a tenant may look to surrender a portion of its premises before its lease expires in consideration for reduced rent. No…
Read MoreBy Adrian ReynaJune 17, 2024 The California Legislature has the power to supersede nearly all local ordinances, even those that have been passed through a popular vote of the people via initiative. The Legislature can also bestow this power upon local governments, especially in response to state-wide issues. The Second District Court of Appeal confirmed…
Read MoreBy Sadaf BehdinJune 10, 2024 Restrictions on Transfers California law generally favors the right to transfer interests in property. To that end, it’s no surprise that courts liberally interpret transfer provisions in commercial leases. Any ambiguity regarding a tenant’s ability to transfer its interest in a lease will be construed in favor of transferability. Even…
Read MoreBy Adrian ReynaMay 6, 2024 The United States Supreme Court (“SCOTUS”), in a unanimous decision, recently held in the case of Sheetz v. County of El Dorado that the analysis historically applied to administratively imposed fees as conditions on the issuance of building permits also applies to such fees that are imposed legislatively. Though Sheetz…
Read MoreTenant Wins Appeal After Landlord Fails to Disclose Hazardous Materials of Which the Landlord had Knowledge By Michael J. (“Mickey”) Maher and Sabrina D. JohnsonApril 24, 2024 Earlier this year in Epochal Enterprises, Inc. v. LF Encinitas Properties, LLC (2024) 99 Cal.App.5th 44 (“Epochal”), a California Court of Appeal ruled in favor of a tenant…
Read MoreBy Adrian Reyna and David J. VogelMarch 22, 2024 A recent California 1st District Court of Appeal decision, Honchariw v. FJM Private Mortgage Fund, LLC (83 Cal. App. 5th 893) (“Honchariw”), held that default interest charged on the entire outstanding principal balance of a defaulted commercial loan constitutes an unenforceable penalty. The court’s decision in…
Read MoreBy Sabrina D. JohnsonMarch 18, 2024 As explained in more depth in our previous article, FinCEN Corporate Transparency Act Update, every corporation, limited liability company, or other entity formed by filing with the secretary of state (such as, in California, a limited partnership) is a “Reporting Company.” Each Reporting Company is required to file with…
Read MoreBy Adrian ReynaFebruary 22, 2024 Hazardous substance liability under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) can be a costly and unforeseen consequence of purchasing a property. However, purchasing parties to a real estate transaction may qualify for an exemption to CERCLA liability if they satisfy certain requirements, including conducting environmental due diligence…
Read More2024 is here, and with it begins the Corporate Transparency Act (“CTA”) compliance requirements. As a quick refresher (and as discussed in our previous article, FinCEN Corporate Transparency Act Update): every corporation, limited liability company, or other entity formed by filing with the secretary of state (such as, in California, a limited partnership) is a…
Read MoreBy Márcia H. Yafuso LoeffelholzJanuary 29, 2024 In most sales of investment or business real estate property where there is a “gain” (i.e., income is made on the sale), tax must be paid on that gain at the time of the sale of the property. Internal Revenue Code (“I.R.C.”) § 1031 allows one to defer…
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