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Lease agreements could help avoid commercial litigation

When a Texas resident has commercial property, renting or leasing that property to a prospective business can often prove lucrative. However, when entering into any type of business arrangement involving property, the possibility for real estate disputes exists. As a result, individuals looking to lease their property may want to ensure that they prepare for the possibility of commercial litigation.

One way that property owners could work to protect themselves is to have a solid lease agreement. It may be wise to include as much detail and specificity into the contract as possible in hopes of avoiding any confusion that may lead to conflict. Even if a person does not think a certain aspect is significant, it may be better to include it rather than omit it just in case it could cause issue later.

Another step that could help make a contract more protective is to carefully review any conditions and contingencies. A lessee could potentially put a condition in the contract indicating when the agreement could be terminated, but if there is potential that the lessee could cause that condition to arise, the property owner may want to think twice before agreeing to that term. The property owner may also want to remember that he or she could include contingencies as well.

Contract negotiations can take a considerable amount of time, and even with an agreement in place, the possibility for disagreement is still there. In the event that Texas property owners face commercial litigation, they may want to explore their legal options. Having a lessee break the terms of the contract or otherwise violate the arrangement could have considerably negative impacts, and understanding how to protect oneself could prove wise.

Source: rejournals.com, "Five ways to avoid a commercial lease dispute", Andrew P. Shelby, April 18, 2018

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