ASSIGNMENT AND SUBLETTING
Generally, a landlord will not allow the tenant to assign or sublet the leased premises without the landlord's prior written consent. However, with large tenants the landlord may need to allow assignment and/or subletting subject to the meeting of certain conditions (i.e., net worth, reputation, experience, etc.) and rely on the continuing liability and use provisions of the lease. The landlord needs to make sure these clauses work together. The lease should specifically state that a transfer of a controlling interest in the tenant entity constitutes an assignment requiring landlord's consent. (See Form 18.)
RIGHTS OF ENTRY
To make sure that the landlord can do any necessary work, inspections or enter the premises for other purposes, leases should contain inspection easements and rights of entry. This is especially important for environmental matters where the landlord may need to enter the property to have testing completed and, if necessary, to have remedial work performed. The lease should expressly exculpate landlord from liability for interruption of tenant's business in conducting these activities.
General: For the purposes of the landlord's remedies, all monetary payments should be defined as rent. The Lease should provide for interest on late rent and for a late fee to cover administrative costs.
Terminate Possession or Lease: The landlord needs to be able to terminate the
tenant's possession or the lease upon the occurrence of certain events including failure to pay rent, other defaults under the lease and/or the tenant's bankruptcy or insolvency after notice and a failure by tenant to cure the default. Regardless of whether or not the lease is terminated, landlord should have the right to relet and to recover all damages resulting from
the tenant's default. (See Form 19.)
Cure: The landlord should be given the right to cure non-monetary defaults under the lease for and at the expense of the tenant.
Condition of Premises: The lease should provide that the tenant will surrender the
leased premises in good condition and repair. Also, when possible, the tenant should be required to remove any tenant specific alterations, additions, installations, fixtures or improvements and repair any damage.
Hold-Over: The landlord should provide for indemnity for loss or liability resulting
from any delay by the tenant in surrendering the premises. At its option, the landlord may