Commercial Real Estate Lawyers

Hi there, A finance lease agreement can be a practical way to acquire commercial property or equipment with lower upfront costs and fixed payments—but it comes with specific legal obligations and long-term commitments that you should fully understand before signing. Here are the key legal implications to consider: Legal Considerations in a Finance Lease Agreement: Binding Long-Term Obligation: A finance lease is typically non-cancellable during the lease term, meaning you are legally obligated to make payments for the entire duration, even if you no longer need the property. Ownership vs. Use: You do not own the property under a finance lease. You are leasing it for an extended period, often with an option to purchase at the end. However, all the risks and responsibilities of ownership—like maintenance, insurance, and taxes—may still fall on you. Lessor’s Ownership Rights: The leasing company retains title to the property during the lease term. If you default, they typically have the right to repossess the property and pursue you for any remaining balance. Fixed Monthly Payments (But Watch for Hidden Costs): While the fixed payments seem attractive, be sure to review: Interest rates Late fees or penalties Additional service charges or fees tied to property upkeep End-of-Term Options: Understand your rights at the end of the lease: Can you buy the property? Are there residual value payments? Will you owe fees for wear-and-tear or restoration? Termination & Default Clauses: Read the fine print on what constitutes default and whether the lessor can accelerate payments or take legal action if you miss a payment. Impact on Financial Statements: A finance lease may appear as a liability on your balance sheet, depending on how the lease is structured. It’s wise to consult with an accountant on this point too. Before moving forward, I highly recommend having the lease agreement reviewed by an attorney. This will ensure the terms are fair, your risks are understood, and you are fully protected. If you would like assistance reviewing or negotiating the terms of your finance lease, I am happy to help. Best regards, Jerome Lucas Newell, Esq. Commercial Lease & Business Contracts Attorney

The notice requirements for terminating a commercial lease in Maryland are going to vary depending on the specific terms of your lease agreement. Please read and refer to your lease. If your lease is month to month, then it's likely you'll have to provide at least 30 days notice. If your lease is for a longer term (6 to 12 months), it's likely you'll have to provide at least 90 days notice, and may need to pay damages for breach of the lease agreement.

A commercial lease agreement sets out the parameters of the space to be leased, including a description of the premises, an allocation of responsibilities for janitorial services, electrical services, tenant improvements, insurance requirements, payment of rent and payment of common area expenses, parking for employees and visitors, telephone and telecommunication services and many other issues.

Hello! There should be an alterations clause in your lease that speaks to what is or isn't allowed in your space. Your safest bet is to have your landlord review and sign a letter of consent for more substantial improvements (beyond paint, mounting items, etc.)

It depends on if there was a written agreement or a verbal agreement for your options. Sending a demand letter from an attorney followed by negotiations could help resolve the problem and avoid litigation. If the landlord remains unreasonable then you will likely have to file a lawsuit. Please resubmit as a proposal at the following link so attorneys can bid on the project: https://www.contractscounsel.com/client/create-project/step-h1?cta=4.