Commercial real estate lenders often require a guaranty signed by a financially responsible California guarantor. Included in the guaranty is a waiver of specific rights, often including a waiver of the antideficiency rights of California Codes of Civil Procedure sections 580 and 726. These are significant rights being given up;…
It often happen that creditors and plaintiffs against corporations and LLCs in California find that the corporation has no assets from which to collect. They then want to collect from the individuals behind the entity. A shareholder (or LLC member) may also be liable for the corporation or LLC’s obligations…
California commercial leases and rental agreements often have an option which allows the tenant -lessee the right to extend the term of the lease. Generally, the option language provides a specific method to exercise the option, and if the lessee does not follow the procedure, courts find the option was…
Sometimes people (and courts ) use the terms ‘license’ and ‘easement’ interchangeably by the parties to the license. But they are clearly different rights, with different legal consequences. There are differences in what uses the holder can make of the property, what the owner of the property can do about,…
California homeowners facing foreclosure are right to be concerned about whether their mortgage is a non-recourse loan, or if they will end up personally liable for the loan. However, some foreclosed Californians are surprised to find that they may be liable for utilities after the trustee’s sale, when they no…
Every California lease includes a covenant of quiet enjoyment. It protects the tenant from any act or omission which interferes with the tenant’s right to use and enjoy the property for the purposes contemplated by the parties. The recent decision of Fritelli, Inc., v. 350 North Canyon involved a tenant…
Options are frequently entered concerning California real estate in a number of situations. A rent-to-own or lease option contract usually contains an option; options are taken on bare land in order to develop it in the future; and someone may option a parcel while they are trying to obtain neighboring…
California commercial leases and rental agreements often contain a waiver of subrogation clause. While important, it is often misunderstood or overlooked, even though at its best it benefits both the landlord and the tenant. Parties negotiating leases will want to consult with an experienced Sacramento and El Dorado leasing attorney.…
In 2009 the legislature enacted a law requiring that, during lease of the entire building, lending, or sale transactions for nonresidential buildings, owners must disclose “energy ratings’ developed by the U.S. Environmental Protection Agency. A sliding schedule of compliance is required, with the largest buildings starting in July 2012. Beginning…
I recently wrote about the California Public Benefit Corporations law recently enacted in California. Enacted at the same time was legislation for creating a different type of corporation. Called a flexible purpose, it allows as its name described- joint purposes of profit and public benefit. The standard corporation obligates directors…