Legal Advice Blog: Legal Advice, Case Insights, & Local Law Information

A group of nuns recently lost their legal effort to prevent pop singer Katy Perry from buying their former convent. After this last ruling, the singer is now one step closer to being able to move into the beautiful property, something she has been trying to do since 2015. The property includes fountains, several buildings and a church. Through her limited liability company (LLC), Perry first offered to pay $14.5 million for the eight-acre estate to turn it into her private residence in Los Angeles. Details of a sale gone wrong But before she could go into escrow, the following things occurred that delayed the timely transfer of the property into her possession: Two nuns from the Sisters of the Most Holy and Immaculate Heart of the Blessed Virgin Mary made a quick deal with another private buyer. The sale to the second buyer closed quickly to prevent the sale by the archdiocese to Perry. The closed sale of the property did not have the necessary written approval from either the L.A. archdiocese or the pope, ultimately rendering it an invalid transaction. A Los Angeles Superior Court ruled against the nuns, yet the local archdiocese says that this is ultimately the best outcome for them. While this interesting case did technically pit the nuns against the archdiocese, the voided transaction came with only a small initial payment. The second buyer initially paid the nuns $44,000 and signed a promissory note for the rest, about $9 million. According to details known about the case and the terms of the contract, the invalid sale did not necessarily guarantee that the sisters would have ever received the rest of the amount owed. How you can avoid similar complications It is not every day that a dispute over a real estate transaction involves a group of nuns and a well-known pop star, but this case underlines the importance of working closely with an attorney to avoid similar complications. You or your business would be wise to approach the purchase and sale of valuable and complex properties only with qualified legal guidance and protective contractual provisions. A careful drafting and review of any contract is a positive effort toward avoiding disputes and legal complications that may prevent you from reaching your legal objectives.

Before negotiating with a commercial landlord, it is critical to understand the types of clauses that are common in commercial lease contracts. Although some contracts are helpful, others may place the tenant at a disadvantage. With an attorney’s help in Los Angeles, it is possible to negotiate better contracts for commercial leases and steer clear of legal problems in the future. The monthly rent total is an important issue to consider before signing a commercial lease. Rent might seem relatively straightforward, but there is some room for negotiation. This is true even if the rent has already been established. For instance, it may be beneficial to negotiate automatic increases in rent — specifically, how much the increases should be and what these increases are based on. Another important item to review is the clause describing the premises to be leased. This description needs to accurately describe exactly what will be rented. For instance, in some cases, an entire property may be rented, whereas in other cases, a smaller portion of a space may be covered in a rental agreement. The description needs to be as detailed as possible. Another essential area of a contract to examine is the clause identifying the parties to the agreement. The correct business names need to be listed on the contract, and it is beneficial to list corporate entities rather than individual names so as to protect individuals from liability. An attorney in Los Angeles can help review contracts for commercial leases to ensure that one’s rights are protected before signing on the dotted line with a commercial landlord. Source: Findlaw, “ Important Commercial Lease Terms “, Accessed on March 8, 2017

Before negotiating with a commercial landlord, it is critical to understand the types of clauses that are common in commercial lease contracts. Although some contracts are helpful, others may place the tenant at a disadvantage. With an attorney’s help in Los Angeles, it is possible to negotiate better contracts for commercial leases and steer clear of legal problems in the future. The monthly rent total is an important issue to consider before signing a commercial lease. Rent might seem relatively straightforward, but there is some room for negotiation. This is true even if the rent has already been established. For instance, it may be beneficial to negotiate automatic increases in rent — specifically, how much the increases should be and what these increases are based on. Another important item to review is the clause describing the premises to be leased. This description needs to accurately describe exactly what will be rented. For instance, in some cases, an entire property may be rented, whereas in other cases, a smaller portion of a space may be covered in a rental agreement. The description needs to be as detailed as possible. Another essential area of a contract to examine is the clause identifying the parties to the agreement. The correct business names need to be listed on the contract, and it is beneficial to list corporate entities rather than individual names so as to protect individuals from liability. An attorney in Los Angeles can help review contracts for commercial leases to ensure that one’s rights are protected before signing on the dotted line with a commercial landlord. Source: Findlaw, “ Important Commercial Lease Terms “, Accessed on March 8, 2017

A community near Los Angeles — Pasadena — has experienced steady growth in property values. However, the increasing demand for commercial leases in particular has made it difficult to secure available space. Commercial demand is much higher today than the demand for retail spaces, which has decreased, as well as the demand for office space, which has flattened across the state. At the present moment, not many new spaces for businesses to rent are being created. However, more inventory is necessary so that demand may be satisfied long term. This is especially true with more foreign investors pouring their money into this area of California. Foreign investments are actually pushing prices up in light of the increasing demand for these spaces. According to officials, the decreased availability of space in buildings that can be rented stems from the over-subscription of space used for retail businesses. This is a cause for concern, in that commercial rentals and real estate purchases actually help the area to maintain its budget via property taxes. Officials said that they are continuing to promote this type of real estate as a smart investment. With the rising demand for commercial leases, now appears to be an ideal time to pursue competitive leasing opportunities. However, rushing into signing a lease can have financial repercussions long term if the terms of the lease are not personally favorable. An attorney can help business owners in Los Angeles and other parts of the state of California to effectively review and negotiate these leases before signing them. Source: pasadenanow.com, “ Commercial Real Estate Inventory Nearly Depleted in Pasadena “, Andy Vitalicio and David Cross, March 20, 2017

A community near Los Angeles — Pasadena — has experienced steady growth in property values. However, the increasing demand for commercial leases in particular has made it difficult to secure available space. Commercial demand is much higher today than the demand for retail spaces, which has decreased, as well as the demand for office space, which has flattened across the state. At the present moment, not many new spaces for businesses to rent are being created. However, more inventory is necessary so that demand may be satisfied long term. This is especially true with more foreign investors pouring their money into this area of California. Foreign investments are actually pushing prices up in light of the increasing demand for these spaces. According to officials, the decreased availability of space in buildings that can be rented stems from the over-subscription of space used for retail businesses. This is a cause for concern, in that commercial rentals and real estate purchases actually help the area to maintain its budget via property taxes. Officials said that they are continuing to promote this type of real estate as a smart investment. With the rising demand for commercial leases, now appears to be an ideal time to pursue competitive leasing opportunities. However, rushing into signing a lease can have financial repercussions long term if the terms of the lease are not personally favorable. An attorney can help business owners in Los Angeles and other parts of the state of California to effectively review and negotiate these leases before signing them. Source: pasadenanow.com, “ Commercial Real Estate Inventory Nearly Depleted in Pasadena “, Andy Vitalicio and David Cross, March 20, 2017

In some areas of California, industrial real estate reportedly had a strong 2016 year. Vacant spaces are filling up, and new construction, which is creating more opportunities for commercial leases, is on an uptick. In addition, rents have risen for three years straight now. This may spell promise for business owners and investors in Los Angeles and other parts of the state. Industrial property is actually expected to be the best performer in the commercial real estate market, given the increasing shift toward shopping online. Many online companies are looking for central locations in the state of California. After all, goods in the Golden State can easily be shipped within just one or two days. In some cases, local developers who are creating manufacturing and warehouse space are having trouble keeping pace with the demand they are experiencing. This is particularly true for spaces ranging from 5,000 to 25,000 square feet in size. Properties that are of high quality typically do not remain on the market for very long. As California continues to draw attention in the commercial real estate world, this may naturally be encouraging for Los Angeles investors who want to develop potentially profitable properties. Likewise, it may motivate business owners to pursue commercial leases in high-traffic business spots that will benefit their bottom line. Whether putting together a commercial lease, reviewing one or negotiating one, an attorney can help to make sure that the final version of the lease best protects one’s interests in today’s competitive real estate and business worlds. Source: fresnobee.com, “Fresno and Visalia industrial real estate ends 2016 on a high note”, Bonhia Lee, March 30, 2017

In some areas of California, industrial real estate reportedly had a strong 2016 year. Vacant spaces are filling up, and new construction, which is creating more opportunities for commercial leases, is on an uptick. In addition, rents have risen for three years straight now. This may spell promise for business owners and investors in Los Angeles and other parts of the state. Industrial property is actually expected to be the best performer in the commercial real estate market, given the increasing shift toward shopping online. Many online companies are looking for central locations in the state of California. After all, goods in the Golden State can easily be shipped within just one or two days. In some cases, local developers who are creating manufacturing and warehouse space are having trouble keeping pace with the demand they are experiencing. This is particularly true for spaces ranging from 5,000 to 25,000 square feet in size. Properties that are of high quality typically do not remain on the market for very long. As California continues to draw attention in the commercial real estate world, this may naturally be encouraging for Los Angeles investors who want to develop potentially profitable properties. Likewise, it may motivate business owners to pursue commercial leases in high-traffic business spots that will benefit their bottom line. Whether putting together a commercial lease, reviewing one or negotiating one, an attorney can help to make sure that the final version of the lease best protects one’s interests in today’s competitive real estate and business worlds. Source: fresnobee.com, “Fresno and Visalia industrial real estate ends 2016 on a high note”, Bonhia Lee, March 30, 2017

Southern California, including Los Angeles and the surrounding areas, remains a hot spot in the commercial real estate world. One area that is particularly drawing interest when it comes to commercial building purchases and commercial leases is Orange County. This information comes from Ten-X, an online real estate marketplace. According to Tex-X’s most recent United States Office Market Outlook, investors may benefit from purchasing office real estate in Orange County. The southern part of the state is a popular area for real estate transactions at the moment due to the growing economies in the area. Consistent job growth and strong demographics are contributing to the vigorous demand for office spaces. Outside of Southern California, other areas of the country that are drawing investors include Miami and Palm Beach in Florida, and Portland in Oregon. On the contrary, investors may want to sell properties in Milwaukee, Memphis, the suburban areas of Maryland, Houston and Cleveland. Labor markets in these areas have weakened, thus decreasing the demand for office spaces and subsequently undermining the commercial real estate markets in these parts of the country. Investing in office spaces in Los Angeles and other parts of California can be a challenging process due to the inherent complexities involved in these types of commercial real estate transactions. Likewise, negotiating and drafting commercial leases as well as reviewing them can be challenging, with the potential for errors a significant risk. A real estate attorney can offer guidance in efficiently completing even the most complicated commercial real estate transactions in the Golden State. Source: San Juan Capistrano, CA, Patch, “ Business Real Estate Market Booming In Orange County “, Feb. 8, 2017

Southern California, including Los Angeles and the surrounding areas, remains a hot spot in the commercial real estate world. One area that is particularly drawing interest when it comes to commercial building purchases and commercial leases is Orange County. This information comes from Ten-X, an online real estate marketplace. According to Tex-X’s most recent United States Office Market Outlook, investors may benefit from purchasing office real estate in Orange County. The southern part of the state is a popular area for real estate transactions at the moment due to the growing economies in the area. Consistent job growth and strong demographics are contributing to the vigorous demand for office spaces. Outside of Southern California, other areas of the country that are drawing investors include Miami and Palm Beach in Florida, and Portland in Oregon. On the contrary, investors may want to sell properties in Milwaukee, Memphis, the suburban areas of Maryland, Houston and Cleveland. Labor markets in these areas have weakened, thus decreasing the demand for office spaces and subsequently undermining the commercial real estate markets in these parts of the country. Investing in office spaces in Los Angeles and other parts of California can be a challenging process due to the inherent complexities involved in these types of commercial real estate transactions. Likewise, negotiating and drafting commercial leases as well as reviewing them can be challenging, with the potential for errors a significant risk. A real estate attorney can offer guidance in efficiently completing even the most complicated commercial real estate transactions in the Golden State. Source: San Juan Capistrano, CA, Patch, “ Business Real Estate Market Booming In Orange County “, Feb. 8, 2017

Some property owners are in a disagreement with the California State Lands Commission regarding the ownership of land on which a lake’s private docs have been built. These property owners, who are part of a nonprofit association, have recently filed a lawsuit against the commission in the hopes of resolving this real estate dispute. When two parties cannot solve a real estate issue on their own in Los Angeles or other parts of California, it is within their rights to take the matter to court. This real estate case is complicated, involving the navigability of the lake. When the state of California was born in 1850, it was able to acquire ownership of a lake called Donner Lake — specifically, the land underneath the water. Thus, California owns this land going up to the lake’s high water mark. This includes the land on which private docks have been built. In this situation, California is able to lease land to dock owners, and these dock owners must go through a town to make repairs. However, the nonprofit association featuring the property owners argues that the state has claimed that the lake’s high water mark is higher than it is in reality. In other words, the state is being blamed for claiming ownership to a larger amount of land than that to which it is legally entitled. The property owners have also argued that the lake cannot be navigated, and thus, the state cannot claim the land underneath the lake or the land holding the private docks. Different legal tests exist for determining whether a lake is navigable, so addressing the matter is complicated. When a real estate dispute erupts between property owners or between property owners and the state of California, it is natural to feel both frustration and anger. However, an attorney who understands the ins and outs of the state’s real estate law can provide an estimation of the outcome of the case, considering the circumstances surrounding it. The attorney will fight for the plaintiff’s real estate-related rights and best interests in Los Angeles and other parts of the Golden State. Source: sierrasun.com, “ Donner Lake homeowners sue California State Lands Commission “, Amanda Rhoades, Feb. 7, 2017

Some property owners are in a disagreement with the California State Lands Commission regarding the ownership of land on which a lake’s private docs have been built. These property owners, who are part of a nonprofit association, have recently filed a lawsuit against the commission in the hopes of resolving this real estate dispute. When two parties cannot solve a real estate issue on their own in Los Angeles or other parts of California, it is within their rights to take the matter to court. This real estate case is complicated, involving the navigability of the lake. When the state of California was born in 1850, it was able to acquire ownership of a lake called Donner Lake — specifically, the land underneath the water. Thus, California owns this land going up to the lake’s high water mark. This includes the land on which private docks have been built. In this situation, California is able to lease land to dock owners, and these dock owners must go through a town to make repairs. However, the nonprofit association featuring the property owners argues that the state has claimed that the lake’s high water mark is higher than it is in reality. In other words, the state is being blamed for claiming ownership to a larger amount of land than that to which it is legally entitled. The property owners have also argued that the lake cannot be navigated, and thus, the state cannot claim the land underneath the lake or the land holding the private docks. Different legal tests exist for determining whether a lake is navigable, so addressing the matter is complicated. When a real estate dispute erupts between property owners or between property owners and the state of California, it is natural to feel both frustration and anger. However, an attorney who understands the ins and outs of the state’s real estate law can provide an estimation of the outcome of the case, considering the circumstances surrounding it. The attorney will fight for the plaintiff’s real estate-related rights and best interests in Los Angeles and other parts of the Golden State. Source: sierrasun.com, “ Donner Lake homeowners sue California State Lands Commission “, Amanda Rhoades, Feb. 7, 2017

An easement is a property right providing the holder of the right an interest in the land of another individual. These types of rights have an influence on various kinds of real estate transactions. In some cases, a real estate dispute may erupt in Los Angeles or in another California city over an easement. An example of a living situation involving an easement is if the only way to get to one’s home is through a driveway that crosses a neighbor’s property. An easement is typically created through conveyance in a property deed or in another type of document — for example, a contract or will. Creating an easement usually requires an instrument that is written, a signature and then the appropriate delivery of such a document. Following the creation of an easement, questions usually crop up about the scope of the easement, its location or its dimensions. The questions have to be addressed case by case, being affected by how the easement was created. If the written documents that created easements are incomplete or vague, thus leading to imprecise inferences based on the prior use of the properties, courts must be relied on to construe the intent of those produced the written documents. Many people in Los Angeles and elsewhere in California do not understand easements. For this reason, legal problems involving the drafting as well as the interpretation and implementation of documents related to easements may arise. It is within people’s rights to seek their best interests when a real estate dispute involving an easement leads to a lawsuit in the Golden State. Source: findlaw.com, “ Easement Basics “, Accessed on Feb. 1, 2017