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

Real estate prices in California have remained among the highest in the nation in recent decades. When you spend more per square foot or acre than people in other places, it’s only natural to be defensive about your property rights. Few issues can damage your relationship with your neighbors as quickly as a boundary dispute can. Misinformation or confusion might lead to neighbors having very strong, differing opinions about where the boundary line between their property is. When one neighbor wants to expand their house, put in a garden or install a fence, a boundary line dispute can lead to major issues. How can you resolve the dispute? Check your title paperwork When you bought the property, one of the most important documents that you likely didn’t review was the property description. Depending on where your property is and the way that subdivision of bigger parcels has occurred in the area, your property description could be an entire paragraph of detailed, confusing terms. Your property description will ostensibly tell you where the boundary for your property is. In some cases, you and your neighbor may be able to compare your title paperwork and clarify where the boundary falls. Bring in professional help Making sense of the legal description isn’t always easy. You may need to consider hiring a surveyor to come and establish the boundary for your property. Bringing in a professional can be the fastest way to resolve the issue and can make it easier for you to push back in court if your neighbor continues to violate your property rights. Resolving a boundary dispute often requires patience and experienced legal guidance. However, it will protect the land that you have invested so much in over the years.

If you are a California property owner, you already know that tenants’ rights are strong in our state. But that by no means leaves property owners without options when dealing with their tenants. One situation that you could, unfortunately, have to face involves a tenant whom you suspect of illegal drug usage, sales or manufacturing. This certainly is not the type of tenant you want to attract, as their mere presence on your property can drop its value significantly should a drug-related incident occur on your premises. What steps you can take if you suspect the presence of illegal drugs Documentation is key, whether you are building a case to simply evict the problem tenant or for the police to pursue further. Since an active meth lab on your property could cause hundreds of thousands of dollars in decontamination costs of multiple units or an entire building, you need to act swiftly. Remember: Never act without clear information. The odd chemical odors emanating from a unit in your apartment building could have a legitimate and legal source. Barging into a tenant’s unit without warning could leave you open to civil claims from your tenant. However, it is within the realm of possibility for the building manager to inquire as to the source of an odor based on tenant complaints. Play it by the book when evicting a tenant for criminal activity Since anyone involved in illegal drug activity is by definition a criminal, you don’t want to place yourself at any risk of retaliation or violence. Understanding and managing the risk involved in getting rid of dangerous tenants can best be handled by professionals in the industry.

If you are a California property owner, you already know that tenants’ rights are strong in our state. But that by no means leaves property owners without options when dealing with their tenants. One situation that you could, unfortunately, have to face involves a tenant whom you suspect of illegal drug usage, sales or manufacturing. This certainly is not the type of tenant you want to attract, as their mere presence on your property can drop its value significantly should a drug-related incident occur on your premises. What steps you can take if you suspect the presence of illegal drugs Documentation is key, whether you are building a case to simply evict the problem tenant or for the police to pursue further. Since an active meth lab on your property could cause hundreds of thousands of dollars in decontamination costs of multiple units or an entire building, you need to act swiftly. Remember: Never act without clear information. The odd chemical odors emanating from a unit in your apartment building could have a legitimate and legal source. Barging into a tenant’s unit without warning could leave you open to civil claims from your tenant. However, it is within the realm of possibility for the building manager to inquire as to the source of an odor based on tenant complaints. Play it by the book when evicting a tenant for criminal activity Since anyone involved in illegal drug activity is by definition a criminal, you don’t want to place yourself at any risk of retaliation or violence. Understanding and managing the risk involved in getting rid of dangerous tenants can best be handled by professionals in the industry.

Signing a commercial lease is a major commitment. The location you choose and the facilities available will dictate everything from customer traffic to your business to growth limitations if the company succeeds. As with any other kind of business contract, it is important to adequately protect yourself before you make some kind of legal or financial commitment to a property. There are three ways to minimize the risk you incur by signing a commercial lease. Have someone help you decode the language Commercial leases often include more technical jargon than residential leases and could include pages of fine print. You should never assume that you understand the details of the lease without first reviewing it with a professional. You may discover that the terms are different than what you expected. You may need to locate to a different rental space or counter the terms in the document with a solution that works for your business. Ask for the protections that matter to your business Are you starting a company and recognize that there’s a risk? You might want to ask the landlord to deviate from the standard three-to-five-year commercial lease and allow you to sign only a one-year lease. Do you worry about circumstances outside of your control, like a possible war in a country that supplies necessary materials for your business? Adding a force majeure clause could protect your company from needing to pay rent even after you have to cease operations due to circumstances beyond your control. Thinking about the risks your company has can make it easier for you to negotiate better terms in the lease. Clarify maintenance responsibilities and expenses Commercial landlords usually either pass the responsibility for maintenance to their tenants or the financial costs of all common areas, including bathrooms and parking lot. Sometimes, tenants don’t understand how much they may have to pay in fees or in upkeep for the facility. Making sure that the lease explicitly includes information about who is responsible for various systems or maintenance requirements can help prevent conflict and additional, unpredictable expenses. Negotiating before you sign a commercial lease can help protect your business during what could be a long-term financial commitment.

Signing a commercial lease is a major commitment. The location you choose and the facilities available will dictate everything from customer traffic to your business to growth limitations if the company succeeds. As with any other kind of business contract, it is important to adequately protect yourself before you make some kind of legal or financial commitment to a property. There are three ways to minimize the risk you incur by signing a commercial lease. Have someone help you decode the language Commercial leases often include more technical jargon than residential leases and could include pages of fine print. You should never assume that you understand the details of the lease without first reviewing it with a professional. You may discover that the terms are different than what you expected. You may need to locate to a different rental space or counter the terms in the document with a solution that works for your business. Ask for the protections that matter to your business Are you starting a company and recognize that there’s a risk? You might want to ask the landlord to deviate from the standard three-to-five-year commercial lease and allow you to sign only a one-year lease. Do you worry about circumstances outside of your control, like a possible war in a country that supplies necessary materials for your business? Adding a force majeure clause could protect your company from needing to pay rent even after you have to cease operations due to circumstances beyond your control. Thinking about the risks your company has can make it easier for you to negotiate better terms in the lease. Clarify maintenance responsibilities and expenses Commercial landlords usually either pass the responsibility for maintenance to their tenants or the financial costs of all common areas, including bathrooms and parking lot. Sometimes, tenants don’t understand how much they may have to pay in fees or in upkeep for the facility. Making sure that the lease explicitly includes information about who is responsible for various systems or maintenance requirements can help prevent conflict and additional, unpredictable expenses. Negotiating before you sign a commercial lease can help protect your business during what could be a long-term financial commitment.

Tenants and landlords can disagree on many different issues during a lease. Tenants may want to bring in pets or overnight guests that landlords won’t allow, for example. However, few matters lead to disputes as quickly as money. The security deposit that someone pays to protect a landlord against damage to their unit or the non-payment of rent often leads to conflict at the end of a lease. Tenants want the money back, but landlords may want to keep the funds. When can a landlord in California retain a residential security deposit? What state laws say about security deposits California limits security deposits to two months’ rent for unfurnished units. That could represent thousands of dollars, which technically still belong to the tenant. The state limits when a landlord can retain part or all of a security deposit when a tenant moves out to specific situations. A landlord can keep a security deposit If a tenant breaks the lease by leaving early and does not pay all of their rent. They can also keep the security deposit for documented lease infractions with fees assigned to them, like a daily fee for a pet brought into the unit in violation of the lease. Finally, if the landlord documents damage beyond reasonable wear and tear to the unit, they can retain as much of the security deposit as is necessary to make repairs. Typically, landlords have to provide a written notice to their tenants about their intention to keep the security deposit. Disagreements about the deposit or the condition of the unit could require litigation to resolve. Those dealing with a security deposit dispute can benefit from learning more about California rental laws. Whatever side of the dispute you are on, it helps to know your legal ground.

Tenants and landlords can disagree on many different issues during a lease. Tenants may want to bring in pets or overnight guests that landlords won’t allow, for example. However, few matters lead to disputes as quickly as money. The security deposit that someone pays to protect a landlord against damage to their unit or the non-payment of rent often leads to conflict at the end of a lease. Tenants want the money back, but landlords may want to keep the funds. When can a landlord in California retain a residential security deposit? What state laws say about security deposits California limits security deposits to two months’ rent for unfurnished units. That could represent thousands of dollars, which technically still belong to the tenant. The state limits when a landlord can retain part or all of a security deposit when a tenant moves out to specific situations. A landlord can keep a security deposit If a tenant breaks the lease by leaving early and does not pay all of their rent. They can also keep the security deposit for documented lease infractions with fees assigned to them, like a daily fee for a pet brought into the unit in violation of the lease. Finally, if the landlord documents damage beyond reasonable wear and tear to the unit, they can retain as much of the security deposit as is necessary to make repairs. Typically, landlords have to provide a written notice to their tenants about their intention to keep the security deposit. Disagreements about the deposit or the condition of the unit could require litigation to resolve. Those dealing with a security deposit dispute can benefit from learning more about California rental laws. Whatever side of the dispute you are on, it helps to know your legal ground.

Making sense of a commercial lease isn’t easy, particularly if you haven’t signed one before. There are many new terms to learn and many differences from residential leases. For example, a commercial landlord can sometimes pass maintenance requirements on to their tenants. If your landlord does perform maintenance and provides certain amenities, they will likely pass those expenses on to you in the form of common area maintenance (CAM) fees. What kinds of amenities will commercial landlords include in CAM fees, and how much will they cost you? CAM fees pay for services that benefit the entire building Perhaps you rent just the single retail storefronts in a small roadside mall. Maybe you occupy a small office space in a larger facility. Amenities in and outside of the building used by all of the tenants or their visitors may contribute to the fees you pay. For example, centralized security services, shared bathroom facilities and parking lots can all be part of the common areas that your CAM fees help pay to maintain. Utilities in areas shared by all tenants or throughout the building may factor into CAM fees. The same is true of landscaping, sidewalk maintenance and even repairs to the building. Generally, landlords can include most any reasonable maintenance expenses in the CAM fees they assess. However, you may be able to negotiate how much you pay, whether you ask for a reduced flat-rate fee for a lower percentage because you will have fewer customers or staff members making use of the space than other tenants in the building. Understanding the fees charged in your commercial lease can help you better negotiate beneficial terms.

Making sense of a commercial lease isn’t easy, particularly if you haven’t signed one before. There are many new terms to learn and many differences from residential leases. For example, a commercial landlord can sometimes pass maintenance requirements on to their tenants. If your landlord does perform maintenance and provides certain amenities, they will likely pass those expenses on to you in the form of common area maintenance (CAM) fees. What kinds of amenities will commercial landlords include in CAM fees, and how much will they cost you? CAM fees pay for services that benefit the entire building Perhaps you rent just the single retail storefronts in a small roadside mall. Maybe you occupy a small office space in a larger facility. Amenities in and outside of the building used by all of the tenants or their visitors may contribute to the fees you pay. For example, centralized security services, shared bathroom facilities and parking lots can all be part of the common areas that your CAM fees help pay to maintain. Utilities in areas shared by all tenants or throughout the building may factor into CAM fees. The same is true of landscaping, sidewalk maintenance and even repairs to the building. Generally, landlords can include most any reasonable maintenance expenses in the CAM fees they assess. However, you may be able to negotiate how much you pay, whether you ask for a reduced flat-rate fee for a lower percentage because you will have fewer customers or staff members making use of the space than other tenants in the building. Understanding the fees charged in your commercial lease can help you better negotiate beneficial terms.

Commercial leases sometimes include a build-to-suit provision that enables the business moving into the space to have it designed or remodeled in a specific manner. This gives them the option to have the building’s layout meet their needs in a very specific manner — without worrying about tying up their capital in any real estate before they are ready. But what if a business owner wants the option to purchase eventually? A purchase option that’s built into the lease can make that a real possibility and help keep plans for the future open. Why is a purchase option beneficial in a build-to-suit lease? Finding an ideal location for your business is sometimes difficult to do and building new construction is costly. When you find these via a build-to-suit lease, the last thing that you need to find out is that the building is being sold. When you have a purchase option put into the build-to-suit lease contract, you get the first chance to buy the property if the current owner puts it up for sale. There are usually terms in the contract that specify when and how this can be done, so be sure that you double-check those to ensure that they reflect what you discussed during the negotiations for your space. Review your purchase options carefully before you sign that contract Anyone who’s considering a build-to-suit lease should ensure they review the contract in its entirety. This gives you a chance to verify that you understand all terms and conditions that may apply — and that prevents unpleasant surprises down the road.

Commercial leases sometimes include a build-to-suit provision that enables the business moving into the space to have it designed or remodeled in a specific manner. This gives them the option to have the building’s layout meet their needs in a very specific manner — without worrying about tying up their capital in any real estate before they are ready. But what if a business owner wants the option to purchase eventually? A purchase option that’s built into the lease can make that a real possibility and help keep plans for the future open. Why is a purchase option beneficial in a build-to-suit lease? Finding an ideal location for your business is sometimes difficult to do and building new construction is costly. When you find these via a build-to-suit lease, the last thing that you need to find out is that the building is being sold. When you have a purchase option put into the build-to-suit lease contract, you get the first chance to buy the property if the current owner puts it up for sale. There are usually terms in the contract that specify when and how this can be done, so be sure that you double-check those to ensure that they reflect what you discussed during the negotiations for your space. Review your purchase options carefully before you sign that contract Anyone who’s considering a build-to-suit lease should ensure they review the contract in its entirety. This gives you a chance to verify that you understand all terms and conditions that may apply — and that prevents unpleasant surprises down the road.

Investing in real estate development requires large sums of money, so there is a high chance that you need to find one or more partners to raise the necessary funding. A good partner can do much more than provide capital. They can provide skills, knowledge and experience in areas you lack, making your business a more formidable proposition than if you run it alone. However, whenever one or more people get together to make decisions, there is the potential for conflict. Planning is key to preventing partnership disputes Assuming you are a match made in heaven is foolish. It is safer to presume that you and your business partner will eventually fall out. It may be over minor issues, or it may be over major ones, yet assuming you will not always agree allows you to provision for when you do not. Failing to plan and waiting until you have a partnership dispute will leave you in a weakened position if they do. Here are a few things to consider when drafting your initial contract to work together: Ensure an uneven balance of power: When one of you holds a majority share, you avoid decision-making stalemates. Stipulate how disputes will be resolved: You could stipulate using arbitration to avoid unnecessary conflict and cost when you cannot resolve disputes alone. Have a plan for an ending: Things do not need to go wrong for a partnership to end; there are many reasons you may wish to terminate your relationship. Consider how you will calculate pricing and whether the remaining partner has the first right of refusal. Your partnership contract is the basis on which your success will depend. Take time to ensure it provides the protection you need.