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

The lack of affordable housing in California – particularly in the Los Angeles and San Francisco areas – has long been a problem. State lawmakers have been attempting to tackle it via legislation that would provide more and lower-priced housing within a finite amount of space. Last month, Gov. Gavin Newsom signed two bills into law that will allow commercial property owners to convert vacant and underutilized buildings in areas zoned for commercial properties into affordable housing. These include strip malls, office buildings and big chain stores that have been sitting empty or far from fully rented — costing the owners money and becoming a target for vandalism and other crime. The two pieces of legislation, Assembly Bill 2011 and Senate Bill 6, have been stalled in Sacramento as developers, unions and affordable housing advocates fought for their interests. Housing advocates are calling the laws a “game changer” and a “huge deal.” The projects will also provide considerable job opportunities in the construction industry at union-level wages. VACANT PROPERTIES ARE IN URBAN AND RURAL AREAS THROUGHOUT THE STATE While the new laws, which take effect next July, will no doubt impact commercial properties that have been losing money in urban areas, there are a number of properties as well as parking lots in more rural areas of the state that have sat vacant as retailers have moved online and many office workers have begun working remotely. The two laws have requirements regarding wages and the hiring of union workers as well as environmental standards. There are also restrictions on the number of units that can be offered for sale vs. rental and to ensure that housing is available for people at various income levels – including those who can’t currently afford to rent their own homes. It’s crucial for commercial property owners, developers and investors to understand the new laws. Having experienced legal guidance can help you make the most of the opportunities they offer and avoid unnecessary legal issues.

The first few months of your partnership can make you think everything will run perfectly, just as you envisioned. However, the good times may only last a while as things could change along the way, and you may no longer get along with your partners like before. A misunderstanding could be the beginning of the downfall of an otherwise successful venture. As such, it is best to stay ahead of the situation and avoid a potential fallout with your business partners. A well-crafted partnership agreement that provides clear directions in case of partner disputes can be the lifeline of your business. YOUR PARTNERSHIP AGREEMENT COULD HELP RESOLVE DISPUTES Even when in a business partnership with a close friend or family member, it is advisable to have a comprehensive partnership agreement detailing each party’s duties and responsibilities. A business can test even close friendships or blood ties, and resolving disagreements can be difficult without a formal agreement. However, if everyone clearly understands their duties and responsibilities in the partnership, it will help avoid disputes in the first place. Importantly, your partnership agreement should also include a dispute resolution process that partners should follow if there is a misunderstanding. Having a well-outlined procedure for handling partner disputes will help address issues that arise before they spiral out of control. HOW EFFECTIVE IS YOUR PARTNERSHIP AGREEMENT? A partnership agreement is essentially the constitution of your business, and you cannot risk any loose ends or ambiguous language in this crucial document. Therefore, you must ensure that it addresses every likely scenario that could affect your business operations, like disagreements among the partners. If you are in a partnership or are thinking of partnering on a business, it is worthwhile to have a properly drafted business agreement that protects both individual and business interests.

The first few months of your partnership can make you think everything will run perfectly, just as you envisioned. However, the good times may only last a while as things could change along the way, and you may no longer get along with your partners like before. A misunderstanding could be the beginning of the downfall of an otherwise successful venture. As such, it is best to stay ahead of the situation and avoid a potential fallout with your business partners. A well-crafted partnership agreement that provides clear directions in case of partner disputes can be the lifeline of your business. YOUR PARTNERSHIP AGREEMENT COULD HELP RESOLVE DISPUTES Even when in a business partnership with a close friend or family member, it is advisable to have a comprehensive partnership agreement detailing each party’s duties and responsibilities. A business can test even close friendships or blood ties, and resolving disagreements can be difficult without a formal agreement. However, if everyone clearly understands their duties and responsibilities in the partnership, it will help avoid disputes in the first place. Importantly, your partnership agreement should also include a dispute resolution process that partners should follow if there is a misunderstanding. Having a well-outlined procedure for handling partner disputes will help address issues that arise before they spiral out of control. HOW EFFECTIVE IS YOUR PARTNERSHIP AGREEMENT? A partnership agreement is essentially the constitution of your business, and you cannot risk any loose ends or ambiguous language in this crucial document. Therefore, you must ensure that it addresses every likely scenario that could affect your business operations, like disagreements among the partners. If you are in a partnership or are thinking of partnering on a business, it is worthwhile to have a properly drafted business agreement that protects both individual and business interests.

A commercial landlord may buy a property with some ideas already in mind about the type of businesses they would like to have in that space. Maybe they just think it fits the area or it fits the type of building that they bought. In any case, it’s their property and they have plans for how they want to develop it. It is common for commercial landlords to ask business owners what type of business they’re going to run as part of the pre-screening process. If the landlord believes that the business idea is not going to be successful, or if they see red flags in the financial statements provided by the business owner, they may decide not to rent to that individual. They’re certainly allowed to do this on the grounds that specific businesses might appear to be too much of a risk to them and they may not believe the lease will be paid. AVOIDING DISCRIMINATION One thing that is important for commercial landlords to remember is that they need to be careful to avoid discriminating against any of the potential tenants. Discrimination on the grounds of things like religion, race or gender is prohibited, just as it is with residential properties. So, a business owner may believe that they can deny someone the space by claiming they don’t want that type of business to be at the location or that they don’t think it is going to succeed. And that’s fine from a business perspective, but they need to be sure that they’re not actually denying it based on one of these protected classes. You can see why it’s so important to get the details right and why anyone working in the commercial property industry needs to make sure they always understand their legal options. You don’t want to make a mistake that puts your investment in jeopardy.

A commercial landlord may buy a property with some ideas already in mind about the type of businesses they would like to have in that space. Maybe they just think it fits the area or it fits the type of building that they bought. In any case, it’s their property and they have plans for how they want to develop it. It is common for commercial landlords to ask business owners what type of business they’re going to run as part of the pre-screening process. If the landlord believes that the business idea is not going to be successful, or if they see red flags in the financial statements provided by the business owner, they may decide not to rent to that individual. They’re certainly allowed to do this on the grounds that specific businesses might appear to be too much of a risk to them and they may not believe the lease will be paid. AVOIDING DISCRIMINATION One thing that is important for commercial landlords to remember is that they need to be careful to avoid discriminating against any of the potential tenants. Discrimination on the grounds of things like religion, race or gender is prohibited, just as it is with residential properties. So, a business owner may believe that they can deny someone the space by claiming they don’t want that type of business to be at the location or that they don’t think it is going to succeed. And that’s fine from a business perspective, but they need to be sure that they’re not actually denying it based on one of these protected classes. You can see why it’s so important to get the details right and why anyone working in the commercial property industry needs to make sure they always understand their legal options. You don’t want to make a mistake that puts your investment in jeopardy.

Most people who invest in home purchases hire an inspector to ensure the place they’re buying isn’t a fixer-upper. Home inspectors cover a wide range of issues in homes. Inspectors, however, can fail to do their job and cause investors to sink money into poorly maintained homes. If you want to make sure your home inspector did their work, you may need to check these commonly missed issues in a home: 1. CRACKS IN THE FOUNDATION One of the worst things to find in a home is a crack or break in the foundations. A broken foundation can spell doom for the future of a home and could cost thousands of dollars to repair. An inspector may dismiss early signs of foundation problems without a keen eye. 2. BASEMENT LEAKS Many basements develop leaks that can ruin finished basements and create a breeding ground for mold. Some leaks in a home can only be noticed when there is rainy or wet weather, however, there may be obvious signs there’s a problem, which many inspectors should know to watch for. There may be signs of a quick, temporary fix or dark patches in the wall that show there’s been water damage. 3. ROOFING ISSUES Many inspectors won’t climb onto a roof to thoroughly check for issues, but that doesn’t mean they can’t spot serious issues. There may be mold or missing tiles that can be seen on the ground and obvious leaks or holes that can be found in the attic. Any of these issues could cause serious issues with the structure of a building. If you believe the home inspector you contracted missed something during their job, it could cost you a fortune. You may need to reach out for legal help when recovering from your losses.

Most people who invest in home purchases hire an inspector to ensure the place they’re buying isn’t a fixer-upper. Home inspectors cover a wide range of issues in homes. Inspectors, however, can fail to do their job and cause investors to sink money into poorly maintained homes. If you want to make sure your home inspector did their work, you may need to check these commonly missed issues in a home: 1. CRACKS IN THE FOUNDATION One of the worst things to find in a home is a crack or break in the foundations. A broken foundation can spell doom for the future of a home and could cost thousands of dollars to repair. An inspector may dismiss early signs of foundation problems without a keen eye. 2. BASEMENT LEAKS Many basements develop leaks that can ruin finished basements and create a breeding ground for mold. Some leaks in a home can only be noticed when there is rainy or wet weather, however, there may be obvious signs there’s a problem, which many inspectors should know to watch for. There may be signs of a quick, temporary fix or dark patches in the wall that show there’s been water damage. 3. ROOFING ISSUES Many inspectors won’t climb onto a roof to thoroughly check for issues, but that doesn’t mean they can’t spot serious issues. There may be mold or missing tiles that can be seen on the ground and obvious leaks or holes that can be found in the attic. Any of these issues could cause serious issues with the structure of a building. If you believe the home inspector you contracted missed something during their job, it could cost you a fortune. You may need to reach out for legal help when recovering from your losses.

You may have found the perfect location for your business – but now you have to hash out the details of your lease with the potential landlord. Unlike residential leases, almost everything in a commercial lease is up for negotiation. That includes certain “use” clauses that can protect your business far into the future – if you can get one. WHAT’S AN EXCLUSIVE USE CLAUSE? An exclusive use clause is always to the advantage of the tenant, not the landlord because it restricts what other tenants are permitted to do. In essence, an exclusive use clause grants you the sole right to do a particular activity in the plaza, strip mall or commercial building – over all other tenants (including future ones). For example, imagine that you run a coffee shop. In order to protect your business, you want an exclusive use clause from the landlord that will prevent any other business from acting as your competition. If the bookstore at the other end of the plaza decides to install a coffee bar to encourage their customers to sit around and browse or socialize a little, you could ask your landlord to enforce your clause and make them stop. Naturally, landlords aren’t particularly fond of granting exclusive use clauses. They’d much rather have the freedom to rent to whomever they choose, and putting restrictive covenants on their other tenants can make their commercial spaces less attractive. So, how can you get an exclusive use clause out of your landlord? Generally, the more valuable you are as a tenant, the more likely the odds your landlord will capitulate. If you are looking to rent their “cornerstone” property, and have a well-established business and a solid customer base that is likely to bring significant foot traffic to the entire premises, you have more bargaining power than a new, untested business that’s very tiny. Negotiating for the lease terms that you want and need isn’t always easy to do on your own. Because of the complexity, it’s wise to have some legal guidance before you sign on the dotted line.

You may have found the perfect location for your business – but now you have to hash out the details of your lease with the potential landlord. Unlike residential leases, almost everything in a commercial lease is up for negotiation. That includes certain “use” clauses that can protect your business far into the future – if you can get one. WHAT’S AN EXCLUSIVE USE CLAUSE? An exclusive use clause is always to the advantage of the tenant, not the landlord because it restricts what other tenants are permitted to do. In essence, an exclusive use clause grants you the sole right to do a particular activity in the plaza, strip mall or commercial building – over all other tenants (including future ones). For example, imagine that you run a coffee shop. In order to protect your business, you want an exclusive use clause from the landlord that will prevent any other business from acting as your competition. If the bookstore at the other end of the plaza decides to install a coffee bar to encourage their customers to sit around and browse or socialize a little, you could ask your landlord to enforce your clause and make them stop. Naturally, landlords aren’t particularly fond of granting exclusive use clauses. They’d much rather have the freedom to rent to whomever they choose, and putting restrictive covenants on their other tenants can make their commercial spaces less attractive. So, how can you get an exclusive use clause out of your landlord? Generally, the more valuable you are as a tenant, the more likely the odds your landlord will capitulate. If you are looking to rent their “cornerstone” property, and have a well-established business and a solid customer base that is likely to bring significant foot traffic to the entire premises, you have more bargaining power than a new, untested business that’s very tiny. Negotiating for the lease terms that you want and need isn’t always easy to do on your own. Because of the complexity, it’s wise to have some legal guidance before you sign on the dotted line.

A business partner should be trustworthy and beneficial to a business. You should be able to rely on your partner to challenge the business and bring out new ways to improve the quality of work. Without them, you may feel your business wouldn’t be where it is today. However, your first business partner may not be the right fit for you. Here are some signs of a bad business partner: YOUR PARTNER DOESN’T IMPROVE THE BUSINESS Do you feel like you’re the only one bringing anything into your business? Your partner may not do anything other than stand around all day and take a few calls. If your business partner isn’t doing anything for your business, then it may be time to find someone new. YOUR PARTNER VALUES THEIR WORK ABOVE YOURS Does it seem like your business partner feels superior to you? Your partner may not qualify what you do as work or beneficial to the job. You may have to fight to show that your work matters. You may want a business partner that values your work just as much as you value theirs. YOU CAN’T TRUST YOUR PARTNER TO HANDLE BUSINESS Did you recently take a break and leave your partner to run the business, only to find the business was in disarray when you returned? You may be taking on extra work because you don’t feel your partner will do what’s required for the business. You may need a business partner who you can rely on when work gets rough. THEY’RE A PROBLEM-MAKER, NOT A PROBLEM-SOLVER Does your partner only ever show problems with your business without giving solutions? Your business partner may only be able to visualize the negatives and can’t provide problem-solving skills for the issues. If you think it’s time to cut ties with your business partner, then you may need to reach out for legal help to provide you with your options.

A business partner should be trustworthy and beneficial to a business. You should be able to rely on your partner to challenge the business and bring out new ways to improve the quality of work. Without them, you may feel your business wouldn’t be where it is today. However, your first business partner may not be the right fit for you. Here are some signs of a bad business partner: YOUR PARTNER DOESN’T IMPROVE THE BUSINESS Do you feel like you’re the only one bringing anything into your business? Your partner may not do anything other than stand around all day and take a few calls. If your business partner isn’t doing anything for your business, then it may be time to find someone new. YOUR PARTNER VALUES THEIR WORK ABOVE YOURS Does it seem like your business partner feels superior to you? Your partner may not qualify what you do as work or beneficial to the job. You may have to fight to show that your work matters. You may want a business partner that values your work just as much as you value theirs. YOU CAN’T TRUST YOUR PARTNER TO HANDLE BUSINESS Did you recently take a break and leave your partner to run the business, only to find the business was in disarray when you returned? You may be taking on extra work because you don’t feel your partner will do what’s required for the business. You may need a business partner who you can rely on when work gets rough. THEY’RE A PROBLEM-MAKER, NOT A PROBLEM-SOLVER Does your partner only ever show problems with your business without giving solutions? Your business partner may only be able to visualize the negatives and can’t provide problem-solving skills for the issues. If you think it’s time to cut ties with your business partner, then you may need to reach out for legal help to provide you with your options.

A positive side effect of business success and growth is gaining more and more customers. You might soon need to consider leasing industrial warehouse space to continue meeting customer demands. These facilities can fill several needs, from facilitating product distribution to storing or manufacturing goods. Although warehouses may look alike, they are not built according to universal specifications. Before agreeing to lease the property, ensure it meets your specific and unique needs. Here are four things to consider: CEILING HEIGHT Square footage is undeniably critical in a warehouse, but so is the structure’s overall height. Ask for the exact dimensions or measure the space to ensure it can accommodate your business operations. CLIMATE CONTROL It might surprise you to learn that some industrial properties do not come with ventilation systems, heat or air conditioning installed. If you want to protect your goods and workers from the warm California weather, look for a well-maintained climate control system. FLOOR CONDITION Floors shoulder the brunt of all the heavy work that goes on inside a warehouse. They can suffer damage over time that could lead to potential disaster. Look for signs of heavy wear and tear and inquire about the weight limits of all flooring. OUTDOOR GROUNDS It is easy to overlook the areas outside of a warehouse, but they can be just as important as your indoor space. Check that the loading docks accommodate your trucking requirements and that the parking lot has sufficient room for employees, large vehicles and visitors. These suggestions and a thorough knowledge of commercial lease regulations ensure you do not get saddled with a useless property. A legal consultation can guide you in making beneficial business decisions.