Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
In the Spotlight: Request in Advance Master Landlord's Consent to Sublease
In many instances a prospective sublandlord requires the consent of its master landlord in order to enter into a sublease. Virtually all well-crafted subleases are expressly contingent upon the receipt by the parties of a written consent by the master landlord to the sublease. As the amount of sublease space on the market has increased, master landlords have moved away from a simple consent to a lengthy, comprehensive (and, in some instances, overreaching) form of consent. In reviewing such consent forms, subtenants should be particularly wary of language requiring the subtenant to attorn to the master landlord under the terms of the master lease or other provisions that require the subtenant to comply with master lease provisions that would otherwise be the responsibility of the sublandlord. The use of these more aggressive landlord consent forms frequently results in the addition of a second phase to the sublease process where the sublandlord, subtenant, and master landlord negotiate, or attempt to negotiate, the terms of the master landlord consent following the execution of the sublease. Of course, this process adds delay and uncertainty to the goal of concluding a binding deal and commencing rent payments under the sublease.
To avoid such delays, the sublandlord should request the master landlord's form of consent in advance. This allows the sublandlord and the prospective subtenant to vet the consent in advance, thereby lessening or eliminating the likelihood of wrangling over the terms of the consent following the execution of the sublease. One further step is for the parties to the sublease to attach the form of consent as an exhibit to the sublease. If a form consent is attached, the sublease should include a provision similar to the following: “Sublandlord and Subtenant agree that the Landlord's Consent form attached hereto as Exhibit X is deemed to be acceptable to Sublandlord and Subtenant and the Landlord's Consent shall be deemed acceptable to the parties if provided in a form substantially similar to that provided on said Exhibit X.” The attachment of the form consent and inclusion of an accompanying sublease provision evidencing the parties' acceptance should obviate any delay in obtaining the master landlord's consent following the execution of the sublease.
William Crowe
In many instances a prospective sublandlord requires the consent of its master landlord in order to enter into a sublease. Virtually all well-crafted subleases are expressly contingent upon the receipt by the parties of a written consent by the master landlord to the sublease. As the amount of sublease space on the market has increased, master landlords have moved away from a simple consent to a lengthy, comprehensive (and, in some instances, overreaching) form of consent. In reviewing such consent forms, subtenants should be particularly wary of language requiring the subtenant to attorn to the master landlord under the terms of the master lease or other provisions that require the subtenant to comply with master lease provisions that would otherwise be the responsibility of the sublandlord. The use of these more aggressive landlord consent forms frequently results in the addition of a second phase to the sublease process where the sublandlord, subtenant, and master landlord negotiate, or attempt to negotiate, the terms of the master landlord consent following the execution of the sublease. Of course, this process adds delay and uncertainty to the goal of concluding a binding deal and commencing rent payments under the sublease.
To avoid such delays, the sublandlord should request the master landlord's form of consent in advance. This allows the sublandlord and the prospective subtenant to vet the consent in advance, thereby lessening or eliminating the likelihood of wrangling over the terms of the consent following the execution of the sublease. One further step is for the parties to the sublease to attach the form of consent as an exhibit to the sublease. If a form consent is attached, the sublease should include a provision similar to the following: “Sublandlord and Subtenant agree that the Landlord's Consent form attached hereto as Exhibit X is deemed to be acceptable to Sublandlord and Subtenant and the Landlord's Consent shall be deemed acceptable to the parties if provided in a form substantially similar to that provided on said Exhibit X.” The attachment of the form consent and inclusion of an accompanying sublease provision evidencing the parties' acceptance should obviate any delay in obtaining the master landlord's consent following the execution of the sublease.
William Crowe
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
The Anti-Assignment Override Provisions
UCC Sections 9406(d) and 9408(a) are one of the most powerful, yet least understood, sections of the Uniform Commercial Code. On their face, they appear to override anti-assignment provisions in agreements that would limit the grant of a security interest. But do these sections really work?