In the Spotlight: Remediation Provisions in the Era of Deed Restrictions

The ever-evolving nature of environmental law often presents landlords with a minefield of problems in their ability to pass cleanup costs onto their tenants. Landlords can and should take special precautions when drafting environmental remediation provisions in their leases to best position themselves in this uncertain climate. Ineffective drafting may result in court-mandated cleanups by tenants that meet standards appropriate only for the existing use of a site, effectively foreclosing a future change of use of the landlord's property that will allow the landlord to maximize the value of its property. Likewise, overly strict environmental provisions may be largely ignored by the courts. This article provides drafting strategies that help to avoid these results.