Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Commercial Leasing Law & StrategyLJN NewslettersNewsSections

Lease Due Diligence

By Mark Morfopoulos
May 28, 2012

When several parties ' usually a developer and one or more retailers who own land adjacent to the developer ' desire to make integrated use of their respective properties, they can enter into a Reciprocal Easement Agreement (REA, which may also be called a Construction, Operation and Reciprocal Easement Agreement, COREA). Both REA and COREA are terms that describe a type of agreement that can be used to control the development, use, and maintenance of several parcels of land. They impose obligations that “run with the land.” Thus, the respective owner-landlords will be subject to the restrictions of, and benefit from, the rights contained in a REA. This also means that prospective tenants may benefit from, and be subject to, a REA's rights and restrictions. Therefore, it is not only the lease itself that can affect the rights and obligations of a landlord and tenant; REAs, and other agreements made by third parties (who have interests that may or may not coincide with those of a tenant), can change the whole dynamic of a leasing transaction.

Note, however, that quite often it may not be obvious that several owners control a particular project. Because the construction, operation, and use of the property are governed by a single agreement, it may seem that it is owned by one entity. To determine if property is affected by an REA, carefully review a title report to see what covenants and restrictions apply. Only then will you know if an REA could impose unwanted restrictions on leased property.

This premium content is locked for Entertainment Law & Finance subscribers only

  • 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

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
New York's Latest Cybersecurity Commitment Image

On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.

Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office Image

A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.

Bit Parts Image

Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights

The Bankruptcy Hotline Image

Recent cases of importance to your practice.

How AI Has Affected PR Image

When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.