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Leasing to a Foreign Entity Requires Special Attention

BY Eugene J.M. Leone
September 01, 2016

Leasing real property to a foreign entity presents a special set of concerns for landlords, and those who are leasing real property to a foreign entity should carefully evaluate these concerns ' and, where appropriate, address them in the lease. This article highlights the special considerations that a landlord encounters when leasing to a foreign entity.

Leasing to a Foreign Mission

If the proposed tenant in a leasing transaction is a Foreign Mission or a foreign diplomat, special considerations are in play, and these may hinder the leasing transaction or prevent the landlord from adequately protecting its position under the lease. (A “Foreign Mission” is defined as “any mission to or agency or entity in the United States which is involved in the diplomatic, consular or other activities of, or which is substantially owned or effectively controlled by a foreign government, or an organization representing a territory or political entity which has been granted diplomatic or other official privileges and immunities under the laws of the United States or which engages in some aspect of the conduct of international affairs of such territory or political entity, including any real property of such a mission and including the personnel of such a mission.” See http://bit.ly/2aKySCx.)

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