New provisions in case of a pandemic-level crisis, and changes to force majeure clauses are likely here to stay
No one saw the coronavirus pandemic coming. That’s why real estate leases and contracts never incorporated provisions to handle such a crisis.
But now that’s changed.
But now that’s changed.
Even as California continues to ease restrictions on business operations and increases its country-leading vaccine rollout, the pandemic changed the way real estate transactions will be crafted moving forward, according to experts at Greenberg Glusker Fields Claman & Machtinger. The Los Angeles-based law firm said leases and sale contracts now include new provisions — most notably, regarding force majeure clauses — that are likely to become standard for at least the foreseeable future...
...moreThere is always a catch 22 in these types of contracts. If the tenant has a right to abate rent for certain forces beyond their control, the bank may not be willing to lend as much funds or lend at all.
Ken Notes: I can not believe how badly we handled relief this time around. We could have called an economic "time out" for companies not producing income. Working with the banks, could have suspended payments from all parties (tenants and owners) and used federal funds to keep everyone solvent until revenue restarted. Instead we tried to stimulate the economy making businesses lake Amazon even wealthier while businesses that were closed had to suffer and even close.
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- - Volume: 9 - WEEK: 23 Date: 6/1/2021 7:14:43 AM -