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Question
If a lease contains incorrect information - i.e. square footage is wrong - does this render the lease null & void?
Carla-
You have asked a question that is complicated to answer, and is primarily a legal matter. I am not an attorney, and cannot give legal advice, but allow me relate some ideas that may be of help.
If one piece of information in a lease is wrong, it does not make the lease null and void, but depending on THE REASON that the piece of information is incorrect, and the type of error it is, correcting the error can require significantly different approaches to correcting it.
The first thing to do to resolve the error is to very accurately explain the error to your landlord and ask him to correct it. If the landlord does not agree with you, you will then have determined why both parties see the "error" differently.
Many tenants find "errors" that have significant economic impact on their rental terms or other lease costs. Tenants find that the amount they are being held responsible to repay their landlord for constructing their premises is far more than they thought. Errors regarding the amount of square footage the tenant has leased, annual increases in the computation of base rental, and the numerous inter-related terms of calculating CAM charges or Operating Expense and Tax reimbursements are commonly disputed by tenants for many reasons.
The errors can result from a tenant not understanding the complexity attendant to how commercial space can legally be measured. An "error" could also be caused because a landlord purposely mislead a tenant about the method used to measure the premises to be leased, or simply states that the square footage of the premises is greater than it really is.
Simple errors can often be corrected by talking with your landlord. However, sometimes it can involve a "material mistake of fact" or "a failure to reveal a material fact" and the error is so large that your landlord may not wish to agree to the error. Finally, there are many errors that occur because of someone purposely acting to defraud someone else. For any matter that your landlord disputes, you should find and discuss your problem with an attorney that deals specifically with "Landlord & Tenant" law. Do not try to have a friend who does divorce or energy law help you with this and save money. That only gives you a false sense of security that you are getting the matter fairly resolved. Seek out and find only a "Landlord & Tenant Law" specialist. They will know how to proceed in your best interest.
If could also write a follow-up question to me and provide as much detail as possible about what your "error" involves and your version of how it happened. I may be able to help you further. You can probably imagine, that I could write a book about all the potential "errors" made in commercial leasing.
Best of luck.
-Jim
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Answers by Expert:
Jim Avancena, CPM
Expertise
Best qualified to answer questions that involve commercial leases, that is, basic issues as well as the often unexpected effects of the complexities and inter-relationships of the provisions a lease may contain, explain how seemingly innocuous text in your lease can have a major impact on a Tenant or Landlord and their business operations, and the common practices utilized in the industry. I can untangle most matters that may come up from the time a tenant begins searching for a office or store space and the lease acquisition process, concerns related to remodeling/improving the leased premises, moving-in, subletting or assigning the leased space, and a long list of problems that may come up during the lease term and even after a tenant moves out. I have practical experience with most property management issues and resolving landlord and tenant disputes - especially those involving what may appear to be overcharges assessed for additional lease charges like CAM costs, operating expense reimbursement, real estate taxes, utilities, construction improvements etc. Note that I am not an attorney and cannot provide legal advice.
Experience
Thirty years active experience in the commercial real estate industry as a licensed real estate broker in the Washington DC Metro area (DC, Northern Virginia & Maryland). I have been admitted (approved) by the Maryland and DC courts to testify as an expert witness on the subjects of Commercial Leasing and Property Management in the area of standard industry practices. I have had a business for the last 14 years advising virtually every form of business entity from large national corporations to the smallest ma & pa new businesses regarding a wide range of commercial real estate matters in addition to property management and commercial leasing.
Organizations
Currently my three children keep me so busy that it is difficult to participate in organizations with continuing and specific time requirements.
Publications
I publish a local commercial real estate newsletter titled: "Tenants First". My firm was the subject of a high profile Washington Post business section cover page (2.25 full pages) feature story on January 13, 1993; titled "Overcharging Overhead".
Education/Credentials
BA in Political Science from Memphis University, and five years of study in the real estate development summer program at MIT. I was certified as a commercial property manager (CPM-IREM), and currently hold a brokers license in Maryland and the District of Columbia.
Awards and Honors
The same plaques and honors that most others in my industry have earned. I have none that I consider especially meaningful.
Past/Present Clients
Past clients include: The World Bank, George Washington University, National Association of Criminal Defense Attorneys, US Department of Commerce, The American Benefits Council, K-Mart Development, many law firms, a national union, other major organizations, and many, many small business firms and retail operators that I am most honored to serve. I estimate more than 1,500 firms/organizations.
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