Norris, McLaughlin & Marcus

Posts Tagged ‘interest’

The Need for Exit Strategies in Your Commercial Lease

In good times and in not so good times, a well drafted and negotiated commercial lease will contain various exit strategies available to the landlord and tenant. These strategies will come in handy in situations where a tenant’s business is booming causing it to grow out of its current space (good times) or where the space is too big or expensive for the tenant to continue because business has dropped off considerably (not so good times).

Exit strategies can include the following:

  • Assignment
  • Subletting
  • Contraction rights
  • Right to go dark
  • Right to expand

Below is a very brief overview of how each of the foregoing strategies operates.

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Primer on Tax Sale Certificates

Many people are in the dark when it comes to tax sales, including many lawyers.  Because municipal governments depend upon real estate taxes and other related assessments as their primary source of revenue, when those taxes remain unpaid for a period of time, the municipality is granted a continuous lien on the land for the delinquent amount, as well as for all subsequent taxes, interest, penalties, and costs of collection.  The Tax Sale Law simply provides a stream of revenue for the municipality by encouraging the purchase of tax certificates on tax-dormant properties. New Jersey requires all 566 municipalities to hold at least one tax sale per year provided the municipality has delinquent property taxes and/or municipal charges.

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