This week out of home leasing and development expert, Andy Goodman, reviews miscellaneous clauses in an out of home lease.  Andy’s comments are in italics.

Miscellaneous:  In the event of litigation between Lessor and Lessee predicated upon this Lease Agreement, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and costs, provided, however, that Lessee shall first be given written Notice of default as set forth herein, and shall have failed to cure such default within thirty (30) days of receipt of said Notice.  Neither Lessor nor Lessee shall be bound by any terms, conditions, or oral representations that are not set forth in this Lease Agreement.  The law of the state in which the Property is located shall govern.  This Lease Agreement (an any addendum) represents the entire agreement of lessee and Lessor with respect to the Structures and the Property.

This allows the prevailing property to get attorney’s fees which protects you from frivolous but expensive lawsuits.  I like to say that my leases will go to arbitration rather than litigating.  More productive.  Less expensive.  You present your case to the arbitrator and get a ruling.  If you want to maintain the lease it’s easier to come out of an arbitration and be able to live together…This section also clarifies that if it’s not in writing, it’s not a deal.

This section also clarifies that local law applies to lease disputes.  If you have a billboard in Oklahoma which sits on land owned by a large New York real estate firm, you want to be able to handle disputes in local Oklahoma court.  You don’t want to have to hire New York counsel and travel to New York to handle disputes.  Local law governs.

This section also protects you by stating that oral agreements are not binding.  People sometimes remember only what is to their advantage and that may change over time.  An agreement in writing doesn’t change.