Weiss, Handler & Cornwell, PAAttorney Boca Raton Florida | Weiss, Handler & Cornwell, PA2024-03-06T17:09:37Zhttps://www.weisshandler.com/feed/atom/WordPressOn Behalf of Weiss, Handler & Cornwell, P.A.https://www.weisshandler.com/?p=480432024-03-04T17:10:34Z2024-03-06T17:09:37Za commercial real estate lease is more important than you may believe. A commercial lease with terms unfavorable to you can play a major role in the success of your business.
If you have little experience negotiating leases, do not worry. That is common. Most of us are familiar with residential leases when we are renting an apartment or living space.
In those situations, we usually have little to no negotiating power. We must accept the lease as the landlord presents it to us.
You have a say in the terms of your commercial lease
Commercial leases are different. Although the landlord is still likely to present you with a proposed lease that favors them, you can negotiate better terms.
Carefully consider the length of the lease. Every situation is different, but generally a one to two-year lease is best for small businesses.
This length does not lock you into a lease for too long yet still gives you the time you need to determine if the location is a good fit for you.
You almost never have the chance to negotiate a lower rent in a residential lease, but you do with a commercial lease. However, do your homework before beginning negotiations.
Research comparable rent in your local area for commercial space. Show these to your potential landlord when discussing rent. You can do the same for your security deposit.
The type of your lease matters
Most commercial leases are either gross leases or net leases. A gross lease includes all costs while a net lease includes costs in addition to your rent.
Obtain the details about these costs and learn exactly what costs you will be responsible for. Hidden costs that you find out about after you have signed a lease can cost your business quite a bit.
Pay close attention to the termination clause of the lease. Try to negotiate terms that allow you to cure any breach before eviction. Additionally, make sure any penalties for early termination are fair and affordable.]]>On Behalf of Weiss, Handler & Cornwell, P.A.https://www.weisshandler.com/?p=480412024-02-22T19:02:59Z2024-02-21T19:01:19ZConstruction defects
At Weiss, handler & Cornwell, P.A., our law firm understands that a construction defect that significantly impacts the structure and function of a building is a complex matter. Thus, our attorneys use their skills, experience and knowledge to fully explore the defects in question, helping our clients understand their options when it comes to rectifying the matter.
For a property owner, this can mean significant losses, especially if the defects are significant. For a construction company, contractor or subcontractor, a defect could cause setbacks, losses, interruptions and even strain business relationships.
Resolutions
Whether you are the party seeking the built structure or the party involved in the construction of the structure, defects could cause significant legal issues. Whether it is a contractual issue or one that impacts the structural integrity of the structure, it is important to understand your rights when it comes to seeking a legal solution.
Assessing the losses can help you understand the resolution that is best suited for your situation. If the construction project is completely compromised, this could result in extensive damages. However, if repairs or alterations are needed, this might only cause damages due to delay and costs associated with the extra work and material.
When negligence occurs at any phase of a construction project, those impacted are likely to suffer losses and damages. A legal professional can help you understand how to get compensated for these losses while also holding the negligent party or parties accountable for their negligence.]]>On Behalf of Weiss, Handler & Cornwell, P.A.https://www.weisshandler.com/?p=480402024-02-07T18:32:22Z2024-02-07T18:32:22Zboards must make that they keep condominium residents and visitors safe. They must also make sure the property for which they are responsible is structurally sound and well-maintained.
This means that board members serving condominiums in Palm Beach County should worry about construction defects.
Whether a board is developing new real estate, expanding, or remodeling existing structures, significant construction defects connected to the project can seriously and even tragically impact residents’ safety. They can also cause major property and financial losses.
Construction defects can rear their ugly heads years after the end of a project.
Prevention can go a long way when it comes to minimizing the impact of construction defects.
For any construction project, board members should carefully research and select the most qualified professionals for the job.
That said, they also need to make sure they have the right contracts and other protective legal mechanisms in place in case something goes wrong.
After a construction defect, a board may consider litigation
Architects, engineers and other involved in the design of a project may be accountable for flaws in their plans.
Contractors and subcontractors can be held responsible in several ways. For example, they may use unspecified material or other products which just are not suitable for the task at hand.
They may also be responsible for incomplete or improper work.
Although not all problems with a building are the responsibility of another person, many are.
Whenever a board is facing structural or mechanical problems with a building, is dealing with mold or water, or is having to work through an expensive electrical issue, they should consider whether their problem is related to a construction defect.
Likewise, if someone does unfortunately get hurt while on the condominium’s property, the board should always ask whether defective construction might have played a role.
In many cases, it is in a board’s best interest to pursue a legal claim against responsible parties to recoup their losses from a construction defect.]]>On Behalf of Weiss, Handler & Cornwell, P.A.https://www.weisshandler.com/?p=480392024-02-05T12:21:56Z2024-02-05T12:21:56Zyou are left with poor quality work. This can cause you financial problems, increase your stress and potentially damage your business.
How do I know if the work is bad?
It helps to know what poor quality work means. Generally, it is work that falls below a reasonably accepted standard in the industry. Many different actions could be considered poor quality work, including:
Failing to follow building codes
Hiring inexperienced workers
Using cheap materials
You do not have to live with poor-quality work. There are steps you can take to try to resolve the problem.
Review your contract and determine if there was a breach
First, review the contract thoroughly. If you are the business owner, you likely created the contract yourself. It should contain language designed to protect you in these types of cases.
Your contract should contain language about expectations about the quality of the work to be performed. Terms surrounding the materials to be used and the scope of the work should also be included, as well as any warranties. With a solid contract in place, you can assert the contractor is in breach of the contract.
Start documenting everything
Next, document the issues. Take high-quality pictures of the inferior work from various angles. Write down the date you discovered the problems, detail the exact problems and any statements the contractor made about the problem.
Talk with third parties about the problem. These can include architects or engineers who can review the work and provide opinions on whether it meets industry standards.
These third parties can also help you determine next steps to repair the problem and potentially serve as expert witnesses for you if your case ends up in court.
Consider alternative dispute resolution
Resolving the dispute might be accomplished through using an alternative dispute resolution method, such as mediation, which the Florida legislature encourages as a method for resolving construction disputes. It is often quicker and less expensive than litigation.
Finally, before taking any further action, speak with the contractor about the problem. Most contractors are willing to address and correct the issue without the need for dispute resolution or litigation.
If the contract cannot or will not fix the issue, you can require them to attend mediation. A mediator is a neutral third party who listens to both sides and offers suggestions for resolution.
Although mediation has a high success rate, there are times when it is unsuccessful. Your remaining option may be litigation, where you must prove and request compensation for your damages.
]]>On Behalf of Weiss, Handler & Cornwell, P.A.https://www.weisshandler.com/?p=480382024-01-24T17:10:47Z2024-01-24T17:10:47Zpersonal liability may arise and how to mitigate it is essential. This blog post delves into common scenarios where condo board members may face personal liability and offers guidance on avoidance and minimization.
Breach of fiduciary duty
A primary source of liability for condo board members stems from their fiduciary duty to the association and its members. This duty requires members to act in the organization’s best interest, exercising reasonable care and diligence. Violating this duty through actions like fraud, self-dealing or willful misconduct can lead to personal accountability.
Other breaches of fiduciary duty may involve misappropriating or mismanaging association funds. It could also be neglecting to maintain adequate insurance or reserve funds, or failing to conduct required audits or financial reports. Violating Florida’s Condominium Act (Chapter 718 of the Florida Statutes) or disregarding conflicts of interest or material facts also qualify as potential breaches.
Negligence
Condo board members may face liability through negligence or tort claims, which arise from civil wrongs causing harm or injury. Negligence claims usually target the association rather than individual board members, considering the association as a distinct legal entity acting through its board. Personal liability for negligence typically requires actions outside the scope of authority or malicious intent.
Insurance coverage
Board members can protect themselves from personal liability by securing adequate insurance coverage. Directors and Officers liability insurance is a common choice, covering legal expenses, settlements and judgments related to board service. However, D&O insurance may have limitations, exclusions or deductibles, leaving board members partially exposed.
D&O insurance may not cover claims involving fraud, criminal acts, intentional harm, bodily injury, property damage or personal profit. Careful policy review is crucial for board members to understand coverage specifics.
Indemnification
Seeking indemnification from the association is another protective measure. Indemnification involves the association reimbursing legal expenses or damages resulting from a lawsuit related to board service. While it can be a valuable safeguard, indemnification is not automatic or limitless. Conditions and limitations may apply, such as the board member acting in good faith and the association’s financial capacity.
Conclusion
In summary, condo board members in Florida may face personal liability in certain situations, contingent on the nature of the claim, liability source and available insurance coverage or indemnification. To minimize personal liability, board members should act in the association's best interest, comply with relevant laws, seek expert advice, review insurance policies thoroughly and explore indemnification options.]]>On Behalf of Weiss, Handler & Cornwell, P.A.https://www.weisshandler.com/?p=480372024-01-10T20:41:19Z2024-01-10T20:41:19ZNo damages for delay
One of the best ways to defend yourself against delay claims is to include a no damages for delay clause in your contracts. This clause essentially says that since delays are a common part of the construction business everyone agrees to write off any costs incurred with any delays.
This clause is not always automatically enforced by a court. You should be specific in what types of delays the clause includes and they should generally be reasonably anticipated delays. This increases the chance of a court upholding the clause.
Another helpful clause in your contracts is a force majeure clause. This clause lists possible events that are outside of the parties’ control and not caused by negligence, stating that if any of these events occur damages for any delay will be waived.
Concurrent delay
Concurrent delay is a commonly used defense. This defense involves showing that there were various events that caused the delay and the delay did not come from one cause.
This is a strong defense simply because it is often true. Construction project delays rarely come from one single cause.
A concurrent delay defense does not necessarily mean you must show that all factors contributed to the delay happened at the same time. You can instead show that any of the factors would have resulted in the delay and therefore you should not be held responsible for damages for the one cause asserted in the claim.
Delays are one of the most frustrating aspects of any construction project and being sued over one can cause you plenty of problems. Taking these steps to defend yourself can go a long way.]]>On Behalf of Weiss, Handler & Cornwell, P.A.https://www.weisshandler.com/?p=480362023-12-29T08:38:15Z2023-12-27T08:37:35ZWhat mistakes do you need to avoid in your commercial real estate transaction?
Before finalizing your commercial real estate transaction, you need to ensure that you’ve been diligent. But if you make the following commercial real estate mistakes, then you might find yourself in a bad position:
Improperly gauging tenant interest in the property, including whether you’ll be able to fill open space and if existing tenants intend to keep and renew their leases.
Failing to have enough cash on hand to cover expenses tied to the transaction and any unexpected necessities.
Failing to consider any potential zoning issues or not waiting for zoning issues to be addressed before finalizing the transaction.
Improperly budgeting for continued business operations.
Not being diligent enough in considering the liabilities associated with the property.
Falling in love with a property and moving forward with it despite it not being in your business interests.
Confidently navigate your commercial real estate transaction deal
There are a lot of issues in play in your commercial real estate transaction. If you inappropriately address just one of them, you could leave yourself susceptible to a poor outcome. To avoid that from happening, take the time and seek out the support that you need to ensure that you’ve anticipated every issue that can come up. By doing so, you’ll find yourself more comfortable and confident moving forward with your commercial real estate transaction.
]]>On Behalf of Weiss, Handler & Cornwell, P.A.https://www.weisshandler.com/?p=480352023-12-19T04:43:42Z2023-12-13T04:43:00ZRenting vs. Buying
The decision whether to rent or buy a commercial property can be based on financial considerations, the market in your area and other goals.
If you purchase a commercial property, you have the benefit of building equity in the property. This means that when you go to sell it you can make a profit which can be reinvested in your business, if you choose. It can also offer you more control over customizing the building to your needs and prevent rent increases or having to move.
One of the disadvantages is that you must pay all upfront costs, fees and the down payment on the property. It could also take time to sell the property, depending on the market.
If you rent a commercial property, it often requires less money up front which can help maintain cash flow. This can be especially helpful if your business is newer. It is also beneficial to know exactly how much your rent payments will be each month and you have less responsibility for maintenance and repairs. A lease can offer more flexibility if you need to relocate.
The disadvantages include less control over the property and requires permission from the landlord to make changes. You also will not gain equity in the property.
Researching the market
Before you decide whether renting or buying is the right decision, you may want to complete in-depth research of the market and consider how long you plan to have the business.
]]>On Behalf of Weiss, Handler & Cornwell, P.A.https://www.weisshandler.com/?p=480342023-12-12T18:40:04Z2023-12-06T18:33:46Zwhat constitutes a construction defect and how legal claims can be pursued if the sides cannot come to an agreement – financially or with repairs – to rectify the flaws.
Construction defects come in many forms
The simplest cause of construction defects is if there are defects with the materials, components or products the contractor used when doing the work. Perhaps sealants that are meant to keep out dampness and cold were insufficient. The way in which a roof was installed could leave the property vulnerable to leaks. Often, these are relatively easy repairs that can be done without significant dispute. However, if there is substantial damage or the claim goes beyond what the contractor thinks is reasonable, then there could be an extensive legal battle.
The building codes are fundamental when constructing or remodeling a property. When there is a material violation, a legal claim can be filed against the entity that committed it. With that, it is essential that contractors are cognizant of the building codes and get the proper permits and take the other necessary steps to make sure the work is legal. If there is a violation that can negatively impact the building or harm others, then there could be a claim based on this law.
In short, contractors are expected to adhere to the relevant statutes, use sufficient materials and behave in a professional manner. When there are claims that construction defects or code violations have taken place, it is important to know how to answer and address these cases effectively to avoid long-term problems for the business.
Contractors need legal protection
There are times when construction defect claims are legitimate and they must be handled quickly and efficiently. In other instances, the property owner is making frivolous claims that the contractor investigated according to the law and were unfounded. The law can sometimes be confusing for people who are trying to do the best job they can based on the requests and parameters laid out by the property owner. Some disputes can be negotiated and settled without needing to go to court. Others are more contentious. To be shielded from long-term challenges due to construction defects, it is useful to be full versed in the law and know what alternatives are available.]]>On Behalf of Weiss, Handler & Cornwell, P.A.https://www.weisshandler.com/?p=480332023-12-05T17:08:13Z2023-11-28T17:05:29Zlarger commercial real estate transactions.
Basically, a title insurance company will first arrange for a thorough title search and investigation into the history of a property that will be sold.
If they discover a title defect, they will exclude it from their policy. Ultimately, the title insurance company will issue a policy which agrees to pay, up to a certain amount, for financial losses related to a title defect that the company does not exclude.
The company also has the option to take legal steps to fix a title defect, and it has an obligation to defend the policyholder against lawsuits involving title to the property.
Like any other insurance, title insurance coverage is subject to certain terms and conditions. Title insurance policies are detailed legal contracts, and both the insurance carrier and the policyholder have certain rights and responsibilities.
But the benefit to title insurance is that, in a real estate dispute, the policy may allow a property owner to avoid having to pay legal expenses to defend the right to their property. They also have a financial remedy if they run in to a title problem which cannot be fixed.
Filing a title insurance claim
Title defects are surprisingly common.
Although it might be relatively rare for someone to literally buy another person’s real estate unawares, liens, easements, recording issues and the like can prove costly. A developer facing these costs may need to file a title insurance claim to protect their financial interests.
Filing and then prosecuting a title claim can be challenging. Title insurance companies do not expect to pay out on claims, which is why premium is only a fraction of the value of the real estate being insured. A developer that has run in to a title issue should prepare to advocate for their right to coverage.]]>