Halloween V 1031 The Prize:

1
Halloween V - 10/31 - The Prize

• Army of Darkness The Directors Cut!

2
RentComponents and Approaches

• Fixed or Gross
• Triple-Net
• Escalators
• Percentage

3
Comparables and FMV

• Whats FMV?

• Whats a comparable?

4
Termination and Renewal

• Zlotolow
• Facts?
• What is the state law rule about compliance with
  renewal provisions?
• Why doesnt that rule apply here?
• If it had, result?
• Change the facts to change the result.

• Does the rule make sense?
• Based on the cases, do courts nonetheless cut the
  tenant some slack?

5
Drill Down

• Youve been asked to handle all of an apartment
  owners leases, and in reviewing its form lease,
  you find this
• Tenant shall have the right to extend this Lease
  for an additional term by giving effective notice
  to the landlord in writing. To be effective,
  notice must be given to the Landlord no later
  than three (3) months before the date on which
  the term would otherwise expire. Tenant may not
  extend this Lease at any time during which Tenant
  is in default of its rental obligations under
  this Lease.
• What changes would you propose, and why?

6
Surrender, Abandonment, Destruction

• Whats required for surrender to occur?
• Whats the consequence of it?
• Whats required for abandonment to occur?
• Whats the consequences of it?
• When property is destroyed, whats the tenants
  obligation? (See earlier.)
• Whats an exception (850 n. 3)

7
Holdovers

• What constitutes holding over?
• What are the rights and obligations it creates?
• Hirschfields teachings?
• Note often statutes or the lease terms replace
  the common law rule on this issue. Why do you
  suppose that is?