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Landlord Repair Warranty

Landlord Repair Warranty

As discussed in a prior blog entry, landlord lease forms generally require that the tenant lease the premises in an “as-is” condition (see: https://azleaselaw.wordpress.com/2010/04/19/landlord-representations-and-warranties/).  This is often the case even if the landlord, through its contractor, is making the tenant improvements at the premises.  While representations and warranties from the landlord can be valuable, the most practical solution is for the landlord to warrant that the premises will be in a good and operable condition for a certain time period AND promptly make repairs.  In addition, it is reasonable for the tenant to be permitted to occupy the space to find out what latent conditions may exist.

Following is a sample provision for a landlord repair warranty:

Landlord warrants that the Premises and all systems serving the Premises will be in a good and working condition as of the Lease Commencement Date.  For a period starting on the Lease Commencement Date and ending on the date that is sixty (60) days following the Lease Commencement Date, in addition to all other obligations set forth in this Lease, Landlord agrees to make repairs to the Premises and all systems serving the Premises that are necessary to bring the Premises into a good and working condition, unless such repair is caused by the misuse, negligence or intentional misconduct of Tenant.  Landlord shall commence repairs promptly following written notice from Tenant, but in any event within forty-eight (48) hours following receipt of the notice, and Landlord shall diligently pursue completion of the repairs.  During the repairs, Landlord shall minimize any interruption of Tenant’s business at the Premises.

If the landlord is unwilling to make a repair warranty as described above, the landlord may be willing to assign the “call back” warranty from the landlord’s contractor.  In that case, the tenant should request the assignment of all construction warranties and the ability to contact the contractor directly for repairs, with the bill sent to the landlord.

Prior to using any language or concepts from this blog entry, consult with an attorney.

Ryan Rosensteel is a real estate and construction attorney licensed in Arizona.  You can contact him at rrosensteel@rrlawaz.com.

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