Linn County Commercial Real Estate Attorneys

In this video, our Linn County commercial real estate attorneys explain the different types of commercial leases in Iowa including:

• Gross Leases (also known as Full Service Leases)
• Net Lease
• Single net leases (N lease)
• Double Net Lease (NN lease)
• Double Net Lease (NN lease)
• Triple Net Lease (NNN Lease)
• Absolute Triple Net Lease
• Modified Gross Lease

As a business in Iowa, there are three basic types of commercial real estate leases you will see. These leases have two rent calculation methods, gross and net. A gross lease is when the tenant pays one lump sum for rent, from which the landlord pays their expenses. A net lease has a smaller base rent cost and the tenant is then responsible for other expenses relating to the unit. Finally, there is a modified gross lease which takes aspects from both styles of the leases. The following overview will provide an overview of these leases to help Iowa businesses make the best decision on their leases.

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In this video, our Linn County contract attorneys will talk about seven clauses of particular importance when reviewing the contract.

1. Description and Purchase Price: These items may be self-explanatory, but it’s important to note under “description” anything other than the address of the house. Also, you’ll want to make sure what is legally described in the title document matches up with the contract. Under purchase price, you will have the agreed-upon purchase price (this may be different from the original after negotiations) and the amount of earnest money that will be deposited upon agreement of the contract.

2. Real Estate Taxes and Special Assessment: Normally, the sellers must pay the real estate taxes attributed to the property for the year it was sold in, prorated to the date of the closing. So if you sell your house in April, you’ll be paying less in real estate taxes then if you sold your house in August. However, be sure to check the contract as sometimes there is the option for the seller to pay no taxes on the house during the transaction and instead transfer that burden to the buyer.

3. Time is of the Essence and Fixtures Clause: It’s important to note if “Time is of the Essence” is indicated on a contract because if certain deadlines are not met on the buyers or sellers end it could be considered a breach of contract and a reason for either party to back out without repercussions. The Fixtures clause indicates anything other than the walls, doors, winders, floor, etc that are not part of the overall structure, that would be included in the sale of the house. This may include items like window treatments, a pool table, a piece of furniture, etc.

4. Condition of the Property: This clause may include a number of sub-clauses, all centered around the condition of the property. The primary “condition of property” clause explains that—unless specified otherwise—the property will be kept in its current state until possession by the buyers and that all items will be in good working condition at the time of possession.

5. Remedies of the Parties: This clause usually contains stipulations explaining what happens in the case that the buyers or sellers fail to perform their contractual obligations in a timely manner and to what degree the opposite party can respond.

6. Residential Property Disclosure Statement: Iowa law requires the sellers to fill out a form disclosing the conditions of the various parts and systems of the house, such as HVAC, plumbing, previous water damage, etc to their best of their knowledge. This protects the buyers from coming into a house and suddenly finding something that the sellers most likely knew about, but didn’t disclose, and it wasn’t found on the inspection report.

Optional Provisions: Most real estate contracts in Iowa contain a number of optional provisions, which only apply if initiated by both parties. These include items such as purchase contingent on the sale of another property, buying the property “as is,” the seller’s right to continue to show the property while under contract, etc.

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In this article, our Linn County commercial real estate attorneys discusses five common remedies for breach of contract disputes. These include “Award of Damages”, “Restitution”, “Rescission”, “Reformation”, and “Specific Performance”. We at O'Flaherty Law Linn County seek to thoroughly explain possible outcomes to our clients. In cases of breach of contract, there are options and we are here to help navigate in any instance. Do not hesitate to contact us for experienced teams of lawyers to give you exceptional individualized client service. At O'Flaherty Law Linn County we make your legal goals, our legal goals.

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