Articles Tagged with “San francisco commercial lawyer”

The Consumer Financial Protection Bureau (CFPB) issued its first appellate decision. Because the CFPB supervises banks, credit unions, and financial companies its operations can have an impact on both the corporate and the real estate worlds. This case in particular has broad implications for those affected by the Real Estate Settlement Procedures Act (RESPA).

What is RESPA?

RESPA is a law designed to make sure consumers are provided with certain information about the cost of mortgage settlement and that they are protected from overly high settlement charges that can in some circumstances be considered the result of abusive practices. The law was created because decades ago companies involved with the buying and selling of real estate were engaging in undisclosed kickbacks to one another. This increased the costs of real estate transactions and negatively impacted competition. The law used to be enforced by the Department of Housing and Urban Development, but a few years ago the government transferred the enforcement authority to the CFPB.

If you are considering leasing space for your business or you are a property owner considering renting out your space, you need to carefully consider the terms of the lease you will be signing. One provision that is important but that often gets overlooked in the negotiations process is the assignment clause. There are some important things you should consider before agreeing to the assignment clause in any commercial lease. Keeping these important issues in mind can save you from a world of headaches in the future.

What is a Lease Assignment and How is it Governed?

Lease assignments are governed by California statute and the actual language of the lease. A lease assignment is a transfer of a lease by the lessee (the renter) to a third party. Because the third party that a lessee may wish to assign the lease to may not be a tenant the landlord would want to enter a rental agreement with, leases often contain limitations on assignment rights.

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