Making a Lease Land Lease Question

[Southeast US]

Jurisdiction

Virginia

If someone Leases a section of Land to a Business, who is responsible for the Insurance covering the Land and Business activities in question. The Landowner or the Business Leasing the Land?

Thanks

 

[adjusterjack]

That could depend on the terms and conditions of the lease but, generally, the business owner should be insuring his business for anything that happens as a result of his use of the land and the operation of his business.

The owner of the land should have landlord's liability insurance to protect himself from lawsuits. Even though he might not be liable for anything, the expense of hiring lawyers to defend a lawsuit could be astronomical. Landlord's liability insurance is comparatively cheap.

While it's common for a landlord to be an additional insured on the tenant's insurance, it's not a sure thing. Many things can go wrong that could end up eliminating the tenant's insurance when the lawsuit comes.

Best protection is to have your own insurance. Always. All ways.

 

[army judge]

If someone Leases a section of Land to a Business, who is responsible for the Insurance covering the Land and Business activities in question. The Landowner or the Business Leasing the Land?

Thanks

If you seek the CORRECT LEGAL ANSWER to your query, I suggest a LEGAL OPINION or LAWYER'S LEGAL OPINION VIA A "LAWYER LETTER" after retaining the services of a licensed Virginia Real Estate Attorney to draft one for you, and advise you PERSONALLY.

Don't seek the opinions of strangers IF your real money is (or could be) on the line!!!


Virginia devotes a couple of chapters in the state statutes to the rights and obligations of residential tenants and landlords. The statutes have almost nothing to say about commercial renters. Generally, Virginia law follows the lease: the tenant's legal rights are the ones she negotiated in the lease agreement and that's about it.

Maintenance
Unlike residential leases, nothing in Virginia law obligates a landlord to maintain the tenant's premises. If it's written into the lease that the landlord provide maintenance or repairs, then he has an obligation to do so, but otherwise he has none. The terms of the lease may be very specific: if the lease obligates the landlord to maintain the air conditioning, for example, that doesn't mean he's obligated to replace it, even if it runs very poorly.

Self-Help
Virginia is one of several states that allow a commercial landlord to perform a "self help eviction"; rather than going to court to evict tenants, the landlord uses tactics, such as changing the locks or shutting off building utilities. The landlord must do this without causing a "breach of the peace" -- having people thrown out bodily, for example, would be illegal. A landlord should also make sure that the grounds he claims for eviction are allowed under the lease, or a court may side with the tenant.

Security Deposits
Like the landlord's responsibility for repairs, the fate of commercial lessee's security deposits depends on what's negotiated into the lease. There are no laws governing the size of a commercial tenant's deposit, what sort of account it should be placed in or what the landlord can do with the money before settling up when the tenant leaves. The timing and the terms for returning the deposit also depend more on the lease than the law.

Precautions
The best protection for a tenant is to negotiate the terms of the lease. A tenant should know what terms he wants before signing, and never sign without reading it -- even if the landlord claims it contains all the terms they agreed on. Tenants who don't have the expertise to understand the terms should hire someone who does to negotiate for them. If having the right to sublet the lease or a guarantee of prompt maintenance is important, the only way to assure such things is through the lease.




Landlord Tenant Laws on Virginia Commercial Property[/B]

 

[zddoodah]

There's no such thing as insurance covering land (as opposed to structures on the land). As far as "insurance covering . . . business activities," there are any number of types of insurance. Some should be procured by the property owner, and some should be procured by the lessee. If you're more specific as to what you're talking about, you might get better responses.

 

[Southeast US]

There's no such thing as insurance covering land (as opposed to structures on the land). As far as "insurance covering . . . business activities," there are any number of types of insurance. Some should be procured by the property owner, and some should be procured by the lessee. If you're more specific as to what you're talking about, you might get better responses.

By Land, I'm referring to General Liability. If someone were to fall into a gopher hole and get hurt the GL would cover it.

As far as specifics, it would be Leasing the Land to an Auto Lot. Like storing vehicles on it for various reasons.

 

[zddoodah]

By Land, I'm referring to General Liability. If someone were to fall into a gopher hole and get hurt the GL would cover it.

As far as specifics, it would be Leasing the Land to an Auto Lot. Like storing vehicles on it for various reasons.

Ideally, the property owner should have a CGL policy. Similarly, the lease should require the tenant to carry liability coverage and have the landlord named as a co-insured or additional insured. Anyone involved in this sort of thing should seek advice from a good business insurance agent.