Building Better Leases Series – Term: Lessee Compliance

Building Better Leases

Many tenants put obtaining insurance low on the list of priorities when moving into a new building. The Lessee Compliance ensures that tenants are in fact covered by insurance. The Lessor can withhold possession of the Premises until such evidence is shown, so it’s important that Lessee’s are aware of this clause prior to the Commencement Date so that they can move in on time. Possession is not given to any tenant until the landlord is in receipt of the fully executed lease, all monies due and receipt of the certificate of insurance, at the soonest.

It is not uncommon to have property managers request a valid certificate of insurance annually to ensure that the tenant continues to keep the policy active.

The information provided does not, and is not intended to, constitute legal advice; instead, all information is for general information purposes only. Consult an attorney for legal advice.