NEW LAW FOR COMMERCIAL PROPERTY OWNERS AND LESSORS

So, what is the new law for commercial property owners and lessors (landlords)?

As of July 1, 2013, according to Section 1938 of the California Civil Code:

“A commercial property owner or lessor shall state on every
lease form or rental agreement executed on or after July 1, 2013,
whether the property being leased or rented has undergone inspection
by a Certified Access Specialist (CASp), and, if so, whether the
property has or has not been determined to meet all applicable
construction-related accessibility standards pursuant to Section
55.53.”

This law was written to restrict unwarranted lawsuits brought under the Americans with Disabilities act.  That said, it is also a potential landmine for commercial property owners/lessors.  Although there is still no requirement that an owner or lessor actually go out and hire a CASp, they are now required to disclose whether a CASp has ever been hired for the given property. The decision to actually hire or not hire a CASp isn’t always clear cut, either. It might not always be the best idea to take the step.

To be in compliance with Section 1938, owners should certainly add language to their lease agreements stating whether or not they have hired a CASp. Furthermore, they should still make sure that they include language in their lease agreement that if a tenant’s use of the property requires additions or modifications to become ADA compliant, the tenant shall agree to make such additions or modifications, and bear the cost.

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For more information, please feel free to contact Bobby Kouretchian at Koza Law Group.

Mr. Kouretchian provides strategic counseling and customized legal service to individuals, families, entrepreneurs, estates and businesses in the areas of estate planning (wills and trusts), corporate law (formation, governance, finance), probate and fiduciary counseling.