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Resolving lease disputes in commercial real estate

On Behalf of | Sep 13, 2024 | Real Estate Law

Lease disputes in commercial real estate can cause serious issues for both landlords and tenants. These conflicts often arise from disagreements over rent, property maintenance, or lease terms. Fortunately, several legal strategies can help resolve these disputes.

Negotiation

The first step in resolving a lease dispute is direct negotiation. Landlords and tenants should communicate openly to find a compromise. Addressing issues early often prevents conflicts from escalating. It’s essential to approach these discussions with flexibility and a willingness to understand the other party’s perspective, which can lead to a mutually beneficial resolution.

Mediation

If negotiation fails, mediation is a good option. Trained mediators help resolve disputes without going to trial. Mediation is common both before and after one party files lawsuits and offers a quicker, more affordable resolution. Additionally, mediation allows both parties to retain control over the outcome, fostering a solution that both sides can agree upon.

Arbitration

Arbitration is more formal than mediation but still simpler than litigation. Some business leases have clauses that require parties to settle disputes through arbitration. It’s a faster option, though arbitration decisions are usually binding. This binding nature can provide a definitive resolution, but it’s important to understand that you may not appeal the decision.

Litigation

When other methods don’t work, litigation may be necessary. In New Hampshire, the Business and Commercial Dispute Docket handles certain business disputes, including commercial leases, which streamlines complex cases. Litigation, while often a last resort, ensures that the involved parties explore all legal avenues, and a judge’s decision can bring finality to long-standing disputes.

Choosing the right approach

In navigating lease disputes with commercial real estate, understanding the available resolution methods can make a significant difference. Each situation is unique, so it’s important to choose the path that aligns best with your needs and the specifics of your lease.