• December 28, 2016

“As-Is” Condition

Sample Provision

“As-Is” Condition

“As-Is” Condition 800 450 Leasing REality | Commercial Real Estate Education

Pro-Landlord Language:

“Tenant represents that the Demised Premises and all electrical, heating, ventilating, air conditioning (if any), plumbing and other systems affecting the same have been inspected by Tenant and by Tenant’s engineers (or that Tenant has waived such inspection or will conduct said inspections by the Lease Commencement Date) and that Tenant shall accept the Demised Premises in its “as-is” broom clean condition on the Lease Commencement Date without representation or warranty, express or implied, in fact or by law, by Landlord and without recourse to Landlord as to the nature, condition or usability of the Demised Premises. Tenant acknowledges that its taking of possession of the Demised Premises shall be conclusive evidence that the Demised Premises were in good and satisfactory condition at the time such possession was so taken. Neither Landlord nor Landlord’s agents have made any representations or promises with respect to the physical condition of the Building, the land upon which it is erected or the Demised Premises, the rents, leases, expenses of operation or any other matter or thing affecting or related to the Demised Premises except as herein expressly set forth. Furthermore, Landlord shall not be responsible for making any improvements or alterations therein or for spending any money to prepare the Premises for Tenant’s occupancy, and makes no representation as to providing heat to the Premises of any kind or nature (including, without limitation, as to any heat that Tenant may receive as an ancillary benefit of the Premises being contained within a residential building).”

Pro-Tenant Language (to counteract Pro-Landlord “as-is” language):

“Notwithstanding anything to the contrary contained herein, Landlord represents that on the Lease Commencement Date (i) all electrical, plumbing, mechanical, HVAC and other systems currently serving the Demised Premises will be delivered in good working order, condition and repair, (ii) the Premises shall be free and clear of all violations that would prohibit Tenant from obtaining work permits for Tenant’s initial leasehold improvements, (iii) Landlord shall have delivered an ACP-5 stating that the Premises are free of asbestos-containing materials or otherwise in compliance with laws relating to asbestos or asbestos-containing materials and (iv) Landlord shall have substantially completed all of Landlord’s Work as described hereinafter on Exhibit __.” See Condition of Premises on Delivery of Possession below.

Condition of Premises on Delivery of Possession

Pro-Tenant Language:

“Notwithstanding anything to the contrary contained in this Lease, Landlord shall deliver the Premises to Tenant vacant, broom clean, with all prior installations removed, except for the fixtures and equipment specifically referred to in this Lease, if any, with the mechanical, electrical, heating, ventilating, air conditioning, lighting, plumbing and sewer systems in good working order, the roof, watertight and free of leaks, and the Premises in compliance with all applicable laws, codes, rules and regulations including, without limitation, free of any violations, and with Landlord’s Work (hereinafter defined) Substantially Completed (hereinafter defined). All of Landlord’s Work shall be done in a good and workmanlike manner and in full compliance with all applicable laws, codes and building requirements of the local authorities. Landlord agrees to procure and pay for all necessary permits, licenses and consents required in connection with Landlord’s Work. Landlord shall be responsible for the removal of any violations against the Premises, building or property. Landlord warrants that Landlord’s Work will be free of defects for a period of one (1) year after the Commencement Date and will, at its cost and expense, make all repairs thereto during said period (unless caused by the acts of Tenant). Landlord shall make available to Tenant (or enforce for Tenant’s benefit) all warranties and guaranties available in connection with Landlord’s Work.”