Landlord Impediments to Subleasing and Assignment - Recapture, Profit Sharing, and Restrictions on the Exercise of Options Features 21 Probate and Property 2007

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21 Prob. & Prop. 42 (2007)
Landlord Impediments to Subleasing and Assignment - Recapture, Profit Sharing, and Restrictions on the Exercise of Options

handle is hein.journals/probpro21 and id is 172 raw text is: Landlord
inmp edimets to
Subleasing d
Assignment
By Sidney G. Saltz

andlords frequently frustrate
tenants' proposed assignments
and subleases by permitting
such transfers only with the landlord's
consent. Tenants who surmount the
consent hurdle are often confronted
with three additional hurdles contained
in their leases-the landlord's right to
terminate the lease or to exclude the
portion of the premises proposed to be
transferred (usually referred to as the
right to recapture), the right to profits
that the tenant is to derive from the
transfer, and the prohibition on the
exercise of options if the tenant itself is
not in occupancy of all or substantially
all of the premises.
The stated rationale for the inclusion
of the landlord's rights under these
Sidney G. Saltz is a Senior Counsel in
the Chicago office of Holland &
Knight LLP and the supervisory
council member for the Land Use and
Environmental Group.

42 PROBATE & PItoPR'n' o MAY/JUNE 2007