This office lease clause is a condemnation clause that illustrates a mild effort to deal with some of the issues In the event the whole of the building or a substantial part of the building is condemned.
The Delaware Condemnation Clause is a legal provision found in real estate contracts or agreements that addresses the rights and remedies of parties involved in a property transaction in the event of governmental condemnation actions. It outlines the obligations of both the property owner or seller and the buyer in regard to property that may be taken or affected by eminent domain or condemnation proceedings. One type of Delaware Condemnation Clause is the Standard Condemnation Clause. This clause stipulates that if the property is condemned before the closing of the transaction, the buyer has the option to either proceed with the purchase or terminate the agreement. If the buyer chooses to terminate, any deposits or payments made are typically refunded. In case of partial condemnation, where only a portion of the property is taken, the buyer can choose to continue with the purchase, with the price adjusted based on the diminished value of the property. Another type is the Option to Terminate Clause, which grants the buyer the right to terminate the agreement if the property is condemned before the closing date. This clause offers more flexibility to the buyer, allowing them to withdraw from the transaction without any obligation to proceed further. The seller may be required to refund any deposits or payments made by the buyer in such cases. The Delaware Condemnation Clause may also include provisions for the allocation of condemnation proceeds. This ensures that any compensation received by the property owner as a result of the condemnation action is distributed appropriately between the parties involved in the transaction. It is essential for both buyers and sellers to carefully review and understand the Delaware Condemnation Clause and its implications before entering into a real estate agreement. Consulting with a qualified real estate attorney is advised to ensure that the clause adequately protects the interests of all parties involved and provides a clear framework for handling potential condemnation scenarios.
