This office lease form describes the provision used when under certain circumstances, the landlord is unable to give possession of the demised premises on the date of the commencement of the term.
New Mexico Standard Provision Used When Delivery of the Premises Is Delayed: In New Mexico, when it comes to real estate transactions and lease agreements, it is essential to have provisions in place to address any potential delays in the delivery of the premises. Such delays can occur due to various reasons, such as construction delays, unforeseen circumstances, or issues with obtaining necessary permits. To safeguard the interests of both parties involved, the following standard provisions are commonly used: 1. Force Mature Clause: This provision covers situations where the delay is caused by events beyond the control of the parties, such as natural disasters, acts of God, or government restrictions. It outlines the rights, responsibilities, and potential remedies for both the landlord and tenant in the event of a delay caused by these extraordinary circumstances. 2. Construction Schedule Clause: This provision is specifically relevant when the delay is attributed to construction or renovation work. It outlines the agreed-upon schedule for the completion of the premises and allows for adjustments if unexpected delays occur. It usually includes details on the consequences of delays, such as potential penalties or extensions to the lease term. 3. Notice and Cure Periods: A crucial provision in any lease agreement is the inclusion of notice and cure periods. This clause requires the party experiencing the delay to notify the other party promptly. It also provides a reasonable period for the defaulting party to rectify the situation, whether it be by expediting the completion of the premises or offering alternative solutions, such as temporary accommodations. 4. Liquidated Damages Clause: In the event of a delay, it is common for leases to include a provision specifying a predetermined sum of money that the defaulting party must pay as compensation for the delay. This liquidated damages clause protects the non-defaulting party from potential financial losses or disruption caused by the delayed possession of the premises. 5. Alternative Accommodation Provision: Sometimes, when the delivery of the premises is significantly delayed, the lease agreement may include a provision that allows the tenant to seek alternative accommodation while waiting for the original premises to become available, with the landlord assuming responsibility for any additional costs incurred. It is important to note that the specific language and requirements of these provisions may vary depending on the leasing parties involved, the nature of the premises, and the purpose of the lease agreement (residential, commercial, etc.). Consulting with a legal professional when drafting or reviewing such provisions is always recommended ensuring compliance with New Mexico law and to protect the interests of both parties involved.
