This office lease clause lists a way to provide for variances between the rentable area of a "to be built" demised premises and the actual area after construction.
The Vermont Remeasurement Clause is a legal provision used specifically in real estate contracts to address discrepancies that may arise between the rentable and actual area of a space to be built. This clause is inserted into lease agreements to ensure fairness and accuracy in determining the rent and other financial obligations related to the leased property. When a building is being constructed, there is often a disparity between the rentable area, which includes not only the usable space but also common areas such as entrances, hallways, and restrooms, and the actual area of the space being leased. The remeasurement clause is included to protect both the landlord and the tenant in such situations. The purpose of the Vermont Remeasurement Clause is to provide a mechanism for reevaluating and adjusting the rent and other financial terms of the lease if there is a significant variance between the rentable area initially agreed upon and the actual area upon completion. This clause acts as a safeguard against potential disputes and ensures that the tenant pays a fair and equitable amount based on the true size of the space they will be occupying. Different types of Vermont Remeasurement Clauses used to handle discrepancies between the rentable and actual area include: 1. Absolute Remeasurement: This type of clause allows for an immediate and complete recalculation of the rent and other financial obligations once the actual area is determined. The rent and other lease terms will be adjusted based on the updated measurements of the space. 2. Gradual Remeasurement: In this variation of the clause, the rent adjustments are phased in over a period of time. The initial rent may be determined based on preliminary measurements or estimations, with subsequent revisions occurring at predetermined intervals or milestones during the lease term. This gradual approach helps to mitigate the financial impact on both parties and facilitates a smoother transition. 3. Remeasurement Dispute Resolution: This clause outlines the procedures for resolving potential disagreements between the landlord and tenant regarding the remeasurement process. It may include provisions for professional third-party measurement experts to be consulted, mediation or arbitration methods, and a timeframe for the resolution of disputes. In conclusion, the Vermont Remeasurement Clause is a crucial tool used in lease agreements to address discrepancies between the rentable and actual area of a space being built. It ensures fairness and accuracy in determining rent and other financial obligations, protecting both the landlord and the tenant. Different types of remeasurement clauses, such as absolute remeasurement, gradual remeasurement, and remeasurement dispute resolution, provide flexibility and clarity to handle variances effectively.
