Common Causes of Commercial Property Disputes

Proactive action is often the best course of action when it comes to commercial property disputes as this can hopefully help you prevent a dispute arising.

The most common types of commercial property disputes are as follows:

• Arrears of rent; non-payment or late payment of rent by tenants is a common cause of conflict. It often results in legal action to recover the outstanding sums and potentially forfeiture of the lease by the landlord.
• Breach of lease terms; disputes between landlords and tenants regarding the interpretation and enforcement of the lease terms, this could include repair obligations, how the premises is used, or subletting.
• Break clauses; disputes can arise out of the operation of a break clause in a lease and the interpretation of the same.
• Service charge; disputes can arise here in respect to the amount and allocation of the charges to tenants. Issues can also arise over the items that the landlord is seeking to recover the charge for.
• Dilapidations claim; subject to the repair obligation in a lease a landlord may be entitled to claim compensation from the tenant where the property has not been left in a condition that the lease requires.
• Lease renewal; in commercial protected leases a specific process is set out for the renewal of a lease, if terms cannot be agreed an application to court will likely be necessary.
• Easements; disputes can arise between land owners, or those with right over land in respect to the enforcement of easements which grant certain rights on one party.
• Nuisance and trespass; claims of nuisance, such as noise or pollution, and trespass, where one party unlawfully enters another’s property, can lead to legal disputes.
• Sale and purchase disputes; disagreements arising from commercial property transactions, such as breaches of contract or misrepresentation, can result in litigation to resolve the conflict.

If you are considering exercising any of these claims against your tenant or landlord, our experienced team at Mullis & Peake will be able to guide you through the process and help you avoid any pit falls.