Blog Archives

Recent Changes to Beverly Hills Rent Control Laws

  On February 21, 2017, the Beverly Hills City Council (“City Council”) voted unanimously to amend its rent control laws.  Specifically, the City Council adopted the Amended Rent Stabilization and Urgency Ordinance (“Amended Ordinance”) to Chapters 5 & 6, of Title 4, of the Beverly Hills Municipal Code (the “BH Rent Control Laws”).  The Amended Ordinance creates the following three major changes to the BH Rent Control Laws: The BH Rent Control Laws now limit rent increases from a maximum of 10% annually to a maximum of 3% annually.  Specifically, Paragraph B of Section 4-6-3 of Chapter 6 of Title 4 now reads, Such increases shall not exceed the greater of: (1) three percent (3%) of the rental rate then in effect, or (2) the percentage

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Posted in Commercial Lease, Residential Lease

Unlawful Detainer: Evictions Pending Appeal

Landlords who successfully litigate unlawful detainer actions should think twice before evicting the tenant from the premises.  This is because tenants normally have a right to appeal the judgment.  Indeed, this issue was front and center in Breach Break Equities, LLC v. Lowell. The facts of the case are simple.  The trial court entered judgment against the tenant and issued a writ of possession.  Subsequently, the tenant appealed the judgment.  Nonetheless, while the appeal was pending the landlord evicted the tenant from the premises and sold the tenant’s property to a third party.  (See Breach Break Equities, LLC v. Lowell  (2016) 6 Cal.App.5th 847, 850-51.) The California Court of Appeal heard the case and reversed the possession order.  Moreover, because the landlord prematurely evicted the tenant the Court of Appeal

Posted in Commercial Lease, Commercial Lease Unlawful Detainer, Leases, Real Estate Attorney Los Angeles, Residential Lease, Residential Lease Unlawful Detainer, Writ of Possession

Estimated Rent in Commercial Tenancies CCP 1161.1

Unlike residential unlawful detainer actions, in commercial unlawful detainers the landlord is allowed to provide a three day notice of estimated rent provided the landlord indicates in the notice that it is in fact a reasonable estimate of the amount past due. California Code of Civil Procedure section 1161.1 (e) further provides that there is a presumption that the estimate is reasonable if it is within 20 percent of the amount actually due. If it is not, then it may not support an unlawful detainer for non-payment of rent. 1161.1 is worth reading if you are a tenant facing eviction by a landlord. It also has some interesting prevailing party language. It provides the following: “if (1) upon receipt of such a notice claiming an amount

Posted in Commercial Lease, Commercial Lease Assignment, Commercial Lease Disputes, Commercial Lease Unlawful Detainer, Real Estate Attorney Los Angeles

The Rams Effect in Los Angeles

The Rams coming back to Los Angeles was one of 2016’s trending topics, as Angelinos were excited to have an LA football team once again. With the return of the Rams, and a new stadium being underway, came a big impact in Los Angeles real estate. Just last month in October, there was an apartment complex in Hawthorne (an area near Inglewood) that sold for a breaking $25.8M! The price per square feet for that apartment complex was a whopping $305. Commercial properties in the area are selling from $300 up to $2,400 per square feet. Some of these commercial properties are even being advertised as being “next to Rams Stadium!” There are a lot of small business scattered near and around the area where

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Posted in Commercial Lease, Purchase and Sale, Real Estate, Real Estate Attorney Los Angeles

Usable Versus Rentable Square Footage

Schorr Law’s lead commercial real estate attorney was recently quoted on a popular website – After Class –  explaining the difference between usable square footage and rentable square footage in the commercial leasing context.   This term is sometimes referred to as the loss factor.  A simple way to remember the difference is that usable square footage is the actual space within the walls of the leased premises while rentable space includes a percentage of the common area too. At Schorr Law we help our clients negotiate favorable terms on commercial leases and commercial lease extensions and amendments.  We also have experience litigating nearly every aspect of commercial leasing disputes. To read Mr. Schorr’s recent quotes, click on the link below. What Is “Loss Factor” And How

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Posted in Commercial Lease, Commercial Lease Counseling, Commercial Lease Subletting, Commercial Real Estate, Real Estate Attorney Los Angeles

California Unlawful Detainers – Step by Step Overview

At Schorr Law, understanding and being proficient in the unlawful detainer process is a neccessary part of our practice.  In fact, although many of our cases involve issues of disputed title, partition, wrongful foreclosure, quiet title and even easements, often times one party tries to exert pressure on the other party through the use of an unlawful detainer action.  This is true because unlawful detainer actions are summary proceedings that are resolved on an expedited basis. At Schorr Law, our real estate attorneys also represent commercial landlords and tenants in unlawful detainer proceedings.  On a commercial level, the stakes can be quite high. Often times we are charged with evicting or defending businesses that have been in place for years, if not decades.  No matter how

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Posted in Arbitration, Commercial Lease, Commercial Lease Disputes, Commercial Lease Unlawful Detainer, Commercial Real Estate, Real Estate Attorney Los Angeles

Commercial Lease Indemnity Provisions

At Schorr Law, our Los Angeles commercial real estate attorneys have significant experience litigating all types of commercial leasing disputes.   Those disputes can arise out of the most basic terms or complex risk shifting terms often contained in commercial leases.  For example, most commercial leases contain an indemnity provision that require the tenant to reimburse the landlord for things like a slip and fall that occurs in the common area of a property.   Even though insurance usually covers these types of disputes, it is important to understand every term in a commercial lease – even boilerplate terms. Here is an analysis of a published California opinion dealing with a boilerplate indemnity provision. Morlin Asset Management LP v. Murachanian  The Facts: In summary, a commercial

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Posted in Boilerplate Provision, Commercial Lease, Commercial Real Estate, Real Estate Attorney Los Angeles

Commercial Leasing – Rentable versus Usable Square Footgage

What is the difference between rentable and usable square feet? This difference is important to know and understand in the context of negotiating a commercial lease and/or litigating a commercial leasing dispute.   Usable Square Feet is the actual space contained within the walls of the leased premises.  Typically, this is the area that you would visibly identify as the leased space and that the tenant exclusively occupies.  The calculation of the usable square footage does not include areas like lobbies, restrooms, stairwells, elevators, shared hallways and other common areas. In contrast, rentable square footage is the usable square footage plus a portion of the building’s common area or shared space.   For rentable square footage the commercial landlord assigns a portion of the shared space to the

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Posted in Commercial Lease, Leases

Bankruptcy & Unequivocal Intent To Assume The Lease

The Law on Assumption or Rejection of Leases Pursuant to Bankruptcy Code §365(a), a debtor in possession of real property, “subject to the court’s approval, may assume or reject any executory contract or unexpired lease of the debtor.” (11 U.S.C. §365(a).) In conjunction with Bankruptcy Code §365(a), the law further provides: [A]n unexpired lease of nonresidential real property under which the debtor is the lessee shall be deemed rejected, and the [debtor] shall immediately surrender that nonresidential property to the lessor, if the [debtor] does not assume or reject the unexpired lease by the earlier of— (i) the date that is 120 days after the date of the order for relief; or (ii) the date of the entry of an order confirming a plan. (11

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Posted in Commercial Lease, Leases

The Effect of SNDAs in Commercial Leases at a Foreclosure Sale

A tenant’s rights and obligations after foreclosure will depend on whether the lease had priority over the deed of trust (“DOT”) or mortgage in foreclosure. (See RNT Holdings, LLC v. United General Title Insurance Company, 230 Cal. App. 4th 1289 (2d Dist. 2014).) Ordinarily, when a DOT or mortgage has priority over a subsequent lease, the lease is terminated by the foreclosure of the DOT. Thus, the tenant would no longer have a right to possession. However, a lease that is recorded prior to the DOT has priority over that DOT and will normally be unaffected in the event that the DOT is foreclosed on. The result is that the purchaser from a foreclosure sale will have title that is subject to the lease. (See

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Posted in Commercial Lease, Foreclosure, Leases

Zachary D. Schorr’s Expert Appearance on the Dr. Phil Show

Zachary D. Schorr’s Expert Appearance on ABC’s Nightline

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Zachary D. Schorr has been named to the Southern California Super Lawyers (Rising Stars) list for attorneys in Real Estate for 5 straight years - 2012, 2013, 2014, 2015 and 2016. Each year, no more than 2.5 percent of the lawyers in the state receive this honor. In 2016 he was also included as one of the top 100 lawyers in Southern California in this category. The selection for this respected list is made by the research team at Super Lawyers.

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