Lease Agreement Language

[copaaz]

Jurisdiction

Arizona

in my commercial rental lease there is a section with the following language. What is this and should I ask for it to be removed?

"Attorney-In-Fact. Tenant, upon request of any party in interest, shall execute promptly such instruments or certificates to carry out
the intent of Sections 13.1 and 13.2 above as shall be requested by Owner. Tenant hereby irrevocably appoints Owner as attorney-in-fact for Tenant
with full power and authority to execute and deliver in the name of Tenant any such instruments or certificates. If within fifteen (15) days after the
date of written request by Owner to execute such instruments Tenant shall not have executed the same, the Owner may, at its option, cancel this Lease
without incurring any liability on account thereof, and the term hereby granted is expressly limited accordingly."

 

[Zigner]

in my commercial rental lease there is a section with the following language. What is this and should I ask for it to be removed?

"Attorney-In-Fact. Tenant, upon request of any party in interest, shall execute promptly such instruments or certificates to carry out
the intent of Sections 13.1 and 13.2 above as shall be requested by Owner. Tenant hereby irrevocably appoints Owner as attorney-in-fact for Tenant
with full power and authority to execute and deliver in the name of Tenant any such instruments or certificates. If within fifteen (15) days after the
date of written request by Owner to execute such instruments Tenant shall not have executed the same, the Owner may, at its option, cancel this Lease
without incurring any liability on account thereof, and the term hereby granted is expressly limited accordingly."

Your specific question about whether you should ask for it to be removed involves giving legal advice, which is beyond the scope of this, or any, internet forum.

You may, however, be able to get some general advice if you also share sections 13.1 and 13.2.

 

[copaaz]

13.1 Attornment. Tenant shall, in the event any proceedings are brought for the foreclosure of, or in the event of exercise of the power
of sale under any, ground lease, mortgage or deed of trust made by the Owner covering the Leased Premises, attorn to the purchaser upon such
foreclosure or sale and recognize such purchaser as the Owner under this Lease.


13.2 Subordination. Upon request of the Owner, Tenant will subordinate its rights hereunder to the lien of any ground lease, mortgage
or deed of trust, or the lien resulting from any other method of financing or refinancing, now or hereafter in force against the Office Building or the
Leased Premises and to any and all advances made or hereafter to be made upon the security thereof.

 

[zddoodah]

in my commercial rental lease there is a section with the following language.

Has this lease already been signed by both parties, or is this a lease in the process of being negotiated?

What is this

Section 13.1 means that, if ownership of the building changes, you agree to be the tenant of the new owner.

Section 13.2 means that, in addition to your lease being subordinate to any already-existing encumbrances, you agree to subordinate your leasehold interest to any new encumbrances resulting from financing or refinancing.

The language quoted in your original post means that, if you don't sign documents to give effect to 13.1 and 13.2, you are appointing your landlord as your attorney-in-fact to execute such documents. In other words, you, as tenant, are giving power of attorney - for those limited purposes - to your landlord.

should I ask for it to be removed?

As Zigner indicated, this question calls for specific legal advice. Only an attorney admitted to practice law in your state may legally give such advice.

 

[adjusterjack]

I doubt that the LL will remove any terms.

Don't take the place if you don't like the terms.

 

[army judge]

Don't take the place if you don't like the terms.

I second the comment above, and endorse it's message!!!