Death and disability clauses are sometimes added to commercial lease agreements, but careful consideration should be paid as to whether they are a good idea in your situation. On the face of it, these clauses provide protection to the tenant as detailed below and could be beneficial in careers where there is a high risk of injury from disability or otherwise. But these clauses are not perfect for every situation and so we are going to take a look at the pros and cons of these clauses to help you better understand your options about whether to push for these in your leases.
Before discussing the pros and cons, defining the term is important. A death and disability clause allows a tenant to step away from their commercial lease, even if the lease's terms are not up, if the main practitioner dies or becomes disabled and cannot work. This is a common clause considered for medical and dental practices that have one lead provider.
Some of the pros of a death and disability clause include:
Like most terms in a lease agreement, a death and disability clause is not perfect. Some of the cons include:
Commercial leases are complex and legally binding documents. Negotiating the proper terms requires negotiating skill and knowledge of the lease terms. A practice must weigh the pros and cons of all options, including death and disability clauses, to negotiate well and receive fair terms. Working with a skilled professional can help your practice get fair terms and proper protections. Contact the leasing experts at Dental & Medical Counsel if you have questions about your lease or need assistance with reviewing or negotiating lease terms.
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