Understanding the Termination Upon Death or Disability Clause in Your Lease

So what exactly does a death and disability clause do? It protects you, your family and/or your estate from liability under your lease in the event of your death or disability. It allows you or the entity through which you lease space (the “tenant”) to be relieved of all obligations under the lease. Without including such language, the tenant will remain obligated to perform all the terms under the lease, including, for example, paying monthly rent and common area maintenance expenses.

Remaining obligated under the lease can cause undue hardship. For example, if you are your medical practice’s sole provider and you become disabled or your practice loses a critical employee due to death, your practice won’t make money, as the practice can’t see and treat patients.

Of course, landlords aren’t the biggest fans of death and disability clauses because such clauses don’t benefit them. Even in the case where a landlord allows for a death and disability clause, it likely will come with conditions. For example, a landlord may require you or your estate to pay for costs associated with reletting the leased space and pay rent until a new tenant leases the space. Or, if the landlord funds your tenant improvements and they are of a significant amount, the landlord may require a hefty termination fee upon your death or disability to recoup those improvements costs.

If your landlord refuses to allow for a death and disability clause, it’s important to have a plan that comes into play upon your death or disability. That may be by having an arrangement in place where you or your estate sells your practice and the lease transfers to the buyer. In such a case, it’s important to have language in the lease that expressly allows for such a transfer.

Article by: Amanda Howard

What Can I Negotiate In A Commercial Lease Agreement?

commercial medical lease propertyBy: Chase Howard

Commercial leases are arguably the most one-sided contracts you could enter into while doing business. Most, if not all, commercial property owners and landlords will shift all of the liability of the premises onto the tenant. This includes maintenance, repair and replacement of structural components, roofs, wiring, plumbing, and even store fronts and sidewalks.

While a majority of the terms in a lease are “non-negotiable” there are a number that landlords can reasonably agree to change.Continue reading

What If My Landlord Is Also My Patient?

landlord as patientBy: Douglas Hughes, (Guest Blogger from CARR)

How do you handle a real estate negotiation if your landlord is also your patient?

Many healthcare tenants find themselves in this situation when approaching a lease renewal or relocation. Compounding the situation, is that most healthcare professionals are not prone to conflict or confrontation and would prefer to avoid them.  This creates a scenario where tenants want to obtain the best terms possible for their practice without upsetting their landlord and losing them as a patient.

In an ideal world, you could tell people exactly what you hope to achieve and then expect to receive a fair response. Unfortunately, commercial real estate is not one of those worlds! The difference between a properly or poorly negotiated lease or purchase contract can benefit or cost you tens to hundreds of thousands of dollars over a ten-year period. Understanding how much is really at stake during a commercial real estate negotiation changes how you should approach every transaction.

To help your perspective, look at these foundational questions:Continue reading

Buying a Dental Practice

buying a dental practice

buying a dental practiceBy: Chase Howard

Those in the practice of dentistry today have many options when it comes to building a practice. Should you work for an employer? Build your own? What about buy a practice? More and more, we see young dentists wishing to avoid private equity and buying out a retiring dentist’s practice. The amount of regulation imposed upon those entering into the dental practice arena can be staggering. Further, buying a dental practice requires many considerations that are unique to other areas of business. Understanding the purchase process will help protect your investment and could keep you from experiencing any unnecessary liability.

First, organize a team of specialized dental experts, such as a dental CPA, Professional Practice Lender, dental law attorney, and a practice consultant. Having a team of professionals guide you through all aspects of the deal will keep you on track, avoid potential issues, accomplish specific task items, and properly comply with any legal considerations.Continue reading

Complicated Relationships: Medical Director Contract, Marketing Agreement, Healthcare Consulting

medical director contract

medical director contractBy: Jacqueline Bain

Healthcare providers often have more than one relationship with each other. For instance, a physician may be employed by a hospital and also provide that hospital with medical director services. Or a healthcare consultant may also be a healthcare provider’s landlord. Oftentimes, these types of relationships are each memorialized in one or several contracts between the parties. And while, on their face, these contracts may seem to be compliant with applicable healthcare laws, when examined together, compliance and other contract issues may arise.Continue reading