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Types of Commercial Leases

There are three basic types of commercial real estate leases which are organized around two rent calculation methods: “net” and “gross.” With a gross lease, a tenant typically pays one lump sum for rent, from which the landlord pays his expenses. The net lease has a smaller base rent, and the tenant pays other expenses. The modified gross lease is a happy marriage between the two.

Gross Lease Lease

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Month to Month Tenancies


In real estate law, a “Periodic Tenancy” has no defined ending date — the “term” keeps rolling over and over. (ex: month-to-month or year-to year). The tenancy continues for successive periods until the tenant gives the landlord notification that he wants to end the tenancy. In other words, if the landlord or tenant do not give the other a sufficient notice, the tenancy repeats (weekly, monthly, etc…) depending on what its initial periodicity. The periodicity might be stated in the lease; otherwise, it generally matches the rent interval.

How do I end a periodic tenancy?

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Elements of a Real Estate Purchase Contract

Well-drafted real estate purchase contracts in California should clearly delineate the terms of the deal – parties, price, escrow, closing date, time for inspections, etc… While it is not required that a real estate attorney look over your contract before closing, it is generally a wise idea. In some cases, the contracts do not contain all the necessary terms, or they contain language more favorable to one party. It may or may not be possible to claim that the contract is unenforceable once both parties have signed.

Indeed, in a 2008 Supreme Court decision, the court clarified that the only elements necessary for enforcing a real estate contract are the seller, the buyer, the price to be paid, the time and manner of payment, and the property to be transferred. If the case goes to court, the court can fill in based on what is usual and customary. The court also noted that if an essential element is reserved for the future agreement of both parties, there is no legal obligation until such future agreement.

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Human Resources: The Basics for a Small Business

The often-murky area of human resources generally consists of laws and regulations, which is probably part of the reason many small businesses often put off dealing with it. Avoidance is not the answer. Steer clear of legal hot water and potential employee claims with by keeping a close eye on these three HR areas.

1. Employee Files

Federal law clearly states that employers must keep three specific files for each employee in your business. These files are:

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