BERYS LAW | Business, Real Estate, Wills/Trusts

When dealing with commercial real estate, understanding the key legal terms in property contracts is crucial for protecting your interests and ensuring a smooth transaction. Whether you are a landlord, tenant, buyer, or seller, being familiar with these terms can help you avoid costly legal disputes and make informed decisions. Here are some essential legal terms and strategies to safeguard your commercial property investments.

Key Legal Terms in Commercial Property Contracts

Lease Agreement

A lease agreement is a legally binding contract between a landlord and a tenant that outlines the terms and conditions of the rental arrangement. Key elements include lease duration, rental amount, renewal options, and responsibilities for property maintenance.

Rent Escalation Clause

This clause specifies how and when rent will increase over the lease term. Rent escalations can be fixed (e.g., a set percentage increase annually) or tied to economic indicators like the Consumer Price Index (C...

Running a business requires not only strong leadership and financial acumen but also a solid understanding of legal terminology. Business owners must familiarize themselves with key legal terms to protect their interests and ensure compliance with the law. Here are ten essential legal terms every business owner should know:

Liability

Liability refers to a business’s legal responsibilities, particularly in terms of debts and obligations. Understanding liability is crucial in determining how personal and business assets are protected in the event of legal action.

Incorporation

Incorporation is the legal process of forming a corporation, which creates a separate legal entity distinct from its owners. Incorporating can protect owners from personal liability and provide tax benefits, making it a critical decision for business owners.

Intellectual Property (IP)

Intellectual property includes copyrights, trademarks, patents, and trade secrets. Protecting a company’s intellectual prope...

In the fast-paced world of business, verbal agreements may seem like a quick and convenient way to seal a deal. While verbal contracts can be legally binding in certain circumstances, they come with significant risks that can lead to misunderstandings, disputes, and even costly legal battles. Businesses that rely on verbal agreements often find themselves in vulnerable positions due to the lack of clarity, documentation, and enforceability.

1. Lack of Clear Terms

One of the primary risks of verbal agreements is the lack of well-defined terms. In business transactions, the details of an agreement—such as payment schedules, deliverables, deadlines, and responsibilities—need to be precise. Verbal agreements are prone to miscommunication, as the parties involved may interpret the terms differently. Without a written record to refer to, resolving discrepancies becomes challenging and may lead to conflicts.

2. Difficulty in Proving the Agreement

Even when both parties have the best inten...

Employee termination is a challenging and sensitive process that employers may face at some point. While it’s sometimes necessary for the well-being of a business, handling termination improperly can lead to legal liabilities and damage to the organization's reputation. By approaching the process legally and ethically, employers can ensure fairness, minimize risk, and uphold the dignity of the employee.

1. Understand Legal Obligations

Before proceeding with termination, employers must understand the relevant labor laws and regulations in their jurisdiction. These include:

• At-will employment laws: In many jurisdictions, employers can terminate employees at will, but not for illegal reasons such as discrimination or retaliation.
• Contractual obligations: Review the employee’s contract to identify any clauses related to termination, notice periods, or severance pay.
• Anti-discrimination laws: Ensure that the termination decision is not based on factors like race, gender, religion, ag...

When purchasing a home within a community governed by a homeowners' association (HOA), reviewing the HOA documents is a critical step. These documents outline the rules, regulations, and financial health of the community. However, many homebuyers make mistakes during this review process, leading to unexpected challenges after closing the deal. Understanding these common pitfalls can help buyers make more informed decisions.

1. Failing to Read the Documents Thoroughly

One of the most common mistakes is not reading the HOA documents in their entirety. These documents include covenants, conditions, and restrictions (CC&Rs), bylaws, and rules and regulations, which dictate what homeowners can and cannot do. For example, restrictions on exterior modifications, parking rules, or pet policies may affect your lifestyle. Skipping over these details can lead to conflicts with the HOA or dissatisfaction with the community rules.

Read more: Common Pitfalls in HOA Documents: What to Watch Out Fo...

Eviction is a complex process that landlords must approach carefully to ensure compliance with the law and maintain professionalism. Serving an eviction notice is a critical step in the process, and landlords must follow specific legal requirements while adopting best practices to protect their interests and the rights of tenants.

Legal Requirements

1. Understand Local Laws
   Landlord-tenant laws vary significantly by state, county, and city. Landlords must familiarize themselves with the regulations in their jurisdiction, including the types of eviction notices required, allowable grounds for eviction, and the timelines involved.
2. Valid Grounds for Eviction
   Legal grounds for eviction typically include nonpayment of rent, lease violations, illegal activities on the premises, or the expiration of a lease term without renewal. Landlords cannot evict tenants for discriminatory reasons or in retaliation for complaints about property conditions or other protected activities.
3. Proper Notice Typ...

Estate planning is not a one-and-done process. Life circumstances, legal changes, and evolving financial goals often necessitate revisiting and revising your estate plan. An outdated plan can lead to unintended consequences, such as disputes among heirs, unnecessary taxes, or your wishes not being honored. Below are ten key reasons to update your estate plan to ensure it remains relevant and effective.

1. Major Life Events

Life events like marriage, divorce, the birth or adoption of a child, or the death of a loved one can significantly impact your estate plan. For instance, a new marriage may require adding your spouse as a beneficiary or updating your will to include children from a previous marriage.

2. Changes in Assets

A significant increase or decrease in your wealth, acquiring new assets like a home or business, or selling valuable property necessitates an estate plan review. Ensuring that your new or existing assets are distributed according to your wishes is critical.

3...

A Spousal Lifetime Access Trust (SLAT) is an advanced estate planning tool designed to reduce estate taxes, provide asset protection, and allow for wealth transfer while retaining indirect access to trust assets. This trust is particularly appealing for high-net-worth individuals who want to take advantage of the lifetime gift tax exemption while maintaining some level of control over the gifted assets.

Key Features of a SLAT

Irrevocable Trust

A SLAT is an irrevocable trust, meaning once it is established, the grantor (the person creating the trust) relinquishes control over the assets transferred to it. This characteristic ensures that the trust assets are excluded from the grantor's taxable estate.

Beneficiary Spouse

The grantor's spouse is named as the primary beneficiary of the SLAT. This allows the spouse to access trust distributions for their needs, indirectly benefiting the grantor during the spouse's lifetime.

Wealth Transfer

While the trust benefits the spouse, it is o...

Renting a property can be a challenging process, and unfortunately, scammers often exploit the housing market to target unsuspecting renters. Awareness of common rental scams and knowing how to avoid them can save you time, money, and stress. Here are the top five rental scams and tips to protect yourself.

1. Fake Listings

One of the most prevalent rental scams involves fake property listings. Scammers copy legitimate listings and post them on different platforms at significantly reduced prices to lure renters. When interested tenants contact them, they claim they are out of town and request payment upfront to "secure" the property.

How to Avoid:

• Verify the listing by cross-checking it on multiple rental platforms.
• Research the property address to confirm its existence and ownership.
• Never send money before seeing the property and meeting the landlord in person.

2. Phantom Rentals

In this scam, the advertised property doesn’t exist, or the scammer doesn’t have the authority...

 Effective July 1, 2025, Assembly Bill 2801 (AB 2801) will bring significant changes to California's rental laws, particularly in how security deposits are handled. Designed to increase transparency and fairness, the bill aims to address long-standing issues between landlords and tenants over deposit deductions. Here’s a detailed look at what AB 2801 entails and how it will impact both parties.

Key Changes Under AB 2801

Photographic Evidence Requirement

AB 2801 mandates that landlords provide photographic documentation when deducting costs from a tenant's security deposit. This evidence must clearly show the damage or cleaning required beyond normal wear and tear. Additionally, an itemized statement of the deductions must accompany the photos.

This new requirement benefits both parties by:

• Giving tenants visual proof of the reasons for deductions.

• Encouraging landlords to document their claims thoroughly, reducing potential disputes.

Reinforced Timeline for Deposi...