July 01, 2000

Lender Liability in Leasing Issue (2000, 14:04)

Dennis L. Greenwald

Lender Liability in Leasing Issues

Probate and Property, July/August 2000, Volume 14, Number 4

By Dennis L. Greenwald
Dennis L. Greenwald is a partner with Greenwald, Pauly, Foster & Miller in Santa Monica, California. He is Chair of the Real Property Division's Condition of the Premises (K-1) Committee and a member of its Remedies and Miscellaneous Clauses (K-5) and Specialized Leases (K-7) Committees.  

The potential for lender liability in the relationship between a landlord (borrower) and tenant is subtle. Because the lender's invisible (if not iron) hand can permeate the landlord-tenant relationship, lender liability can arise in a variety of ways that neither the borrower nor the lender ever contemplated. For this reason, leasing issues can be an unexpectedly fertile ground for lender liability claims.

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