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.