When Lease Clauses Involve Valuation: Keeping the Appraiser in Mind

Arbitration and valuation are distinct processes, and the language creating each process should use terminology that will control the intended process, be that arbitration, valuation, or some combination of the two.

By Paula K. Konikoff

Leasing transactions often require the amount of rent, a purchase price, or other financial terms to be determined by some type of valuation process. Many parties and their attorneys prefer to use appraisers rather than brokers or other real estate professionals in that process because appraisers are required to comply with valuation standards, and those standards require them to be independent.

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