This office lease clause is a condemnation clause that illustrates a mild effort to deal with some of the issues In the event the whole of the building or a substantial part of the building is condemned.
California Condemnation Clause
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US-OL11015A
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FAQ
Regulatory Takings are the most common inverse condemnation situation and arise when a government entity passes some type of regulation that restricts a property owners ability to use their property. The common term for this is zoning.
Inverse condemnation is a constitutional remedy rooted in the Takings Clause of the California Constitution, allowing citizens to bring suit against the government when public actors effect a ?taking? by damaging private property.
A condemnation action is a lawsuit filed by a condemnor against persons (known as defendants or condemnees) who may have an interest in the property condemned or in businesses on it.
To successfully bring an action for inverse condemnation, the property owner must show that the a government's taking has failed to promote substantial governmental interests or has deprived the owner of the economic value of their property.
Tenant shall have no claim against the condemning authority, Landlord, or otherwise, for any portion of the amount that may be awarded as damages as a result of such taking or condemnation or for the value of any unexpired term of this lease; provided, however, that Landlord shall not be entitled to any separate award ...
Condemnation Clauses The clause gives the mortgage holder the right to all proceeds to be paid in the condemnation case up to the amount owed on the mortgage. Obviously, the bank can't take more than it is owed. The second type is based upon a calculation related to how much equity you have in your property.
Inverse Condemnation is a legal concept that entitles property owners to just compensation if their property is damaged by a public use. How does it work? Entities subject to inverse condemnation include the government, municipally-owned public utilities and investor-owned utilities.
Certain access points could be restricted, making the property worthless, which the government may do to purchase the property at a discount. Perhaps the biggest example of inverse condemnation involves the use of regulations to severely restrict what the landowner can do with the property.